Kosit Panpiemras, executive chairman of Bangkok Bank and former secretary-general of the National Economic and Social Development Board (NESDB), last week warned that Thailand may soon face another economic crisis if it fails to adhere to the sufficiency-economy model.

If the Kingdom continues to spend beyond its means, the problems that arise from poor governance might worsen, he said, pointing to a rise in crony capitalism, conflicts of interest, insider trading and monopolies.

His Majesty the King's philosophy of a sufficiency economy will help avert a crisis caused by these "crimes of capitalism", Kosit said.

His comments were made during a seminar on the 10th NESDB plan (for 2007 to 2011), which stresses a healthy society rather than a growth-oriented economy.

The timeliness of his remarks is underscored by the celebrations of the 60th anniversary of His Majesty the King's accession to the throne. His Majesty is a leading advocate of the sufficiency-economy model.

With politically connected businesses at the centre of Thailand's political crisis, the sufficiency economy is being held up as a model that can help correct poor governance while achieving sustainable economic and social development.

Many analysts have concluded that the current political crisis and economic malaise are a result of poor governance, inefficient bureaucracies and corrupt independent organisations.

Some fear the current political stalemate will lead to an economic crisis while others worry about potential violence.

Amid this frustration and pessimism, people are turning to HM the King's ideas for direction. His advocacy of a sufficiency economy - which has been lauded by the United Nations - has renewed people's confidence in their future as well as the Kingdom's.

"At this crucial moment for our country we are in dear need of the philosophy of a

sufficiency economy to help us avert the next crisis," Kosit said.

The idea of sufficiency economy, or well-balanced capitalism, is simple. It is based on following one's conscience. HM the King's suggestions remind people to follow simple moral rules. For example, he advises people not to be greedy, to be moderate and live within their means.

Leo Mittelholzer, managing director of Siam City Cement Plc, said that HM the King had "vision" and said this vision could lead Thailand to sustainable economic development.

As a result of poor governance, political leaders adopt policies for short-term popularity at the expense of long-term, sustainable development. For example, the populist policies implemented by Caretaker Prime Minister Thaksin Shinawatra have led to an increasing level of household debt.

While the 1997 economic crisis was largely a result of mismanagement by private companies, the next crisis will likely result from "economic crimes".

Just a few months ago, hundreds of thousands of people took to the streets to vent their anger towards what they saw as worsening economic crimes, including conflicts of interest, unfair competition, cronyism, lack of transparency in public affairs and unregulated monopolies.

As the political system weakened over the past five years, money politics became the rule and politicians allegedly colluded with senior officials to protect their interests. Independent organisations were undermined, and the system of checks and balances eroded. This sparked the political crisis.

If the political crisis persists an economic crisis may be imminent. The 1997 crisis was partly caused by poor corporate governance. Poor governance in the public sector and a government that failed to develop a sufficiency economy could trigger the next one.

Wichit Chaitrong

The Nation