Digital Transformation in Thailand:Policy and Institutional Reform

Kasititorn Pooparadai, Ph.D.

presented at

Development Implications of Digital Economies (DIODE): Policy and Practice Workshop

Oxford Internet Institute, University of Oxford, UK9-10 October 2017

Outline• Ideation: Digital Economy Kick off

• Policy Formulation: Thailand Digital Economy and Society (DE) Development Plan

– Vision,

– Goals, strategies

• Implementation:

– Realizing DE plan through Mega Projects

– DE Laws enacted New Institutional Setting and Mechanisms

• Conclusion and Discussion

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“6.18 Promote the digital economy and lay a foundation so that thedigital economy can seriously move forward. This would make all economic sectors more advanced and competitive in the modern world, including the direct production and trade of digital products, such as hardware, software, digital communication and telecommunication products; and the use of digital technology as a basis for financial services and other service sectors, particularly communications and entertainment; and digital technology for manufacturing and creative economy. Improve the roles and missions of the authorities directly responsible to supervise and push this important matter forward; and establish a national committee to seriously steer the issue.”

Policy Statement of the Council of Ministers on Agenda 6: Enhancing the Country’s Economic Potential, delivered by General Prayut Chan-o-cha, Prime Minister, to the National Legislative Assembly on Friday 12 September B.E. 2557 (2014)

Digital Economy Policy: Kick Off 2014

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EnsuringAccessibility

IncreasingUtilization

Improving Productivity

Creating

Innovation

Digital Technologies

Digital Economy

Goals

(Examples) Digital technologies are used to

➢ Create more jobs in both ICT and real sectors➢ Generate more incomes for businesses and

people➢ Increase the well-being of people (Education,

Health, etc.)➢ Save lives and properties

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1 01 0 1

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“Digital economy will enable the country’s original

growth engines, ie., Agriculture, Industry, and

Services, to perform even better.”

M.R. Pridiyathorn Devakula, Deputy Prime Minister of Thailand

In the Beginning (1): Focusing on Economic Performance (narrow scope)

In the Beginning (2): Focusing on Institutional and Legal Infrastructure

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8 Drafted Bills were proposed to the Cabinet

• Institutional-related• Reorganization of Ministry

and Sub-Ministry and Department Act

• Digital Development of Economy and Society Act

• Act on Organization to Assign Radio Frequency and Regulate Broadcasting and Telecommunication Act (Amendment)

• Electronic Transaction Development Agency Act

• Trust and Confidence• Computer Crime

Act (Amendment)• Electronic

Transaction Act (Amendment)

• Data Privacy Act • National Cyber

Security Act

In the Beginning (3): No clear definition of Digital Economy

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Interim: Working Definition

Digital economy is defined as the economy and society in which digital technologies are key enablers to the transformation of such basic activities as manufacturing, trade and services, learning and education, healthcare, public administration, and so on so forth, ultimately leading to job creation, economic growth, and social well-being.

In the Beginning (4)Selective Working Group

National Digital Economy Committee

National Broadband

NationalBroadcast

Satellite

Radio Frequency Management

Critical Infra. Services

Standard

Laws

Cyber Security

& Privacy

E-Logistics

Digital-Government

Data Service Innovation

Service PlatformsDigital Entrepreneur

Digital Innovation

Digital CommerceLifelong Learning

Universal Design/Universal

Healthcare

Digital Archive

(+ Digital Library)

InternationalGateways

Data Centers

NDEC Secretariat

-Knowledge Center

- Project Mgt.

Digital Content

Digital City

Media Literacy

Hard Infrastructure Soft InfrastructureService

InfrastructureDigital Economy

PromotionDigital Society

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Thailand Digital Economy and Society (DE) Development Plan

20-Year Thailand Digital Landscape

Phase 1Digital Foundation

Investing and building digital foundation

Phase 2Digital Thailand I:

InclusionEnsuring everyone can

reap the benefits of digital technology

Phase 3Digital Thailand II:

Full TransformationDriving the country with digital technology and

innovation

Phase 4Global Digital Leadership

Leading with digital technology and innovation

(Becoming a developed country)

1 Year 6 Months

5 Years

10 Years

10-20 Years

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Strategies

1. Build country-wide high-

capacity digital infrastructure

Ensuring accessibility, availability, and

affordability

2. Boost the economy with

digital technology

Driving New S-Curve, Raising Competitiveness, Building new businesses, Creating values

3. Create a knowledge-

driven digital societyBuilding

participation, Ensuring inclusive and equal usage

5. Develop workforce for the

digital eraDeveloping skilled

workforce, Creating jobsBuilding strength from

within

4. Transform into digital governmentCreating open government, Facilitating people and businesses, Integrating into One Government

6. Build trust and confidence in the

use of digital technology

Updating laws and regulations, Encouraging

investments, Ensuring security

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Ministry of Digital Economy and Society

• Suggest and administer and manage the policy on harnessing the benefit of digital economy and society to lead to concrete action• Promote and encourage cooperation,

domestically and abroad, in order to have efficient and comprehensive development and usage of digital technology in all sectors• Promote and develop the ecosystem

for Digital Economy and Society Development and Digital Competency for increasing potential and competitiveness of the country• Follow up the performance under

policy on developing the Digital Economy and Society

Commission

Agencies

FundPolicy

Digital Infrastructure Committee

Digital Economy and Society Promotion and Development Committee

Resources: Government/NBTC (maximum 5,000 million THB/year), etc.

• Publish as a Royal Command, and publish in the Government Gazette

• Implementation by all government agencies, and budget preparation by Bureau of the Budget to ensure that the budget fits government policy

• Established: 16 September 2016• Secretary of the commission and 3 committees• Manage and enhance the cooperation and integration related to

Digital Economy and Society development

• Established: 25 January 2017

• Promote and support digital and innovation industry• Promote the adoption of digital technology

• Fund Management for Digital Economy and Society Development

Digital Economy and Society Development Fund Management Committee

The National Digital Economy and Society Commission

Office of the NationalDigital Economy and Society Commission (ONDE)

The Digital Economy Promotion Agency(DEPA)

Digital Economy and Society Development Fund

National Digital Economy and Society Development Policy

Deputy Prime Minister - Chairman

Prime Minister – Chairman

• Approve Policy/Strategy• Considerinitiatives and projects

Institutional Framework in accordance withDigital Economy and Society Development Act

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Talking about plans

3.DE Promotion Plan(According to DE Law)

Approve

Approve

2.DE Action Plan (5 years)Approve

DraftONDE

1.Digital Economy and Society Development Plan (20 years)

Digital Infras/Promotion

Committee

DEPA Commission

4.Sectoral Policy/Strategy

Align

Align

5.DEPA Strategic Plan

DEPA Commission

สอดคลอ้ง

Draft

Draft

Announce

6.MDES Strategic Plan Align

Align

Align

Conclusion and Discussion

• Political influence– Top-Down with DE Champion

– National Direction and Alignment

– Funding for Mega Projects

• Implications of DE Legislation– New ecosystem to drive Digital Economy

– Stability and Continuity vs Flexibility

• Effectiveness Implementation and coordination – Supra-ministerial commission (and secretariat)

– DE Fund– Other ministries

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AGENDA:

THANK YOU