Monopoly and cronyism must be tackled by the National Economic and Social Development Board if Thailand is to avoid another financial crisis, an economist has warned.

As the NESDB finalises its 10th economic development plan, negligence could induce another crisis intensifying in seriousness in line with the wave of globalised capitalism, said Bangkok Bank executive chairman Kosit Panpiemras.

He said economic fairness was not equivalent to income distribution and warned of the dangers of monopoly, cronyism, unfair trade practices and insider trading.

The four major side-effects of capitalism are economic instability, uneven income distribution, economic unfairness and environmental exploitation, Kosit said at the annual seminar hosted by the NESDB.

"Thais might be OK with these issues, but under capitalism these are serious crimes. The government therefore must determine what is capitalism and what are its adversaries," he said.

"There must be a regulatory philosophy to ensure economic fairness. If we are to move along with globalised capitalism and if society wants to avoid another crisis, it is extremely necessary to address the issues."

Economists gathered at the seminar to comment on the 10th plan, which incorporates His Majesty the King's sufficiency-economy principles aimed at ensuring happiness at all levels of society.

Kosit said a sufficiency economy must be used in the right way and constantly.

Paiboon Wattanasiritham, a prominent social activist, threw his support behind Kosit's warning. He said that though the philosophy of a sufficiency economy had been integrated in the plan, it could render little benefit if there was no mechanism to turn the philosophy into action.

"This guidance should be implemented at all levels, from policy-making to communities," he said. "Political leaders, senior officials, business leaders and community leaders should set a benchmark,"

A number of guidelines have been set to restructure the economy at the macro and micro levels. But Vice Commerce Minister Suvit Maesincee pointed out that people would be the key development energy and the NESDB must find out how to empower them, not just through education but through job opportunities and the democratic system.

"Macroeconomic and microeconomic restructuring is just the context. If we're to create a people-centric system, we should not draw a frame and then put people inside the frame. If people know how to innovate, these understandings would be incorporated into the company level and then the national level. That would mean sustained prosperity," he said.

To him, people-centricity is a factor in ensuring that Thailand, under the globalisation waves and sufficiency-economy principles, would create wealth and achieve sustainable development.

Narongchai Akraseranee, chairman of fund company MFC Plc, said a nation would survive if its people were assured of economic wealth.

The government could help when their income drops, but not through price-subsidising schemes. The government must also ensure that it creates the infrastructure that allows fair principles. Subjecting private companies to market forces would not help, because if the companies could not compete, that would lead to job losses.

"A competitive business environment, sufficient growth rate, not-too-high energy prices and social safety nets: if all these are highlighted in the 10th plan, that would be enough," Narongchai said.

Piyasvasti Amrananda, chairman of Kasikorn Asset Management, strongly criticised the NESDB for its failure to clearly address the issues of corruption, good governance and conflict of interest.

"The good-governance principles are directed towards the private sector, but the NESDB suggested no principles for the government sector. Good governance would be assured only with good action plans and strict regulatory framework."

The absence of good governance at government level, he said, resulted in the exercising of state power through a listed company majority-owned by the state, at the expense of minor shareholders.

Some listed companies' directors represent government agencies which regulate the industry in which the companies operate. As they are earning more from the companies, how could neutrality be ensured?

He also pointed out a conflict of interest in terms of competitiveness as the government was creating national champions to compete with foreign players. Local consumers could be neglected and other local operators could be taken advantage of. Such conflicts remain when government-owned companies are operating along with private-owned companies, he warned.

He also attacked the NESDB's efforts to increase green energy consumption.

"The NESDB just looks at one side of the whole picture. It wants to promote compressed natural gas, but where would the gas come from? It would be imported.

"In this plan, it should have been more courageous in guiding the government towards options such as coal-fired or nuclear power plants that may not win support from activists or environmentalists. Now that we have no choices, the NESDB must be brave enough to touch what it has to. Do not avoid this," he said.

Caretaker Prime Minister Thaksin Shinawatra also urged the NESDB to clearly define happiness - the ambitious goal of the 10th plan - in order to avoid different perceptions from people in society.

He also wanted to hold special talks with the NESDB to discuss details of how the country could achieve its vision, how much money would be used and how much time is needed.

He said that basic needs, infrastructure and capital must be available before society could advance to higher economic and moral values. He also mentioned that his dual-track economic policy would also be necessary for the country in many years ahead.

Ampon Kittiampon, secretary-general of the NESDB, said the five-year development plan would be submitted to the Cabinet in August for approval.

Achara Deboonme,

Wichit Chaitrong,

Chularat Saengpassa

The Nation