New Thai Govt Will Aim For Bottom Up Approach To Development

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ECONOMIC STRATEGIST OLARN:

New govt will aim for bottom up approach to development

By Wichit Chaitrong

The Nation

The new government expected to be led by the Pheu Thai Party is likely to brand itself as pro-change and pro-reform, and to encourage a "bottom-up" approach to development.

These ideas, partly formulated by Dr Olarn Chaipravat, the party's chief economic strategist, are seen as a continuation of those set by its predecessor, the now-defunct Thai Rak Thai Party.

Olarn told a gathering of foreign business people at a seminar organised by The Nation and Asean TV that his party would, in government, want to narrow the income gap between the rich and poor by implementing a "bottom up" economic model.

The party wants to increase the income of farmers, labourers and office workers. Promised measures include a pledging guarantee of Bt15,000 a tonne for unhusked rice, a minimum wage of Bt300 per day and an increase in salaries for new graduates to Bt15,000 per month.

During the election campaign Olarn and other Pheu Thai members promised to increase the competitiveness of the business sector. The party plans to cut corporate income tax to 23 per cent from 30 per cent in its first year in office, then to 20 per cent in later years.

The party also promised to develop a land bridge in the South linking the Gulf of Thailand to the Andaman Sea, and to invest in high-speed rail projects linking Bangkok and other key cities. It promised to extend and build 10 mass transit lines in Bangkok. The party also promised to build a new city "on the sea", to act as a dam to prevent seawater flooding Bangkok.

It wants to set up a sovereign wealth fund by drawing international reserves from the central bank to invest in natural resources and energy - oil, diamonds and gold in Africa.

The party will work to resume diplomatic harmony with Cambodia, as part of a broader effort to strengthen Asean and the coming Asean Economic Community.

Olarn promised to manage the price of farm products, fuels and other consumer products, saying he wanted to help create fair prices for all parties.

Former prime minister Thaksin Shinawatra said during an interview with TV3 yesterday that government priorities were national reconciliation - letting an independent panel led by Kanit na Nakorn continue their factfinding - and to reduce the high inflation.

Sompop Manarungsan, an economist at Chulalongkorn University, said he feared that populist policies would drag the country's progress due to their high costs with little productive gains.

"The Pheu Thai Party has an ambitious plan to increase GDP from US$300 billion to $800 billion in the next 10 years, but populist policies [cash handouts and easy credit] would drag [down] growth," Sompop said.

He said that the Democrat Party lost the election because it had implemented populist policies but their scale could not match those promised by Pheu Thai - the successor to Thai Rak Thai, the party that initiated populist policies. So people who formally voted Democrat either voted "no" or voted for a third party.

Economic policy implemented by the Democrat-led government was not market friendly, he argued, saying businesses and the middle classes felt frustrated by it.

-- The Nation 2011-07-04

[harrry]

OK delete this if you must mods...but I cannot resist saying based on the headlines.

Is the country going all arse up.

[FOODLOVER]

OK delete this if you must mods...but I cannot resist saying based on the headlines.

Is the country going all arse up.

It's the same way they tackled prostitution issue.

[siampolee]

(P.T.P) it wants to set up a sovereign wealth <deleted>nd by drawing international reserves from the central bank to invest in natural resources and energy - oil, diamonds and gold in Africa.

I may be a tad cynical , but isn't that the region and indeed the resources that a certain banned politician who is kith and kin to the new Prime Minister has according to popular rumour invested money into.

Perish the thought that any creative accounting and dubious financial transactions may be on the on the cards.

[ajarnmark]

OK delete this if you must mods...but I cannot resist saying based on the headlines.

Is the country going all arse up.

Mods will never delete this coz it does not offend their views... however, my post will be deleted coz of criticizing them...

[whatsupdoc]

And this time no problem with the Thai tax collector, even when the business is sold.

(P.T.P) it wants to set up a sovereign wealth <deleted>nd by drawing international reserves from the central bank to invest in natural resources and energy - oil, diamonds and gold in Africa.

I may be a tad cynical , but isn't that the region and indeed the resources that a certain banned politician who is kith and kin to the new Prime Minister has according to popular rumour invested money into.

Perish the thought that any creative accounting and dubious financial transactions may be on the on the cards.

[ratcatcher]

(P.T.P) it wants to set up a sovereign wealth <deleted>nd by drawing international reserves from the central bank to invest in natural resources and energy - oil, diamonds and gold in Africa.

I may be a tad cynical , but isn't that the region and indeed the resources that a certain banned politician who is kith and kin to the new Prime Minister has according to popular rumour invested money into.

Perish the thought that any creative accounting and dubious financial transactions may be on the on the cards.

A 'tad cynical"? So you should be. I think the new PTP government should consider all angles when deciding on its policies regarding growth, as aiming for a bottom up approach could have some problems if a top down strategy is being used in other sectors. They have to look at the whole economic picture not just one segment of all the pie in the sky plans earlier presented, although these may already have been fast tracked or even sidelined, no-one except T.S.knows. Indeed the majordomo in Dubai may already have made significant arrangements for bringing investments in these areas on stream, although he seems to have muddied the waters somewhat by his obfuscation of the costs involved in bringing these African resource and energy portfolios on-line. In fact doing business with countries led by despots like the late Idi omin is recklessness of the highest order. In fact most of these nations are led by crooks and con-men.

<deleted>

[jdinasia]

The party wants to increase the income of farmers, labourers and office workers. Promised measures include a pledging guarantee of Bt15,000 a tonne for unhusked rice, a minimum wage of Bt300 per day and an increase in salaries for new graduates to Bt15,000 per month.

Inflation anyone? Kinda glad I negotiated a 100% raise over the next 2 years, not counting bonuses .....

[dobadoy]

Great ideas on paper, but mass transit is a cash sink, not a cash cow, 'cept for those that own land on the prospective routes, of course...

floating city to protect BKK from floods...who's going to risk life and limb living on that (maybe Abhisit and Suthep will be exiled there)?

300 baht mininum wage - damned good idea, but when the Dems proposed raising it by about 20 baht or so last year the business community went apeshit saying they'd all go out of business...so that one's not going to fly.

Mining in Africa...ah yeah, now we know people that have assets there, that'll definitely be first through the legislature. 15k/tonne of rice? For sure, got to keep the power base happy.

( BTW, hope those schoolkids aren't banking on those knock-off iPads from Klong Toey anytime soon... )

Edited July 4, 2011 by dobadoy

[DP25]

(P.T.P) it wants to set up a sovereign wealth <deleted>nd by drawing international reserves from the central bank to invest in natural resources and energy - oil, diamonds and gold in Africa.

I may be a tad cynical , but isn't that the region and indeed the resources that a certain banned politician who is kith and kin to the new Prime Minister has according to popular rumour invested money into.

Perish the thought that any creative accounting and dubious financial transactions may be on the on the cards.

Thailand's foreign reserves are massive too, the 12th largest in the world, $180 billion dollars. I'm sure they'll find the best places in Africa to invest in

http://en.wikipedia.org/wiki/List_of_countries_by_foreign_exchange_reserves

[davejonesbkk]

wow, a lot of spending coming up then, hope they know what they are doing, how exactly do they plan to keep inflation under control?