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4) Other limitations such as the negative attitude of the central government and
government agencies toward certain local governments.

Recommendations for Local Economic Development of Thai Local

Governments

1) Recommendation on Principles

= An analysis of their potentials: For local economic development, ​​local
governments should take their own characteristics and potentials into account
such as the availability of resources, knowledge and competence of local

personnel.

= Strategic planning in development: Local governments should be encouraged
to initiate strategic thinking and planning for proper development by looking at

the whole picture and the main goal of development. Innovative development is
to make appropriate decision for local development corresponding to the

uniqueness of local needs.

= Opportunity to local decision-making in the field of financial incentives for
economic development : Local governments should be allowed to make their

own decision in the field of financial incentives or may be conducted in
collaboration with the BOI and SMEs.

= Considering other contexts of development: The development of the local

economy can be both beneficial and detrimental to the community. Therefore,
the development must be taken into account in other contexts include
surrounding, culture and quality of life.

= Managing risks: Local economic development should be systematically planned
to deal with risks and failures under unexpected circumstances to mitigate the
impacts that may occur.

2) Recommendation for Law

= Amendments to the Law: The laws that hinder the development of the local

economy should be amended such as the operation of section 87 of the
Constitution that prohibits commercial conducts by local governments in
competition with the private sector to make local initiatives more diverse, the
Act on Partnership between the public and private sectors to make the process

of massive projects more convenient and faster, and the Act on Loans to
provide more local funding channels for the projects or activities.