Thai pitch for bridge role

Thailand is committed to acting as a bridge in a fragmented global economy, despite major powers abandoning established frameworks, according to Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas. He emphasizes that Thailand stands firmly by international rules and cooperation.

Ekniti spoke at a session titled "Building Resilience in a Fragmented World" and highlighted how global challenges have contributed to a "K-shaped" recovery, where major economies and multinationals flourish while smaller economies and businesses struggle. He described Thailand as a middle-sized economy aiming to serve as a "trusted connector" between major powers and smaller economies, connecting diverse economies both globally and within the Association of Southeast Asian Nations (ASEAN).

The Thai representative stressed the importance of domestic trust and the need for foreign direct investment to bring tangible benefits to local communities and businesses. He noted that building international credibility requires collaboration at the local level, integrating local suppliers into global value chains and equipping workers with skills for emerging technologies such as artificial intelligence.

International Monetary Fund (IMF) Managing Director Kristalina Georgieva warned that economic fragmentation poses a significant threat to global stability, potentially reducing global GDP by up to 7 percentage points. She identified the "opportunity cost of foregone cooperation" as a hidden cost, which includes costly duplication, stifled innovation due to fragmented research and restrictions on cross-border collaboration, and the erosion of trust that weakens international relationships and cooperation essential for shared prosperity.

Georgieva emphasized the importance of macroeconomic and financial stability as the first line of defense against economic disruption. She urged member countries to prioritize fiscal health and monetary policy. She strongly encouraged diversifying international partnerships, asserting that cooperation and integration should not be forgotten in a fragmented world but rather worked even harder towards.