OCTOBER 9 — When the International Monetary Fund and World Bank gather in Bangkok for their Annual Meetings on October 12-18, recent flooding will pose a question central to their discussions: how can a country protect the households, businesses and infrastructure on which its prosperity depends?
The contrast with 1991, when Thailand last hosted the meetings, is instructive. Then, the country appeared to embody the promise of rapid industrialization, expanding foreign investment and Southeast Asia’s economic ascent. This time, the challenge is not simply to generate growth, but to protect its foundations against costly disruptions.
Early assessments suggest losses from interrupted economic activity of around 0.1-0.2 per cent of GDP, even though damage to assets could be substantial. A modest hit to national GDP does not necessarily mean a modest economic shock.
