Self-sufficiency and market liberalisation: complimentary or contradictory?

4 10 2006

Since the term sufficiency model was introduced by the King, many academicians and businessmen criticise the concept saying that it is contradicted to an economic policy of market liberalisation upheld by the previous government. With the recent statement and explanation of Mr. Pridiyathorn Devakula, the head of the economic team for the new interim government and also governor of the Bank of Thailand, one can now understand that economic policy of economic sufficiency and market liberalisation can coexist by boosting growth from exisitng resources. They are a good combination and can compliment each other rather than contradict one the other.

With market liberalisation alone, growth would be boosted too fast beyond the limit of the country and with no sufficient savings. This would make us rely more on foreign capital and would eventually lead to financial crisis like in 1997. A sufficiency economy can coexist with market liberalisation as long as economy did not grow to exceed its capacity. Excess growth would produce inflation and bring about capital outflows. Focusing on self-sufficiency, the country will have to boost resources to support economic growth. However, economic growth must not exceed exisitng savings. The country must restrain the economy from expanding to a degree that creates a negative impact on the environment and finally affect people’s “balance of life”.

So how can I as individual can help sustain sufficiency economy? Well, to start with may be not to spend more than I earn. Ummmm……………………something to think about……..



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