Sunday, October 7, 2001

Kriengsak Chareonwongsak Burma as a strategic economic partner

Professor Dr Kriengsak Chareonwongsak
Executive Director, Institute of Future Studies for Development (IFD)
 kriengsak@kriengsak.com, http://www.ifd.or.th

This article was first published in the Bangkok Post on July 8th 2001 during a period of considerable conflict between Thailand and Myanmar, so much so that the border between the two countries was closed.


The recent decision by the Thai Prime Minister to visit Burma on 19 – 20 June 2001, in the midst of ongoing tense relations between both countries, was highly risky. It was particularly risky in light of the fact that some parts of Burmese history textbooks were amended to negatively accuse the Thai royal institution, thus further igniting anti-Burmese sentiment. Yet, the result of these negotiations will prove that Thailand’s leader has a world-wide vision, looking at the advantages of good, Thai-Burma relations. What is especially significant about this visit to Burma is that it marks a significant step towards the better recovery of the conundrum between the two countries. It builds upon and at the same time, builds up, the intentions of both nations to eliminate drug smuggling and to open border trade both at Tah Kee Lek border crossing and at the border of Mae Sai District of Thailand from 24 June 2001.
Restoring Thai-Burma relations will bring advantages to both parties. Thailand’s relationship with Burma has become increasingly strained in recent times. Tensions between the two nations have increased mostly because of security issues such as amphetamines smuggled into Thailand, illegal Burmese workers, and Burmese minorities camped along the 2,400 kilometers of shared borderline. Poor relations with Burma have resulted in a number of Thai civilian deaths, damage to cities and towns within reach of Burma’s munitions, and other significant losses.

However, border trade worth about 10 billion baht per year would be lost if relations between the two were not restored. When Burma closed the Ta Kee Lek border crossing, over the last 4 months (March-June 2001) it resulted in a loss of more than 2,000 million Baht in revenue and was the cause of many business owners, in Thailand’s adjoining Mae Sai District, incurring huge financial losses. Similarly, closure of other border crossings would result in the loss of valuable tourism income to the merchants in those other areas.

Thursday, September 27, 2001

Professor Dr. Kriengsak Chareonwongsak Peru is a place of high promise

Peru is a place of high promise for future trade relations with Thailand because it is the gateway nation of the ANDEAN Group, which has a combined population of more than 110 million people. With the proper strategy, Thailand-Peruvian trade could grow from its present limited levels into a mutually beneficial economic relationship. Peru could become the jumping board for Thailand to access other nations in South America, and beyond, to the rest of Latin America. Proactive steps to creating such a relationship include the distribution of trade information, the nurturing of good bi-lateral business relationships, negotiating a reduction in tariffs, the development of compatible products and services that will suit the needs of consumers in both countries, the development of public utilities and the improvement of transportation services linking the two nations. Peru is a land of possibility for Thailand.


new gateway to Latin America

Professor Dr. Kriengsak Chareonwongsak
Executive Director, Institute of Future Studies for Development (IFD)
kriengsak@kriengsak.com, http://www.ifd.or.th

Wednesday, September 19, 2001

Kriengsak Chareonwongsak The Peruvian economy

The Peruvian economy is more stable than that of its neighbors. Peru has experienced higher economic growth than any other nation in South America during the past decade. In 1999, when many South American nations faced economic slow downs, or serious economic crises, or less than 1% economic growth, Peru’s economy grew by 1.4%. This was due to its stable currency caused by international reserve funds of more than 15 months of the country’s import value. The Peruvian financial industry is also strictly regulated in such a way as to promote vigorous development of the nation’s financial system, a natural lure for overseas trade and investment interests.

However, some drawbacks to this proposal do exist. Peruvian tariffs are, on average, higher than those of neighboring countries. However, between 1990 and 1998, Peru’s import levies have fallen steadily from 80% to 13%. Moreover, laws exist for the creation of four types of free trade zones specializing in the following four areas: export processing, special commercial treatment, special development, and tourism. This falls in line with WTO direction that supports the elimination of none-tariff barriers, state subsidies, the need for import licenses, import prohibitions and quantitative restrictions. In addition, Peru is the only nation in the ANDEAN Group that is, like Thailand, a member of APEC. This link alone should open opportunities for the reduction of trade barriers between the two countries.


new gateway to Latin America

Professor Dr. Kriengsak Chareonwongsak
Executive Director, Institute of Future Studies for Development (IFD)
kriengsak@kriengsak.com, http://www.ifd.or.th