But, as you are aware, the current growth rate of investment has been around 9 percent, and this makes investment promotion a very challenging and important policy agenda going forward. My own assessment is that this policy challenge can be achieved by strengthened fiscal policy efforts as public investment has been progressing in recent years. Infrastructure projects, which have been long delayed due to political problems, are now back on track. The construction of airport rail link came to a completion last year. Two more railway routes under the plan of Bangkok Mass Transit System are presently under construction. Several other railway projects in other regions other than Mass Transit in Bangkok are also in  1  Inflation rate of 2.6 percent is the average rate during 2001–2010 while 5.1 percent is the average rate during 1990–1996. 2  Average GDP growth rate during 2001–2010. 3  Chuenchoksan, S. and Nakornthab, D. (2008). “Past, Present, and Prospects for Thailand’s Growth: A Labor Market Perspective,” Discussion paper. Bank of Thailand. 2  BIS central bankers’ speeches  the pipeline. These public investments are welcomed steps towards further infrastructure developments, which will help lower logistic costs and boost Thailand’s productivity. In my view, public investment can and must do more to lower production costs and crowd in private investment over the medium term. Having said that, the physical infrastructure must be complemented by human capital development, to enhance productivity and potential growth.

We don’t want three years of boom followed by three years of bust. Second, the country’s potential growth rate should be high enough to continuously raise the people’s general standard of living. And, third, growth should maximize inclusiveness. By this I refer to maximizing the exposure of everyone to economic development, both in terms of participation in the development process and in the sharing of its benefits. This would lessen the problem of inequality, and foster social harmony. That said, I wish to underscore that, even though growth is the most visible factor, growth alone is not sufficient but sustainability and inclusiveness are also crucial to ensure long-term economic success. Looking at economic strengths and weaknesses in the context of these three success factors should provide for a better understanding of the role of central bank and policymakers in advancing the economic development agenda for Thailand. Indeed, these success factors entail three corresponding fundamental responsibilities for policymakers. The first responsibility is to ensure continued macroeconomic stability, which is a prerequisite for economic sustainability, by gearing our economy towards operating at the potential level. Second is to raise the people’s standard of living by expanding the potential growth rate of the economy. Third, to maximize inclusiveness, we have to ensure the equal exposure to economic opportunities for all. Ladies and Gentlemen, Let me start with the first success factor, namely economic sustainability, which I consider to be Thailand’s most important strength. After the 1997 crisis, Thailand has no longer experienced the current account deficit problem.