Too Many Cooks Are Spoiling Thailand's Broth

[webfact]

EDITORIAL

Too many cooks are spoiling the nation's broth

By The Nation

Regular changes in government and politicians' interference in business is hindering national development

A series of recent opinion surveys shows that people are increasingly worried about politics hampering Thailand's development. A main concern is inconsistency in policy implementation as a result of changes in government over the past five years.

According to Chatchai Boonyarat, vice-president of the Thai Chamber of Commerce, it is unfortunate that Thailand cannot fully develop its strategic trade strength because the changes in government have been disruptive to the development progress. This view was echoed on February 15 during a seminar on the Commerce Ministry's economic master plan. Suvit Maesincee of Sasin Graduate Institution of Business Administration at Chulalongkorn University has voiced similar concerns.

They suggest that the private sector should take the lead in laying down the country's economic strategy, and reduce dependence on the government. If such measures are not taken, political issues will wreak havoc on the country's competitiveness and progress in the future.

It is desirable to have the private and civic sectors take the driver's seat in steering the country's direction because these stakeholders have the best knowledge of economic strengths and weaknesses. An absence of political interference would certainly help to cushion recessionary effects amidst the current political instability. Without political interference, the private sector and the public would have a natural ability to adjust to constant changes on the domestic and international fronts.

Over the past years we have seen increasing government intervention in key economic policies. The unpredictable policies of the Abhisit government - such as subsidising the diesel price in spite of the rhetoric about promoting energy efficiency - send a confusing signal to the market. The ongoing series of populist policies discourages the motivation to work harder, and instils the perception that the government will be the provider and the voters the recipients. This has only encouraged protests and rallies, instead of rational argument and discussion, from interest groups that believe political pressure will enable them to win benefits regardless of the consequences their demands leave on the larger community.

The existence of monopolies and trade concessions the government awards to politically connected corporations does nothing to promote fair competition. The government should monitor the enforcement of rules and regulations to ensure fair competition among companies for the benefit of consumers, instead of awarding rights to certain companies. As things stand, the government simply invites more controversy and questions on trade practice.

It is unfortunate that the public increasingly views politics as a liability instead of an asset in developing the country's progress. The rise of popular political movements shows that many have lost trust in politicians.

Our political system should be designed to enable all voices to be heard and concerns to be addressed. But our politicians abuse the system for their own benefits. In the past, changes in governments did not have this negative effect on economic policy because bureaucrats and the private sector operated more independently with the aim of achieving long-term economic success. But the level of government interference in economic policies has risen over the past decade. Recent governments have failed to produce a long-term vision because they focus only on short-term political benefits.

It is essential to let stakeholders in the civil and private sectors have a more visible and tangible role in setting and implementing the country's strategic plan. The political system should encourage people representing all interests to discuss and find the best solutions that will benefit all parties, instead of just certain groups of people.

If the political system fails to contribute to this rational process, we can expect more emotionally-charged protests and rallies. What we will have left is a self-destructive society infected by bad politics.

-- The Nation 2011-02-22

[AZBill]

This could be a headline in the US right now!

[Robby nz]

Shouldnt that be crooks not cooks?

Yea let the private sector have a free hand then they can make bigger profit.

After all being in business is all about making profit. seems to me there needs to be a restraining hand in there somewhere.

[jayboy]

Yea let the private sector have a free hand then they can make bigger profit.

After all being in business is all about making profit. seems to me there needs to be a restraining hand in there somewhere.

Why? The article makes it clear there should be sensible regulation, but it needs to be a very light hand.

It is the private sector and the drive for profit that has lifted Thailand out of poverty.

[Credo]

It's not really about profits. There is always a profit, it just depends on if it goes into the pockets of private businessmen or if it goes to politicians.

The cap on palm oil prices is a nice gesture, but it isn't really working out too well. Instead of consumers being able to buy palm oil for 57 baht a bottle instead of 47 baht; they are forced to either go with out or pay several hundred baht for imported oils.

[robertson468]

Yea let the private sector have a free hand then they can make bigger profit.

After all being in business is all about making profit. seems to me there needs to be a restraining hand in there somewhere.

Why? The article makes it clear there should be sensible regulation, but it needs to be a very light hand.

It is the private sector and the drive for profit that has lifted Thailand out of poverty.

It was also poor regulation that caused the last World financial crises!!

[bkk_mike]

It was also poor regulation that caused the last World financial crises!!

It wasn't poor regulation that caused the crisis. It was bad risk management on the part of the banks, which was helped by the poor regulations that allowed them to hide the risks off their balance sheets.

[jcgodber]

Ha Ha HA I read the title wrong

Replying to Too Many Crooks Are Spoiling Thailand's Broth

[cbc]

It was also poor regulation that caused the last World financial crises!!

It wasn't poor regulation that caused the crisis. It was bad risk management on the part of the banks, which was helped by the poor regulations that allowed them to hide the risks off their balance sheets.

I agree with you bkk _mike.I am a former banker who left my job because of the politics involved in the workplace.But,just see what countries in the west where the bank's did not receive or need to receive a bailout package.

Maybe i am being a bit biased here because i am canadian,but our regulations in the financial system are very stringent.We have strict rules and i mean very strict requirements before one can receive a loan or mortgage.Also,regulation wise we don't have all these small independent bank branches.May sound a bit like regulation too much but,as i said see what countries did not give taxpayers money for big bailouts.Canada,which is never mentioned in this part of the world is one of the best countries in the world.And,i might add i will be returning home within the next two year's to remain.Go canada go.

[animatic]

Any bets that the hoarding of Palm oil, besides that going to better paying bio-diesel, is also being done to embarrass the government with the average housewife, just prior to the coming election? One of the few ways to dent the image at the home owner level. And not coincidentally make a much higher profit in the end too.

Too many crooks indeed!

Edited February 22, 2011 by animatic

[jayboy]

Any bets that the hoarding of Palm oil, besides that going to better paying bio-diesel, is also being done to embarrass the government with the average housewife, just prior to the coming election? One of the few ways to dent the image at the home owner level. And not coincidentally make a much higher profit in the end too.

Too many crooks indeed!

A promising candidate for the Sriracha John Memorial Prize for the most irrelevant introduction of Thaksin (don't deny it) to a particular subject, in this case palm oil hoarding.

Stupid also because most of the refining takes place in the South, a Democrat stronghold.

[surangw]

more like someone pissed in the broth pot long ago

[OZinBKK]

Good article - it feels like abhisit is constantly trying to make the majority pop happy right now rather than focus on long term goals that will benefit the country.

But some may call me little red riding hood...

[Bagwan]

But some may call me little red riding hood...

You're a small communist condom?

[animatic]

Any bets that the hoarding of Palm oil, besides that going to better paying bio-diesel, is also being done to embarrass the government with the average housewife, just prior to the coming election? One of the few ways to dent the image at the home owner level. And not coincidentally make a much higher profit in the end too.

Too many crooks indeed!

A promising candidate for the Sriracha John Memorial Prize for the most irrelevant introduction of Thaksin (don't deny it) to a particular subject, in this case palm oil hoarding.

Stupid also because most of the refining takes place in the South, a Democrat stronghold.

Yes, your post certainly takes that prize,

since you introduced T to the discussion.

I only mentioned politics and dirty tricks election maneuvering.

Distribution and hoarding is not strictly at points of production,

just as women needing cooking oil are not strictly near points of production either.

Edited February 24, 2011 by animatic