Summary 'Guillotine' regulations to lift economy - TDRI: Thailand Development Research Institute tdri.or.th
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One Line
TDRI suggests using the OECD checklist to streamline regulations and stimulate economic growth and investment.
Slides
Slide Presentation (9 slides)
Key Points
- The Thai government has introduced relief measures to curb the economic impacts of the Covid-19 pandemic, but the economy has not fully recovered.
- The government has injected a significant amount of money into the system, but borrowing more money will be challenging due to the debt ceiling.
- Thailand can learn from Japan's experience of using a policy to eliminate regulations and improve private sector investment.
- The Regulatory Guillotine study conducted by TDRI found that 85% of reviewed procedures could be amended or abolished, leading to significant cost savings for the private sector.
- The checklist developed by the OECD is a useful tool for analyzing the necessity and appropriateness of regulations.
- Short-term goals include reducing redundant processes for vulnerable groups and solving delays in accessing rights protection for the elderly.
- Medium-term goals focus on facilitating SMEs to recover faster and promoting fair provision and market competition.
- Long-term goals involve improving laws related to the tourism industry and tourism-related businesses to promote small producers and encourage tourism.
Summaries
17 word summary
TDRI proposes a "guillotine" approach to regulations, using OECD's checklist, to boost the economy and promote investment.
75 word summary
The Thailand Development Research Institute (TDRI) proposes a "guillotine" approach to regulations, inspired by Japan's Abenomics, to boost the economy. A study by the TDRI found that 85% of reviewed procedures related to licenses and permits could be amended or abolished. The TDRI suggests using the OECD's Regulatory Guillotine checklist for regulatory analysis. Short-term, medium-term, and long-term goals for regulatory improvement are proposed, emphasizing the importance of regulatory reform for economic recovery and investment promotion.
132 word summary
The Thailand Development Research Institute (TDRI) proposes a "guillotine" approach to regulations to boost the economy. The TDRI suggests a three-arrow policy inspired by Japan's Abenomics, focusing on monetary and fiscal policies, as well as eliminating regulations to improve private sector investment. A study conducted by the TDRI in 2019 found that 85% of reviewed procedures related to licenses and permits could be amended or abolished, saving approximately 133,816 million baht per year. The TDRI suggests using the Regulatory Guillotine checklist developed by the OECD to analyze the necessity and appropriateness of regulations. Short-term, medium-term, and long-term goals for regulatory improvement are proposed, including reducing redundant processes, facilitating SME recovery, and improving laws related to the tourism industry. The TDRI emphasizes that regulatory reform is essential for economic recovery and investment promotion.
418 word summary
The Thailand Development Research Institute (TDRI) proposes a "guillotine" approach to regulations as a means to boost the economy. Despite previous relief measures, such as monetary and fiscal policies, the Thai economy has not fully recovered from the impact of the COVID-19 pandemic. With limited options for borrowing more money, alternative instruments to improve the economy must be explored.
Inspired by Japan's Abenomics, the TDRI suggests a three-arrow policy for Thailand. The first arrow represents monetary policy, the second is fiscal policy, and the third arrow involves eliminating regulations to improve private sector investment. Compliance with government regulations in Thailand comes at a high cost for the private sector and individuals.
In 2019, the TDRI conducted a study on laws related to licenses and permits and found that 85% of the reviewed procedures could be amended or abolished. Implementing these changes could save the private sector and Thai people approximately 133,816 million baht per year, or 0.8% of GDP. To analyze the necessity and appropriateness of regulations, the TDRI suggests using the Regulatory Guillotine, a checklist developed by the OECD.
The checklist covers three dimensions: legality, economic consistency, and practicability. By applying this checklist, the government can target the root causes of problems and propose recommendations to reduce burdensome rules. The TDRI provides examples of short-term, medium-term, and long-term goals for regulatory improvement.
Short-term goals include reducing redundant processes for employing disabled persons, improving access to rights protection for the elderly, and canceling educational qualifications requirements for security guards. Medium-term goals focus on facilitating SME recovery by canceling privileges granted to government agencies in the securities business and solving overlapping legality problems in bankruptcy regulations. Long-term goals involve improving laws related to the tourism industry and promoting small brewers or craft beer.
The TDRI emphasizes that regulatory reform is essential for economic recovery and complements other government measures. Despite efforts to stimulate spending and support entrepreneurs, the high cost of doing business and unfair rules and regulations hinder investment. Rapidly guillotining regulations is crucial to address these issues.
In conclusion, the TDRI suggests implementing a "guillotine" approach to regulations in Thailand to improve the economy. By eliminating unnecessary or obsolete laws and reducing compliance costs, the private sector and Thai people can benefit. The checklist developed by the OECD provides a systematic review process for analyzing regulations. Short-term, medium-term, and long-term goals for regulatory improvement are proposed to address specific issues in various sectors. Regulatory reform is seen as a crucial element for economic recovery and investment promotion.
464 word summary
The Thailand Development Research Institute (TDRI) suggests implementing a "guillotine" approach to regulations in order to boost the economy. Despite previous relief measures such as monetary and fiscal policies, the Thai economy has not fully recovered from the impacts of the COVID-19 pandemic. The government's options for borrowing more money are limited, so alternative instruments to improve the economy must be explored.
Taking inspiration from Japan's experience with Abenomics, the TDRI proposes a three-arrow policy for Thailand. The first arrow represents monetary policy, the second is fiscal policy, and the third arrow involves eliminating regulations to improve private sector investment. In Thailand, compliance with government regulations comes at a high cost for the private sector and individuals.
In 2019, the TDRI conducted a study on laws related to licenses and permits and found that 85% of the reviewed procedures could be amended or abolished. If government agencies agree to these changes, it could save the private sector and Thai people approximately 133,816 million baht per year, or 0.8% of GDP. The TDRI suggests using the Regulatory Guillotine, a checklist developed by the OECD, to analyze the necessity and appropriateness of regulations.
The checklist covers three dimensions: legality, economic consistency, and practicability. By applying this checklist, the government can target the root causes of problems and propose recommendations to reduce burdensome rules. The TDRI provides examples of short-term, medium-term, and long-term goals for regulatory improvement.
Short-term goals include reducing redundant processes for employing disabled persons, improving access to rights protection for the elderly, and canceling educational qualifications requirements for security guards. Medium-term goals focus on facilitating SME recovery by canceling privileges granted to government agencies in the securities business and solving overlapping legality problems in bankruptcy regulations. Long-term goals involve improving laws related to the tourism industry and promoting small brewers or craft beer.
The TDRI emphasizes that regulatory reform is essential for economic recovery and complements other government measures. Despite efforts to stimulate spending and support entrepreneurs, the high cost of doing business and unfair rules and regulations hinder investment. Rapidly guillotining regulations is crucial to address these issues.
The authors of the article, Phumjit Sri-Udomkajorn, Tiensawang Thamwanich, and Nathchaya Pongakkarawat, are researchers and senior fellows at the TDRI. They argue that regulatory reform is necessary to boost the economy and make investment worthwhile.
In conclusion, the TDRI suggests implementing a "guillotine" approach to regulations in Thailand to improve the economy. By eliminating unnecessary or obsolete laws and reducing compliance costs, the private sector and Thai people can benefit. The checklist developed by the OECD provides a systematic review process for analyzing regulations. Short-term, medium-term, and long-term goals for regulatory improvement are proposed to address specific issues in various sectors. Regulatory reform is seen as a crucial element for economic recovery and investment promotion.