Economic ministers ponder medium-, long-term stimulus plan

BANGKOK, Feb 19 (TNA) – Prime Minister Abhisit Vejjajiva on Wednesday said his government's economic ministers had met to consider measures to stimulate Thailand's economy in the medium- and long-terms, a plan which requires an overall investment of Bt2.2 trillion.

The prime minister said the plan would focus on investment in basic infrastructure projects over the coming three to four years.

Included are extending water supply for agriculture, investment in a telecom network, development of knowledge-based industries to add value in business, and reviving tourism.

In addition, Thailand would be promoted as a food and alternative energy production centre under the plan.

"Implementing all the projects requires a total investment of over Bt2.2 trillion," Mr. Abhisit said, "coming from the (state) budget, onshore and offshore loans, and public-private partnerships."

Other issues raised for consideration at Wednesday's meeting include economic data released by the Bank of Thailand and complaints regarding the Credit Bureau. (TNA)

Edited February 19, 200917 yr by thailandlover

One thing I can see as “the downside” in the capital investment such as the infrastructure investment, is that …….

First, I’m afraid that if they invest stupidly by repairing infrastructure “everywhere” without assessing the necessity, then a lot of money will be wasted in repairing infrastructure in areas (projects) that don't or won't contribute/benefit from the investment when the economy heats up later on.

Secondly, let's say the recession or downturn goes on for a year, or two. It takes a lot of time ----e.g., putting up for the bid, selecting the right bid, etcs----before the shovels hit the ground. By then, the downturn “may be” in a middle of the upturn,…..and by then the cost of repairing those infrastructures might be costly comparing to the alternatives---opportunity cost wise that is

And another downside of increases in government spending is an increase in the national debt.

The economy can't be fixed that easily as there are so many different things going on in this matrix.

No.

Being a libertarian and actually rewarding failure I don't agree with this cocktail of 'shots in the arm' treatment that is in fashion right now.

It only prolongs the pain and agony of a recession which could very well become a depression.

I've got to wonder how much of that money will actually get into the hands of those who need it. With all the corruption, favoritism, and nepotism in Thailand, I suspect that most of it will go those who are already wealthy and very few improvements to the infrastructure will be seen.

Edited February 19, 200917 yr by Beacher

by the time the money gets to where its supposed to be going so much will have been skimmed off anyway.

corruption is endemic here.

money spent in mercedes dealerships and shopping in singapore and hong kong does not stimulate the economy.

I would pose this question....has the ecomomic stimulus packages already put in place in the UK and US and other countries worked ??...No

Will they work in Thailand....highly unlikely, but not due to corruption as other posters are suggesting

Here a linky to new show that discusses some relevant issues: http://www.youtube.com/watch?v=Pw7U8JS1a4A

The "Simulate" ain't gonna work, you cannot save money by borrowing more money.

So, since the general opinion appears to be no, what would work?

So, since the general opinion appears to be no, what would work?

Well nothing !!!

All a government can do is spend money wisely.

A recession in one particular country can be fought, a worldwide recession can't.

Government's around the world are doing this. They also need to go after the Ponzi scheme guys like Madoff, and those that packaged the fraudulent loans as securities, those that rated the junk triple A, those that guaranteed the debt but won't pay up, the SEC managers who wouldn't do their jobs, etc. and put them all in jail until the stimulus package is paid back. Which won't occur in their lifetime if ever.

Put a Xerox stamp on this one, looks like like they copied the US plan word for word. Big surprise?

Economic ministers ponder medium-, long-term stimulus plan

BANGKOK, Feb 19 (TNA) – Prime Minister Abhisit Vejjajiva on Wednesday said his government's economic ministers had met to consider measures to stimulate Thailand's economy in the medium- and long-terms, a plan which requires an overall investment of Bt2.2 trillion.

The prime minister said the plan would focus on investment in basic infrastructure projects over the coming three to four years.

Included are extending water supply for agriculture, investment in a telecom network, development of knowledge-based industries to add value in business, and reviving tourism.

In addition, Thailand would be promoted as a food and alternative energy production centre under the plan.

"Implementing all the projects requires a total investment of over Bt2.2 trillion," Mr. Abhisit said, "coming from the (state) budget, onshore and offshore loans, and public-private partnerships."

Other issues raised for consideration at Wednesday's meeting include economic data released by the Bank of Thailand and complaints regarding the Credit Bureau. (TNA)

Alex my friend, as far as the USA goes, it's too early to tell. However don't worry, the financial geniuses will eventually come up with the right combination of stimulus and economic solutions. Usually the first country in the recession will be the first one out. In regard to borrowing money, the whole world runs on credit and this is what stimulates business development. Don't forget if the USA stops buying imports, some countries are going to roll over and sink, creditors and surpluses alike. In the 90s Japan had a huge surplus of yen, strong currency and foreign investments. It all went bad when the real estate caved in which was tied to the stock market and they were in a decade long recession. Also it made their exports too expensive and hurt their profits so don't worry too much, the USA will survive and become much more globally competitive. By the way, now is the time to buy US equities as they will surely rise.

Here a linky to new show that discusses some relevant issues: http://www.youtube.com/watch?v=Pw7U8JS1a4A

The "Simulate" ain't gonna work, you cannot save money by borrowing more money.