EFN Asia 32: Day 2 of Conference 2013 in Bangkok

* This is my article yesterday at the EFN website. Karthik Chandra of the Foundation for Democratic Reforms and Lok Satta (People Power), India, helped in filling up some gaps in my original article. Thanks Karthik.
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Day 2 of the Economic Freedom Network (EFN) Asia 2013 Conference started with a presentation by Fred McMahon of Fraser Institute in Canada, of the results of the Economic Freedom of the World (EFW) 2013 Report. Before presenting the numbers, he reiterated the definition of “economic freedom” as fundamental rights. Without these basic rights, no political or civil freedom can prosper.

The results of the latest EFW report showed once again, that more freedom means, more growth, less poverty. It also means less corruption, higher life satisfaction, life expectancy, more prosperity. For Asia, Economic freedom has been following global average or trend. The full EFW Report can be accessed at  http://www.freetheworld.com , http://fraserinstitute.org .

FNF Regional Director for SouthEast and East Asia, Rainer Adam discussed the work of FNF in Asia, then explained that they invited some Thai incumbent government officials, they all declined, so they invited the opposition, former Thai Prime Minister Abhisit Vejajiva. (Photo from left: Rainer, Abhisit, Fred.) 

Hon. Vejajiva said that Thailand’s high growth in past decades was due to dynamic private sector subject to competition. Government’s monetary policy helped without compromising inflationary pressure. The administration is buying Thai farmers’ rice at 50 percent higher than market rice. The farmers are richer but public finance suffered, also global rice prices rose.

He added that low wages, natural resources extraction can not sustain growth. Needed are more innovations to escape middle income trap. It is not how small or how big the government is, but to properly identify the sectors that government should come and support, and which sectors the government should get out. When markets are distorted, corruption goes up.

Economic freedom can be improved, Abhisit added, by identifying sectors where government can engage and solve inequality. Populist policies and authoritarian government feed each other, but .they can be tackled with democratic and good Governance. Thailand is successful In attracting various car producers and has no national car. An economy improves its competitiveness by gradual opening up.

Discussions in Panel 4 followed with 6 speakers from 6 countries, to talk about different experiences in dealing with middle income trap. Adinda Muchtar from the Indonesian Institute moderated the panel. Photo below, from left: Adinda (Indonesia), Wan saiful (Malaysia), Xingyuan (China), Set (Myanmar), Nguyen (Vietnam), Barun (India), and Hiroshi (Japan).