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นวัตกรรมการพัฒนารายได้
ขององค์กรปกครองส่วนท้องถิ่น

Problems or limitations of the local economy development for Local
Governments in Thailand

1) Limitation of Law Framework

= Article 87 of the constitution on commercial enterprises in a competition with

private sectors is the significant limitation for Thai local governments to initiate
economic development projects in the area because the projects are often
interpreted as operations against private sectors.

= The legal limit of the Act on Private Investment in 2013 on the partnership
between private and public sectors on a large project worth one billion baht or
more according to the Ministry Regulation (Article 23). The amount set forth in

the Act could cause frustration and waste of time in the process of obtaining
approval for the projects and become the obstacles to the partnership between
public and private sectors.

= Laws and regulations are outdated such as a cash basis accounting method,
which affects the calculation in depreciation of property. The Comptroller may
require the management and control model to account for the unity and

appropriateness of the financial process.

2) Limitation of Local Government’s Potential

= Local government officials lack understanding about local economic
development especially on the issue of increasing the value or economic
multiplier effect.

= Lack of strategic planning to develop the local economy

= Many local governments lack staffs with financial capability on project and
financial management.

= Leaders and local governments lack enthusiasm, creative thinking, and
willingness to initiate economic development in the area.

3) Political Will

= The management of economic development in the area is intended to create a
covert political favor to individuals. Therefore, the projects are held with an

individual’s interests, not general public’s, with the intent to avoid adverse
effects in the future election.