Thai Flood Recovery Cost Estimated At 25 Billion Dollars

[webfact]

Thai flood recovery cost estimated at 25 billion dollars

Bangkok - Thailand needs to invest about 25.2 billion dollars over the next two years to rehabilitate the economy in the wake of this year's devastating monsoon floods, the World Bank said Monday.

Thailand sustained 640 billion baht (21.3 billion dollars) in damage and 717 billion baht (23.9 billion) in lost opportunities, it said in a report on the impact of the disaster.

Of the 1.4 trillion baht in combined damage and losses, 94 per cent was borne by the private sector, the World Bank said.

The floods were the worst Thailand had suffered in five decades. They killed 615 people and disrupting the global supply chains in the electronics and automotive sectors after inundating hundreds of factories.

The World Bank lowered its economic growth forecast this year to 2.4 per cent, from its pre-flood estimate of 3.6 per cent.

Thailand could stage a rapid recovery in 2012 with 4-per-cent growth in its gross domestic product if investments are made in a massive rehabilitation programme, the bank said.

The 755 billion baht it recommended in spending should be used to get the economy back on track and make it more resilient to future climate shocks.

'We are recommending a large investment in water-resources management,' said Annette Dixon, the World Bank's Thailand director.

'Some of that is work that needs to be done to rehabilitate damaged infrastructure and some of it is for strengthening of the system to deal with an increasing risk of extreme weather events.'

'Some of that is work that needs to be done to rehabilitate damaged infrastructure and some of it is for strengthening of the system to deal with an increasing risk of extreme weather events.'

The bank advised the government to prioritize future investments and to maintain fiscal prudence in light of the uncertainties faced by Thailand's two largest markets, the United States and Europe, which buy 35 per cent of its exports.

But with high fiscal reserves and an anticipated current account surplus of 2.6 billion dollars this year, the bank said the government could afford to invest in the recovery.

Dixon cautioned that the government should reorder some of its populist policies that it promised before the July general election.

That platform promised to hike the minium wage nearly 50 per cent on April 1, pay higher-than-market prices for farmers' rice and slash taxes on first-home and first-car purchases.

-- The Nation 2011-11-28

[Chopperboy]

Putting the children in charge of water valves gets very expensive!

[RogueLeader]

There'll be no end of private finance companies only too willing to provide emergency rescue funds. All they'll want in return is to own the land that they've recovered and everything that's built with the loan money.

Thailand: brace yourself for another crash course in the shock doctrine.

Edited November 28, 2011 by RogueLeader

[travelmann]

I see plenty of "business opportunity" in this then

[searcher22]

There'll be no end of private finance companies only too willing to provide emergency rescue funds. All they'll want in return is to own the land that they've recovered and everything that's built with the loan money.

Thailand: brace yourself for another crash course in the shock doctrine.

So true.

[whatawonderfulday]

Putting the children in charge of water valves gets very expensive!

That is disgraceful infering children are that stupid ! surely you mean putting the dillusional and mentally challanged in charge of flood control gets very expensive ( for the rest of the popoulation that is )

[JimmyTheMook]

And their still floating the Mickey Mouse currency we know as the baht. :jap:

[sstuff3]

Quick translation...... Lot's of "Opportunity" for whichever government is in charge. Look for more intense power struggles in the near term......

[Garry]

And their still floating the Mickey Mouse currency we know as the baht. :jap:

Since the Thai baht has strengthened roughly 24% against the US dollar in the last ten years, your point is?

http://www.xe.com/currencycharts/?from=USD&to=THB&view=10Y

[Imkah]

I see plenty of "business opportunity" in this then

Are you being sarcastic? Thailand has the finest of politicians: Where others would only see difficulties, they see opportunities! Positive thinking.. :jap:

[Samuian]

"golden times" ahead... well done!

[huahinjoe]

Maybe its time to re-think the so confident investment plans, visas and company setup issues.

Thailand need to be more open minded and it's time to get some proper management from abroad, not only on the water front but on the long term business developments also.

A country with such a huge opportunities struggle with corruption, lack of management and nationalist thinking with keeping the control to some big companies instead to open up the investments for foreigners and experts and make profits on renewable energies, manufacturing, tourism and real estate and the list goes on...

With the current Financial crisis in EU its a golden opportunity to offer better options for ppl and companies who want to invest in the emerging markets of South-East Asia.

Hopefully this disaster will open their eyes, but in my humble opinion it's very hard to achieve in the next decades unless some young fresh thinking and technocrat govenrment emerge from the current dark ages where corruption, prostitution, ripping-off the business partners is a common example how the business works here.

This was the 3rd struck against the Thai economy in the last few years in a row, and this country is so unpredictable, I'm not wonder if the investors stay away and now the Thais can enjoy the fruit of their mis-management and lack of care, and selfish nationalist thinking...

[Xonax]

You will have to add an estimated 30% kickback to the estimated 25.2 Billion Dollars.

[sabye]

This disaster is just an opportunity for the politicians and their friends to siphon even more of our taxes into their very own large pockets. Lets hope that more of them are caught and put behind bars for the rest of their life. Maybe then the corruption will slow down. But that is very big hope and not much reality.

[givenall]

Putting the children in charge of water valves gets very expensive!

Umm how much for the politicians, surly they are not goingto rehabilitee Thailand without making themselves a bit richer, ok a lot richer[/font][/size]

[MrMuddle]

This disaster is just an opportunity for the politicians and their friends to siphon even more of our taxes into their very own large pockets. Lets hope that more of them are caught and put behind bars for the rest of their life. Maybe then the corruption will slow down. But that is very big hope and not much reality.

The problem is, when they're caught they flee the country. One thing I admire about the Chinese, they execute corrupt officials.

[animatic]

If that's the publicly estimated figure, then A TRILLION BAHT is likely the real cost,

not including loans going bad and foreclosures on the poor day in and day out.

A Loan Sharks Dream Holiday for sure.

Edited November 28, 2011 by animatic

[lounger]

You will have to add an estimated 30% kickback to the estimated 25.2 Billion Dollars.

yes and the infrastructure that doesnt need repairing 30% on that too.

The Don Mueang crowd say that after a few weeks in water all the buildings have gone rotten and need replacing. Wow amazing how concrete can form harbours but not building foundations. And if the concreteTerminals are rotten what does that say for the 5,000 baht being offered to the people in lesser buildings blockwork or wooden houses

[boattime]

Thailand to me is such an amazing country, and so are the people, to me these people can deal with disasters as good or better than many other countries will or would, there is a flow and it will work out.

[EastSaxCol]

And their still floating the Mickey Mouse currency we know as the baht. :jap:

Selfishly speaking as one who remembers £1 = 60 + tbt , I only wish that were true.

[Jeffrey346]

And their still floating the Mickey Mouse currency we know as the baht. :jap:

Time to devalue the Baht and bring those tourists back

[Jeffrey346]

You will have to add an estimated 30% kickback to the estimated 25.2 Billion Dollars.

yes and the infrastructure that doesnt need repairing 30% on that too.

The Don Mueang crowd say that after a few weeks in water all the buildings have gone rotten and need replacing. Wow amazing how concrete can form harbours but not building foundations. And if the concreteTerminals are rotten what does that say for the 5,000 baht being offered to the people in lesser buildings blockwork or wooden houses

Concrete!!!! What's that?

[pcliff069]

and if they had only listened to all the wisdom of the Sgt. Major's on this forum with all their brilliant hindsight then the floods would not have happened.

Oh for the line to the gods u people have

[hellodolly]

Thailand to me is such an amazing country, and so are the people, to me these people can deal with disasters as good or better than many other countries will or would, there is a flow and it will work out.

+1

They are truly amazing in their ability to deal with a tragedy of this size.

[IsaanUSA]

And their still floating the Mickey Mouse currency we know as the baht. :jap:

Since the Thai baht has strengthened roughly 24% against the US dollar in the last ten years, your point is?

http://www.xe.com/cu...to=THB&view=10Y

I think what he is trying to say is that due to this large scale natural disaster and a general state of government disapproval, the baht should have lost value compared to other world currencies. But the BOT is keeping the rate pretty much steady.

[jombom]

You will have to add an estimated 30% kickback to the estimated 25.2 Billion Dollars.

Yeah sad, really sad, but that's the way it is. 25 billion dollars is an awful lot more than Government estimates.

Hopefully as well as fresh water control, they will also address waste water control. Unlikely admittedly, but needs to be done soon, if they want to maintain the tourist industry.

[natchainuk]

I hope P.M. Yingluck Sinawatra will increase the income tax for all foreign people that work in Thailand. Foreign people pay so small amount of tax and have lifestyle that is far more easy than majority of Thai people. Between 25-30% tax for foreigner on "low income" 500,000 baht p.a. and 35-40% for foreigner on "good income" 2,000,000 baht p.a.

Increase tax for foreign worker will help Thai people to deal with many problem including recovery from flood disaster.

Foreign people that "love" Thailand will have no problem with this and foreign people that dont like it can go and complain in another place.

[techboy]

And their still floating the Mickey Mouse currency we know as the baht. :jap:

Explain to me why the Thai Baht is Mickey Mouse currency. Go ahead. Make my day.

[tropo]

"The World Bank lowered its economic growth forecast this year to 2.4 per cent, from its pre-flood estimate of 3.6 per cent."

It's hard to believe the destruction amounts to only 1.2 per cent drop in growth forecast.

[techboy]

This disaster is just an opportunity for the politicians and their friends to siphon even more of our taxes into their very own large pockets. Lets hope that more of them are caught and put behind bars for the rest of their life. Maybe then the corruption will slow down. But that is very big hope and not much reality.

And your offhand libelous speculation on the matter is reality?