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Thailand adapts well to disasters, but mitigation?

Published on 26 November 2014 Thailand

“Adaptation and mitigation" is a phrase we are hearing more and more often following natural disasters linked with climate change. And it's true that humans rule the world today because we adapted better to natural conditions.

Indeed, Thais continue to demonstrate humanity's unmatched ability to adapt. Most businessmen now prefer to remain silent about the economic growth rate this year, which could well fall below 2 per cent. (The International Monetary Fund's forecast is the lowest, at 1 per cent). Along with officials at the Finance and Commerce ministries, they are of the view that it is better to look at the long term, when the economy is projected to expand at 5 per cent annually.

The optimism is reserved for next year, when orders should return along with private consumption and investment. Most Thais share that feeling. They still expect the usual bonuses this year, but they kind of understand if the payments are lower than 2013 when the economy was expanding at a healthier rate until it was dragged down, mainly by political instability in the last quarter, to 1.8 per cent.

Like most people in natural disaster-hit zones, businesspeople and officials are adapting by looking beyond 2014. Fishermen are adapting to dwindling fish stocks by raising crabs. Residents in flood-prone areas adapt by raising their houses with piles or stilts. Likewise, salary earners have adapted by spending more wisely. They still visit malls, but the shopping lists are now shorter. It's often the high-cost goods that have been crossed out. Car sales dropped by over 30 per cent in the first nine months of this year. And for the first time since hire-purchase loans were made available in Thailand, auto companies are offering zero interest for four to six years on certain models. Property developors are offering free furniture and discounts worth Bt500,000 on homes priced Bt4 million-Bt6 million. Politically, most Thais are now convinced that the worst has passed. Let's hope so. Though having a military-dominated government torpedoed Thailand's bid for a seat on the United Nations Human Rights Council, to many the coup and prolonged military rule seems unavoidable given the alternative of political violence. One question we need to ask ourselves is what Thailand would look like today if the political stand-off were still ongoing.

The peace explains why most Thais polled are still happy with the junta's performance months after the coup. It also explains why the Army is still hopeful that its political "reform" package, in which its rivals have played no part, will be successful in charting a new course for the country. In a way, Thailand is in the middle of its latest stage of adaptation. But how we can mitigate the negative causes that led us to this point?

On the economy, to mitigate negative impacts from global uncertainties, Deputy Prime Minister MR Pridiyathorn Devakula envisages a transformation into a digital economy. That means Thailand's businesses will exploit digital technologies to increase their performance. Pridiyathorn told the Straits Times he is convinced that the master plan would be ready in a year, amid widespread scepticism things could progress so quickly. E-commerce in Thailand was worth Bt744.4 billion in 2012, less than 10 per cent of the size of the economy, according to the National Statistical Office. All Thai companies have computers in their offices, but how many of them know about cloud computing? The Bank of Thailand has reiterated many times that Thailand's exports, which normally contribute 70 per cent of total economic output, have recovered slowly because a big portion of our products are non-sophisticated items with low margins.

Let's see if the digital economy theme will change that scenario. Politically, it remains to be seen what Army-endorsed members of the National Reform Council will propose. Also worth noting is how this transformation, triggered by a military beyond civilian control, will affect Thailand's civic life and politics in the long run. What if the reform agenda stirs new resentment? Well, then we can anticipate another round of political turmoil. And given high satisfaction levels expressed in polls on the 2014 coup, the Army might be tempted to stage another coup to neutralise the situation, rather than seek solutions that do not involve military intervention and unnecessary spending to finance undemocratic rule. More reforms would then follow and Thailand would fall back into its vicious political cycle. If this situation repeats itself and we adopted this practice in combating climate change, Thailand would quickly be wiped off the world map. Will we be among those countries which never adapt?

Source: The Nation | 4 November 2014