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The Journal of the Royal Institute of Thailand Vol. 27 No. 3 Jul.-Sept. 2002 Good Governance : Only the First Step for Thailand ˆÒÚ and eroding its sovereignty. The M&A boom is one example. Mean- while, poor and jobless people are moving “under” the state as illegal migrants and small-scale traders. Drug warlords, themafia and black marketeers have increased their control of local politics and in many areas have become “repre- sentatives” of the people. Consumerism, too, has ex- panded beyond national bound- aries. Consumerism and transna- tional corporatism are the two main characteristics of what is called “internationalism.” Small nation-states have to face the double jeopardy of becoming more dependent and at the same time struggling to compete in the global economy. The Agricultural Sector Thai society is bifurcated into the private-corporate sector (both domestic and international) and the people’s agricultural sector (composed mainly of small-scale farmers). Good Governance, as encouraged by Globalization, is largely irrelevant to the most press- ing concerns of the latter, which, even during the rapid economic growth of the 1980s, was unab- sorbed to any significant extent by industrialization. While the state has adjusted its strategic alliance with the private-corporate sector by co-opting it into the highest level of decision-making, the state has been reluctant similarly to in- clude the rural agricultural sector, and has been less responsive to its demand for participation beyond electoral channels. Not only power- less small farmers but also orga- nized agricultural interest groups have suffered from the drive to- ward industrialization and interna- tional competitiveness. These marginalized farmers are victims of development. They have neither economic assets nor economic rights, although they are citizens with voting and other fun- damental rights guaranteed by the new constitution. Political reform has opened up new channels for participation, but this partici- pation mainly takes the form of grievance expression rather than interest aggregation. Although Globalization is neutral and is driven by rapid change in technology and commu- nications, Good Governance is not neutral. The term is value laden and refers to that which is neces- sary for an efficient market-driven economy. Good Governance is a basic requirement for a more open and transparent public-private sec- tor relationship. But, as noted above, Thailand is a bifurcated so- ciety. The Thai government, in its attempt to promote Good Gover- nance during the past three years, passed a number of laws (such as the Business Competition Act of 1999 and the Accounting Act of 2000) favoring multinational cor- porations. These laws are to en- sure that domestic and foreign in- vestment does not result in anti- competitive behavior. However, draft legislation on community rights, natural resources and envi- ronmental management suffered from delays and setbacks. The shift from an input-based economy toward a more know- ledge-based economy will be ex- tremely unstable and requires a good political strategy rather than Good Governance. Conventional- ly, such a shift is said to require modernization of institutions, in- centives for competition, good cor- porate management, gradual privatization, targeted research and development, upgrading of skills, and support for small- and medium-sized enterprises. These technical measures are necessary for competitiveness, and enhance the corporate sector’s efficiency. However, they must be accompa- nied by a strategy capable of forg- ing a grand alliance between the large, rural, input-based, tradi- tional part of society with the small, urban, knowledge-based, modern- ized and globalized part of society. Good Governance is not the ans- wer to this problem. Toward a New Consciousness As a bifurcated society, Thai- land has to cope with globalization at both ends, for it cannot rely upon market forces alone. The state has to create an optimal rela- tionship between democracy, the market, and sustainable develop- ment. Globalization is inherently market “drive”; Good Governance is management-oriented, but de- mocracy is people-centered and requires both free and fair treat-

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