bambob Posted July 8, 2005 Share Posted July 8, 2005 Date: Fri, 08 Jul 2005 08:54:08 +0800 Local: Fri,Jul 8 2005 1:54 am Subject: EDITORIALS: Thailand Inc in troubled waters http://nationmultimedia.com/20 05/07/08/opinion/index.php?new s=opinion... EDITORIALS: Thailand Inc in troubled waters Published on July 08, 2005 Deficits and continued subsidies reveal govt policies to be myopic and unrealistic The latest economic analysis and forecast by the Thailand Development Research Institute (TDRI) make for depressing reading. The bleak outlook projected by the independent think tank is attributed to mostly unforeseen negative factors, including high world oil prices, the killer tsunami, bird-flu outbreaks, violence in the South and a slowdown in export growth. The Thai economy, which had been on track to a strong recovery during the past few years, showed signs of weakness in the first half of this year when the country ran a current account deficit equivalent to 2.6 per cent of GDP. In May, Thailand’s trade deficit rose sharply by 106 per cent mainly due to a 124-per-cent spike in oil imports. Even the usually upbeat Thaksin administration has revised downward its economic growth projections. It cannot be emphasised enough that the twin problems of trade and current account deficits and the oil subsidy reflect poorly on the government’s economic policy, which is mostly short-range in nature and rests on the basis of unrealistic assumptions. None of the government’s wrong-headed policies is as stark as its retail oil price subsidies introduced by the Thaksin I administration on January 10, 2004. Although the government decided to float the retail petrol prices late last year, it has stubbornly clung on to diesel price-fixing by reducing the subsidy only gradually. With the continued upswing in the world oil prices, the Oil Fund, which is used to subsidise retail fuel prices, continues to slide deeper into the red, currently approaching the Bt100-billion mark. The folly of the fuel subsidy is now evident for all to see: not even subsidies can prevent the rising retail diesel price from raising the costs of manufacturers of consumer goods and transportation operators. Prices of consumer goods and transportation are set to rise significantly – those that haven’t already – even as the government is trying its best to delay the effects of the current oil shocks from directly affecting consumers in a big way. The rising cost of living is expected to hurt consumers even more amid economic uncertainties. The government has made a habit of resorting to market intervention in a bid to produce short-term results, purportedly to mitigate negative impacts and presumably lessen the pains of consumers in difficult economic times. But it has invariably ended up creating long-term financial liabilities that will take years to correct. In reality, such irresponsible actions were designed mainly to distract the public from ill-conceived myopic policies, economic mismanagement and a serious lack of sound stewardship. Worse, they also tend to lull consumers into a false sense of security and provide disincentives for them to adapt to new economic realities, which point to an economic slowdown – if not worse. Prolonging the necessary adjustments by businesses and individuals through market intervention will only cause unnecessary pain. Continuing to keep consumers in the dark about impending economic woes is downright dishonest. -------------------------------- Link to comment Share on other sites More sharing options...
cclub75 Posted July 8, 2005 Share Posted July 8, 2005 A very courageous, clear minded analysis and without compromise ! Perfect. "mostly short-range in nature" and "unrealistic assumptions", the 2 keywords about the governement's policy. And of course, because we are in Thailand, you can be sure that none of them will make their mind, change their opinion. Face.... Next week, they will announce a "package" to stimulate the economy on the short term. They will repeat the same mistake. Link to comment Share on other sites More sharing options...
Diggerbasher Posted July 9, 2005 Share Posted July 9, 2005 It certainly looks as though the shit may hit the fan. Link to comment Share on other sites More sharing options...
chaiyapoon Posted July 9, 2005 Share Posted July 9, 2005 Thailand is certainly struggling with the high oil prices and its doubtful if they can truely compete with the Chinese export machine.Agricuture is inefficient and poorly paid. At the moment doesn't look good.I don't think there is any quick fix for these issues. Link to comment Share on other sites More sharing options...
Nam Kao Posted July 10, 2005 Share Posted July 10, 2005 (edited) Translation = More expensive for ex-pats to live here / More crime as the economy tanks / Desperate bar girls / New and improved Buffalo stories Edited July 10, 2005 by Nam Kao Link to comment Share on other sites More sharing options...
OldAsiaHand Posted July 10, 2005 Share Posted July 10, 2005 Well, not exactly...at least with regard to the first part of your observation. Most ex-pats hold their spare cash in foreign currencies, so the depreciation of the baht makes it cheaper for us to live here in most ways or, at the very least, no more expensive (since local prices like that of petrol are primarily driven by USD pricing anyway). It's mostly the Thais who suffer from the depreciation of the baht, not foreigners. Link to comment Share on other sites More sharing options...
bakachan Posted July 11, 2005 Share Posted July 11, 2005 its doubtful if they can truely compete with the Chinese export machine. <{POST_SNAPBACK}> Nobody can compete with the chinese. globalization is a dirty word in manufacturing centers outside of china. The one positive from high fuel costs is fewer cars on the roads Wish they would outlaw those ###### 2 cycle motors! Link to comment Share on other sites More sharing options...
Mogli Posted July 11, 2005 Share Posted July 11, 2005 Well, not exactly...at least with regard to the first part of your observation. Most ex-pats hold their spare cash in foreign currencies, so the depreciation of the baht makes it cheaper for us to live here in most ways or, at the very least, no more expensive (since local prices like that of petrol are primarily driven by USD pricing anyway). It's mostly the Thais who suffer from the depreciation of the baht, not foreigners. <{POST_SNAPBACK}> Link to comment Share on other sites More sharing options...
Mogli Posted July 11, 2005 Share Posted July 11, 2005 Sorry for the glitch....but what exactly is a two cycle motor? Link to comment Share on other sites More sharing options...
Kringle Posted July 11, 2005 Share Posted July 11, 2005 2 stroke 2 cycle means they run on a gas oil mix and complete a cycle of the engine in 2 revolutions. The new stuff is all 4 cycle or 4 stroke. no oil in the gasoline or petrol as others would say, cleaner running, less pollution. Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now