Most mainstream economists in Thailand usually lend support to improving an inadequate
infrastructure. My argument, while not entirely opposed to the removal of this real physical
constraint, draws attention to a more important infrastructure that is a legal system which
allows the effective implementation of private contract as well as contracts between the
private sector and the state (see Stiglitz, 1992). In the case of Thailand, the role of the state is
not merely ambiguous, but also very vague (Siriprachai, 1995b). In some economic sectors,
for instance, the state can enforce the law and maintain political stability, but in many cases,
the state is too weak to protect private property rights, or even public property. An
indisputable case is the deforestation and severe pollution from chemical toxic waste in recent
years with which the Thai bureaucracy has not been able to take issue. The main task of the
Thai government is to reform the legal system so as to create immunity and avoid rent-seeking
activities and to enforce procedures effectively (see Sathirathai, 1987; Siriprachai, 1990;
1993). It is widely believed that the Thai society is typically full of rent-seeking activities and
corruption, which will make the country weak in the long run, as long as most productive
agents, for instance, talented bureaucrats, are engaged in these activities
Most mainstream economists in Thailand usually lend support to improving an inadequateinfrastructure. My argument, while not entirely opposed to the removal of this real physicalconstraint, draws attention to a more important infrastructure that is a legal system whichallows the effective implementation of private contract as well as contracts between theprivate sector and the state (see Stiglitz, 1992). In the case of Thailand, the role of the state isnot merely ambiguous, but also very vague (Siriprachai, 1995b). In some economic sectors,for instance, the state can enforce the law and maintain political stability, but in many cases,the state is too weak to protect private property rights, or even public property. Anindisputable case is the deforestation and severe pollution from chemical toxic waste in recentyears with which the Thai bureaucracy has not been able to take issue. The main task of theThai government is to reform the legal system so as to create immunity and avoid rent-seekingactivities and to enforce procedures effectively (see Sathirathai, 1987; Siriprachai, 1990;1993). It is widely believed that the Thai society is typically full of rent-seeking activities andcorruption, which will make the country weak in the long run, as long as most productiveagents, for instance, talented bureaucrats, are engaged in these activities
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