Digital Transformation in Thailand: Policy and Institutional Reform

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1 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, UK 9-10 October 2017

2 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 2

3 Digital Economy Policy: Kick Off Promote the digital economy and lay a foundation so that the digital 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 (2014) 3

4 In the Beginning (1): Focusing on Economic Performance (narrow scope) Digital economy will enable the country s original growth engines, ie., Agriculture, Industry, and Services, to perform even better. Digital Economy Creating Innovation Goals M.R. Pridiyathorn Devakula, Deputy Prime Minister of Thailand Improving Productivity Digital Technologies Increasing Utilization Ensuring Accessibility (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 4

5 In the Beginning (2): Focusing on Institutional and Legal Infrastructure 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 5

6 In the Beginning (3): No clear definition of Digital Economy 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 wellbeing. 6

7 In the Beginning (4) Selective Working Group National Digital Economy Committee NDEC Secretariat -Knowledge Center - Project Mgt. Hard Infrastructure Soft Infrastructure Service Infrastructure Digital Economy Promotion Digital Society National Broadband Standard Digital-Government Digital Commerce Lifelong Learning Data Centers Cyber Security & Privacy Service Platforms Digital Entrepreneur Digital Archive (+ Digital Library) International Gateways Laws E-Logistics Digital Innovation Digital City National Broadcast Critical Infra. Services Data Service Innovation Digital Content Media Literacy Satellite Radio Frequency Management Universal Design/Universal Healthcare 7

8 Thailand Digital Economy and Society (DE) Development Plan

9 20-Year Thailand Digital Landscape Phase 1 Digital Foundation Investing and building digital foundation 1 Year 6 Months Phase 3 Digital Thailand II: Full Transformation Driving the country with digital technology and innovation 10 Years 5 Years Phase 2 Digital Thailand I: Inclusion Ensuring everyone can reap the benefits of digital technology Years Phase 4 Global Digital Leadership Leading with digital technology and innovation (Becoming a developed country) 9

10 5. Develop workforce for the digital era Developing skilled workforce, Creating jobs Building strength from within 6. Build trust and confidence in the use of digital technology Updating laws and regulations, Encouraging investments, Ensuring security 4. Transform into digital government Creating open government, Facilitating people and businesses, Integrating into One Government Strategies 1. Build countrywide highcapacity digital infrastructure Ensuring accessibility, availability, and affordability 3. Create a knowledgedriven digital society Building participation, Ensuring inclusive and equal usage 2. Boost the economy with digital technology Driving New S- Curve, Raising Competitiveness, Building new businesses, Creating values

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15 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

16 Institutional Framework in accordance with Digital Economy and Society Development Act Commission The National Digital Economy and Society Commission Prime Minister Chairman Approve Policy/Strategy Considerinitiatives and projects Digital Economy and Society Development Fund Management Committee Deputy Prime Minister - Chairman Digital Infrastructure Committee Digital Economy and Society Promotion and Development Committee Fund Management for Digital Economy and Society Development Policy National Digital Economy and Society Development Policy 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 Fund Digital Economy and Society Development Fund Resources: Government/ NBTC (maximum 5,000 million THB/year), etc. Agencies Office of the National Digital Economy and Society Commission (ONDE) 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 The Digital Economy Promotion Agency (DEPA) Established: 25 January 2017 Promote and support digital and innovation industry Promote the adoption of digital technology

17 Talking about plans Digital Infras/Promotion Committee 1.Digital Economy and Society Development Plan (20 years) Approve 2.DE Action Plan (5 years) DEPA Commission Align Align Approve ONDE Draft 4.Sectoral Policy/Strategy Align Align 3.DE Promotion Plan (According to DE Law) สอดคล อง Draft Draft 6.MDES Strategic Plan Align 5.DEPA Strategic Plan Announce DEPA Commission Approve 17

18 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 18

19 AGENDA:

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21 THANK YOU