New Govt To Unveil Populist Policies

[george]

Govt to unveil populist policies

BANGKOK: -- Aims to woo grass-roots support by pushing projects to improve living standards of villagers

The Abhisit government will try to win grassroots support by injecting state funds into rural villages and populist schemes.

Jurin Laksanawisit, chairman of the policy-drafting committee and education minister, said yesterday that new projects would also be initiated to improve villagers' living standards.

These include sufficiency development funds, old-age allowances and subsidies for farmers whose fields were flooded.

Jurin chaired a policy-drafting meeting, as the |government is scheduled |to deliver its policy state-|ment before Parliament on December 29-30.

Jurin, a veteran Democratic politician, said no plan to amend the Constitution would be included in the policy statement at the request of the Friends of Newin group, whose 23 MPs switched camps to join the Democrat-led coalition government.

He said his panel was working on a set of draft policies to be forwarded to the Cabinet for approval tomorrow.

The draft will only mention |political and democratic developments in general, but will contain no specific statement on charter revisions, he said.

"We'll have to see if there will be any move to amend the charter later on," he said.

Besides the economic |problems confronting the |new government, solutions to the prolonged Southern violence are another urgent priority and will figure prominently in the policy statement, he said.

As a means to resolve the southern unrest, the government will propose setting up a permanent state agency to take charge of southern problems via new legislation.

The government will attempt to tackle the root causes that led to years of |violence in the restive re-|gion while pushing for |new development efforts in |the provinces bordering Malaysia.

Overall, the government will inform Parliament of its plans to lead the country out of the political and economic crises.

Urgent policies will be identified and must be carried out in one year, according to Jurin, while less pressing measures will be implemented over the rest of the government's term.

The House speaker would decide whether to hold the policy debate at Parliament House or move it somewhere else in order to avoid protests by supporters of the previous government, he said.

The so-called red-shirt group has threatened to lay siege to Parliament House in |a bid to prevent the government from declaring its policies and running the country.

"We have lessons from the previous government and we hope such a problem will not recur,'' he said.

A group of non-governmental organisations, led by Somchai Homla-or, Metha Mas-khao and Worapat Weerapattanakoop, called on the new government to focus on helping the poor to achieve their long-term development goals.

"If the government aims at increasing GDP only, it will fail as evidenced by past examples," Somchai said.

"One of the policies should be a redistribution of wealth via tax reform so that more progressive income tax rates and inheritance taxes are adopted.

"These measures will help narrow the gap between rich and poor," he said.

-- The Nation 2008-12-22

[chrislarsson]

It's funny...every time a Thai government does something to improve living standards for poor people...it's called populist

Edited December 22, 2008 by chrislarsson

[h90]

It's funny...every time a Thai government does something to improve living standards for poor people...it's called populist

It might called populist as usually it does not improve the the living standards much, it is just populist.

Getting a credit to buy a new mobile phone from Thaksin, while never being able to pay it back.

Handing out millions to villages from which the head of village build himself a villa.

Handing out money for starting business, but in fact people buy mobile phones, motorbikes, pick ups and later they are not able to pay it back...

Therefor it is called populist. It is nice on the paper, it sounds nice, in real life it does not help much.

[TAWP]

Indeed, so hope they actually reform the Thaksin-legacy into actually help the poor long-term and for real.

How about they open up for micro-lending organizations too?

[Old Man River]

It's funny...every time a Thai government does something to improve living standards for poor people...it's called populist

It might called populist as usually it does not improve the the living standards much, it is just populist.

Getting a credit to buy a new mobile phone from Thaksin, while never being able to pay it back.

Handing out millions to villages from which the head of village build himself a villa.

Handing out money for starting business, but in fact people buy mobile phones, motorbikes, pick ups and later they are not able to pay it back...

Therefor it is called populist. It is nice on the paper, it sounds nice, in real life it does not help much.

It will be interesting to see if any of the Dem's populist policies will be different from their party platforms in the Dec. 2007 election. At that time, the Dem's platform closely mirrored that of the PPP, but of course then nobody in the northeast was listening. Now that the Dem's don't need to shadow the TRT/PPP/PTP, I imagine their giveaways will be less than what they were offering.

We agree in that the debt issue will be a main focus (or should be). The Dems didn't create this mess, but if they want to endear themselves to the people of the northeast then this is a very good place to start.

[Old Man River]

Indeed, so hope they actually reform the Thaksin-legacy into actually help the poor long-term and for real.

How about they open up for micro-lending organizations too?

This coalition government isn't necessarily in it for the long haul. They would like to be, but the problem with these coalition governments is keeping it together is almost impossible. The TRT were the first elected party to last a four year term. Hence, it is hard to put long term plans in place when the next government is around the corner and the first thing they look to do is unhinge what the previous government did.

I suspect the Dem's will try to win converts from the northeast as quick as possible and that means a quick dose of populist policies. If they find a way to convert enough in the northeast to where they can actually win an election then they can start putting in place some longer term plans (education being a big one).

[h90]

It's funny...every time a Thai government does something to improve living standards for poor people...it's called populist

It might called populist as usually it does not improve the the living standards much, it is just populist.

Getting a credit to buy a new mobile phone from Thaksin, while never being able to pay it back.

Handing out millions to villages from which the head of village build himself a villa.

Handing out money for starting business, but in fact people buy mobile phones, motorbikes, pick ups and later they are not able to pay it back...

Therefor it is called populist. It is nice on the paper, it sounds nice, in real life it does not help much.

It will be interesting to see if any of the Dem's populist policies will be different from their party platforms in the Dec. 2007 election. At that time, the Dem's platform closely mirrored that of the PPP, but of course then nobody in the northeast was listening. Now that the Dem's don't need to shadow the TRT/PPP/PTP, I imagine their giveaways will be less than what they were offering.

We agree in that the debt issue will be a main focus (or should be). The Dems didn't create this mess, but if they want to endear themselves to the people of the northeast then this is a very good place to start.

If you start with education: the key to wealth in future, it will need a long time.

If you start to hand out money, people will like it, but it isn't different from Thaksin

If you make it half half... there won't be much impact on the education and people will still prefer Thaksin.

So not easy.

[chrislarsson]

It's funny...every time a Thai government does something to improve living standards for poor people...it's called populist

It might called populist as usually it does not improve the the living standards much, it is just populist.

Getting a credit to buy a new mobile phone from Thaksin, while never being able to pay it back.

Handing out millions to villages from which the head of village build himself a villa.

Handing out money for starting business, but in fact people buy mobile phones, motorbikes, pick ups and later they are not able to pay it back...

Therefor it is called populist. It is nice on the paper, it sounds nice, in real life it does not help much.

That sounds more like bad oversight of lending practices. Otherwise the idea of micro-loans seems to be a good idea. Why else would it deserve a Nobel Peace Prize?

I never heard anybody calling Muhammad Yunus a populist. And if I'm not wrong, mobile phones were one of the priorities in his micro-loans. Since when was investing in IT bad investment?

Edited December 22, 2008 by chrislarsson

[chrislarsson]

If you start with education: the key to wealth in future, it will need a long time.

If you start to hand out money, people will like it, but it isn't different from Thaksin

If you make it half half... there won't be much impact on the education and people will still prefer Thaksin.

So not easy.

Education is not the only key to future wealth. Especially it does not create many jobs by itself. For instance, the Philippines invested in good education, but as jobs were not created, educated people moved elsewhere. India did the same, but it was not until the opportunity of outsourcing came, that the job creation took off.

Right now people from Isaan need to go to Bangkok to find jobs. It does not matter whether they are educated or not.

Thailand needs to ensure that investments and infrastructure development are more equally distributed across the country. The negligence of areas outside of Bangkok, is one of the root causes to the political mess seen today. Because it is a class war going on and nothing else.

[Scott]

I certainly hope that people aren't implying that Bangkok is not the center of the world, let alone Thailand!

[Plus]

There's no class war in Thailand.

There are issues of inequality, but no class wars, not even regional wars, I believe.

I'd love to see any numbers that govt budget is distributed unfairly towards provinces and Bangkok.

[h90]

It's funny...every time a Thai government does something to improve living standards for poor people...it's called populist

It might called populist as usually it does not improve the the living standards much, it is just populist.

Getting a credit to buy a new mobile phone from Thaksin, while never being able to pay it back.

Handing out millions to villages from which the head of village build himself a villa.

Handing out money for starting business, but in fact people buy mobile phones, motorbikes, pick ups and later they are not able to pay it back...

Therefor it is called populist. It is nice on the paper, it sounds nice, in real life it does not help much.

That sounds more like bad oversight of lending practices. Otherwise the idea of micro-loans seems to be a good idea. Why else would it deserve a Nobel Peace Prize?

I never heard anybody calling Muhammad Yunus a populist. And if I'm not wrong, mobile phones were one of the priorities in his micro-loans. Since when was investing in IT bad investment?

but that were not the micro-loans. There were even loans which were ONLY for mobile phones from AIS. New mobile phones don't create any business and in particular not more business than an old second hand mobile phone. It was a total different concept.

[TAWP]

h90>> He didn't mention micro loans since there have been any (there haven't), but most likely 'cause I wrote that Thailand should open up and allow micro lending organizations, something that currently doesn't seem to be able to run. In Cambodia and other countries they have several. As a financial supporter I know.

[h90]

If you start with education: the key to wealth in future, it will need a long time.

If you start to hand out money, people will like it, but it isn't different from Thaksin

If you make it half half... there won't be much impact on the education and people will still prefer Thaksin.

So not easy.

Education is not the only key to future wealth. Especially it does not create many jobs by itself. For instance, the Philippines invested in good education, but as jobs were not created, educated people moved elsewhere. India did the same, but it was not until the opportunity of outsourcing came, that the job creation took off.

Right now people from Isaan need to go to Bangkok to find jobs. It does not matter whether they are educated or not.

Thailand needs to ensure that investments and infrastructure development are more equally distributed across the country. The negligence of areas outside of Bangkok, is one of the root causes to the political mess seen today. Because it is a class war going on and nothing else.

Education is the main key (but not the only). Look how many call center and software companies are in India. If you have perfect educated people companies will come automatic. One of the main reason for companies to not invest in Thailand is lack of qualified staff.

[Ricardo]

And if I'm not wrong, mobile phones were one of the priorities in his micro-loans. Since when was investing in IT bad investment?

Unfortunately the main result of loans, spent to buy mobile-phones, is a series of monthly bills for the use of same !

The village-loan scheme needed to be accompanied by guidance, on how to invest profitably in small ways, in order to create extra profit from which to repay the loans. Then the money can be re-lent, helping more & more people benefit, and creating a virtuous upwards spiral.

[chrislarsson]

It's funny...every time a Thai government does something to improve living standards for poor people...it's called populist

It might called populist as usually it does not improve the the living standards much, it is just populist.

Getting a credit to buy a new mobile phone from Thaksin, while never being able to pay it back.

Handing out millions to villages from which the head of village build himself a villa.

Handing out money for starting business, but in fact people buy mobile phones, motorbikes, pick ups and later they are not able to pay it back...

Therefor it is called populist. It is nice on the paper, it sounds nice, in real life it does not help much.

That sounds more like bad oversight of lending practices. Otherwise the idea of micro-loans seems to be a good idea. Why else would it deserve a Nobel Peace Prize?

I never heard anybody calling Muhammad Yunus a populist. And if I'm not wrong, mobile phones were one of the priorities in his micro-loans. Since when was investing in IT bad investment?

but that were not the micro-loans. There were even loans which were ONLY for mobile phones from AIS. New mobile phones don't create any business and in particular not more business than an old second hand mobile phone. It was a total different concept.

That may be true. But there is nothing saying that this government will only provide loans for AIS mobile phones. And there is nothing saying that it is not properly managed micro loans. So why call it populist?

[chrislarsson]

There's no class war in Thailand.

There are issues of inequality, but no class wars, not even regional wars, I believe.

I'd love to see any numbers that govt budget is distributed unfairly towards provinces and Bangkok.

I don't know if the govt budget is distributed unfairly or not, but development still continues to pour into Bangkok while the rest of the country is being neglected.

Every time there are attempts to divert development to poorer areas, it is either called populist or vote buying...

[h90]

It's funny...every time a Thai government does something to improve living standards for poor people...it's called populist

It might called populist as usually it does not improve the the living standards much, it is just populist.

Getting a credit to buy a new mobile phone from Thaksin, while never being able to pay it back.

Handing out millions to villages from which the head of village build himself a villa.

Handing out money for starting business, but in fact people buy mobile phones, motorbikes, pick ups and later they are not able to pay it back...

Therefor it is called populist. It is nice on the paper, it sounds nice, in real life it does not help much.

That sounds more like bad oversight of lending practices. Otherwise the idea of micro-loans seems to be a good idea. Why else would it deserve a Nobel Peace Prize?

I never heard anybody calling Muhammad Yunus a populist. And if I'm not wrong, mobile phones were one of the priorities in his micro-loans. Since when was investing in IT bad investment?

but that were not the micro-loans. There were even loans which were ONLY for mobile phones from AIS. New mobile phones don't create any business and in particular not more business than an old second hand mobile phone. It was a total different concept.

That may be true. But there is nothing saying that this government will only provide loans for AIS mobile phones. And there is nothing saying that it is not properly managed micro loans. So why call it populist?

Well I think (and I might be wrong, I hope I am wrong), that it will be made mainly to get votes. Isaan develop or don't develop won't be important, the point is that the people understand that the money comes from this party (and not from Thaksin as before). Newin told "Give the people in Isaan 100 Billion and they will forget Thaksin and love you". OK that was Newin and not Abhisit, but I think it will be that way. I read somewhere "urgent within one year". If you want to make useful projects and Micro-Credits, you might be able to start after 1 year. You must educate the people what this means, they must get ideas, ideas must be reviewed.

Therefor it is called populist "Hey I am the man who gives you the money, if you elect me again you get more!".

Don't understand me wrong....I hope to see that I am wrong, but I am a pessimist.

There was a project from Surayud (I think canceled by Samak, and I don't know the details exactly), for Farmer who can't pay back loans, they were allowed to plant trees instead (there are areas were the forest was cut). If I see some projects like that, than I am more than happy.

[venturalaw]

Govt to unveil populist policies

BANGKOK: -- Aims to woo grass-roots support by pushing projects to improve living standards of villagers

The Abhisit government will try to win grassroots support by injecting state funds into rural villages and populist schemes.

"One of the policies should be a redistribution of wealth via tax reform so that more progressive income tax rates and inheritance taxes are adopted.

"These measures will help narrow the gap between rich and poor," he said.

-- The Nation 2008-12-22

God I hate socialism. It NEVER works.

[chrislarsson]

It's funny...every time a Thai government does something to improve living standards for poor people...it's called populist

It might called populist as usually it does not improve the the living standards much, it is just populist.

Getting a credit to buy a new mobile phone from Thaksin, while never being able to pay it back.

Handing out millions to villages from which the head of village build himself a villa.

Handing out money for starting business, but in fact people buy mobile phones, motorbikes, pick ups and later they are not able to pay it back...

Therefor it is called populist. It is nice on the paper, it sounds nice, in real life it does not help much.

That sounds more like bad oversight of lending practices. Otherwise the idea of micro-loans seems to be a good idea. Why else would it deserve a Nobel Peace Prize?

I never heard anybody calling Muhammad Yunus a populist. And if I'm not wrong, mobile phones were one of the priorities in his micro-loans. Since when was investing in IT bad investment?

but that were not the micro-loans. There were even loans which were ONLY for mobile phones from AIS. New mobile phones don't create any business and in particular not more business than an old second hand mobile phone. It was a total different concept.

That may be true. But there is nothing saying that this government will only provide loans for AIS mobile phones. And there is nothing saying that it is not properly managed micro loans. So why call it populist?

Well I think (and I might be wrong, I hope I am wrong), that it will be made mainly to get votes. Isaan develop or don't develop won't be important, the point is that the people understand that the money comes from this party (and not from Thaksin as before). Newin told "Give the people in Isaan 100 Billion and they will forget Thaksin and love you". OK that was Newin and not Abhisit, but I think it will be that way. I read somewhere "urgent within one year". If you want to make useful projects and Micro-Credits, you might be able to start after 1 year. You must educate the people what this means, they must get ideas, ideas must be reviewed.

Therefor it is called populist "Hey I am the man who gives you the money, if you elect me again you get more!".

Don't understand me wrong....I hope to see that I am wrong, but I am a pessimist.

There was a project from Surayud (I think canceled by Samak, and I don't know the details exactly), for Farmer who can't pay back loans, they were allowed to plant trees instead (there are areas were the forest was cut). If I see some projects like that, than I am more than happy.

What you are saying make sense. But at the moment there is a crisis. And when there is a crisis you do whatever it takes to try to fix it.

The US has a giant budget deficit, but is Obama trying to level it at the moment? No, he is doing whatever it takes to fix the current financial crisis that is spreading throughout the economy and the rest of the world. The deficit will have to wait. Is anybody this calling this populist?

Edited December 22, 2008 by chrislarsson

[Pierrot]

Education is the main key (but not the only). Look how many call center and software companies are in India. If you have perfect educated people companies will come automatic. One of the main reason for companies to not invest in Thailand is lack of qualified staff.

Qualified staff ? More than enough. The real problem is the total lack of respect for foreign investors.

Second, if you're going to invest in a country, you want a clear vision of what's going to happen in the next five to ten years, basically a stable government / political system.

Abhisit government is a minority government, at the mercy of any of the faction that form his coalition. Just look at the line-up. As an investor, would you invest in this country ?

[Martin]

I am told by people who have researched it that, worldwide, micro-credit schemes run by government officials have a very poor track record.

Better to leave it to 'self-help' groups. GAWFA, The Gambian Womens' Finance Association, is a good example. "Self-help" groups have a much shrewder idea of who is a reasonable prospect to loan to!

Probably best for Government just to lay on training and other 'background' support to those working to get 'self-help' groups going.

Support for 'sufficiency development' is fine---but it is Bangkok and the other heavily-urbanised areas in which it is noticeable that there is infinitesimal sufficiency.

When I travel around Bangkok and Hong Kong beyond their inner cores I am struck by the difference. In Bangkok, land on which vegetables could be grown in '9-to-5ers' spare time just sits idle, unlike Hong Kong and the New Territories.

(I joke on UK websites about watching for the present crisis due to the debt crunch resulting in Golf Clubs morphing into Allotment Associations, but there is truth in the jest. Cities, as they operate at present, are economically (and, so, socio-politically) unsustainable in a low-energy-availability future.)

Thailand needs a Government that thinks ahead beyond just jockeying for position for when the big 'it' happens.

[Gravelrash]

Indeed, so hope they actually reform the Thaksin-legacy into actually help the poor long-term and for real.

How about they open up for micro-lending organizations too?

Yes, the Democrats copying the Taksin policies are actually helping the poor.

Plus we have the new FM that says the airport takeover was a "lot of fun" and "a new innovation for public protests", allegations of non-politicians buying ministries for 100 million baht, and a Commerce minister whose claim to economic fame was as a Mama-san.

Yes, things are certainly looking up. Everyday we get a new amazing story, you lot should hang your heads in shame supporting all this.

[TAWP]

The less the government is involved, the better.

If they want make things better, they have to act as enablers.

It can be making sure there are proper roads and train tracks throughout the country, making sure basic education is available for all or making sure the market playing field is leveled. Unfortunately Thailand has a history of doing the opposite. Including under Thaksin.

[Pierrot]

The less the government is involved, the better.

If they want make things better, they have to act as enablers.

It can be making sure there are proper roads and train tracks throughout the country, making sure basic education is available for all or making sure the market playing field is leveled. Unfortunately Thailand has a history of doing the opposite. Including under Thaksin.

You're right. But with him, at least, there was hope for a change.

[venturalaw]

The less the government is involved, the better.

If they want make things better, they have to act as enablers.

It can be making sure there are proper roads and train tracks throughout the country, making sure basic education is available for all or making sure the market playing field is leveled. Unfortunately Thailand has a history of doing the opposite. Including under Thaksin.

Well said. I could not agree more.

[henryalleman]

Govt to unveil populist policies

BANGKOK: -- Aims to woo grass-roots support by pushing projects to improve living standards of villagers

The Abhisit government will try to win grassroots support by injecting state funds into rural villages and populist schemes.

"One of the policies should be a redistribution of wealth via tax reform so that more progressive income tax rates and inheritance taxes are adopted.

"These measures will help narrow the gap between rich and poor," he said.

-- The Nation 2008-12-22

God I hate socialism. It NEVER works.

Its works

"One of the policies should be a redistribution of wealth via tax reform so that more progressive income tax rates and inheritance taxes are adopted.

"These measures will help narrow the gap between rich and poor," he said.

This is haw the EU countries are doing it since WW2 and its proved to be very successful. Some counties have even an extra wealth tax.

[animatic]

Govt to unveil populist policies

BANGKOK: -- Aims to woo grass-roots support by pushing projects to improve living standards of villagers

The Abhisit government will try to win grassroots support by injecting state funds into rural villages and populist schemes.

"One of the policies should be a redistribution of wealth via tax reform so that more progressive income tax rates and inheritance taxes are adopted.

"These measures will help narrow the gap between rich and poor," he said.

-- The Nation 2008-12-22

God I hate socialism. It NEVER works.

Its works

"One of the policies should be a redistribution of wealth via tax reform so that more progressive income tax rates and inheritance taxes are adopted.

"These measures will help narrow the gap between rich and poor," he said.

This is haw the EU countries are doing it since WW2 and its proved to be very successful. Some counties have even an extra wealth tax.

As Henry says,

nothing unsual about this in most developed countries.

[venturalaw]

Govt to unveil populist policies

BANGKOK: -- Aims to woo grass-roots support by pushing projects to improve living standards of villagers

The Abhisit government will try to win grassroots support by injecting state funds into rural villages and populist schemes.

"One of the policies should be a redistribution of wealth via tax reform so that more progressive income tax rates and inheritance taxes are adopted.

"These measures will help narrow the gap between rich and poor," he said.

-- The Nation 2008-12-22

God I hate socialism. It NEVER works.

Its works

"One of the policies should be a redistribution of wealth via tax reform so that more progressive income tax rates and inheritance taxes are adopted.

"These measures will help narrow the gap between rich and poor," he said.

This is haw the EU countries are doing it since WW2 and its proved to be very successful. Some counties have even an extra wealth tax.

As Henry says,

nothing unsual about this in most developed countries.

It appears that punishing achievement is not only acceptable, but celebrated. I'm all for the poor becoming wealthy. But to take from those who are successful and to provide to those who have little initiative is flat out wrong. There are many many sources for the solutions that we all wish to see. But taking from the rich to give to the poor is not a successful format. EU countries have not been successful, and the socialistic approach is the reason for the current downfall in the US economy - forcing institutions to lend to those who were not creditworthy based upon the premise that to deny them would be prejudice. Rubbish. I agree, there is nothing unusual about this in most developed countries as well as undeveloped countries, but to call it a successful format is incorrect.

[Scott]

I don't fully agree with capitalism and I don't really agree with socialism, but I do know that CORRUPTION really doesn't work very well.