Speaking on "Perspective on Thailand's Economic Development" at the official opening of the TNN 24 news station, Dhanin Chearavanont, chairman of the Charoen Pokphand Group, said Thailand was the freest country in the world.
"I'm quite confident the present political turmoil will be over quite soon and that the situation will not worsen. I believe there will be compromise," said Dhanin.
He said the unrest had damaged the local tourism industry. Thailand attracts about 15 million tourists from around the world each year, with an average length of stay of nine days.
"Thailand gains Bt450 billion from tourism annually, and this extends to many related industries, such as services and hotel. Tourism is a business that has no effect on the environment and carries no material costs," Dhanin said. "Thailand has plenty of opportunities in the long term. The country also has 'oil on the ground', which can be used forever."
Dhanin said the country had 67 million rai of farmland.
He suggested the governฌment invest in an irrigation system to improve productivity of 25 million rai of paddy field so that farmers could grow three crops a year instead of two like at present.
He said the remaining 42 million rai of farmland should be allocated for other agricultural products. About 20 million rai should be set aside for rubber, 10 million rai for tapioca and 12 million rai for oil palms.
The government should apply biotechnology to increase the productivity of those agricultural products. Nuclear power should be used to genฌerate electricity instead of hydropower, which is used now.
The nation's transportation system should be upgraded to deliver agricultural products more effectively to domestic and international markets.
Dhanin said the governฌment should find ways to boost people's salaries and float conฌsumerproduct prices.
He blamed the present government for bad policies regarding the price of farm products. The government does not try to push prices up, and the rural poor end up subsidising people in urban areas.
"I'm concerned Thailand will experience deflation, not inflation, because product price hikes will lead to lower consumer spending. The government should follow the 'twohigh theory': high salaries and high product prices," said Dhanin.
He said the theory would in return provide higher tax revenue to the government. Farmers and the poor would be less inclined to sell their votes in elections, because they would enjoy higher income and other benefits.
"Once local farmers have higher income and benefits, the banks will be encouraged to give more loans. Those farmers will enjoy greater power to initiate new technology to increase proฌductivity, and then the price of their agricultural products will be cheaper," said Dhanin.
Dhanin said Thailand needed to produce more "high quality" people, such as skilled technicians but also chefs, hotel managers and nurses.
The Nation, September 10, 2008