UN trade chief says sufficiency model ideal

UN trade chief says sufficiency model ideal

The government should adopt the sufficiency economy model to protect Thailand from global economic woes, a leading United Nations economist says.

Supachai Panitchpakdi, secretary-general of the UN Conference on Trade and Development (Unctad) and former deputy Thai prime minister, said the world's current economic problems stem from excessive consumption of natural resources and overspending.

If this trend goes on, the problems will only worsen, Mr Supachai said in his keynote speech at the Thai Chamber of Commerce's annual assembly yesterday.

The Unctad chief suggested the government employ His Majesty the King's sufficiency economy model by encouraging more equal income distribution.

The government should roll out measures to encourage the private sector to invest in Thailand's impoverished provinces and rural areas, he said.

Those measures may include income tax exemptions for people facing economic hardship, such as those living in the strife-torn southern provinces, and making low-interest loans available, Mr Supachai said.

This would facilitate employment in rural areas, he said, adding that 10% of the national budget should be set aside for such measures.

Mr Supachai said the sufficiency economy theory will be raised as a basis for a model for Unctad's economic policy guidelines, including debt limits, environmental conservation, sustainability-oriented production, disparity elimination and social protection. The policies are in line with the sufficiency economy theory.

Referring to the US economic downturn, Mr Supachai said the mobilisation of the third round of quantitative easing was not the right solution and would spur more uncertainty.

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