A more competitive Thailand starts at home

As the 10 members of the Association of Southeast Asian Nations move toward an economic community, there seems to be a lot of fear in the air in Thailand, and it has nothing to do with recent political turmoil. Indeed, the questions “Are we ready to compete?” and “Are we ready for the AEC?” seem to have buzzed in my ear more often in Thailand, than when I have met with business leaders, students and people from all walks of life in Indonesia, Myanmar, Philippines and elsewhere in the region these past two and a half years since stepping down from my post as US Ambassador to the Asian Development Bank.

The launch of an Asean Economic Community (AEC) will certainly bring change, with its focus on creating a single market and production base. Asean matters more than ever, at least economically. Under the AEC, Thailand and its Southeast Asian neighbours will bring down barriers to greater regional economic cooperation. Understandably, people are worried about competition, rising wage rates and disappearing jobs, and there will be new challenges, particularly to those who think the world will always be the same.

But there will also be opportunities. 

At Naresuan University in Phitsanulok last month, I had the honour to deliver the school’s 3rd annual International Lecture. At the podium, I said Thailand should have greater confidence in itself and in the ability of its own people to find their way forward. I do. Whether one is Thai or a foreigner visiting, studying or working in Thailand, one can always wish to have done more to prepare in a time of growing global competition. We can learn from the past, but we must also move forward. 

Certainly, individuals can take steps to improve their English – the language of Asean – and their business communication and cultural understanding of other nations. Thailand typically ranks low on comparisons of English ability. Much more needs to be done to improve the Thai education system, but that is an ongoing and long-term challenge and one that will not be solved simply by higher budget allocations. Thailand, after all, outranks many nations in terms of percentage of GDP spent on education. More than money, change must entail the involvement of parents, new approaches to teaching, greater flexibility and the commitment of the larger community. 

How things were done before is not always how they should be done as we prepare to compete in a changing Asia. The world is moving on. So must each of us. (And we can, even if with one small step at a time).

So what can each of us do?  In the short-term, here are some tips to keep in mind. 

First, understand, build and invest in your own brand. For individuals, communities or even a country seeking to compete, “brand” matters as much as it does for a company like Coca-Cola or Apple. But to understand your personal “brand identity”, you will need to find out what others think of you, and be open to hearing the good and the bad. That can mean sophisticated market research or something as simple as “googling yourself”.

Regardless of whether or not you like what you see, that baseline information is an opportunity to build on. This can mean improving skill sets (such as language ability) or better emphasising your already terrific characteristics (such as science or maths knowledge). For Thailand, that could include bolstering the nation’s position as a logistics hub for Southeast Asia with strengthened governance and strategic investments in flood control.

It will also mean not simply buying more airtime for outdated advertisements and past investment promotional materials. For a place like Phitsanulok, it could include building on its present tourism reputation and leveraging its central location as the capital of the lower North, and experience in recycling.  Most importantly, when understanding, investing and building your brand, don’t be defensive. 

Second, remember the “little bric”. This is not the capital-letter “BRIC economies” of Brazil, Russia, India and China that dazzled the world with ever-growing amounts of inward investment, but the small-letter, bigger challenge of bureaucracy, regulation, interventionism and corruption. In countries large and small, including the United States, businesses and individuals are too often held back by these “little bric” obstacles to innovation and economic growth.

The solution is straightforward: governments should improve bureaucracy, regulate fairly, intervene rarely and end corruption. Easier said than done, of course, but significant progress in places like Hong Kong show that it can be achieved. My hope is that all individuals will take steps to help “get the bric out” of not just government, but also all organisations in which they are involved, whether student groups, retail outlets or family businesses. Think about how the bureaucracy, the rules and regulations, the interventions by government, and corruption and cronyism touch our daily lives. And then think about what we might change, and how to spark change.

For example, can technology and the power of social media draw attention to the reality of this “little bric” and help increase accountability? What if we shared not just examples of the “little bric” online but also solutions to them, one small suggestion at a time.

Third, as each of us seeks to build a better life for ourselves, let’s not forget our larger community. This will require finding that difficult balance between self and others, between individual and community. Don’t think of just Thailand when building a larger Asean.

For businesses and the individuals that work in them, this means seeking ideally to both do well and to do good. Often this is described as “good citizenship” or “corporate social responsibility”. That can be tough when you are the new employee or when you are up against competitors that don’t follow your own commitment to a strong “triple bottom line” of positive economic, social and environmental impact. I have confidence though that this can be done.

In my own time in Thailand, since stepping down from my role on the board of directors of the ADB – an international finance institution based in Manila and focused on economic growth and poverty reduction across the Asia and Pacific region – I have done what I can to encourage others to move forward and to compete smarter, and to compete differently. That’s one reason I came to Naresuan University and back to Phitsanulok.

Here is one example from a Thai-based company called Equator Pure Nature, whose advisory board I recently joined. The company is about to launch a line of all-natural, certified hypoallergenic cleaning products under the Pipper Standard brand name. That company’s message? “A Healthy Environment Starts at Home.” 

As the number of people with allergy symptoms has increased in Thailand and across Southeast Asia, this company’s products are intended to address that growing trend and an untapped market of people seeking to reduce the amount of chemicals in their homes. Focused on the “triple bottom line”, the firm is also contributing to Thailand by helping Thai farmers who produce the agricultural products at the heart of the Pipper Standard laundry detergents and fabric softeners.

Certainly, Equator Pure Nature is taking up the challenge and the opportunity provided by the AEC, and other smart companies and entrepreneurs will do the same. Echoing the Pipper Standard tagline, I note that a more competitive Thailand also starts at home. Whether building your own brand, fighting the little bric or focusing on finding that right balance to growth, these three “Bs” may well help business compete in a changing Thailand and Asia, but also do so in a better, happier and more sustainable way. 

 

Curtis S Chin, a former US Ambassador to the Asian Development Bank, is managing director of advisory firm RiverPeak Group, LLC. Follow him on Twitter at @CurtisSChin. Read more about the Asean Economic Community at http://www.asean.org/communities/

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