Reading & education keys to better economy

Govt spending & handouts can increase incomes right now, but only better education & more reading will lead to lasting income increase.

Read an article on income inequality in Thailand and long-term growth policies in today's Bangkok Post.

Click button to listen to Growth in Long-Term download

ECONOMY

Domestic consumption may shore up growth

But ADB says effects likely to be short-lived
4/10/2012
Parista Yuthamanop

Thailand's spending programmes may help boost consumption and ease the impacts from weak exports but the effects would not last long, warns the Asian Development Bank.

The Thai economy was expected to grow 5.2% this year on a surge in post-flood private investment and the government's stimulus policies.

...growth forecasts ... have been revised down in line with the ADB's view of a gloomier world economic outlook. The euro-zone sovereign debt crisis and possible discontinuity of fiscal stimulus to the subdued US economy remain key risks...

...the 40% minimum-wage increase in seven provinces and a hike in civil servants' salary in April raised wages by 15% overall in the first half, helping to spur consumption...

...Its incentives for the first-time car buyer, first-home buyer and rice pledging schemes have helped increase people's incomes.

The paddy pledging measure, however, resulted in a 43% decline in rice exports as of midyear.

"The only concrete and tangible impact of such policies is higher domestic consumption. The impacts of many of these would be short-lived. Moving ahead, I'm not entirely sure they can address income inequality," said Dr Luxmon [senior country economist at the ADB].

Craig Steffensen, the ADB's country director, said the income-disparity Gini coefficient in Thailand is higher than its neighbours due to inadequate human resource investment.

"The National Statistical Office reports Thai children read 2-5 books on average per year. By contrast, Vietnamese children read 50-70 books per year, a startling gap," said Mr Steffensen.

An analogy could be drawn between problems in Thai education with those in the State Railways of Thailand as both seriously need "modernisation". The country has long had plans to do it, but couldn't really execute them, he added.

Dr Luxmon said public debt is expected to increase to slightly below 50% of gross domestic product from 43% now over the next three years... This excludes the government's off-the-budget spending plans of 2.2 trillion baht in massive infrastructure projects...

(Source: Bangkok Post, ECONOMY, Domestic consumption may shore up growth, But ADB says effects likely to be short-lived, 4/10/2012, Parista Yuthamanop, link) 


Fiscal Stimulus & Long-Term Growth Vocabulary

consumption - money spent by households and families on goods and services การบริโภค (See Wikipedia)

domestic - within the country ภายในประเทศ
domestic consumption - consumption inside the country

boost - to increase; to strengthen เพิ่ม; ทำให้มีกำลังมากขึ้น
boost consumption - increase consumption

spur - to cause something to increase or happen more ก่อให้เกิด
spur consumption

investment - taking your money and putting it into projects to make a profit or earn interest (buying stock shares, bonds, real estate)

growth - economic growth, an increase in economic activity and business in a country's economy (See Wikipedia)

forecasts - what experts say will happen in the future คาดการณ์
growth forecasts

revised - changed, rewritten and improved เปลี่ยนแปลง
revised down - changed and decreased
growth forecasts revised down

shore up - make stronger; stop from decreasing
growth - people's incomes growing and the economy getting bigger
shore up growth - make growth stronger (prevent from decreasing)

domestic consumption may shore up growth

spending programmes - government programmes that the government will spend money on

impacts - effects on different people and things

ease - to make or become less severe, difficult, unpleasant, painful, etc ทำให้ง่าย บรรเทา
ease impacts - reduce the bad things that happen

last - when some condition or state exists for a period of time (example: the cake did not last long, people ate it quickly)
would not last long

Thailand's spending programmes may help boost consumption and ease the impacts from weak exports but the effects would not last long, warns the Asian Development Bank.

expected - believe will happen คาดว่า (จะเกิดขึ้น)
economy was expected to grow 5.2% this year

surge - a sudden increase in something การเพิ่มขึ้นอย่างรวดเร็ว
a surge in post-flood private investment

fiscal - related to government spending; connected with the government budget, i.e., public money เกี่ยวกับงบประมาณ
fiscal stimulus - a temporary increase in government spending to help get the economy moving and growing again during an economic slowdown

stimulus - Same as "fiscal stimulus"
the government's stimulus policies

The Thai economy was expected to grow 5.2% this year on a surge in post-flood private investment and the government's stimulus policies.

outlook - what people think will happen in the future อนาคตที่คาดไว้ ภาพรวม อนาคต
economic outlook

world economic outlook
gloomier world economic outlook

revised down in line with the ADB's view of a gloomier world economic outlook

sovereign - related to a country (that rules itself) เอกราช อำนาจอธิปไตย
debt - an amount of money that you owe หนี้
sovereign debt - the debt of a country

crisis - an urgent, difficult or dangerous situation วิกฤตการณ์ วิกฤต
euro-zone sovereign debt crisis

discontinuity - a big sudden change (not slow gradual change that people can deal with easily)
possible discontinuity of fiscal stimulus

subdued - not very active, not a lot happening
the subdued US economy

key - important คนสำคัญ
key risks - important dangerous things (that might happen in the future)

the euro-zone sovereign debt crisis possible discontinuity of fiscal stimulus to the subdued US economy remain key risks...
...growth forecasts ... have been revised down in line with the ADB's view of a gloomier world economic outlook. The euro-zone sovereign debt crisis and possible discontinuity of fiscal stimulus to the subdued US economy remain key risks...

wage - an amount of money that you earn for working, usually according to how many hours or days you work each week or month ค่าจ้าง
minimum-wage - the lowest wage that can paid to workers by law
...the 40% minimum-wage increase in seven provinces

salary - a fixed amount of money that you earn each month or year from your job เงินเดือน
civil servant - a government worker 
civil servants' salary

hike - an increase
hile in salary - an increase in salary
a hike in civil servants' salary

wages - the amount of money earned per hour by a worker
raised wages by 15%

raised wages by 15% overall in the first half, helping to spur consumption...

...the 40% minimum-wage increase in seven provinces and a hike in civil servants' salary in April raised wages by 15% overall in the first half, helping to spur consumption...

incentives - a reward to encourage people to do something  สิ่งกระตุ้น  รางวัล ผลตอบแทน
incentives for the first-time car buyer

schemes - systems for achieving some goal
rice pledging schemes - the program where the government buys rice from farmers at high prices

...Its incentives for the first-time car buyer, first-home buyer and rice pledging schemes have helped increase people's incomes.

paddy - rice after it has been harvested from the field ข้าวเปลือก
paddy pledging - when the farmers sell their rice to the government for  high prices

measure - an action taken to solve a particular problem มาตรการ
The paddy pledging measure, however, resulted in a 43% decline in rice exports as of midyear.

concrete - based on facts and things you can see or measure (not on ideas, theories or guesses)
tangible - touchable, you can touch it; real and not imaginary; able to be shown, touched or experienced ชัดเจน

impact - an effect or influence ผลกระทบ
concrete and tangible impact

equality (noun) - when two things are the same amount (no difference)
inequality (noun) - when two things are not the same amount (there is a difference)

income - money that people receive from work or some other source, used for household consumption and savings

income inequality - when there are many poor and few rich in a society (big differences in the money that people have)
income inequality

address - to try to deal with a problem or question จัดการกับปัญหา
address income inequality

"The only concrete and tangible impact of such policies is higher domestic consumption. The impacts of many of these would be short-lived. Moving ahead, I'm not entirely sure they can address income inequality," said Dr Luxmon [senior country economist at the ADB].

disparity - a big difference between two things

inadequate - not enough, not good enough to solve the problem or deal with the situation อย่างไม่เพียงพอ
inadequate human resource investment

Craig Steffensen, the ADB's country director, said the income-disparity Gini coefficient in Thailand is higher than its neighbours due to inadequate human resource investment.

contrast - a noticeable difference; a difference between two things when you compare them ความแตกต่าง

gap - a large difference between people or groups ช่องว่าง
startling  - surprising
startling gap - a surprising difference between two things

The National Statistical Office reports Thai children read 2-5 books on average per year. By contrast, Vietnamese children read 50-70 books per year, a startling gap," said Mr Steffensen.

analogy - comparing two things to help understand them (using one thing to help understand another thing)
an analogy between X and Y

draw an analogy between X and Y
an analogy could be drawn between ...

modernisation - improving some old thing and making it "modern"
both seriously need "modernisation"

execute - to do or perform something, especially in a planned way ดำเนินการ
execute plans - actually doing what you planned to do (putting plans into action) 
long had plans, but couldn't really execute the plans

An analogy could be drawn between problems in Thai education with those in the State Railways of Thailand as both seriously need "modernisation". The country has long had plans to do it, but couldn't really execute them, he added.

public debt - government debt (money that the government borrows when taxes are not enough to pay for government programmes)

Gross Domestic Product (GDP) - the total value of all the goods and services produced by a country in one year

budget - the amounts of money that an organisation has available to spend on different things during a period งบประมาณ (See Wikipedia)
budget spending - government spending in the budget (so people can see it)
off-the-budget spending - government spending not in the budget (so people cannot see it; hidden)
government's off-the-budget spending

massive - very large in size, amount or numberใหญ่โต  มหาศาล
infrastructure - the high-cost facilities that everyone in the economy shares (water, roads, electricity, trains) สาธารณูปโภค
massive infrastructure projects

Dr Luxmon said public debt is expected to increase to slightly below 50% of gross domestic product from 43% now over the next three years, ... This excludes the government's off-the-budget spending plans of 2.2 trillion baht in massive infrastructure projects...