Ex-deputy PM Suwat outlines Isan’s potential to drive Thai economy
The veteran politician highlights the Northeast’s role in agriculture, culture and tourism as key drivers for long-term economic stability
The Northeast has the potential to revitalise and safeguard Thailand from global crises, former deputy prime minister Suwat Liptapanlop pointed out in a speech on Friday.
He was speaking at the “Isan Next: Revitalise Thai Economy Against Global Crisis” special talk held at the Nakhon Ratchasima Rajabhat University.
The former minister explained that the initial aim should be to find solutions for the Thai economy amid challenges like rising public and household debt.
Suwat pointed out that public and household debt accounted for 65% and nearly 90%, respectively, of the country’s gross domestic product (GDP), which in turn affects Thailand’s credibility, financial development and economic stability.
He pointed out that Thailand was also facing a drop in GDP growth and competitiveness, an outdated education system and the impact of globalisation on the manufacturing and industrial sectors, particularly with the disruption of the auto industry by electric vehicles.
The country’s ageing population, with the elderly making up 20% of the total population, is also a concern, he said, adding that this demographic shift would impact productivity and increase costs for elderly care.
Suwat outlined factors affecting both Thai and global economies, namely geopolitical conflicts, trade wars, economic polarization, the relocation of production bases, rising fuel prices, agricultural shortages, inflation, rising interest rates, technology disruption, shifts in consumer lifestyle post-pandemic and natural disasters triggered by climate change.
He proposed utilising Thailand’s unique strengths to tackle these economic issues and improve people’s quality of life sustainably, such as making the most of the potential in agriculture, food, service, tourism and culture.
“Some of these strengths lie in the Isan region, which comprises one-third of the country’s population and at least 10% of the country’s GDP,” he said.
Suwat pointed out that the Northeast region is rich in agricultural products like sugarcane, cassava and rice, and also has a unique cultural identity in food, art and history.
The region also boasts numerous tourist attractions and infrastructure, connecting Indochina and the Asia-Pacific through a network of roads, dual-track railways and high-speed trains, he said.
These factors, he noted, showcase the region’s readiness to support the production of renewable energy and serve as a catalyst for revitalising the economy in the long term.
