- May 4, 2021
- 3,337
Thailand's State Trading Corporations
Being the exclusive channels for the entire foreign trade, State Trading Corporations (STCs) are vital components of the economic structure of the Socialist Republic of Thailand. These public enterprises function under close democratic supervision and are based upon the constitutional ban on private ownership of the means of production and the dictates of collective interest. Through the Labor Token Exchange (LTE) mechanism, they serve as a strategic buffer and interface between Thailand's domestic, decentralized, democratically planned socialist economy and the external global capitalist market, which is predominantly conventional currency and market-based. STCs are essential tools of economic sovereignty and are beyond businesses.
They protect the national LTE system from the variability and predatory logic of global market prices and capital flows, and ensure that foreign trade is perfectly integrated with national economic planning, socialist principles, and the general aim of progressing towards a communist society. Thailand's adherence to participatory democracy and decentralized coordination is reflected in the organization and management of Thai STCs. Each STC would be sectoral or major trading area specialized and would operate under the general umbrella of the National Economic Planning Board (NEPB) and concerned ministries (e.g., Finance, Foreign Affairs, etc).
The Federation of Workers' Councils, as the representative of producer cooperatives, the Unions of Regional Consumer Councils, as the representative of societal needs, and the relevant governmental coordinating agencies are all part of their multi-stakeholder governance and oversight. Transparency and accountability to these representative bodies—and, through the National Assembly, to the Community Assemblies—are given highest priority in STC decision-making. Their mandate is to implement democratically determined economic goals, ensure fair terms of trade, and strategically buy required imports or sell intended exports, rather than to maximize profits.
Operationally, STCs directly oversee the importation process according to the requirements determined by the national participatory planning system. STCs purchase goods and services from the international market using the Thai Baht held by the Bank of Thailand from export proceeds or other foreign transactions. The determining function is at the point of importation: the STC evaluates the imported goods by determining the socially necessary labor time to produce similar goods or services domestically in Thailand's socialist economy, not based on their capitalist market value. It does so in consultation with planning boards and with the appropriate worker councils.
The "price" of the imported goods in Labor Tokens is thereby determined by this imputed labor value when they are entered into the domestic distribution network. This important step effectively converts external market relations into internal socialist economic reasons by not allowing imports to degrade domestic labor valuation or introduce capitalist price distortions into the LTE system. On the other hand, STCs handle all the exports of Thailand's worker cooperatives and public enterprises. STCs consolidate goods, negotiate prices with foreign buyers, and conduct transactions exclusively in Thai Baht, all within the context of national export strategies developed through the democratic planning process.
They practice ethical trade and bargain to derive fair prices that match the total labor invested, particularly when trading with other friendly nations such as France or other socialist countries under the Socialist International banner. The Bank of Thailand and the National Treasury centrally manage the Baht earnings. Whilst the balance is toward national reserves, financing needed imports, international development cooperation under the 3Hs/3Ds/JLOVE principles, or strategic investment as decided by the NEPB and approved by the National Assembly, a part is repatriated to source cooperatives (maybe according to contribution or for certain approved international necessities).
They protect the national LTE system from the variability and predatory logic of global market prices and capital flows, and ensure that foreign trade is perfectly integrated with national economic planning, socialist principles, and the general aim of progressing towards a communist society. Thailand's adherence to participatory democracy and decentralized coordination is reflected in the organization and management of Thai STCs. Each STC would be sectoral or major trading area specialized and would operate under the general umbrella of the National Economic Planning Board (NEPB) and concerned ministries (e.g., Finance, Foreign Affairs, etc).
The Federation of Workers' Councils, as the representative of producer cooperatives, the Unions of Regional Consumer Councils, as the representative of societal needs, and the relevant governmental coordinating agencies are all part of their multi-stakeholder governance and oversight. Transparency and accountability to these representative bodies—and, through the National Assembly, to the Community Assemblies—are given highest priority in STC decision-making. Their mandate is to implement democratically determined economic goals, ensure fair terms of trade, and strategically buy required imports or sell intended exports, rather than to maximize profits.
Operationally, STCs directly oversee the importation process according to the requirements determined by the national participatory planning system. STCs purchase goods and services from the international market using the Thai Baht held by the Bank of Thailand from export proceeds or other foreign transactions. The determining function is at the point of importation: the STC evaluates the imported goods by determining the socially necessary labor time to produce similar goods or services domestically in Thailand's socialist economy, not based on their capitalist market value. It does so in consultation with planning boards and with the appropriate worker councils.
The "price" of the imported goods in Labor Tokens is thereby determined by this imputed labor value when they are entered into the domestic distribution network. This important step effectively converts external market relations into internal socialist economic reasons by not allowing imports to degrade domestic labor valuation or introduce capitalist price distortions into the LTE system. On the other hand, STCs handle all the exports of Thailand's worker cooperatives and public enterprises. STCs consolidate goods, negotiate prices with foreign buyers, and conduct transactions exclusively in Thai Baht, all within the context of national export strategies developed through the democratic planning process.
They practice ethical trade and bargain to derive fair prices that match the total labor invested, particularly when trading with other friendly nations such as France or other socialist countries under the Socialist International banner. The Bank of Thailand and the National Treasury centrally manage the Baht earnings. Whilst the balance is toward national reserves, financing needed imports, international development cooperation under the 3Hs/3Ds/JLOVE principles, or strategic investment as decided by the NEPB and approved by the National Assembly, a part is repatriated to source cooperatives (maybe according to contribution or for certain approved international necessities).
