Economist finds fault with ex-PM’s legacy

[webfact]

Economist finds fault with ex-PM’s legacy

By WICHIT CHAITRONG 
THE NATION

 

File photo: Former prime minister General Prem Tinsulanonda

 

FORMER PRIME MINISTER General Prem Tinsulanonda, who died yesterday, made great contributions to the development of the Thai economy, but one of three economists asked to comment on his legacy also feels he left the country saddled with income inequality, which has become a major problem today.

 

Upon taking office in 1980, Prem played an important role in stabilising an economy reeling from surging oil prices, said Sakon Varanyuwattana, former dean of economics at Thammasat University. 

 

Thailand was forced to devalue the baht, and at a time when it was also burdened with high public debt stemming from political and economic instability, Sakon said. 

 

Somchai Jitsuchon of the Thailand Development Research Institute said Prem took office just as “risk and volatility were perhaps at their highest levels in Thai economic history”. 

 

Rattled by domestic political turmoil amid the fall of Vietnam, Cambodia and Laos to communist regimes, Thailand continued to suffer as several governments in succession fought with Thai communist insurgents. But then the discovery of natural-gas reserves in the Gulf of Thailand led to development of the Eastern Seaboard, which remains the country’s largest industrial hub. “In the second half of his premiership, Prem helped lay sound economic foundations and improved Thai global competitiveness significantly,” said Somchai. 

 

Prem was well known for recruiting technocrats to work with him in reforming the economy and attracting foreign direct investment, both economists noted.

 

They included Sommai Hoontrakul as finance minister, Pisit Pakasem as secretary general of the National Economic and Social Development Board and respected economist Virabongsa Ramangkura as a close adviser. The economic foundation they established led to an influx of foreign investment and assured subsequent governments of high economic growth, Sakon said.

 

While Prem was premier from 1980-1988, the growth rate started to accelerate. GDP rose by 11 per cent in 1988, up from an average of 5.3 per cent in 1982-1986, noted Anusorn Tamajai, dean of economics at Rangsit University. The baht’s devaluation triggered a drop in imports and an increase in exports, helping balance trade overall. The trade deficit narrowed and Thailand enjoyed a surplus some years, Anusorn said. The Prem government demonstrated fiscal discipline, he believes.

 

The Plaza Accord Agreement of 1985, by which the US compelled Japan to appreciate the yen against the dollar, delivered to Thailand many Japanese manufacturers. Negotiations under the Uruguay Round of General Agreement on Tariffs and Trade also contributed to increased international trade for Thailand in the latter years of Prem’s tenure. “Prem and his technocrats successfully pushed Thailand’s status among developing countries, giving it a high economic growth rate in their later years, but they focused on it too much, paying little attention to income inequality, which has become a big issue today,” said Anusorn. 

 

Prime Minister Prayut Chan-o-cha in his first turn as premier initiated the Eastern Economic Corridor scheme to introduce high-tech industries on top of the region’s existing petrochemical, electronics, machinery and auto sectors, whose roots date back to the Prem era. 

 

The economists believe Prayut seems to be following Prem’s approach to economic management and development.

 

Source: http://www.nationmultimedia.com/detail/business/30370028

 

 

-- © Copyright The Nation 2019-05-27

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[Reigntax]

Let's hope Prayuth follows him fully. Soon

[Eric Loh]

6 hours ago, webfact said:

The economists believe Prayut seems to be following Prem’s approach to economic management and development.

Sure he did follow Prem' approach to make income inequality worse and favouring the wealthy capitalists.  

[Pedrogaz]

I would like to see how the Economist magazine rates this fellow. I'm sure the poor will not mourn his passing.

[yellowboat]

36 minutes ago, Eric Loh said:

Sure he did follow Prem' approach to make income inequality worse and favouring the wealthy capitalists.  

Think you mean wealthy cronies.  A true capitalist should not mind competition, as being competitive is what made him great.  Competition is stymied in Thailand to favor those on the prettier side of the divide.  Ask Thais in China what they think.

[Baerboxer]

54 minutes ago, yellowboat said:

Think you mean wealthy cronies.  A true capitalist should not mind competition, as being competitive is what made him great.  Competition is stymied in Thailand to favor those on the prettier side of the divide.  Ask Thais in China what they think.

 

If by your last sentence you're referring to the Shiniwattras, they weren't big on competition either!

[yellowboat]

1 hour ago, Baerboxer said:

 

If by your last sentence you're referring to the Shiniwattras, they weren't big on competition either!

You are partially right BB, but there are 30~300 families that control Thailand that are far far worse than your detested, scorned, shunned and scary Shin boogy man.  As naughty as he was, there are worse, and a whole country should not  have its entire political system violated, because of the fear of this one man.   The fear of the shin just shows great weakness in the army. 

[khunken]

46 minutes ago, yellowboat said:

You are partially right BB, but there are 30~300 families that control Thailand that are far far worse than your detested, scorned, shunned and scary Shin boogy man.  As naughty as he was, there are worse, and a whole country should not  have its entire political system violated, because of the fear of this one man.   The fear of the shin just shows great weakness in the army. 

I doubt that the families you mention are any worse than Thaksin. They are all monopolists (when they can get away with it), prepared to bribe, have some competent & some incompetent family members in control, use influence more than economic rationality & are too often miserly in paying their low-level employees.

A fair number of them supported Thaksin and even sent reps to serve in his governments. Others support both sides of the divide. But none of them set out to run the country totally and enrich themselves so blatently, apparently believing they were above the law in a not very law-abiding country.

[Vacuum]

9 hours ago, Reigntax said:

Let's hope Prayuth follows him fully. Soon

Yeah, can't wait for the puppeteer and his puppet to return.

[CGW]

The deceased represented "ideals" that the elites employ and don't intend to let go off, he did nothing for anyone below that level, apart from reinforce their "serfdom" ????

To try and put it politely & without upsetting anyone 

He knew where to get his bread buttered 

Edited May 27, 2019 by CGW

[PerkinsCuthbert]

5 hours ago, yellowboat said:

Think you mean wealthy cronies.  A true capitalist should not mind competition, as being competitive is what made him great.  Competition is stymied in Thailand to favor those on the prettier side of the divide.  Ask Thais in China what they think.

Or those in Laos, though they seem to be drowning in the Mekong or otherwise dying at an alarming rate.

[Sticky Wicket]

https://apnews.com/4e5193aa780e4b32ae34966f647f2fc5?fbclid=IwAR3SXEr0u9AwLooJQCwyECu0SqNdYOCKXi1gf68Qq7y_4UF8oJDpDhmhKl8

[yellowboat]

15 hours ago, khunken said:

I doubt that the families you mention are any worse than Thaksin. They are all monopolists (when they can get away with it), prepared to bribe, have some competent & some incompetent family members in control, use influence more than economic rationality & are too often miserly in paying their low-level employees.

A fair number of them supported Thaksin and even sent reps to serve in his governments. Others support both sides of the divide. But none of them set out to run the country totally and enrich themselves so blatently, apparently believing they were above the law in a not very law-abiding country.

Think it depends if you believe now, the last five years and the future were, are and going to be better than before the last coup.   Thaksin paid attention to the rural people.  The people you claim who are less bad shun them.  Either way their total incompetence made it possible for the creation of a powerful Shinawatra clan.   Either way they are equally responsible.  You can go on hating Thaksin if you want, but the current problems are not created by him. He wins elections fairly according to Don and other observers.  Doubt the brain dead elite that are in charge now are going to do much for the average Thai.  They will just enjoy their monopolies under junta protection.  Do you believe now is better than before last coup? if so, why ?

[Eric Loh]

Forget legacy, I am more interested for the future. Surayud will be the most senior privy council. He and Gen Sonti in the council with Army Chief Apirak are from the King’s Guard. Will the dynamics be different with the 3 Ps from the Eastern Tigers in government. Let’s see. 

[khunken]

6 hours ago, yellowboat said:

Think it depends if you believe now, the last five years and the future were, are and going to be better than before the last coup.   Thaksin paid attention to the rural people.  The people you claim who are less bad shun them.  Either way their total incompetence made it possible for the creation of a powerful Shinawatra clan.   Either way they are equally responsible.  You can go on hating Thaksin if you want, but the current problems are not created by him. He wins elections fairly according to Don and other observers.  Doubt the brain dead elite that are in charge now are going to do much for the average Thai.  They will just enjoy their monopolies under junta protection.  Do you believe now is better than before last coup? if so, why ?

First I didn't claim other rich families are less bad than the Shins. I wrote that they were all the same in their business practices and didn't go as far as setting out to enrich themselves by running the country.

I don't believe for one minute that (a) Thaksin won any election fairly & (b) believe that he only paid attention to the rural people to give then crumbs while his cronies (some of those other family businesses) made fortunes from his projects.

Incompetence didn't make way for the Shin clan - buying all the NAP politicians and local leaders from Chavalit did. Thailand has many problems and none of the major ones holding the country back - corruption, poor education & poor governance - were addressed by any of the Shin clan.

No, I don't think that it is any better now than before the coup - just the same. There was a chance that a so-called democratic coalition could have formed the next government with the Democrat & BJP parties included but neither of them would entertain siding with the PTP. I have a low opinion of Prayut and the same for Sudarat (the bird flu cover up merchant).

[AtoZ]

Is Thaivisa becoming the Hub of Censorship?

 

Every "news" about the general is locked now.

 

Is there a law that prevents learning from the best? It sure required high skills to save hundreds of millions THB on public official salary. I would be keen to learn some of these budgeting tips.