Sufficiency economy pondered upon

"Sufficiency economy" can be better understood if it is seen as something quite uniquely Thai, with all its cultural nuances and non-translatable terms. It could be better understood if one is able to speak Thai and has followed its debate, discourse, promotion and implementation in the Thai language. When one tries to explain it in English, there are frustrating confusions, such as, is it an economic thought? Or is it a Buddhist philosophy? Is it the same as sustainable development or environmental sustainability? Most importantly, is it worth discussing or can it be applied anywhere else but in Thailand?

The person explaining from the Thai point of view can't explain it sufficiently, first, because of that frustrating incompatibility of the English language for explaining many Thai concepts. On top of that he/she is also challenged to apply western economic concepts to something that is more an expression of Buddhist philosophical thought than an economic thought. One speaks about the mind and its effects on the quality of life while the other speaks about quantitative monetary concepts. One calls for a middle way that considers family and community relationships and environmental responsibility, while the other is just looking for cost efficiency or the best price that expresses the right balance between supply and demand. How do you quantify the diverse levels of how each unique individual defines what is "sufficient" for him or his community? Price, demand, supply, efficiency, etc. becomes hopelessly inadequate as measurements. How does one quantify generosity or charity or a 'right' mind? Because sufficiency economy fails to answer these questions, its critics declare that it is not an economic thought nor a viable economic model.

The story of sufficiency economy developed in Thailand nearly along the same timeline as the story of how sustainability caught on as desired developmental goal recognized by the UN in 1972 at the UN Conference on the Human Environment held in Stockholm, popularized 15 years later with the Brundtland report (1987) and adopted as a major wold challenge at the Rio Earth Summit (1992). In Thailand, sufficiency economy was being shaped and implemented as an economic thought since the late fifties/early sixties when a young king travelled laboriously around his country initiating development projects where he could to better the lives of people in remote areas.

Despite its current popularity, sufficiency economy is not a mainstream economic model in Thailand. It is more like a supplementary prescription for the shaping of economic activities to counteract the ills of a dominantly capitalistic model. Sufficiency economy as an alternative economic thinking is one that is gaining ground one poor village by one poor village converted, as individuals who were inspired by its principals implemented and demonstrated successful local action again and again. In many cases, villages that could not feed themselves started growing their own food as an alternative to growing cash crops that had only caused them to become increasingly indebted. Instead of buying expensive fertilizers, they have expanded the supply of organic food, some even becoming successful with an export niche market.  At the same time, depleted forests are being regenerated and a future in which environmental and community awareness where values such as love, friendship, and generosity gain triumph over profit and greed are being re-enforced.

A recent article, "Sufficiency Economy" was published by PETER JANSSEN on The Manila Bulletin (http://www.mb.com/, December 27, 2010:  http://www.mb.com.ph/articles/295104/sufficiency-economy ), focused on a Thai abbot at Doi Pha Som forest temple (วัดธาตุดอยผาส้ม) in Chiang Mai, Sorayut Chayapanyo (พระสรยุทธ ชยปัญโญ), who had rebuilt an old temple, regenerated the surrounding forest, and helped villages grow out of debt. Stanford educated, but rejecting that privileged knowledge, he explains sufficiency economy as not being 'anti-capitalist' nor 'anti-Western', but as something between market economy and socialism. Sufficiency economy was shown as being meaningful in impoverished rural areas where access to the market economy was difficult. Money or greed were no longer the main locomotive of local economic activities once people learnt how to search for ways to become dependant on what they had.

This was not a new story for me. I have heard many very interesting local stories of how poverty was transformed into resourcefulness over the years adopting those principals proposed by the Thai King, proposed in his annual speech of 1972. What this story gave to me, this time, was the realization that it was the availability and strength of a localized social network or social structures, very particular to Thailand or maybe a Buddhist society, that plays an important role in nurturing the emergence of leadership or inspired action by individuals in the successful implementation of a sufficiency economic model.

Before Thailand became a modern economy with its building blocks in the late fifties/early sixties, much of its rural economy, community life or social fabric was structured around the temple. The temple was not simply a religious institution, it was also the place where education was being given, funds being raised for community development, and where the binds of society were formed and strengthened. In many cases, it was the ground where many non-monetary activities were supplementing the economic livelihood of its communities, with its festivals and fairs, funerals, alms giving and donations.

This was a social network that encouraged individuals to make a difference, usually with very small means.  As the modern economy grew, the state and modern markets took over much of the role that the temple played. Festivals are now just commercial events hosted on government grounds. They don't do much for that very personal tie that binds. As a modern Thai, I don't remind myself the value of giving each single day as my mother does, just by consistently getting up every morning to cook rice for a group of passing monks.

When I read yet another story of how one person transforms a community, it dawned on me that poverty is not converted by economic intervention, but by changing the emphasis on our values. When we review what we want of the world by starting a review of  our minds, not from the point of view of what objects or things we need, but from a point of view of what qualities in life we really need to make us contented, we can come to realize that we really don't need all those consumerist products and services the markets try to push on us. We then realize that we don't need to focus on chasing money so much when we can focus on just trying to define what makes us contented.

The middle income trap

The Nation on Sep. 12, published an article announcing ADB's approval of a $300mn loan to Thailand to develop its capital market. The 15 year period loan is to be used in support of the Thai government's Capital Market Development Master Plan for 2009-13 for the development of the equity market, bond market and money market in four areas: regulatory environment; market efficiency, liquidity and transparency; market infrastructure; and new products and investors. 

The government has made substantial headway in developing Thailand's capital market. Recent measures included establishing a timetable for the demutualisation of the Stock Exchange of Thailand, strengthening the surveillance and enforcement capabilities of the Securities and Exchange Commission, moves to develop the domestic bond market, and simplifying taxes on financial transactions. There has also been activities organised to improve public financial literacy.

What caught my interest was the mention of the capital market development plan's goal to help the country "transform from a middle-income to high-income economy through increased contribution of the domestic capital market to financing domestic investment and economic growth".

"The middle income trap" seems to be a recent development agenda that is being 'pushed around' at the moment. I remembered having recently read an article at Time about Malaysia's dilemma with this interesting concept. I had felt then that the writer didn't do much justice for Malaysia. However, it seems that this economic criticism is gaining some weight among policy makers. Here are a couple of related articles:

The Star, "Caught in middle income trap"

China Law Blog, "China, Malaysia, Korea And The "Middle Income Trap"

From an economist's blog, "Getting out of the middle income trap"

From a Vietnamese point of view, "Avoiding the middle-income trap: renovating industrial policy formulation in Vietnam"

From an Indian point of view, "The middle income trap" and "The challenge is to escape the middle income trap"

Of course, moving towards a higher income economy is a desired goal, but I can't help wondering. Is the simple focus on "income" levels obscuring other desired developmental goals? Like income distribution for one? Does higher income come with skewered income distribution? If it does, well, maybe it's okay to be "stuck" for a while, until those higher income countries can show us that people with lower income in their countries are receiving desired benefits of higher income, let's say... a good welfare service system for one, no?

Some recommendations of how to escape the middle income trap:

• a managed growth program with higher income, stronger currency, while maintaining a flexible foreign exchange regime and inflation control targets
• a more efficient capital market, availability of capital for sme and local firms to grow
• R&D spending
• tax reform (capital gain tax)
• investment in human resources
• developing an ability to produce and contribute to the global economy via home grown innovations

Economics aside, I think there are other socio-political issues that can cause a country to be stuck, my own list:

• political instability, stunted political development
• corruption
• a polarized society
• debt
• lack of investment in infrastructure and human capital
• energy self-sufficiency

To cap off, I found this interesting and useful guide, from You can read the Bangkok Post, by Jon Fernquest, "Avoiding the middle income trap: The challenges ahead for Thailand"

The winding road to Rachaprasong

Just wanted to note Philip J. Cunningham' excellent post on how it's not just simply red vs. yellow, government vs, people, or whatever.  It's much, much more complex.

Please read in Phillip's own words at "The Long Winding Red Road to Ratchaprasong and Thailand’s Future" on his blog Frontier International.

A different auteur: Apichartpong Weerasethakul

Congratulations to Thai film director, Apichartpong Weerasethakul, for winning the Palme d'Or at the Cannes Film Festival 2010 for his film "Uncle Boonmee Who Can Recall His Past Life".

I remember that as I was watching one of Apichart's film, "Tropical Malady" at TIFF, after it had won the Cannes' Jury Price in 2004, in the dark trying to understand what he had wanted to say with his movie, I'd noticed quite a number of viewers who'd just simply given up and walked out. Of course, they were under the pressure of a film festival where one only wanted to see as many films that attracted one as time could permit. I toughed out quite a number of cringes and perplexities... to be surprisingly rewarded by a few really subliminal forest and country scenes. I was transported across time and space to moments in my own past when I, myself had commuted with Thailand's many beautiful nature scenes. One memorable beautifully shot scene of a huge tree swaying in the moonlight had made the whole movie worth watching. I left the cinema that night wondering if a viewer who had never been in such an atmosphere before would have felt something similar to what I'd felt. The story he was trying to tell itself, though, made no sense at all. Apichart's skill was not in narrative.

A year later, I made an even greater effort to understand Apichart's films by watching "Syndromes and a Century" and even bought a DVD one of his first movies, "Mysterious Object at Noon", from Bay Street VDO, one of Toronto's blessing for those who are intrigued by different kinds of film. 

Apichart is skilled at evoking memories of a time past.  His movies aren't about contemporary Thailand, but he portrays a Thailand that informs many of our present moments in such an intriguing way that you end his movies asking questions about your own perceptions of those times, or even asking about your perception about perception. 

I think what the jury at Cannes this year voted for was a "yes"; the world of cinema is ready for  surrealism from a Thai point of view.  Apichart's win and the timing of his win was as surreal as his movies. Under the fall of volcanic ashes, his themes of death and dying, belief in reincarnation, belief in a world where other forces besides human's co-existed amongst us, were like a sad mystical echo for those lives lost in the streets of Bangkok.  His memories expressed in Uncle Boonmee's story came from another time in Thailand's history when ideals also fell under conventional forces of repression. Ideals that were eventually proven false but still its loss painfully felt for those who had experienced it. I suppose this is an artist's way of putting out that big question, "Why?"

I hope to see more of Apichart's work. Even if I will be left full of questions, and his work is likely not going to so well-accepted in Thailand. I hope it is the inspiration needed for many more younger generation Thai filmmakers to have the courage, drive and commitment to one's conviction to come out and do something different, and bring more of Thai cinema to international attention.

PS.  For those who would like to read an extensive account of Apichart's win at Cannes, please read Wise Kwai's Thai Film Journal.

Himmapan Forest-3: The world of the Nagas

Nagas, morphing rain-giving majestic serpents, are probably one of the most revered mythical creatures in Thailand.  I was born on a Saturday and my protective Buddha figurine is that of the Buddha sitting on and under the protective shade of the 7-headed Naga, Muchalinda.

Wat Pho

In Buddhist stories about the life of the Buddha, it was told that not long after the Buddha had gained enlightenment, he travelled through many towns and villages to teach the people about his path towards enlightenment.  On the outskirts of one village, he settled into deep meditation under a tree for seven days, oblivious of the heavy storm that was raging about him during that time.  Muchalinda, the King of the Nagas, called Phya Nak by the Thai people of the North, Northeast Thailand and Laos, protected the meditating Buddha by morphing his body into a big shade over and around him.  When the Buddha came out of meditation, Phya Nak transformed himself into a human form to bow before the Buddha and returned to his crystal palace in joy.

In another Buddhist story, the Buddha went to teach the angels and gods in celestial heavens, his descent was aided by seven jeweled rainbow steps laid by the gods between the bodies of two nagas.

Naga sculptures can be found in many Thai, Northern or Laotian temples, at entrances, adorning stairways, or on rooftops, as gaurdians of these sacred places, or as a metaphor for the rainbow bridge that connects the human world with heaven. 

Prasat Hin Pimai

The original dwelling place of the Nagas is in the mythical forest of Himmapan, a place where the most beloved Buddhist tales took place. 

In King Lithai's Traibhumikatha, a description of the Naga and their dwelling place is given:

"After a kalpa is brought to an end by the great fire, a new earth is born.  Nothing is the way it was before.  The land had been flattened and is then a glittering white, as beautiful as a sheet of pure silver. Beautiful green grass grew.  The entire land radiates glory and splendor.  Everywhere is beautiful.

There are several lakes that are generally covered with five kinds of exquisite lotuses. There are trees with beautiful trunks untouched by insects or disease. They bear fruit and flowers that are a wonder and delight to behold. There are tough mountain vines, some with red floweres, some with yellow flowers. The whole place is a glorious spectacle as if someone had carefully planned it. This is the homeland of the Nagas.  It is their native dwelling place. Here there are crystal mansions, silver mansions and gold mansions beautiful beyond description. However, there are also some areas where nothing could live.  They are hollow and empty.

Under the Himmapan range, there is a cavity of some 200 yoth wide. It is the city of the Nagas where there are seven kind of gems: gold, silver, lapis lazuri, crystal, agate, ruby and cornelian. It is as beautiful as Traitrimsha, the abode of Lord Indra. Several large lakes are found where the Nagas live and play. The water is beautifully clear and smooth, like a large piece of glass polished a number of times. In fording places, Nagas bathe and play, large fishes gliding along together snapping at smaller fishes. Patches of water-lettuce and five kinds of lotus bloom spectacularly. The flowers of the sacred lotus are as large as a cart wheel. When the water ripples, these blooms sway back and forth looking delightfully pretty, as if they had been consciously arranged.

There is one kind of Naga that dwells in the ocean. When the female of this Naga is well advanced in preganancy, she thinks to herself: "What if the newborn were delivered in mid-ocean? The ocean churns and foams violently; great sea birds agitate the waters; the winds from the wings of the Garuda beat the waves into foam."  Thus reasoning, the pregnant Naga dives deep and long and emerges where one of the five great rivers run into the ocean.  The Naga then swims up river until she reaches the great Himmapan forest.  In this forest there are golden caves beyond the reach of the Garudas. 

She delivers her young in one of these caves and remains to nurture him until he grows strong. When he is ready she takes him to a place where the water is only knee deep to teach him how to swim first in circles. After it is clear to her that he can swim well, she takes him back and forth across one of the great rivers. When he can cross the river with due swiftness, she induces a heavy rainfall which floods the Himmapan forest until it looks like an ocean. She then creates a spired mansion of gold, ornamented with the seven gems that gleam in glorious splendor. This palatial mansion is rich with decoration and good food.  It is as magical as those that are the dwelling of the devatas. The mother Naga places her child in the spired mansion and floats it down the river to the mouth, and out into the deep ocean where they dive to dwell under in the ocean bed.

There are two different kinds of Naga: the water-born and the land-born. The latter can change their form only when they are on land, they cannot do so in water. The water-born Naga can transform themselves in the water, but not on land. Neither kind can change its form in its place of birth, its death or where it sleeps. Nor can they do so when they assemble, nor when they are sloughing off their skins. The Nagas have the power to transform themselves only in places other than those just mentioned.  When they so wish, they can take forms as angelic as the devatas, their females as graceful as the female inhabitants of the celestial heavens. When the Naga seeks its prey, it will take the form in which it can most easily hunt its victim. In such a form they roam the land in search of food.  Sometimes they appear as common water snakes, sometimes as the Sai, or the Krasa, cobras, vipers, and sometimes as forest beasts. It is thus so because the Naga properly belongs to the Animal Kingdom."

Himmapan Forest-1

On the walls of Thai temples and at its gates, you will come across many mythical creatures of Thai mythology. Some familiar ones are the Kinnaree (half-human, half-bird), Garuda (half-bird, half-man) and Naga (transforming seven-headed snake).  

However, there exists several more: two/three/four-legged, fish-based and flying creatures, such as, the anthler Ghilen/Kirin, the lion Kraisorn, the horse Ussadorn, and the mighty Erawan elephant.

These fabulous creatures all lived in the mythical Himmapan forest.  The Himmapan forest is said to be located on a mountain range of 84,000 peaks, many conclude to correspond to the Himalayas, a geographical location where the stories originated from, an India so ancient it had influenced storytelling for religious purposes of both Hinduism and Buddhism.  

Both Hinduism and Buddhism are thousand years old religious teachings that have relied on oral memory to preserve a vast body of knowledge that was passed down thousands of years, pretty much intact. The Buddhist tales of Himmapan were recounted in the stories of Traiphum, Three Planes of Existence.

According to these entertaining yet instructive legends, Himmapan was located in the southwestern continent of Chomputaweep, one of the four continents of the 'universe'.  The center of this world/universe, which is just one in an unlimited number of other world/universes, is the sacred mountain, Sumane, which connects us to other planes. 

Each of the four continents floated on a world/universe filled with waters. The Himmapan forest was the sole connecting passageway from Chomputaweep to the center of the universe, Mt. Sumane, and was equated symbolically with the way of the Buddha. It is said that there was once a time when we could see and enter the Himmapan forest, and travel between the heavenly planes and human world was possible.  However, with the loss of high moral standards, we can no longer see this great forest nor its strange animals.

Traiphum is a Buddhist cosmogony, a system of symbols embodying esoteric knowledge that was to be later transposed into a myriad of artistic forms decorating many Buddhist temples of Thailand.  The mythical creatures of the Himmapan forests, some which were considered guardians of Buddhism or holy places, were dressings to make the Buddhist teachings colorful enough to be remembered generations after generations.

                  

You can read and browse through pictures of more Himmapan creatures at http://www.himmapan.com/index.html.  When you visit the Emerald Buddha Temple, Wat Pra Kae and the Grand Palace, look out for their sculptures and look closely at the murals to see how many you can identify.  Or when you visit the National  Museum look closely at the intricately carved wooden panels brought from ancient temples around the country. Himmapan creatures always guard entrances.  At the Temple of Dawn, Wat Arun, you will find stucco adornments of lions and ghilens.  At the Erawan Museum which carries the majestic Erawan elephants as its roof, you will find a garden imitating the Himmapan forest dotted with sculptures of Himmapan animals.

Thailand must step back from becoming a polarized society

I long for the days when I could pick up a yellow shirt or a red shirt without having to feel that if I wear one or the other, some stranger in the street is going to be making assumptions about my political standing. Yellow used to be a color of love, loyalty and friendship, the PAD totally corrupted the meaning of the color of yellow. Red used to be a color or passion, of love, of a call for attention, and now it's a color many fear and feel anger towards in Bangkok.

When you talk politics, you are expected to take sides. Common ground, moderate solutions get washed out in the emotional battle of who's right or wrong. Each side thinks only in black and white. Relationships become strained and society as a whole erodes. When we reach the point where burning buildings are pitted against lives taken out by guns and grenades, our society is on the verge of imploding.

How do we step back from the brink? Stop trying to insist on proving who's right or wrong. Let's look for the white in the black, the black in the white, like in the symbol of the Tao.

Thailand became the land of the free because we understood the concept of a buffer zone, an area designated to avoid conflict between two hostile power. Yes, it's more painful than when our ancient enemies the Burmese burned our capital to have our own people do it. However, it underscores the urgency of how important it is for us to reconcile our differences, to listen to what the other side wants.

Live reporting on May 19 Military Crackdown in Thailand

From Al Jazeera via livestation.com which offers streaming of live content from some TV stations that you can use with your iphone.



The quality of reporting of Al Jazeera on Thailand situation was excellent compared with BBC and CNN. CNN's correspondents came under attack by Thai FB users, a note written here, and further elaborated by Thai blogger here.

Something inside is broken, you're in ruins...

Facebook, Restaurant City, and political angst

If you know the game Restaurant City then you'd have no doubts about the connections between the two topics in the title of this blog post. If you're a player, you know how addictive it can be, especially once you've got your little restaurant to look just the way that pleases you and you're earning those virtual dollars real fast.

You're probably scratching your head about the third part, though.

For someone who connects her disparate parts on the internet... son in one city, daughter in another, herself halfway across the globe from familiar friends, family and food, Facebook gives a comforting...maybe illusionary, sense of connected identity. Two years now, in a country where they don't speak my language, where I'm still licking my wounds from having to depart some very good friends in another country. I shy away from making new friends knowing that I'm going to have to pack up and leave in a year or so. So what've I got? Facebook and Restaurant City. Pathetic, isnt' it?  Even worse....

If you're reading this blog, you may have also noticed that there was a huge gap in my blogging. Where've I been? What have I been doing? Well, depressed. Uninspired by life. Angst...caused by politics.

Who would have thought that the state of one's country political falling apart can affect one's psychological health? How complex one's sense of identity is. Group belonging, so basic a need, so unaware of its central role in our sense of well-being until it's been challenged.

These past months have been spent flicking through The Nation and Bangkok Post pages in between Facebook news feed and feeding my workers in Restaurant City. Facebook news feed was also supplying me with tweets from Suthichai Yoon which kept me up to date on developments during critical nights faster than the newspaper could. I was also able to exchange and calm some of my angst with one or two more "friends" who were more vocal about their political feelings than others. Trying to explain it away gave some comfort, but we were all pretty much helpless and had to simply watch  violence unravel itself.

At the start of 2010, it looked like things were going to move for the better, there were clear signs of economic recovery from the sub-prime financial crisis, Thaksin's Judgement Day trial was closing.    Then Abhisit's government under-estimated the aggressiveness of the Red Shirts and an attempted clear up of the protestors botched up on April 10.

He should have known better, I thought. All those M79 grenades being lobbed around Bangkok since the demonstration started should have been fair warning.

To date there are 30 dead, plus a reported 7 more since last night. How many more during this weekend's second attempt to clear up the protestors?

Why do we have to resort to military action against the people? Why are such people constantly attracted like moths to camp out for a fight where everybody loses? Why do people feel that their life is worth giving up for a twisted, outdated notion of nationhood? Isn't there a better way to fight for democracy, for equality than to tear your country apart?  

What is wrong with the Thai people?!!!!

Naga Fireballs

This festival celebrates one of Thailand’s most curious natural phenomena – the Naga Fireballs of Nong Khai. Taking place during the full moon of the final day of Buddhist Lent, small balls of fire rise from the Mekong River and plunge upwards of 300 metres into the night sky. The fireballs appear as eerie blobs of red, blue, pink or green light that hang in the air for around 10 seconds.

An interesting cultural event, the natural wonder of Bang Fai Phaya Nak, “Naga Fireballs,” is held in Phon Phisai district of the northeastern province of Nong Khai along the Mekong River, at the end of the three-month Buddhist Lent, or Ok Phansa, in October around 10-16.

Local residents seem to believe that the fireballs belong to the Naga, the king of serpents. This natural wonder is linked to a legend dating back to the Buddha’s times. It is said that the Buddha went to heaven to instruct his mother in his teachings. He spent three months there until his mother attained enlightenment. On the full-moon day of the eleventh lunar month, the Buddha returned to earth and celestial beings built a golden and silver staircase for him to come down. With his loving kindness, the Buddha created a miracle by opening a view of the three worlds, namely heaven, the earth, and the underworld. All nagas living in the underworld admired the Buddha for the gratitude he showed towards his mother, so they blew out flames from the bottom of the river to celebrate.

The origin of the fireballs has been much debated. One scientific study shows that the fireballs are caused by the sun warming organic matter on the riverbed, causing it to decompose into flammable phosphine and methane gas and combust in the presence of ionised oxygen. This explains why the fireballs are of uniform color, do not emit flares, smoke, or sound, and eventually dissipate without a trace. Tracking studies have indicated that the phenomenon occurs from March to May, and September and October, when the earth is closest to the sun. Naturally, the findings have been disputed by Nong Khai residents, who see their time-honored beliefs challenged by what they view as attempts to portray them as superstitious country bumpkins.

The Naga Fireball Festival also features a bazaar, a food fair, a contest of floating and illuminated boats in worship of the Naga, long-boat races, and a light and sound show. Although there are several viewpoints for watching the natural wonder of the Naga fireballs, a great number of fireballs are usually seen in Phon Phisai district.

About 600 kilometers from Bangkok, Nong Khai is situated on the bank of the Mekong River, which stretches 4,200 kilometers through six countries, namely Cambodia, China, Laos, Myanmar, Thailand, and Vietnam. As it is not far from Vientiane, the capital of the Lao People’s Democratic Republic, Nong Khai is regarded as a gateway to Vientiane. From the province, people can cross the Mekong River to Laos over the Thai-Lao Friendship Bridge. The phenomenon of Naga fireballs can be seen from both the Thai and Lao sides.

The following video from Youtube was recorded on October 14, 2008.

Yi Peng Lantern Festival, Chiang Mai

Yee Peng Lanna festival or Loy Kratong festival is an ancient and traditional festival which has been continued since the past.  It is usually celebrated on the first full moon of November.

In a past, according to sermons story told by abbots, of the last earthly existence of the Lord Buddha. The Lanna people celebrate this holy day by decorating temples or Viharns with banana tree and sugar cane.  The main entrance of the Temple is also decorated with candle, moonshines. The people launch fire-kites, fire crackers and float offerings along the canals or rivers.

Yi Peng Lanna festival is also a kind of a Buddhist ceremony and Lanna people believed that it is an opporutunity for them to make merit, listen to sermons, and to pay respect to the Buddha.

Have you ever experienced a total blackout?

Brazil experienced a total blackout that left 800 cities and some 40 million people totally in the dark on the night of November 10th due to a storm damaged transmission line from a major dam.

On such nights, you have a chance to realize the fragility of humanity's energy systems.  You also have a chance to admire the beautiful night sky which city lights had drown out of your entire life if you were city born and bred. Chaos can be contrasted with admirable human behavior, generating both heroes and predators to go on the roam.

On August 14, 2003, I had the personal experience of the blackout that took out a chunk of Northeast America and Ontario, Canada for two nights and three days.  It affected 10 million people in Ontario and 45 million people in eight US States.

I lived on the 27th floor of a 37 floor condominium, some 1,000 apartment units in our building, serviced by six elevators.  I first noticed that something was wrong when I looked out of my window and saw people thronging in the street.  Sometimes when that happens you know something hit the subway.  This one continued for some hours and my husband arrived home a bit late and told me that he had to walk home.  Fortunately for him, it was only a half hour walk and the weather was mild.  For those other people down in the streets, it meant that their chances of getting home would be several hours of negotiating chaotic traffic without lights, or boarding the emergency buses called out to service the stranded passengers.  I could see good citizens who just dropped their backpacks or briefcases and stepped in to conduct the traffic.  Stories were later told how it was past midnight before some of the commuters made it back home.

Mobile phone service was sketchy since the system was overloaded. Our land line wasn't usable because our phone was electric.  I sent my son down to buy batteries at our neighborhood grocery.  He told me they were just closing the store in fear of a rampage, there was little battery left for sale.  We used the batteries for our radio to stay posted on the news.

Our building had one elevator working on an emergency generator.  Water was not running since it relied on the pump.  We saved up what water we could in some tanks and the bathtub, we couldn't shower. We couldn't cook any of our fresh food soon to spoil because for fire safety regulations, our stove was electric. Restaurants had a boom that night, but all closed down the next day.  That first afternoon, I was told that pedestrians were given free ice cream since it would have melted to waste. Our neighborhood sushi restaurant passed around notices that they were giving out free sushi sets for the elderly.

The second night we decided to venture out in search of food.  The hotdog stands were the heroes of the moment.  The long queue was entertaining as we eavesdropped or engaged with other people's story of the drama.  When we got to the hotdog vendor, we asked him how his supplies were doing.  He told us that he had his whole family involved, running around town to search out all the supply of bread and sausages.  Sausages were easier to get to than bread, eventually he would have to close because there were no more bread to sell with the sausages.

When we strolled down the darkened streets, we passed by many foot patrol.  They were shooing people back home and warning them to take precautions of the very dark corners.  All the stores we passed were closed, locked and railed.  Nobody had an idea of how long this would last.  There could have been panic, and I really admired how the good nature of the Canadians came out in those moments of crisis.  It was relatively calm.

Late that second night, I noticed that the Four Season Hotel banner lights came on first, and a few other such powerful buildings.  Our building got its electricity back in the morning, but I was told that some older buildings had to tough it out without electricity and water a day more.  Those who made it back to their houses on the outskirts of the city were hosting barbecue parties with gas burners, enjoying the night sky for the following free days by default.

Several days later, we understood that a failure in one power line caused a cascading effect and brought down a huge system of interconnected power lines.  One couldn't help wondering where were all the engineers? How could the system have been allowed to become so vulnerable?

So now six years later, we have another story of the mother of all blackouts affecting millions.  What kind of backup infrastructure  Brazilian hospitals, subways, high rises had?  I can only wonder.  How well the people coped with it without falling into irrational fear?  I supposed the Latin nature helped things. Lucky for them it was only a night.  Their correction system also worked better than the NE American and Canadian one.

I was wondering if anyone else had a story about some dramatic blackouts?  What do people think about how so dependent we are on electricity?  We don't have to imagine the end of the world, but are we prepared if such 2-3 days or a week total blackout hit us?

PS. I now have a simple phone that doesn't rely on electricity at hand, and a stock of batteries always availabe, and my old fashioned shortwave/longwave radio has become a household treasure.

Where you can read the blackout stories:
http://www.nationmultimedia.com/worldhotnews/30116343/Blackout-leaves-40-million-people-in-the-dark-in-B
http://en.wikipedia.org/wiki/Northeast_Blackout_of_2003

The promise of ASEAN regional economy

ASEAN economic indicators

_{source:  http://www.aseansec.org/19230.htm}

To see the above table, please use your browser's zoom in function.  I have organized the data from largest population size to smallest because I believe that second to a country's economic policy, it is population size which is an important key to assessing a country's economic potential.

ASEAN has matured surprising well over the past 10 years or so, considering the skepticism of many in the international community.  President Obama's signal to strengthen ties with ASEAN is a clear indication of this. Below are two sources of information (via google, of course) I found interesting whose words I could quote rather than write a whole blog about the promise of ASEAN's regional economy myself.

From mysinchew.com's "Getting Ready for an Integrated ASEAN Economy":

"Asean has a total population of 582 million people, nearly half the size of China. Market size is not only based on Asean but also the Asian region as a whole as Asean is connected to every country through its integration. Asean has a combined GDP of US$1.5 trillion and a total trade of $1.7 trillion with the world market. Of that 27 per cent of trade came from six Asean countries—Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand. Last year, Asean attracted $60 billion foreign direct investment."

and from The Heritage Foundation's policy paper:

"ASEAN countries have a combined population of more than 500 million people--larger than the population of the European Union. Their combined gross domestic product (GDP) exceeds $1 trillion, which is the 11th largest in the world, ahead of Russia and India."

...

"The measure of ASEAN's integration is not only intraregional trade and investment flows, but also its attractiveness as an investment destination. From the 1992 launch of the ASEAN Free Trade Area (AFTA) to the signing of its Economic Community Blueprint in November 2007, achieving economy of scale in ASEAN has always meant attracting greater levels of foreign investment. Yet even as it has sought ever new ways to stay competitive as a region, it has lagged behind market-leader China-- particularly since the 1997 Asian financial crisis. (A few years prior to the crisis, ASEAN actually led China as an investment destination.)"

Towards the end of the above quoted policy paper is a section titled "Why ASEAN's Economic Integration Matters to America", which I will not copy-paste here since it deserves to be read in full at the Heritages website:

http://www.heritage.org/Research/asiaandthepacific/bg2101.cfm

Don't let Saxena die

Second part of Khun Thanong's report, published on The Nation, November 3, 2009.

Deliberate leak of bank documents triggered BBC and Thai economy's collapse but will financier spill the beans on dodgy deals in '96? 

In his second part of the series on the Bangkok Bank of Commerce scandal, Thanong Khanthong asks who ordered the closure of the bank in 1996 that triggered off the 1997 financial crisis.

In his fight against being extradited from Canada over the past 13 years, Rakesh argued that if he were to be sent back to Bangkok, his life could be at risk. He also said prison conditions in Thailand were horrible - compared, of course, to his luxury home where he was stuck under house arrest in Vancouver.

Indeed Rakesh Saxena's life may be in danger. But Korbsak Sabhavasu, the deputy prime minister, wrote in his web blog that Rakesh could not die as that would throw the political mess out of control.

Saxena lost the dramatic extradition case when the Supreme Court of Canada rejected any further appeal and sent him back to Bangkok last Friday. It gave no reason for rejecting his appeal.

However, Saxena has a full list of the politicians involved in the Bangkok Bank of Commerce scandal in 1996. Before leaving Vancouver, he issued a threat that he would tell all. Krirkkiat Jalichandra, the former president of BBC, also kept all documents to him?self.

If Saxena were to strike a pre-trial bargain plea with the Abhisit government by implicating politicians benefiting from BBC, he could compromise his safety in spite of the authorities' full assurance to protect him.

Saxena is now detained under 24-hour surveillance in the Bangkok Remand Prison hospital. His food is carefully screened. The Abhisit government has a full obligation to provide full and fair justice within the law to Saxena because it has won the extradition case. If the Saxena case is not handled with due process, chances are Thailand would have a difficult time winning extradition cases with other countries in the future.

Justice Minister Phiraphand Salirathawiphak said yesterday he had instructed the director general of the Corrections Department and the head of the Bangkok Remand Prison to look after Saxena, whose health is fragile. Saxena, 57, suffered minor paralysis on his left side after a stroke in March.

"I would like to stress that Rakesh is not receiving any privileges more than other inmates," Phiraphand said. "Since he is sick, he needs to be looked after. We have the same standard practice as applied to other inmates. Now Rakesh is being held in the hospital within the compound of the prison, with a surrounding wall and tight security. He is not getting any privileges."

The Democrat government has a lot of incentives to provide top security and safety to Saxena, because he could provide a link to politicians involved in the BBC scandal. Many of them are in the coalition government. Having Saxena in their control could help the Democrats hold their coalition partners in check. The Democrats want the coalition to survive till at least June 2010.

The politicians who benefited from the BBC are now not having a good night's sleep. They definitely do not want Saxena to open his mouth.

The man at the centre of the BBC affair was Ekachai Athikomnantha, then the bank's senior executive vice president.

He was politically connected to Sanan Kachornprasat, then the Democrat whip, and the PM Banharn Silapa-archa. Through Sanan, Saxena was introduced to the bank as Saxena impressed Sanan and others with his financial prowess. He practiced swaps, futures and options well before Thai bankers knew about these strange financial products. Thai financial laws did not cover these products, which allowed Saxena to test the law to the limit.

Although he was centrally involved in BBC, the name Ekachai quickly disappeared from public view after the bank collapsed. Sanan also quickly stepped out of the shadow of BBC before the financial scandal broke out.

Banking authorities sent Krirkkiat Jalichandra to be BBC president and rescue the bank. BBC was in big trouble with huge bad loans on its books. But the task of salvaging the bank was formidable. When Saxena came aboard as the bank's financial adviser, it was agreed the bank would shift away from normal practice to high finance - to try to strike gold on the stock market. If the bank could make quick profits, it would be able to clear all its bad debts in a swoop.

Saxena's unique position as financial adviser within BBC would not have been possible without strong political backup.

BBC tested the first drama script with a takeover bid from Song Watcharasriroj, alias Sia Song. More takeovers and acrobatic financial dealings would follow while money from the bank was drained overseas, first through Lebuan and the British Virgins Island and other financial centres of the globe. At the same time, the politicians, who tolerated this practice, got benefits from a series of questionable loans.

But this high finance ran against the tide. The stock market slumped by 40 per cent in 1996, as the real estate bubble was set to go bust. If the stock market was rally, Krirkkiat and Saxena would have emerged as heroes.

Vijit Supinit, then governor of the Bank of Thailand, kept the bank under his radar. He wanted a soft approach. The financial supervisors had asked him to take harsh action against BBC, but Vijit sat on it. He was doing everything to save BBC through a bail-out. He brought in the Financial Institutions and Development Fund and the Government Savings Bank to rescue BBC with a Bt60 billion capital increase. But it was too little.

Vijit had a good relationship with Krirkkiat. Vijit realised that closing down BBC would bring about a run of the financial system. But the politicians were all over his head.

At the time, the economy was severely overheated. The current account deficit hit 8 per cent of gross domestic product. The inflow from the Bangkok International Banking Fund (BIBF) made things worse as cheap money from offshore moved here enjoy the interest rate differential.

Later on, many questioned the sustainability of the Bank of Thailand's fixed exchange rate regime. The situation was aggravated by political conflict between Banharn Silapa-archa, the PM, and the Group of 16, who were trying to consolidate their own power. They included Suchart Tancharoen, Newin Chidchob, Varathep Ratanakorn, Sora-at Klinpathum, Thanee Yisarn, Wittaya and Sonthaya Khunplume. Their political ambition was boundless.

Suchart Tancharoen was deputy Interior minister in control of the police, while Newin Chidchob was deputy finance minister.

A minister belonging to the government leaked confidential bank documents to Suthep Thaugsuban, in the Democrat Party, then in opposition. The ulterior motive was to destroy the Group of 16. If anything were to happen to the bank, BBC could be shut down.

Suthep took the bait. Based on the documents, he launched a no-confidence debate in Parliament on May 9, 1996, and exposed how the Group of 16 benefited from a loan scandal at the bank. The world was shocked. Many Thais rushed to withdraw deposits from the bank.

On an order from Prime Minister Banharn, Surakiart Sathirathai told Vijit to close the bank. The implications were: 1/ The Group of 16 would be destroyed; 2/ The bank scandal would be covered up; 3/ blame could be shifted to Krirkkiat, Saxena, Vijit, and Surakiart.

Taxpayers had to foot initial losses at BBC of Bt200 billion. But the implications were much larger. The scandal triggered a loss confidence in the Thai financial system and the baht exchange rate, which subsequently turned into a loss of Bt4 trillion for Thailand as the economy collapsed like a house of cards in 1997-1998.

The road to scandal

Published by Khun Thanong, on the Nation, on October 31, 2009.

Thanong Khanthong examines the Bangkok Bank of Commerce saga, which emerged as the ailing symptoms of the 1996.

A turning point at the Bank of Thailand in mid-1996 revolved around the Bangkok Bank of Commerce (BBC).

With the credibility of the BOT hit hard, governor Vijit Supinit was forced to resign on July 1, 1996, bringing an abrupt, but hardly surprising, end to his six-year reign.

Vijit had become embroiled in the BBC scandal. The BOT had looked the other way while the rogue bank got itself into trouble dabbling in high finance. Most of its loans went towards stock-market speculation and takeover deals, as well as to politicians (at cheap rates). As the stock market headed downward, BBC quickly lost its capital.

But the central bank assisted BBC in its recapitalisation. Vijit did not think BBC had a big problem at the time. The problem, he argued, had more to do with Thai politics. If there were confidence in political stability, the financial markets would soon nurse BBC back to its normal health.

That was Vijit's view of the BBC affair.

The Banharn Silapa-Archa government was having a tough time managing the economic downturn. The Thai bubble economy was losing its steam, and asset quality of the banks was fast deteriorating. Indeed, the Thai crisis actually started in 1996 with an infection, which then burst in July 1997.

In the end, BBC could not survive. The Democrats exposed the BBC scandal in Parliament, telling the whole world that politicians had been dining at a BBC buffet.

The central bank ended up losing Bt120 billion in the bail-out for BBC, whose non-performing loans stood at almost 100 per cent. The episode dealt a serious blow to the BOT's credibility. If BBC was in this big a mess, how about other banks and finance companies?

Prime minister Banharn wanted to remove Vijit, and it fell to finance minister Bodi Chunnananda to do the dirty work. He instructed Vijit to lodge criminal charges against BBC president Krirk-kiat Jalichandra and his accomplice, Indian-born financier Rakesh Saxena, for causing such huge damage to the bank.

Both Krirk-kiat and Saxena were responsible from shifting the bank from routine banking operations to high finance, stock-market speculation and takeover deals. Several dozen dummy companies had been involved, with bank deposits shuffled around in deals involving both local and international banks.

Politicians belonging to the Chart Thai Party had benefited from the sweetheart deals with BBC, and Saxena was furious that Chart Thai had betrayed him.

Bodi threatened to fire Vijit if he failed to bring the case to court, so Vijit scrambled to put the case together. He filed charges against Krirk-kiat and Saxena with the police, but they did not carry much weight, because they were put together in too much of a hurry.

Saxena had the last laugh, as he had already left Thailand quietly, leaving Krirk-kiat holding the bag.

Still, Vijit was unable to keep his job. He did not stay in office long enough to witness the baht attack in November and December 1996.

Rerngchai Marakanond succeeded Vijit as governor and promised to launch a full in-house inquiry into the BOT's inept handling of the BBC scandal. Nevertheless, he hinted the inquiry would not begin until after the central bank had concluded talks with the Industrial Finance Corp of Thailand over the prospects of assuming management of the failed bank. That deal would never happen.

Rerngchai was aware if he did not attend to this scandal that had done so much damage to the BOT's reputation, someone else would. The opposition, led by the Democrat Party, had threatened to launch a House inquiry.

How was a bail-out of BBC with Bt90 billion in public funds allowed to proceed with such poorly outlined details?

Rerngchai had been frozen out by his predecessor, Vijit, confined for six years to running the obscure note-printing house. He was not even the first choice for the governorship when Vijit was sacked in July 1996.

Immediately upon assuming office, Rerngchai faced a series of crises, from an economic crash-landing, a financial meltdown and a currency war to the BBC scandal. Yet, as governor he had to act to restore the integrity of the BOT, which had previously been held as one of Thailand's finest institutions.

The central bank was a gathering of top-notched technocrats. Of its 5,185 employees, 180 work in the Supervision and Development of Financial Institutions Department, 40 in Legal Affairs, 285 in the Commercial Bank Examination Department and 200 in Finance Company Examination Department.

A source familiar with the BOT vouched for the integrity of both the central bank's examination and the legal officials handling the BBC case.

"The problem was that when their BBC reports were submitted to their superiors, no action was taken," the source said.

Phenwan Thongdithae, the BOT's top examiner and assistant governor, called on Vijit to take action against BBC management. Vijit replied to Phenwan's recommendations by reassigning him to a dead-end post under Chaiyawat Wibulswasdi, another assistant governor.

The reassignment marked the first time in the history of the BOT that a senior assistant governor was placed under another assistant governor.

Honest though he was, deputy governor Jaroong Ngukuan must have been aware of the rot at BBC. He worked closely with Vijit and read every report, yet he could not bring himself to warn the governor of the danger of letting BBC continue to play. Jaroong was simply a passive onlooker as the BBC collapsed at his feet.

BOT reports made public in May 1996 by Suthep Thaugsuban, at the time a Democrat MP from Surat Thani, indicated central-bank officials must have detected wrongdoing inside BBC as early as 1992, when its bad loans soared to Bt11.11 billion.

Despite warnings from the central bank, the management, led by Krirk-kiat, continued to flout banking regulations by lending money to cronies and other high-risk borrowers.

By the end of 1995, BBC's bad debts had skyrocketed to almost Bt80 billion.

Instead of taking drastic action against BBC's management, Vijit sought to bail out the bank with money from the Fund for Rehabilitation and Development of the Financial Institutes and the Government Savings Bank (GSB).

The GSB, under the chairmanship of Nibhat Bhukkanasut, approved a deal to buy a 3.125-per-cent stake in BBC for more than Bt400 million. This ill-advised investment ended up with a huge loss.

At that point, about Bt60 billion had been injected into the bank - but Bt30 billion more was needed just to keep it on its feet.

Asked by finance minister Surakiart Sathirathai for details of the BBC affair, due to its political implications, Vijit duly submitted confidential reports.

A letter written by Surachai Phruekbamrung, the BOT's director for supervision and examination of commercial banks, summarised alleged defrauding of the bank by Krirk-kiat, Saxena and Ekachai Athikomnantha. The letter, dated January 23, 1996, was submitted to Jaroong.

Yet it was not until that June that Vijit was forced to file charges against BBC executives for violating banking law. Actually, Vijit had no intention of bringing Krirk-kiat and his cohorts to justice in the first place, which explains the delay.

When the case was forwarded to the Economic Crime Investigation Division, it was handled in an extremely sloppy manner. Neither BOT officials nor the police knew for sure the exact date the one-year statute of limitations in the case would expire, from either not talking to each other or simply not wanting to follow up on the case.

When Rerngchai learned the attorney-general had decided to drop the case against the three suspects in the BBC scandal, he was shocked. By this time, BBC had become a full-blown political scandal, which gave interior minister Snoh Thienthong and his Rambo-style deputy, Chalerm Yoobamrung, the ammunition they needed to settle old scores with attorney-general Khanit na Nakhon.

Only after Khanit put up a strong fight by arguing the statutory period should have started with the BOT's January 23 letter - not February 12, when the BOT informed the BBC executives they were under investigation - did he escape Snoh and Chalerm's vendetta. By this time, prime minister Chavalit Yongchaiyudh and finance minister Amnuay Viravan, who had formed a new government in late 1996, had no choice but to look into the matter - as much as they preferred to distance themselves from this hot potato.

A special panel headed by Ackaratorn Chularat, secretary-general of the Office of the Council of State, was quickly formed to determine the flaws in the legal process that had resulted in failure to bring the notorious case to trial.

It was clear the central bank, after failing to supervise BBC adequately, could not afford to let a "technical mistake" further tarnish its reputation. Hence, Rerngchai's promise to launch an internal inquiry into the BOT's handling of the BBC scandal that would prove, not surprisingly, to go nowhere.

Visiting Khao Yai?

This is a Slideshare presentation I made about places and things you can visit and do when you are in the Pak Chong, Khao Yai area.

Visiting Khao Yai?

View more presentations from Netnapit Tasakorn.

Congratulations for 40 years volunteership: National Museum Volunteers

I was pleasantly surprised to rediscover the National Museum Volunteers through their website and receive the delightful news of their 40th anniversary which will be celebrated through a variety of activities and products which are announced through their website: http://www.museumvolunteersbkk.net/

Another favorite organization of mine that if I were living in Thailand, I would be a regular member of is The Siam Society.

Overseas Thai Economic and Finance Association

As recent as only five years ago, I was really frustrated searching the internet for content about Thailand in English that went beyond the usual tourism promotion and general culural promotion. So it is with pleasant surprise that now (with a bit of persistance to look beyond common search words) I am discovering a new world of Thai content, especially those offered by literate young Thais who grew up in an internet assisted world.

One website I discovered recently launched their first publication of an internet newsletter of the Overseas Thai Economic and Finance Association. Here's what Kanda Noknoi, their economics editor wrote in an introduction to their newsletter:

"Some Thai economists including myself, finance scholars and finance professionals gathered in San Francisco in January at the annual meeting of the American Economic Association. One subject of discussion was the professional challenges that arise from differences in early education system. For most of us, the major challenge is the lack of training for expressing ideas. In Thailand we were trained to excel in taking exams by reproducing simple exercises and reciting class materials. Challenging instructors was unacceptable and conformists were rewarded in classroom. For these reasons, we tend to be risk‐averse, reserved and have poor writing and public speaking skills. We gradually improved these skills in graduate school but continue to need coaches after graduation.

As junior researchers, we are constantly interviewed by senior colleagues from other institutions. Hence, effective communications in seminars, conference presentations, conference receptions, lunches, dinners, coffee breaks and 2‐minute elevator rides are necessary. The most frequently asked question (FAQ) I receive in the initial encounters is “Where did you do your Ph.D.?” Where scholars earned their Ph.D. is equivalent to last name in the Thai society, since they both determine the degree of instant acceptance. Having a Ph.D. from a reputable school can create welcoming atmosphere, which usually leads to the FAQ No. 2 “Who did you work with?” or “Who was your advisor?” and the FAQ No. 3 “What was your thesis about?” A brief explanation of my thesis often results in the FAQ No. 4 “What do you work on now?”

After the FAQ No. 4, the conversation about research may not continue. Uninterested individuals usually politely switch to other topics such as teaching or personal background. Some may abruptly end the conversation. At that point, where I earned my Ph.D. becomes entirely irrelevant. If I cannot get someone to be interested in my work by speaking, I will likely not be able to do so by writing. If that person organizes a conference, I will likely not get invited to discuss or present papers. If that person is an editor of a journal or an editor’s friend, I will likely not get invited to review papers as a referee. If the person is a referee for my paper submitted to a journal to be considered for publication, my paper will likely not be carefully read or accepted. In this industry, we either publish or perish, thus communication skills are critical for a survival. As I continue along the research track, the importance of the FAQ No. 4 increases over time, because I am expected to create new products like firms in any industry. My research productivity or lack thereof is observed by senior colleagues. To keep producing work to satisfy the expectations, I need information about market demand and supply conditions.

As a market for creativity, the research industry has comparable information transmission mechanism to the entertainment industry. The FAQ No. 3 “What was your first role?” or asking Snoop Dogg “What was your first song?” Jolie, Clooney and Snoop Dogg are clearly talented. However, to continue producing work requires more than talents. To be specific, successful artists have excellent producers and marketing team. Likewise, successes of young researchers depend also on the producers and the marketing team. The role of producers is played by the Ph.D. advisors and/or the senior colleagues. The marketing team includes the researchers themselves, former classmates, the Ph.D. advisors, former colleagues and current colleagues.

Professional associations play a complementary role to the producers and the marketing team. To be specific, the primary function of professional associations is to transmit information about market demand and supply conditions by various means of communication: journal publications, conference presentations, workshops, newsletters, social events, rumors, chitchats and gossips. The secondary function is to promote research by granting awards or funding. The associations in the area of economics and finance are classified by categories such as the field of research and the region of residence or research interests, and designed to serve members’ needs. Thai researchers share some needs with those from other Asian countries, given similarity of learning culture. It is encouraging that a number of those from India, Japan, China and Korea have succeeded at the international level. These scholars in fact alleviated the problem of information asymmetry by forming professional associations.

As a professional association, the OTEFA is in the start‐up stage. Its management structure and activities are subject to debates among members. Within one‐year time frame, the newsletter editorial team will circulate the bylaws for reviews, discussions, proposals for changes and voting for an approval. There are issues we can explore, such as new activities. For instance, in the long run we may consider ally the OTEFA with the Allied Social Science Associations (ASSA). That will provide an opportunity to run a parallel session in the annual meeting of the ASSA, to promote research by Thai researchers and students, along with quantitative research on the Thai economy and its financial issues by scholar from any countries. We may possibly consider interacting with other associations.

Today the job market for researchers in economics and finance cuts across borders and types of institutions. Researchers in economics and finance are employed by universities, research institutes, financial institutions, government agencies and consulting firms in various countries. I believe that the information transmitted by the OTEFA will contribute to the professional advancement of Thai researchers and finance professionals at the international level in the future. Although such advancement does not instantaneously result in the economic advancement of Thailand, it certainly represents a progress."

Tracing self-sufficiency back to energy security

From plastics to petrochemicals to oil and gas

I was recently hired to be an interpreter for a Thai technician who was sent to Mexico by a French company based in Thailand to re-adjust a serigraphy machinery built in Thailand and imported to Mexico last year. I was intrigued about why and how the machine came from Thailand and started doing some research about plastic packaging.

Mexico is a major oil producing country and plastics would seem to be a natural downstream industry. However, she imports many of her raw material because the petrochemical industry is not able to produce enough due to lack of new investments in the last 20 years. Oil production and its by-products is a government monopoly run by PEMEX, Mexico’s equivalent of PTT in Thailand. However, the energy sector in Thailand is more fortunate than Mexico’s since competition has been engineered into the sector since the beginning.

Having grown up in the Middle East, I’ve been fascinated by the story of oil and its power over the world economy. I presented a paper about foreign investment in the oil sector of Thailand for my Master’s thesis. So I find myself visiting the theme enthusiastically again prompted by this unexpected visit to a Mexican plastic factory.

The starting path of Thailand’s industrialization

I discovered that PTT is celebrating 30 years of achievement. Very short compared to PEMEX’s 70 years history. In contrast to Mexico’s faltering petrochemical industry Thailand is quite fortunate to have a thriving one. This is confirmed by the presence of a French company who was confident enough in the future of this sector to invest in building silk-screening machines for plastics in Thailand.

According to PTT’s website, this progressive company was founded in 1978 as a response to an energy crisis stemming from the 1973 Arab Oil Embargo. Achieving energy security was an imperative. Our bloggers’ comments about Thai people’s lack of planning is definitely proven wrong if we look hard enough for some hard evidence, as in the remarkable story of the dedication, persistence, and success achieved in building diverse and competitive upstream and downstream oil and gas industries in Thailand.

PTT was partially privatized in 2001 as a result of a process of liberalization and reform in the energy sector initiated during the premiership of Anand Panyarachun continued by Chuan Leekpai under the leading role of Sawat Bhodivihok. The Thai government has no plans to relinquish its 69% stake with the main enterprise, but gradual liberalization and reforms in the energy sector were set into motion since the 90s. Thailand had found a balance between public and private ownership of this important industry.

Fluctuating oil prices and financial crisis were taken in their stride and the company continues to flourish and is even confident enough to embark acquisitions locally and abroad.

What would this have to do with self-sufficiency? We need to produce what is needed. Energy is the main driving force of any economy. Thailand is still dependent on imported energy but I have hopes measured from how far we have come in 30 years, that PTT’s traditions and vision will guide us towards developing alternative energies and continue to generate other beneficial economic side activities.

Industry organizations and business clubs

Another unique character of business in Thailand and SE Asia is the curious organization of "Associations". These non-profit organizations bring together members of industries to promote dialogue among its members and help make sectors of industries more transparent. Businessmen have a forum to gather and brain storm in nearly a semi-bureacratic atmosphere. The public private cooperation in Thailand therefore is not top down with policies imposed upon businesses by governments. It actually can be a two sided process, depending on each industries' strengths and charismatic leaders as well as industry participants willing to work towards common goals. The role of these organization allow business partners and competitiors alike to know each other. Once confident and comfortable as a group. they are bold enough to approach or give feedback to the government with requests that can help industries grow.

One such organization is The Federation of Thai Industries, under which there is a Petrochemical Industry Club, as well as a Plastic Industry Club. Each club has sections listing directories of company (all members major participants of each sector), and sections explaining the structure or processes of each sector.

The Petrochemical Club (FTIPC) is actually organizing a three day training seminar entitled "Introduction to Petroleum & Petrochemical Business" from June 13-15. You can check the program at their website. (Too bad I cannot attend.)

They are also hosting a regional conference/exhibition, PRA 2010 later in the year during 16-18 November.

Apart from connecting businessmen within the country, the FTIPC is also dedicated to making connections with similar organizations across the region, such as, JPCA (Japan Petrochemical Industry), KPIA (Korea Petrochemical Industry Association) , MPA (Malyasian Petrochemicals Association), and SCIC (Singapore Chemical Industry Council).

The Plastic Industry Club of the Federtaion of Thai Industries was formed in 1982 and has 151 members. These companies are engaged in comprehensive integration of upstream, downstream investments. They range from petrochemical to plastic pellets, components and parts of cars, electrical and electronic appliances, packaging and wide-ranging consumer products including toys, machines and moulds. The state of the indsutry in 2000, reported by the Plastic Industry Club has primary and secondary industries operating at 80-100% of total capacity while plastic pellets exported to South and Southeast Asia rose by 53%. China also shifted polyethylene import from Korea to Thailand. Despite higher output, plastic pellet imports total US$ 1,217 million (+35 %) in 2000 as overseas buyers stepped up orders to forestall any impact from high crude oil prices.

Some comparative figures

PTT was ranked by as 207th largest companies on the Fortune 500 list for the year 2007 and climbed to 135 in 2008. It is also ranked as 17th fastest growing in 2008, with its revenue in 2008 was 51,192.5 million dollars having grown 59.7% from 2007. It’s profit increased by 33% from 2007.

A comparison with other global competitors in the petroleum refining industry can be looked up at:

http://money.cnn.com/magazines/fortune/global500/2008/snapshots/7174.html

According to FTIPC’s market overview, the petrochemical industry contributed a revenue that measured 5.8% of Thailand’s GDP in 2008, that is a value of 512,774 Million Baht or 15,539 Million US.

Exports of petrochemicals was 4.82% of total export at 253,294 Million Baht (2007). Its largest market is China.

**(Side note: For the sake of weaving stories, I would like to point out Khun Tawan’s blogpost of July 5, 2008 titled “Thailand’s Energy Solution”. The discussions raised about alternative energies are worth a visit.)

**** A recently published book in Thai, “PTT: The S-curve Story”, can be found at Putalay Bookshop.