Newsgroups: soc.culture.thai
Date: Wed, 30 Dec 1992 12:15:55 -0500 
From: Schitt Laowattana <sl2k+@andrew.cmu.edu>
Subject: [Part:2] The Seventh National Plan(1992-1996)

2. Important issues which continue to be constraints hindering prospects
of long-term sustainable development

    2.1 Limited application of technology to enhance productivity

        2.1.1 Despite an increasingly diversified industrial production
structure into more modern and high level industries, the process and
stages of production are still largely labor and resource intensive
since these are comparativelt cheaper.  Within the agricultural sector,
increase of output was usually accounted for by extention of farm land,
and use of cheap labor, to reduce production costs.  In the future, both
the industrial and agricultural sectors will no longer be able to employ
to the same extent these factors which Thailand used to have comparative
advantage over some other countries.  This is because Thai wages have
been on the rise, and Thailand has reached the end of the land frontier,
causing land prices to rise rapidly.

        2.1.2 Another important factor which has played a part in
delaying the application of modern techology to increase industrial
productivity is the high level of protection that the government had
given to the industrial and commercial sectors, such as import tariff
barriers, import bans, and bans on establishment of some types of
industrial planrs, etc.

    2.2 Limited capability in the acquisition and transfer of technology.

        2.2.1 Thailand continues to rely on imports of technology in
various forms, costing an increasing amount of money annually.  But the
capability to acquire technology is still limited as the small and
medium-scale industries tend to be at a disadvantage in terms of pricing
and other business constraints.  This is because they lack sources of
data and information on technology, as well as bargaining power and
appropriate financial support.

        2.2.2 Diffusion of technology and technical knowhow is still
limited, Normally, parent companies will transfer technology, or
technology knowhow only to clients or subsidiaries in foreign countries.
 There fore, small and medium scale companies in Thailand will generally
not get the benefits of the technology transfer, and will not be able to
act as dub-contractors in producing the desired parts.  As a result,
imports of parts and necessary materials from foreign source companies
to act as sub-contractors in producing some parts.

        2.2.3 Large-scale industries and state enterprises, which import
equipment and materials, and which rely on high technology from foreign
contries, do not sufficiently recognize the importance of building up
local capability in acquring, selecting and absorbing technologies
imported from foreign countries.

    2.3 Manpower in S&T is inadequate both in terms of quantity and quality

        2.3.1 The rapid economic expansion, and the changing production
structure, which is increasingly oriented towards the industrial,
services and modern agricultural sectors, have led to severe shortages
in S&T manpower, particularly engineers, technicians and skilled
craftman.  During 1987-1989, shortage of engineers alone was estimated
to be 5,000.  During the Seventh Plan period, it is estimated that
demand for such manpower will be even greater.

        2.3.2 There have been increasing problems of braindrain of
personel from the government and state enterprises to private business
and industry.  Particularly acute is the problem of braindrain of
university professors in S&T, who are key "producers" of new generations
of scientists and technologists.  Furthermore, given the greater needs
in R&D activities, demand for highly qualified personel in S&T can only
increase, thereby exacerbating the existing problem of shortages further.

    2.4 R&D activities and basic facilities and support services for
development of S7T are still not strong enough to readily absorb foreign
technology, or to have sufficient degree of self-reliance for
indigeneous technological development.

        2.4.1 Most of R&D activities are conducted by the public sector,
and are scattered in various places.  Research results have generally
not been effective in solving basic problems.  Newer areas of research
activities tend to be carried out in isolation, and are unrelated to the
industrial sector.  Therefore, research results are not applied
commercially.  With regard to the private sector as users of research
results, they are still not sufficiently aware of the importance of R&D
because of the lack of positive measures and incentives from the
government to encourage them to invest in this field.

        2.4.2 Other supporting services, such as metrological service,
analysis and testing standards, and product quality accreditation, are
provided by several agencies, which still lack capability and efficiency
to offer speedy services in response to the increasing demand.


Posted and circulated by

Schitt  Laowattana
Center of Operation for FIeld roBOtics Development(FIBO)
Bangkok 10140, THAILAND
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