Rural economy top priority for govt

[rooster59]

Rural economy top priority for govt

By THE SUNDAY NATION

 

 

AS NEW CABINET SET TO TAKE OFFICE, EXPERTS CALL FOR EFFORTS TO BOOST INVESTMENT AND REDUCE INEQUALITY

 

THE NEW Prayut Cabinet will face multiple challenges amid the backdrop of key weaknesses, especially the lack of effective ministerial coordination, a sluggish rural economy and rising income inequality, according to academics and business leaders.

 

Responding to the latest Cabinet reshuffle, Nipon Poapongsakorn, a distinguished scholar at the Thailand Development Research Institute, yesterday urged the new Cabinet to patch up its weakest link – lack of coordination between national security and economic policies.

 

“There is no good coordination of security and economic policies, and this will result in a negative impact on small businesses and people’s living standards,” said Nipon. 

 

He pointed to how previous Cabinets had used harsh measures to deal with migrant labour on security grounds without taking into account the impact of their actions on the economy and businesses. Another example was the poor management of labour in fishing industries, which resulted in a labour shortage for small fishing operators. Next were the government’s actions to manage street vendors, which hurt the incomes of grassroots citizens. Also, the Education Ministry is implementing research and development policies that do not take into account relevant economic issues. 

 

“Each minister in the past took his or her own way, so in order to solve it Prime Minister General Prayut Chan-o-cha has to coordinate their tasks,” Nipon suggested.

 

Ministers at the Labour and Education ministries have to work closely with the economic ministers, he added. 

 

 

He warned that investors still lacked much confidence in Thai politics as revealed by sluggish private investment. The government should start to work with politicians in the run up to the general election. It is time to lift the political ban, said Nipon while referring to a slowdown in private investment growth in the third quarter at 2.9 per cent year on year.

 

“The export recovery may drive Thai economic growth from 3.5 to 4 per cent, but average growth in neighbouring countries is 6-7 per cent,” he said. He pointed to Malaysia, saying the country has a smaller labour force but still its economy grew 6.2 per cent in the third quarter compared to Thailand’s 4.3 per cent.

 

Regarding the new team of ministers at the Agriculture and Cooperatives Ministry, Nipon said he did not think they could succeed in increasing the price of farm products such as rice and rubber, as the global market decides the price level of those products. He said the former agricuture minister had worked hard but PM Prayut had appointed new ministers only to appease people who were complaining about low price of farm products. 

 

Kalin Sarasin, chairman of the Thai Chamber of Commerce and Board of Trade of Thailand, said the private sector considered many new faces in the Cabinet as capable. However, the new Cabinet has to speed up its implementation of economic policies, like investment in infrastructure projects, pushing the Eastern Economic Corridor (EEC), expanding broadband Internet coverage and promoting the economy at community level.

 

Stanley Kang, chairman of the Joint Foreign Chambers of Commerce in Thailand, shared similar views, saying the government had talked and advertised a lot about the EEC but laws and regulations were not yet in place. “As Deputy Prime Minister Somkid Jatusripitak remains in the Cabinet, we expect them to follow the same policy, but ministers have to hurry up with investments in infrastructure projects,” said Kang. He expected the new team of ministers at the Agriculture and Cooperatives Ministry could improve the rural economy. Kang also voiced concerns over the recent strengthening of the baht in comparison with regional currencies, which could adversely impact Thai exports. 

 

Kobsidthi Silpachai, head of Capital Markets Research at Kasikornbank, said that he wanted the new Cabinet to carry out tax reforms in order to address the issue of inequality of income. He said high tax rates for high-income people led to brain drain while a high tax rate on durable goods imposes a burden on grassroots and middle-income groups, who borrow money to pay for the goods. He also called for prioritisation of reform in education with a focus on quality. The issue of corruption also needs to be addressed, he said. 

 

“We need to seriously deal with corruption, or else much of the allocated budget will be wasted on bogus projects that do society little good,” he added.

 

Regarding economic portfolios, Deputy PM Somkid Jatusripitak appears to have further consolidated his role in managing the economy to win more support from the grassroots population ahead of the upcoming general election.

 

As the economic growth rate rose to an annualised 4.3 per cent in the third quarter of this year, the highest in 18 quarters, the new Prayut Cabinet is expected to push for more public-private sector cooperation to uplift small enterprises in rural areas. Local government budgets amounting to billions of baht will likely be used to drive a new round of growth.

 

Source: http://www.nationmultimedia.com/detail/politics/30332510

 

 

-- © Copyright The Nation 2017-11-25

[Dave67]

A bit of window dressing. What possible effect could this "Reshuffle" have on the economy or anything else ?. Anything achieved will be blown out of the water by the "Organic laws". or the great leap backward as they should be called

[Samui Bodoh]

I have been impressed by some of the editorial page articles recently from the Nation. However, this unsigned piece of 'news' brings back thoughts that it was written under strict supervision.

 

23 minutes ago, rooster59 said:

As the economic growth rate rose to an annualised 4.3 per cent in the third quarter of this year, the highest in 18 quarters, the new Prayut Cabinet is expected to push for more public-private sector cooperation to uplift small enterprises in rural areas. Local government budgets amounting to billions of baht will likely be used to drive a new round of growth.

 

"... the highest in 18 quarters..."

This is an unusual way to express economic growth; when it is multi-year it is usually expressed in years. BTW, does anyone notice the correlation between the time the current lot decided to...er...ahem... replace the previous government and the lack of economic growth?

 

"...push for more public-private sector cooperation to uplift small enterprises in rural areas."

This sounds like pure government spin. What reporter talks this way?

 

"Local government budgets amounting to billions of baht will likely be used to drive a new round of growth."

Hmm... Didn't the Greenies and Yellows use to say this was 'Populism' and therefore a bad thing? My, my, how things have changed...

 

Me thinks the Nation had a bit of help in writing this story. And I suspect that 'helping hand' will become more and more prevalent in the lead up to a new election.

 

Sad really

 

Edited November 25, 2017 by Samui Bodoh
lack of coffee

[edwinchester]

'Rural economy a top priority' my hairy farang ass.

The livelihood of Thai farmers has been absolutely decimated these last few years with plummeting prices but who has seen a corresponding fall in the shops? The bankrollers are coining it in that's for sure.

Father in law got 6000 bht per tonne for his rice on Friday and a close friend has left her farm to find what labour she can as breakeven prices are all she can hope for.

[Eric Loh]

The article was a thinly disguised attempt to paint a picture that Thaksin won the election only because of populist policies. It failed or don’t have the courage to address the real issue which was that the rural poor rebuked of the traditional establishment of generals, old-money families and royal advisers in Bangkok who backed Abhisit who struggled to find a common touch with the poor people. Both parties campaigned with the same populist policies of subsidies, health care and rural infrastructure projects. The junta too gave away subsidies in their bag load of populist policies and yet they unable to win over the poor. 

 

The change of cabinet ministers are only cosmetic and will not have much impact as long as the junta PM and his unpopular deputies are still helming the leadership. Incompetent leaders don’t inspire his men nor the country. 

[RichardColeman]

When the farmers family income is mostly from their daughters laying on her  backs with her legs spread for money, I doubt they will be popular.

[Thian]

1 hour ago, edwinchester said:

'Rural economy a top priority' my hairy farang ass.

The livelihood of Thai farmers has been absolutely decimated these last few years with plummeting prices but who has seen a corresponding fall in the shops? The bankrollers are coining it in that's for sure.

Father in law got 6000 bht per tonne for his rice on Friday and a close friend has left her farm to find what labour she can as breakeven prices are all she can hope for.

We only buy rice from Makro because the quality is tested and 5kg is sure 5kg and nothing less.

 

We won't buy direct from farmers because they ruined their good name already. Same for Thai avocado's which are almost always picked too early, it's a waste of money buying them.

 

The Thai tricks for selling inferiour products are working against them now, and so is the strong baht.

 

For fruit and vegy we prefer imported from Australia because we trust them to not use too many chemicals like thai produce has.

 

It's all about quality and the good ones suffer from the bad ones.

[yellowboat]

5 hours ago, rooster59 said:

He pointed to how previous Cabinets had used harsh measures to deal with migrant labour on security grounds without taking into account the impact of their actions on the economy and businesses. Another example was the poor management of labour in fishing industries, which resulted in a labour shortage for small fishing operators. Next were the government’s actions to manage street vendors, which hurt the incomes of grassroots citizens. Also, the Education Ministry is implementing research and development policies that do not take into account relevant economic issues. 

The junta only cares about itself, and not about the average Thai.  Their policies demonstrate that. 

 

Given that the so hated, elected bunch were successful at winning the hearts and minds of the rural vote, you would think the entitled would have done something three years ago.  Would not be surprised if the junta wants to see if they can woo the rural vote, then call a snap election leaving politician with little time to campaign.  One of many good reasons for dragging your feet. 

[Cadbury]

6 hours ago, rooster59 said:

".....the new Prayut Cabinet is expected to push for more public-private sector cooperation to uplift small enterprises in rural areas. Local government budgets amounting to billions of baht will likely be used to drive a new round of growth".

Dreamers the lot of them.

Wet dream No.1. Uplift small enterprises in rural areas.

Wet dream No.2. Billions of baht will likely be used to drive a new round of growth.

 

First move will be to form a committee to organise seminars re "uplifting" and "growth driving".

Second move will be to arrange bookings at resorts with conference facilities for these gabfests.

Third move will be to ensure national security is maintained by censoring the Minutes of such meetings.

[DNPBC0]

The key problem is income inequality and this is just as much a concern in urban areas as in the rural communities.  Thailand has the 3rd highest level of income inequality in the world – 58% of Thai wealth is in the hands of only 1% of the population.
https://www.bangkokpost.com/learning/advanced/1147468/thailand-third-most-unequal-country-in-world
It's not just a matter of fairness.  Income inequality has potentially serious negative health and social impacts.  Physical health, mental health, drug abuse, education, imprisonment, obesity, social mobility, trust/harmony and community life, violence, teenage pregnancies, and child well-being are all worse in countries with high income inequality.    The problem is not resolved by reducing the levels of poverty because the driver is the  difference between high and low incomes rather than the prevalence of poverty in the low income earners  and the indications are that, if left unchecked, income inequality increases with economic growth.  

[David in the north]

3 hours ago, edwinchester said:

'Rural economy a top priority' my hairy farang ass.

The livelihood of Thai farmers has been absolutely decimated these last few years with plummeting prices but who has seen a corresponding fall in the shops? The bankrollers are coining it in that's for sure.

Father in law got 6000 bht per tonne for his rice on Friday and a close friend has left her farm to find what labour she can as breakeven prices are all she can hope for.

I have to agree with you here. Our field has not been harvested yet, but the price for good quality sticky rice is around the 6.6 baht a bucket (Thai measure) mark. Might just about cover costs. I can't see our tenant getting rich on this....    Price in all the major shops has been high for several years now & no signs of it falling. Someone is certainly making a lot of money & it is not the farmers

[Cadbury]

27 minutes ago, DNPBC0 said:

58% of Thai wealth is in the hands of only 1% of the population.

It would be interesting to know how much of that 58% of wealth could be classified under the euphemism "unusual wealth".

It would follow that of that 1% there would be many who would the "connections" necessary to have access to the high end envelope receipts thus growing their fortunes even higher. The other 99% have to be satisfied with the small size envelope (or no envelope at all) commensurate with their proportionally lower financial status.

Thailand is No.101 on the Corruption Perception Index. 

Edited November 26, 2017 by Cadbury

[thaiguzzi]

1 hour ago, David in the north said:

I have to agree with you here. Our field has not been harvested yet, but the price for good quality sticky rice is around the 6.6 baht a bucket (Thai measure) mark. Might just about cover costs. I can't see our tenant getting rich on this....    Price in all the major shops has been high for several years now & no signs of it falling. Someone is certainly making a lot of money & it is not the farmers

Correctomondo.

Price for rice at the millers is appalling. But still normal price in the shops.

Ditto rubber - ever seen tyre manufacturers actually drop retail prices?

Price of rubber delivered to the factories is 50% down on a year ago.

 

[tryasimight]

12 hours ago, edwinchester said:

'Rural economy a top priority' my hairy farang ass.

The livelihood of Thai farmers has been absolutely decimated these last few years with plummeting prices but who has seen a corresponding fall in the shops? The bankrollers are coining it in that's for sure.

Father in law got 6000 bht per tonne for his rice on Friday and a close friend has left her farm to find what labour she can as breakeven prices are all she can hope for.

My Mrs got 11,000

[tryasimight]

11 hours ago, RichardColeman said:

When the farmers family income is mostly from their daughters laying on her  backs with her legs spread for money, I doubt they will be popular.

Oh dear.... You have no idea do you? 

I guess you believe in all the barstool nonsense too.... the sick buffalo... 

Edited November 26, 2017 by tryasimight

[tryasimight]

9 hours ago, DNPBC0 said:

The key problem is income inequality and this is just as much a concern in urban areas as in the rural communities.  Thailand has the 3rd highest level of income inequality in the world – 58% of Thai wealth is in the hands of only 1% of the population.
https://www.bangkokpost.com/learning/advanced/1147468/thailand-third-most-unequal-country-in-world
It's not just a matter of fairness.  Income inequality has potentially serious negative health and social impacts.  Physical health, mental health, drug abuse, education, imprisonment, obesity, social mobility, trust/harmony and community life, violence, teenage pregnancies, and child well-being are all worse in countries with high income inequality.    The problem is not resolved by reducing the levels of poverty because the driver is the  difference between high and low incomes rather than the prevalence of poverty in the low income earners  and the indications are that, if left unchecked, income inequality increases with economic growth.  

So.... The same as a lot of western countries? 

[kaorop]

13 hours ago, yellowboat said:

The junta only cares about itself, and not about the average Thai.  Their policies demonstrate that. 

 

Given that the so hated, elected bunch were successful at winning the hearts and minds of the rural vote, you would think the entitled would have done something three years ago.  Would not be surprised if the junta wants to see if they can woo the rural vote, then call a snap election leaving politician with little time to campaign.  One of many good reasons for dragging your feet. 

All roads lead to Utapao, new toll way, new roads everywhere, huge navy rowing centre, 24km cycle path and much more all being fast tracked. Loading up and blowing it all on themselves.

[observer90210]

In the meantime, Basmati seems to have a bright future in Thailand...

[baboon]

2 hours ago, tryasimight said:

So.... The same as a lot of western countries? 

How many western countries have military governments who came into being after staging a coup?

[swissie]

Good to know, that the current Thai-Governement has realised that potentionally 70% of the votes will come from Rural-Thailand. (as before).

- To secure those votes, the current Government has no other choice than to re-instigate a new "Rice-Scheme" under a different name. If the current Governement can not secure those votes beforehand: There will be no elections, it's as simple as that.

To secure those votes and at the same time pacify the Thai-Elite is impossible.
Cheers.

[JAG]

Dreamers the lot of them.
Wet dream No.1. Uplift small enterprises in rural areas.
Wet dream No.2. Billions of baht will likely be used to drive a new round of growth.
 
First move will be to form a committee to organise seminars re "uplifting" and "growth driving".
Second move will be to arrange bookings at resorts with conference facilities for these gabfests.
Third move will be to ensure national security is maintained by censoring the Minutes of such meetings.

The major growth areas, as a result of billions of Baht being used will be in upmarket car sales and house extensions. Gold shops should also expect some more trade.
It's the Thai version of "trickle down economic theory".

Sent from my KENNY using Thailand Forum - Thaivisa mobile app

[yellowboat]

3 minutes ago, JAG said:

The major growth areas, as a result of billions of Baht being used will be in upmarket car sales and house extensions. Gold shops should also expect some more trade.
It's the Thai version of "trickle down economic theory".

Sent from my KENNY using Thailand Forum - Thaivisa mobile app
 

Trickle, yeah, a rich person send the maid, who he pays very little, to buy some Pattaya down the street.  That is the trickle.  What needs to happen for the poor is better education.  Educated, trained people better decisions for themselves and are able to challenge those who would oppress them.  Not a high priority in Today's Thailand. 

[JAG]

They know, I'm sure, that they cannot secure their votes. The alternative therefore is to disenfranchise them. Not directly, that would be too obvious, but by a combination of various laws, regulation of political activities, reduction in the powers of the elected house and a frankly gerrymandered electoral system which will favour the smaller , less popular (i.e. got fewer votes) parties.

Sent from my KENNY using Thailand Forum - Thaivisa mobile app

[edwinchester]

11 hours ago, tryasimight said:

My Mrs got 11,000

I guess that's for Jasmine rice right?

In our area it goes for 10k a tonne at the mill but for whatever reason father in law can't or won't grow on his land.

[Eric Loh]

11 hours ago, tryasimight said:

So.... The same as a lot of western countries? 

Western countries has the same and they do something about it. Meanwhile in Thailand, the military governments know about this and do nothing and maintain the status quo on the behest of the establishment who want them poor and submissive. 

[JAG]

10 hours ago, kaorop said:

All roads lead to Utapao, new toll way, new roads everywhere, huge navy rowing centre, 24km cycle path and much more all being fast tracked. Loading up and blowing it all on themselves.

Well, the upgraded airport at Utapao, together with new roads leading to it may just come in jolly handy should they suddenly need to leave in a hurry.

 

Nice new road to the airport, new VIP jets waiting all warmed up, fleet of fast Benzes in convoy, topped and tailed by some of those new Chinese knock off BTR wheeled personnel carriers,(quite speedy as I recall), a couple of brand new Black Hawks providing top cover - should be able to outrun the farmers in their beat-up pickups and "Rot Itaans".

 

Bangkok style F1?

[JAG]

Correctomondo.
Price for rice at the millers is appalling. But still normal price in the shops.
Ditto rubber - ever seen tyre manufacturers actually drop retail prices?
Price of rubber delivered to the factories is 50% down on a year ago.
 

There is a sort of weary inevitability about it.

If you effectively remove the voice of those at the bottom of the pile, whilst imposing a government controlled by those at the top of the pile, then those at the bottom will be shafted and those at the top will take advantage.

Eventually, the wheels will come off.

Sent from my KENNY using Thailand Forum - Thaivisa mobile app

[thaiguzzi]

1 hour ago, JAG said:

There is a sort of weary inevitability about it.

If you effectively remove the voice of those at the bottom of the pile, whilst imposing a government controlled by those at the top of the pile, then those at the bottom will be shafted and those at the top will take advantage.

Eventually, the wheels will come off.

Sent from my KENNY using Thailand Forum - Thaivisa mobile app
 

Hope so. The sooner the better.

[kaorop]

6 hours ago, JAG said:

Well, the upgraded airport at Utapao, together with new roads leading to it may just come in jolly handy should they suddenly need to leave in a hurry.

 

Nice new road to the airport, new VIP jets waiting all warmed up, fleet of fast Benzes in convoy, topped and tailed by some of those new Chinese knock off BTR wheeled personnel carriers,(quite speedy as I recall), a couple of brand new Black Hawks providing top cover - should be able to outrun the farmers in their beat-up pickups and "Rot Itaans".

 

Bangkok style F1?

I figured they just didnt want to associate with the riffraff and escorted convoy  chaffuer driven armor plated mercs on a 2 intersection 180km route would workout that way. Prolly think it safer than using helicopters aswell.

[Media1]

What government