Policymakers, economists and business leaders have talked for years about the importance of shifting the economy up the value chain if Thailand is to remain competitive in the 21st century.
But the transition from low-end manufacturing to products and services emphasising creativity, innovation and high technology is a tough job and will depend not only on infrastructure investment but changing the mindsets of both the public and the private sectors.
The government recently made the so-called digital economy a highlight of its economic reform agenda. However, many remain doubtful about its meaning and the ways the government will pull it off while wishing it will not end up as sweet propaganda.
A digital economy is based on digital technologies. The term is nothing new but has been used in many countries, sometimes interchangeably with other terms such as “new economy” or “web economy”.
Newly appointed Information and Communication Technology (ICT) Minister Pornchai Rujiprapa admits there is a tough job ahead.
“But this will definitely benefit the entire country, so it must be achieved,” he says.
Major objectives of digitising the economy are to expand the economy, boost competitiveness and create opportunities for business operators and all Thais through information technology.
Apart from economic and commercial benefits, digitisation policies will also involve social, education and health development, all with an ultimate goal of narrowing digital and economic gaps between Thais.
First of all, we need to have a clear direction and be able to lead people.
Unity of command
In fact, the digital economy has been pushed for quite some time by previous governments. But achievements have been few, with related ministries, departments, associations and agencies laying their own groundwork and plans and functioning individually without cooperation.
“Each party has its own roles and duties, but no one has ever linked them together. This is somewhat like a bureaucratic system that always gets stuck and undone,” Mr Pornchai says.
The only successful mega-development he has ever seen is the Eastern Seaboard.
Mr Pornchai says all ministries and related departments and agencies must be put under the same umbrella with clear integrated plans.
More importantly, it is a prerequisite to have “unity of command” driving all this force towards the same goals.
“And that’s why we need the prime minister to chair the board, to command all ministries and other related agencies so that all work can flow without disruptions,” Mr Pornchai says.
The draft of 14 bills supporting the reform has been completed and submitted to Deputy Prime Minister Wissanu Krea-ngam for consideration, while the ICT Ministry is drafting policies and preparing manpower to drive this huge project forward.
“First of all, we need to have a clear direction and be able to lead people. And here I’m talking about leading a large number of people under the same framework, which is obviously tough,” Mr Pornchai says.
The goal is to give everyone total access to broadband at a lower cost.
A year forward
Deputy Prime Minister MR Pridiyathorn Devakula last week told the Bangkok Post Forum 2014 that efforts to support the digital economy had been insufficient and piecemeal.
The government is establishing a new policy body governing the digital economy as well as amending laws to expand the remit of the ICT Ministry to support growth.
“The whole thing may not be able to be completed within a year, but a serious start with strong political will should lay a good foundation for this reform,” MR Pridiyathorn said.
The government also plans to increase investment in digital infrastructure including a national broadband network that will be larger than that operated by the major telecoms and CAT Telecom combined.
“The goal is to give everyone total access to broadband at a lower cost,” MR Pridiyathorn said.
The government is setting up two departments under the ICT Ministry for digital economic and social development to carry out policies and plans.
A working committee chaired by MR Pridiyathorn was also set up in July to lay the groundwork and policies to be carried out by the ICT Ministry.
Members are Manoo Ordeedolchest, a former president of the Software Industry Promotion Agency; Thaweesak Koanantakool, president of the National Science and Technology Development Agency (NSTDA); former NSTDA president Pairash Thajchayapong; Kosol Petchsuwan, honorary president of the Telecommunications Association of Thailand; and former ICT minister Sittichai Pokaiya-udom.
Mr Manoo says the first few steps will be to reform the ICT Ministry, amend laws and set up a new commission to be chaired by Prime Minister Prayut Chan-o-cha to govern all 10 ministries and enhance cooperation among all sectors.
He admits that one year is short. But he intends at least to achieve some goals — putting new supporting laws in place, reforming the ICT Ministry, setting a pilot project, drafting short-, medium- and long-term roadmaps and establishing a blueprint for the next government to carry out.
Supporting and creating digital literacy among small and medium-sized enterprises (SMEs) will be the first pilot project. Even though technologies have advanced, most Thai SMEs remain laggards.
“From now on, SMEs must understand that e-commerce is a channel not only for selling their products but also to conduct their business, meaning all processes from upstream to downstream can be done online via broadband and cloud computing,” Mr Manoo says.
Mindset matters
Developing and investing in infrastructure will be required for digitising the economy. However, Mr Manoo admits changing the mindset of people, business operators and government officials is a much tougher task.
“Our changing technologies are not that hard, but people’s mindsets are. We’re not talking about a small group but overall people here. This will definitely take education, technological literacy and government public relation campaigns,” he says.
IMC Institute executive director Thanachart Numnonda also believes the digital mindset of people and literacy remain low. Even government officials are still unfamiliar with e-government.
“A lot of paperwork is still required when proceeding with any official work or processes,” he says.
Mr Thanachart is also concerned about a digital gap in the population.
“Moving towards a digital economy is necessary. But if we don’t do it right, then the digital gap between people living in urban and rural areas will be even wider,” Mr Thanachart says.
“I don’t want to see this national agenda end up as propaganda or a situation where the only change is the name of the ICT Ministry.”
Telecom scholar Anupap Tiralap says many developed countries including the US, Japan and South Korea have successfully digitised their economies.
“And today 60-70% of products and productivity in the US are generated by the digital economy including digital content, software, electronics and parts, e-commerce, movies and many more,” he says.
Mr Anupap says the government must have a clear definition of the digital economy, as it will link to several laws covering copyright and patents among others.
Investment in the country’s infrastructure and people’s literacy is vital.
“If the infrastructure is not ready, then this whole national agenda will be nothing but lip service,” Mr Anupap says.
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Autor(en)/Author(s): Sriwipa Siripunyawit
Quelle/Source: Bangkok Post, 13.10.2014
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