The Bio-Circular-Green (BCG) Economic Model of development implemented by Thailand in 2022 promises to be “a new economic model for inclusive and sustainable growth.” The Thai government has implemented the model in its policy to achieve a green and sustainable economy. In fact, in the Asia Pacific Economic Cooperation Summit of 2023 that is set to be hosted in Detroit, the US has expressed willingness to add Thailand’s BCG Economic Model under the ambit of the summit.
The BCG Economic concept was first introduced by the Asia Foundation where the idea is to “shifting economies from prioritizing economic considerations over the social and environmental to a sustainable model where resources are regenerated, and their use is optimized alongside economic growth.” It integrates three different policy response models, like the Bio-Economy model, the Circular Economy model, and the Green Economy model. The Bio-Economy involves the production of renewable biological resources and bio-based materials and converting them into value-added products using technology and innovation. The Circular Economy envisages a regenerative production-consumption system where product, service and system design choices enable the elimination of waste and pollution, existing materials are kept in use (reuse, refurbishment, repair, remanufacturing, recycling, composting), and natural systems regenerate because of reduced flows of residuals. The Green Economy leverages ecosystem processes to benefit human beings in an equitable and inclusive manner without jeopardizing the sustainability of ecosystems.
The research paper adds that BCG led economic growth can particularly boost economic growth in Food & Agriculture, Medical & Wellness, Bio energy/material/chemical and Tourism & creative economy industries in Thailand. It estimates that these industries contribute 21 percent of Thai GDP or US$ 91 bn, and using BCG, this figure can grow to $119 bn within five years. It also divides investment under the ambit of social capital, natural capital, human capital, and produced capital for the above sectors of the economy.
Four main challenges were identified including, dealing with economics of transition and need for upfront investment; establishing social context to balance needs and implementing long-term policy solutions; building appropriate governance arrangements to coordinate investment; and ensuring availability of high-quality data or information to support investment decisions. Supporting economic strength of a country will include increasing economic growth, broadening the economic base via new activities/products, making the economy resilient to absorb external shocks and responding to environmental/social challenges including climate change, biodiversity loss including the goal of establishing an equitable/inclusive society.
APEC recommended that initially, the focus of the policies could be on waste and energy. Further, it plans on consolidating the successes of the member economies to learn from each other’s diverse economic strengths. The BCG Economic model relies heavily on data collection, information processing, and policy making. It is evident that diversification to the above-mentioned sectors which are mostly service-oriented will require constant policy follow-ups by the government machinery. Finally, it suggests conducting three pilot studies at local levels for each of the selected themes of food, energy, agriculture, and waste. The respondents to the study by APEC cited the huge potential of the BCG economic model. It noted the need for “joint multi stakeholder actions towards ensuring a whole-of-society approach to sustainability,” and added that “BCG Economy framework is perfectly placed to motivate and give further impetus to these possibilities.”
The BCG Economy plan sets an ambitious aim to recycle 100% of polyethylene terephthalate (PET) and polyethylene (PE) plastics by 2030 through mechanisms such as allocating funds to create “waste hubs”, support for start-up businesses in recycling, expansion of extended producer responsibility measures, and amendments to laws restricting the use of recycled plastics in food packaging. Such a recycling goal, if achieved, could also help Thailand save on energy costs.
