Thailand is concurrently hosting two mega-events: Unctad X, a global scrutiny of economic colonialism, and the BoI Fair, our glorification of foreign investment. Their themes are contradictory, a sad paradox on our part. For it shows we haven't learnt from the economic catastrophe. Disciples of me-and-money-first economic policies have plenty of arguments to prove how wonderful is free trade. Don't argue back. Just show them the facts. The 1999 Human Development Report of Thailand shows where we stand following three decades of integration with the global market economy through export-led agriculture and industrialisation.
To start with, the income gap is getting wider. In 1960, the average income of agricultural households was about one-sixth the average income of other sectors. By the 1990s, the difference had grown to one-twelfth. Another revealing fact: In 1988, the top 20% of the population enjoyed 54.2% of national income while the bottom 20% had only 4.6%. In 1996, the gap was wider yet.
On the environmental front, forest clearing to boost farm output for export has depleted the area under forest and woodlands by a rate of nearly 240,000 hectares per year. The so-called Green Revolution to increase farm productivity also entailed the heavy use of farm chemicals. The country's pesticide use increased from 20,270 tonnes in 1987 to 44,922 tonnes in 1996, a rise of 122% in one decade.Thus water resources are in danger. A 1994 study of water resources across the country found that 81% of all reservoir water was contaminated with DDT.
Meanwhile, blood tests on 416,418 farmers nationwide showed that 16.6% had been tainted with pesticides. An FDA investigation found 98% of the 78 samples of fruits tested had residuals in breach of health safety standards. According to the Public Health Ministry, pesticide-related illnesses increased 17-fold in the period 1988-93. Who gains from these hazards? Most of the 40 major pesticide and herbicide producers in Thailand are multinationals.
Meanwhile, much of the industry attracted by Thailand under its investment promotion regime is among the most polluting industries. A survey of waste management by the National Environment Commission in 1989 found that the chemical industry produces the most hazardous waste. Most of the polluters are transnational corporations.
Overall, Thai industries imported 2.22 million tonnes of hazardous and toxic substances in 1994. In 1996, around three-quarters of the 1.35 million tonnes of hazardous and toxic waste produced in Thailand came from the industrial sector. Much of the waste is discharged into waterways, killing canals and rivers. In the process, Bangkok has become one of the most polluted cities in the world.
Think again if you believe the money and jobs Thailand has received are worth the threat to the environment. The belief that industry is a massive job pool is false. Manufacturing accounts for more than 30% of GDP, but it has created only 4.5 million jobs, or only 13% of the labour force. Meanwhile, the majority of workers are low paid and there is little job security. The workplace injury rate in Thailand is one of the highest in the region.
Incentives for foreign investors also carry a high price. The loss of revenue as a result of tax exemptions grew from an estimated 1.7 billion baht in 1991 to 12.7 billion baht in 1995. This excludes the losses incurred from import duty exemptions on machinery, the waiving of corporate taxes for exporters in industrial estates and the discounting of public utility charges. Hopefully, these facts will help us come to our senses.
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