Dr. Veerathai Santiprabhob

During the recent holiday, I visited Wat Umong to pay my respects and was struck by a sign that read, "Economy and Mind: A Concurrent Solution." I am unsure whose sermon it was, but I suspect it might be from Ajahn Buddhadasa, as he was instrumental in developing Wat Umong into a lush sanctuary filled with trees, history, and principles of Dharma.

Most people may not think that the economy and the mind are interconnected. In reality, these two aspects are inseparable and intertwined in many dimensions. Economic issues are related to human behavior, which is shaped by the mind. The economic problems faced by each country reflect the mental state and behavior of the majority in society, whether it be asset price bubbles, household debt, lack of fiscal discipline, unemployment, or corruption. Conversely, every time we survey the mental state of people in society regarding their happiness or suffering, the economic condition consistently emerges as a recurring factor.

In managing macroeconomic policies, we often hear the government talk about public confidence. Thailand has various indices measuring the confidence levels of different groups, including businesses, consumers, and investors. Whenever public confidence declines, the government loses assurance and must stimulate the economy through various means, including injecting real money into the economic system and public relations measures to address the public's anxiety. In some countries, governments even manipulate economic figures or withhold true information out of fear that the public's anxiety will complicate economic recovery.

For businesses, the mindset of owners and top executives is crucial for the long-term success of both the business itself and the society it impacts. If business leaders possess a good mindset, adhere to principles of corporate governance, and manage their businesses fairly towards partners, competitors, employees, and the surrounding community, that business is likely to grow sustainably and succeed in the long run. Conversely, we see many large corporations stumble and fall because they focus solely on short-term profits, expand beyond their capacity, exploit society and the environment, or engage in corrupt practices.

There are many examples where the mindset of business leaders affects the level of economic and social development. One example is the development of clusters for various industries. Many governments attempt to promote clusters but fail because some business leaders cannot overcome their reluctance to cooperate with competitors (especially smaller ones) in the same industry. They view competition and cooperation as conflicting or seek to maximize their own benefits, despite the fact that clusters can increase the size of the entire industry, reduce business costs, create a foundation for developing new innovations, and enhance the skills and efficiency of the workforce. If business leaders do not open their minds to collaborate with competitors for mutual success, their mindset will be a significant barrier to enhancing their own competitiveness and that of the country in the long term.

The issue of economic inequality and the declining quality of Thai society cannot be resolved if the business sector, especially large enterprises, does not see itself as part of the problem and does not recognize its crucial role in providing sustainable solutions. We must not forget that every step of doing business impacts inequality, from the procurement processes that may exploit smaller players in society, neglecting labor welfare, producing substandard goods, marketing strategies that undermine small and medium competitors, paying bribes to win contracts, to promoting consumer values that are inappropriate or excessive, and failing to manage waste generated from production and consumption processes. If businesses open their minds to review their practices at every step to be fair to partners, create positive impacts, reduce negative effects on society, and improve their business methods, it is believed that the issues of inequality and the quality of Thai society will significantly improve.

The Thai economy and society can move forward sustainably, stably, and harmoniously only when business leaders (especially in large enterprises) possess the mindset of wanting to be good citizens of the country, aiming for the overall improvement of the Thai economy and society, and are willing to take action. In this regard, I commend Khun Bandhu Lumsem for calling on commercial banks to lower interest rates after most banks remained indifferent to the Bank of Thailand's policy rate cuts. I do not commend him merely for enhancing the effectiveness of monetary policy but for shaking the mindset of bankers to be aware of the economic situation and societal tensions.

Beyond the national level, the mindset is also crucial for addressing economic issues at the community level, especially in rural communities facing various challenges, from water resource conflicts, managing chemical residues from agriculture, providing welfare for the elderly (who often bear the burden of raising grandchildren left behind by parents), to establishing community cooperatives or enterprises to sustainably add value to agricultural products. Solving problems and strengthening community economies can only happen when community members share a mindset of wanting to succeed together, respect rights, duties, and community rules, and have a volunteer spirit to cooperate in improving the overall economic and social conditions of the community. A community lacking leaders and followers with a volunteer spirit and a commitment to righteousness will struggle to create strength and sustainability in the long term.

At the household and individual levels, economic issues begin with the mind, as the mindset determines each person's behavior and lifestyle. Problems of insufficient income and household debt also have a significant psychological dimension. The philosophy of sufficiency economy from His Majesty the King can deeply and clearly connect the economy with the mind. Our lives must embody the principle of sufficiency in our minds to control our consumption and spending reasonably according to our status and needs, avoiding over-investment, and being knowledgeable about what we do. We must be able to plan and manage risks to build resilience against increasingly severe external changes. Moreover, a mindset rooted in honesty, patience, perseverance, and self-reliance will be a vital force in elevating the quality of life and economic status of individuals.

The issue of mindset is close to home yet often overlooked by people at all levels because we prioritize external matters over internal ones (and often worry about the future or the past more than we observe our current mental state). Especially when considering solutions to economic problems, most people view it as the responsibility of the government, large businesses, financial institutions, or investors rather than seeing it as an (internal) issue of their own or considering how they can play a role in alleviating the impacts of economic problems.

For me, sustainable economic reform must begin with reforming the minds of people in society, particularly those at the top who have greatly benefited from the development of the Thai economy over the past several decades. Economic reform can only occur when the majority can open their minds to listen to information and opinions from differing perspectives (with sincerity) without bias, can sacrifice their immediate interests for changes that will benefit the collective in the long run, and dare to take a stand in support of what is right while opposing the old ways that have perpetuated wrongdoing, even if it may displease some groups, and act as good citizens by not hesitating to take actions that benefit society.

The Thai economy can truly move forward sustainably, stably, and harmoniously only when the majority of the country continuously reminds themselves that "Economy and Mind: A Concurrent Solution."

Note: First published in the Wandering Economics column of Bangkok Business Newspaper on June 10, 2015.