Thailand's competitiveness in danger: urgent reforms required!

Thailand's competitiveness in danger: urgent reforms required!

Bangkok faces major challenges in terms of the country's competitiveness. Dr. Anusorn Thamjai, dean of the Faculty of Economics at the University of Thailand, said in a recent report Prachatai Concerns about current conditions in the public sector. Accordingly, the situation could even worsen if reforms are not initiated.

The repeated changes in government contribute to ensuring that continued reform of the public sector remains more than just a pipe dream. According to the International Institute for Management Development (IMD), the efficiency of this sector is at its lowest level in a decade. Thailand's decline in competitiveness is shocking: its ranking fell from 25th in 2027 to 30th in 2028.

The urgency of reform

A central problem that always comes into play is the widespread corruption in the public sector and the multitude of approval procedures that prevent everything from running smoothly. Dr. Thamjai has formulated six suggestions to increase efficiency:

• Reduzierung unnötiger Genehmigungen und Bürokratie mit dem Fokus auf die Bürger.
• Flexibilisierung des öffentlichen Sektors sowie kontinuierliche Verbesserung der Dienstleistungen.
• Dezentralisierung der Verwaltung und Finanzmittel.
• Einführung einer digitalen Regierungsplattform zur Vereinheitlichung öffentlicher Dienstleistungen.
• Nutzung von Big Data und KI zur Anpassung von Politiken an die Bedürfnisse der Bürger.
• Reduzierung von Patronage im öffentlichen Sektor und Förderung von qualifizierten und ethischen Personen.

Another point of criticism is the proposed increase in the retirement age for civil servants. In an aging society, this could not only disadvantage young professionals in the public sector, but also overburden the state treasury due to rising salaries. If you compare the private sector, there are already efforts to lower the retirement age to 45 in some sectors.

The geopolitical situation of Thailand

Thailand, officially the Kingdom of Thailand, has a long history. Until 1939 it was known as Siam and has since established itself as an important country in Southeast Asia, bordering Myanmar, Laos, Cambodia and Malaysia. It has a population of nearly 66 million people and offers a diversity of ethnic groups and cultures influenced by India and China. The capital Bangkok is the heart of this vibrant kingdom and plays a central role in the region.

The challenges facing Thailand also come in the context of rapid development. The country's economy is the second largest in the region and ranks twenty-first in the world by purchasing power parity. The most important sectors include industry, agriculture and the rapidly growing tourism sector, from which Thailand can particularly benefit.

Innovation as the key to success

An essential element for Thailand's future will be the promotion of innovation. In his book “The Politics of Innovation,” Mark Zachary Taylor highlights the importance of developing new approaches in times of crisis. Against the background of the current economic and political uncertainties in countries like the USA, which are suffering from a prolonged government shutdown, it is clear that Thailand and its government are also required to take new paths.

Public sector efficiency and innovative approaches could be the key to improving Thailand's competitiveness and putting the country's economy on the right track. Whether Thailand can emerge stronger from the current situation depends crucially on its willingness to reform and innovate.