Bank of Thailand: Govt policies are 'unsustainable'

[webfact]

Govt policies are 'unsustainable'
The Nation


Prasarn

Central bank chief says national goals ignored amid focus on short-term consumption

BANGKOK: -- Bank of Thailand Governor Prasarn Trairatvorakul has slammed government policies as geared towards short-term consumption, saying they have shortcomings and cannot sustain economic competitiveness in the long term.

In a speech to ASEAN ambassadors and high-ranking officials at the Foreign Ministry yesterday, he said policy-makers needed to be goal-oriented, consistent, proactive and to coordinate with one another, because the country is bracing for greater challenges in light of rapid changes in the global economy.

Meanwhile, academics at a Thai Publica seminar, "Brainstorm on Fiscal Cliff, Thai Government Debts", also attacked the government yesterday for policies not designed to boost long-term national competitiveness, saying they could create a Thai version of the "fiscal cliff". Global challenges - particularly the slowdown of the Chinese economy - were a warning that Thailand, at the national and individual levels, must be more cautious in spending. In the first quarter, Thai household debts reached 77 per cent of gross domestic product (GDP), mainly due to stimulus measures launched in recent years.

Prasarn urged the government to pay more attention to national development plans, which cover all areas of society and the economy, and require action.

"Any subsequent policies must be drawn in line with national goals. The goals and national development plans should not be left idle on the shelf," he said.

Aside from setting goals, policy-makers should not shift focus. Singapore and Malaysia had advanced quickly because of policy consistency, he said.

Policy-makers should also be alert to global challenges and be willing to coordinate, as no single party can achieve success.

"If Thailand is a ship navigating in the sea, the ship has travelled a long distance. Yet, it will have to sail further and the destination is not within sight. Our journey has suffered from monsoons and we have been side-tracked and unknowingly got involved too much with ad-hoc problems, which cost us time and money. Yet, if we regain our senses, set sail at full speed and lead the ship towards our goal, we won't be vulnerable to monsoons and reach the goal in a fast and sustainable way," he said.

At the Thai Publica seminar, Sethaput Suthiwart-Narueput, chief of the Thailand Future Foundation, said future budget allocation must answer national strategies and be in line with expected returns and cost-benefit analysis. All projects with costs that cannot be defined, like the rice-pledging scheme, must be scrapped, Sethaput said.

A foundation study found that in 2009-10, government annual expenditure rose 9.2 per cent on average - above average growth of 7.2 per cent. Funds were allocated on a ministerial basis, rather than according to national strategies. In these years, little money was put to scientific and technological innovation or energy to boost competitiveness.

Generally, the allocation pattern did not support the evaluation of economic returns, particularly the evaluation of central budgets, he said. At some ministries like Education, which saw its budget double in 10 years, the level of Thai scientific knowledge, according to PISA rankings, in 2009 was lower than in 2010. And logistical competitiveness fell from 31st in 2007 to 38th in 2012, although budgets for the Transport Ministry increased every year.


-- The Nation 2013-07-16

[NongKhaiKid]

He's not too popular with some in the cabinet as it is so this won't endear him in any way, that's the problem with this government as they can't handle criticism or the truth.

[chooka]

He's not too popular with some in the cabinet as it is so this won't endear him in any way, that's the problem with this government as they can't handle criticism or the truth.

Could be facing legal action for speaking out against the government along with those who speak out against the rice scam.

[Bluespunk]

" In the first quarter, Thai household debts reached 77 per cent of gross domestic product (GDP), mainly due to stimulus measures launched in recent years."

That's as damning a stat as any. This govt is utterly incompetent.

[NongKhaiKid]

He's not too popular with some in the cabinet as it is so this won't endear him in any way, that's the problem with this government as they can't handle criticism or the truth.

Could be facing legal action for speaking out against the government along with those who speak out against the rice scam.

Now wouldn't that be quite a headline ? I wonder if anyone in the cabinet will suggest it, there's some nutters in post

[reiltin]

He's just saying what needs to be said,sadly long term thinking and the continued well being of their nation take a back seat to the personal enrichment of those at the helm of this ship of fools,as far as truth and the (very few) voices of reason are concerned their calls are soon drowned out by the whirl of cash counting machines...

[OzMick]

"If Thailand is a ship navigating in the sea, ............." PTP has been a torpedo.

[kimamey]

The figures at the end refer to the last government in 2009 - 2010. I wonder what the figures are like now.

[Thai at Heart]

Just do it like China and run a lottery on vat receipts from medium size businesses where people pay cash. Restaurants etc.

The Thais would demand a receipt for everything and the tax take would rocket.

[moe666]

Soon there will be a rebuttal by the red supporters who seem to be rats leaving a sinking ship.

[smedly]

The figures at the end refer to the last government in 2009 - 2010. I wonder what the figures are like now.

nobody actually has a clue and if they had they wouldn't be telling

Iceberg ahead PTP have already abandoned the sinking ship taking all the life rafts

What bothers me is that these people are left to rule themselves, it is pretty obvious on an national level - they are not capable of self governance, they are quite good at stealing the publics money though

[Tatsujin]

Bank of Thailand Governor Prasarn Trairatvorakul has slammed government policies as geared towards short-term consumption

No shit Sherlock . . .

[Neilly]

In a speech to ASEAN ambassadors and high-ranking officials at the Foreign Ministry yesterday, he said policy-makers needed to be goal-oriented, consistent, proactive and to coordinate with one another

Well, we know that'll never happen...where's all the lifeboats gone?

[cup-O-coffee]

Gawd... that word is beginning to gnaw on my ears. Thais love to abuse words that "sound" lofty but in fact make them appear to be trying too hard to sound lofty. Sustainable... moreover... auspicious... It's like a child saying like... like, ya know...or actually...

[hellodolly]

" In the first quarter, Thai household debts reached 77 per cent of gross domestic product (GDP), mainly due to stimulus measures launched in recent years."

That's as damning a stat as any. This govt is utterly incompetent.

I think you are giving them credit they haven't earned.

Incompetent is a few steps up the ladder for them.

First step is corrupt

Second step is stupid

Third step is incompetent

[hellodolly]

The figures at the end refer to the last government in 2009 - 2010. I wonder what the figures are like now.

excellent point.

"Generally, the allocation pattern did not support the evaluation of economic returns, particularly the evaluation of central budgets, he said. At some ministries like Education, which saw its budget double in 10 years, the level of Thai scientific knowledge, according to PISA rankings, in 2009 was lower than in 2010. And logistical competitiveness fell from 31st in 2007 to 38th in 2012, although budgets for the Transport Ministry increased every year."

And logistical competitiveness fell from 31st in 2007 to 38th in 2012,

Takes in three different governments. Makes one wonder. How ever who ever is at fault should not matter now.

It is a fact that Thailand is greatly abusing the education system. The policy rather than increase the quality of the teachers is give the kids a tablet and hope they can teach the teacher how to use it.

[Ricardo]

I spy, with my little eye, a 'party-pooper', telling the truth instead of the party-line 'white-lie' !

Time for a swift sideways-movement, to an inactive post, or a reshuffle at the BoT ?

[Felt 35]

"Govt policies are 'unsustainable"

Shock

[trainman34014]

Brave Man. I hope he has a bullet proof car !

[GentlemanJim]

Time for a new Governor for the Bank of Thailand!

[davejones]

Change Thailand to USA, UK, Eurozone, and the article would still be true.It's a sad fact that this is mostly what governments do. But it's also what people in general do, so most people are to blame. Most people just love this short-term thinking, as it's all they're capable of.

[SICHONSTEVE]

" In the first quarter, Thai household debts reached 77 per cent of gross domestic product (GDP), mainly due to stimulus measures launched in recent years."

That's as damning a stat as any. This govt is utterly incompetent.

I think you are giving them credit they haven't earned.

Incompetent is a few steps up the ladder for them.

First step is corrupt

Second step is stupid

Third step is incompetent

I think I'd put incompetent first and corrupt second although stupid should be near the top.........just say "all of them equally"

[Lancelot]

Bank of Thailand Governor Prasarn Trairatvorakul has slammed government policies as geared towards short-term consumption, saying they have shortcomings and cannot sustain economic competitiveness in the long term.

What a party pooper! Comming form the USA, I'd say there was never a short term solution that we didn't like- or voted for.

Personally speaking, I liked the government's massive increase in the minimum wage. That little maneuver bought tons of votes and businesses picked up the tab.

O (Mr. Obama) are you listening?

Rock on

[LeeTheCelt]

Week after week I read how Thailand's heading for a fall & the government keep borrowing huge amounts of money, but still the Baht remains high against the £ & the $, is it just a waiting game & eventually the Baht will drop like a stone ?

[Bluespunk]

" In the first quarter, Thai household debts reached 77 per cent of gross domestic product (GDP), mainly due to stimulus measures launched in recent years."

That's as damning a stat as any. This govt is utterly incompetent.

I think you are giving them credit they haven't earned.

Incompetent is a few steps up the ladder for them.

First step is corrupt

Second step is stupid

Third step is incompetent

You are quite right, though in my defence I thought the corrupt and stupid were given.

[Suffinator]

Populist polices coupled with piss poor education and rampant corruption is likely to push the Thai economy into meltdown. Some Thais are able to see this clearly but the agenda for the government is still, and always will be, about filling their own pockets.

Thai Economy Could Collapse Under Strain of Populist Policies

[hellodolly]

Change Thailand to USA, UK, Eurozone, and the article would still be true.It's a sad fact that this is mostly what governments do. But it's also what people in general do, so most people are to blame. Most people just love this short-term thinking, as it's all they're capable of.

Interesting you should mention other countries. On another thread Tony Blair was quoted as saying Politics needs help.

He did not limit that statement to only one country.

[hellodolly]

" In the first quarter, Thai household debts reached 77 per cent of gross domestic product (GDP), mainly due to stimulus measures launched in recent years."

That's as damning a stat as any. This govt is utterly incompetent.

I think you are giving them credit they haven't earned.

Incompetent is a few steps up the ladder for them.

First step is corrupt

Second step is stupid

Third step is incompetent

You are quite right, though in my defence I thought the corrupt and stupid were given.

Actually you don't have to be corrupt to be stupid and incompetent.

It just seems like that is the kind of incompetent nitwits that get drawn into Politics here.

[BahBahBoBo]

There will be a deflation soon in the condo market (as opposed to the housing/properrty market as a whole ) due to the worldwide economic effects on the foreign quota portion of the market. Overall though, Thailand has weathered the storm quite well so far.

[khunken]

Given the 'love' Kittirat has for Khun Prasarn, I suspect the previous failed maneuvers to sack him will take on a new life. How the truth hurts.