In an eye-opening study released by the World Bank, it has been brought to light that modestly populated cities in Thailand such as Chiang Mai, Khon Kaen, and Rayong are harboring immense potential for economic expansion through urban infrastructure enhancement. This piece of research, aptly titled ‘Thailand Urban Infrastructure Finance Assessment,’ advocates that infrastructural advancements in areas like mass transit systems and clean, renewable energy sources can substantially augment Thailand’s economy, pivoting away from the nation’s heavy reliance on capital city Bangkok as the main economic engine.
However, this optimistic blueprint doesn’t come without its challenges, one being the procurement of private capital to fuel these infrastructure enhancement projects, thereby reducing the burden on the nation’s central governmental reserves. This reorientation of economic strength from Bangkok could potentially allow these secondary cities to emerge as new economic growth centers, resulting in a direct upswing in national competitiveness and resilience in the face of climate change.
The groundbreaking study was brought to fruition through a collaborative effort involving the Programme Management Unit on Area-based Development (PMU-A) alongside Khon Kaen University. Their findings suggest several effective methods for financing these ambitious projects, including municipal borrowing and forging partnerships alongside the private sector.
The Director-General of the Public Debt Management Office under the Ministry of Finance, Patricia Mongkhonvanit, seconded this need for expansion beyond the capital. According to her, “Secondary cities have the potential to act as catalysts of economic growth, bridging the rural-urban divide and providing accessible opportunities for residents living in rural areas.”
The projected urban growth in these secondary cities lays out a promising picture, with wide-ranging benefits for both urban and rural inhabitants. Upgraded transportation systems, widespread electrification, and better access to markets, education, and healthcare could streamline the movement of people, goods, and services within and among different cities. By promoting economic growth and creating job opportunities, these endeavours can significantly enhance overall quality of life.
The study also stresses the crucial role of public utilities like water and wastewater management and solid waste management in securing environmental and health benefits and establishing a strong, resilient urban infrastructure prepared to combat weather extremities like floods and droughts. Despite the decentralisation legislation in Thailand during the 1990s, the central government still holds sway over the cities’ fiscal allocations, which has curtailed their financial independence in several sectors, particularly infrastructure investments. Consequently, the study suggests a radical transformation of the traditional mechanisms, enabling these rising cities the autonomy, know-how, and required tools to fuel their infrastructure projects.
Poon Thingburanathum, the Deputy Director of Corporate Planning at PMU-A, expressed certainty about the potential urban growth in Thailand’s secondary cities. He stated, “Municipal borrowing and public-private partnerships serve as reliable avenues for urban infrastructure development, with examples of successful implementations scattered globally.”
The study sheds light on numerous project proposals in five burgeoning Thai cities: Chiang Mai, Rayong, Nakhon Sawan, Khon Kaen, and Phuket. It also delves into the policies and institutions shaping how city authorities manage their finances and raise capital for infrastructure investment.
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