18-4-2024 (BANGKOK) Thailand has set its sights on joining the Organisation for Economic Co-operation and Development (OECD), a move aimed at enhancing the nation’s standards and expanding trade and investment opportunities. However, the prospect of membership has sparked both enthusiasm and caution among international economists.
The OECD, established in 1961, primarily consists of developed nations, with its membership expanding over the years to include regions like Latin America, Asia, and the Pacific. Currently, only two Asian countries, Japan and South Korea, are OECD members, with Indonesia also in the process of applying for membership.
Thailand recently expressed its intent to join the OECD by submitting a letter of commitment to the organisation’s secretary-general in February. However, the approval process is complex and typically takes several years.
The National Economic and Social Development Council (NESDC), acting as the secretary-general of the OECD accession task force, has set an ambitious goal to shorten the application timeline to five years. Collaboration between the government and private sector is deemed essential to meet this objective.
The rationale behind Thailand’s OECD aspirations lies in the desire to align with the high standards set by developed nations, thereby enhancing the country’s quality of life and attracting foreign investment. To become an OECD member, Thailand must demonstrate qualities such as open, transparent, and free-market economies, strong governance, and environmental sustainability.
While Thailand’s interest in OECD membership dates back two decades, progress was halted after the 2006 coup. However, recent efforts under Prime Minister Prayut Chan-o-cha’s administration have reignited the initiative, with the submission of the letter of intent marking the first step in the application process.
Addressing challenges in the business landscape, particularly in streamlining regulatory processes and enhancing transparency, is crucial. Efforts to simplify procedures, such as the One Stop Service initiative, and promote digitalisation align with OECD requirements.
Nevertheless, joining the OECD entails not only potential benefits but also challenges. Thailand’s current middle-income status may pose financial obligations, and the nation must be prepared to contribute funds to less developed member countries. Additionally, becoming an OECD member does not guarantee increased foreign investment, as developed nations often have stringent criteria.
Despite the debate surrounding the implications of OECD membership, Thailand remains committed to elevating its standards and positioning itself on the global stage, guided by the overarching goal of improving the welfare of its citizens.
