Rice scheme and the perils of populism

[webfact]

EDITORIAL
Rice scheme and the perils of populism
The Nation

The disastrous crop-pledge policy should serve as a warning to our next government

BANGKOK: -- Widespread protests by rice farmers have demonstrated the failure of the government's controversial rice-pledging scheme. The protests are taking place in parallel with the ongoing anti-government rallies in Bangkok. As such, the hazards of a populist policy are being blurred by cut-throat politics. This was underlined when the National Anti-Corruption Commission agreed to investigate caretaker Prime Minister Yingluck Shinawatra's involvement in the rice scheme.

This politicises the issue even further, but in fact, a policy as costly and contentious as this one demands close scrutiny.

In its aim to boost farmers' income and help alleviate rural poverty, the subsidy programme looks promising on paper. It guarantees farmers above-market prices, which lured many to join in. But critics have been warning of the dangers of this populist programme since its launch in 2011. Leading economists doubt whether the scheme will ever be economically viable. They have also detected loopholes that make it vulnerable to corruption.

The farmers have become victims of the scheme, and are collectively demanding Bt110 billion in payments that are now almost five months overdue. The Bank for Agriculture and Agricultural Cooperatives has told the farmers the government has inadequate funds for the scheme and cannot pay them for the rice.

In urgent need of financing for the next planting season, farmers are now in danger of becoming prey to loan sharks and sinking even further into debt.

The problem is compounded by the falling global competitiveness of the Thai rice industry.

With Bt680 billion spent on the scheme over the past two years, the pledge policy has put enormous pressure on the country's finances. The government now needs to find Bt130 billion to pay 1.4 million farmers. So far only 300,000 have been paid. The major problem - a lack of cash flow - partly stems from the accumulation of huge stockpiles of rice that the government cannot sell.

What is now clear is that the supposed beneficiaries of the pledge - the farmers - have become its victims. Instead, the policy has benefited millers, traders, corrupt officials and politicians. The government knows well the positive effects of populism, but when it turns on you, problems loom on all sides.

With the problem becoming evermore urgent, the government has no way out but to find fiscal loopholes to pay the farmers. Yet this will bring further scrutiny from taxpayers, check-and-balance agencies and others. The government's opponents can now heap on the pain.

Worse still, the issue has become a political football, with government supporters accusing unpaid farmers of being part of a conspiracy to overthrow it.

However, anti-government protesters don't need to make a case for the disastrous nature of the policy - that the rice pledge has brought misery to farmers is hardly in dispute. "I've seen nothing as bad as this rice scheme," former Thailand Development Research and Institute director Ammar Siamwalla has commented. "Nothing but lies and boasting."

Let the rice scheme serve as a warning to our next government of the costly dangers of populism. Before launching such a grand concept aimed at bettering the lot of our poorest citizens, it needs to answer a big question: Who will actually benefit?


-- The Nation 2014-01-22

[slapout]

The rice program was never meant to help the farmers, to even suggest that was its intent, demonstrates the lack of understanding of how corrupt this countries leading politicans are. With all the loop holes, lack of oversight, accounting, and transparency exhibited, indications are this was an apperently successful attempt to extract vengance by a family who are upset with anyone they perceive as opposing them.

[ChrisY1]

"In its aim to boost farmers' income and help alleviate rural poverty, the subsidy programme looks promising on paper. It guarantees farmers above-market prices, which lured many to join in."

Seeing how this scheme had developed over the past couple of years, it would appear that it was actually designed to assist the grafters....almost nothing to do with the farmers.

It's been cleverly designed....and with the number of new grain storage facilities in the country, it was likely all planned.

I hope the NACC has the courage to continue it's claim last week of charging officials.....

[tingtongteesood]

Out of likes but you are both completely right. I can't wait for the real numbers to come out and questions to be asked about where the rest of the money went....

[samuidave]

With payments of 10.5 baht on the kilo instead of the 15 baht promised -- miraculously due to the high water content and poor quality rice as determined by the state itself -- are the farmers shocked to learn that the government has restricted bidding on the rice so that friends and family can profit on the resale? Now the actual 10.5 baht is further deflated by non-payment for five months and the impending inflationary effects of "printing off the money due" as suggested by the regime (since nobody wants to loan an insolvent nation money).

[Nickymaster]

This government is truly evil. THB 680,000,000,000 gone and still no money for the farmers. If Thaksin's clan would have stolen a little bit less, there would have been enough money for the poor farmers.

Shame on you Shin clan!!

[JRSoul]

Populism isn't necessarily bad, in moderation. A little sweetener to attract votes is acceptable if coupled with sound economic policies reaping rewards for the country. The trouble is, you look at the last election and I see almost every PTP policy as a inducement and not one sound economic money maker.

Anybody who thinks the country is better off needs to wait for the final accounting. It's going to be ugly.

Edited January 22, 2014 by JRSoul

[MJP]

This government is truly evil. THB 680,000,000,000 gone and still no money for the farmers. If Thaksin's clan would have stolen a little bit less, there would have been enough money for the poor farmers.

Shame on you Shin clan!!

It's expensive in Dubai. Those Bentley camels . . . big money.

[Scamper]

In terms of the question posed at the end of this excellent article " Who will actually benefit ? " the answer was always Thaksin. But now, not only the rice stores have piled up, but also the level of corruption, as well. It has reached crisis proportions. And it is finally spilling out into the open - the whole mess. And the farmers are now finally waking up to the fact that they've really been duped. And they're justifiably furious.

[Trouble]

This government is truly evil. THB 680,000,000,000 gone and still no money for the farmers. If Thaksin's clan would have stolen a little bit less, there would have been enough money for the poor farmers.

Shame on you Shin clan!!

Is there any proof that the Shinawatra Clan directly profited (increased their wealth) from this scheme? If so please provide some sources of information. These are just more claims, like many others, that the family is profiting from every outlandish scheme brought forth. I think the rice pledging scheme was a populist idea floated to help the PTP's political base. Sure it is probably rife with corruption but I don't think everything that goes wrong in Thailand in the way of corruption can be said to originate from or profit the Shinawatra family. I think there is just too much assumption that the Shinawatra clan is in complete control of everything that occurs in Thailand. I personally don't think this is the case. I think the bigger problem is that there are just too many in at all levels that scheme to increase their wealth and they don't necessarily ask permission of the Shinawatra clan first. The way some of the posters speak, one would have to assume that Thaksin is in control like some mafia don that controls every aspect of Thailand's business. That just isn't the case. No one will convince me that Yingluck is Thaksin's stand in for mafia boss and that she or her government is their to simply increase the her family's wealth. On the contrary, I would think that she would be most prudent in using corrupt practices in an effort to increase her or her family's wealth. Seems like many hate the family because of their wealth. While Thaksin surely violated the law with regard to taxes, money laundering, etc. why is everyone assuming Yingluck has done the same? Please rather than guilt by association, provide facts with regard to corrupt practices regarding wealth.

[robblok]

This government is truly evil. THB 680,000,000,000 gone and still no money for the farmers. If Thaksin's clan would have stolen a little bit less, there would have been enough money for the poor farmers.

Shame on you Shin clan!!

Is there any proof that the Shinawatra Clan directly profited (increased their wealth) from this scheme? If so please provide some sources of information. These are just more claims, like many others, that the family is profiting from every outlandish scheme brought forth. I think the rice pledging scheme was a populist idea floated to help the PTP's political base. Sure it is probably rife with corruption but I don't think everything that goes wrong in Thailand in the way of corruption can be said to originate from or profit the Shinawatra family. I think there is just too much assumption that the Shinawatra clan is in complete control of everything that occurs in Thailand. I personally don't think this is the case. I think the bigger problem is that there are just too many in at all levels that scheme to increase their wealth and they don't necessarily ask permission of the Shinawatra clan first. The way some of the posters speak, one would have to assume that Thaksin is in control like some mafia don that controls every aspect of Thailand's business. That just isn't the case. No one will convince me that Yingluck is Thaksin's stand in for mafia boss and that she or her government is their to simply increase the her family's wealth. On the contrary, I would think that she would be most prudent in using corrupt practices in an effort to increase her or her family's wealth. Seems like many hate the family because of their wealth. While Thaksin surely violated the law with regard to taxes, money laundering, etc. why is everyone assuming Yingluck has done the same? Please rather than guilt by association, provide facts with regard to corrupt practices regarding wealth.

This must have been the funniest post i read in a while.

Taksin boasts his wealth has grown 450% (nobody has done something like that in this current economic climate) and it all happened when his sister was in charge here in Thailand. Now unless the guy is a genius and really lucky (and both are not true) its corruption money. But its good to see your wearing your red t shirt in your AV

[moe666]

This government is truly evil. THB 680,000,000,000 gone and still no money for the farmers. If Thaksin's clan would have stolen a little bit less, there would have been enough money for the poor farmers.

Shame on you Shin clan!!

Is there any proof that the Shinawatra Clan directly profited (increased their wealth) from this scheme? If so please provide some sources of information. These are just more claims, like many others, that the family is profiting from every outlandish scheme brought forth. I think the rice pledging scheme was a populist idea floated to help the PTP's political base. Sure it is probably rife with corruption but I don't think everything that goes wrong in Thailand in the way of corruption can be said to originate from or profit the Shinawatra family. I think there is just too much assumption that the Shinawatra clan is in complete control of everything that occurs in Thailand. I personally don't think this is the case. I think the bigger problem is that there are just too many in at all levels that scheme to increase their wealth and they don't necessarily ask permission of the Shinawatra clan first. The way some of the posters speak, one would have to assume that Thaksin is in control like some mafia don that controls every aspect of Thailand's business. That just isn't the case. No one will convince me that Yingluck is Thaksin's stand in for mafia boss and that she or her government is their to simply increase the her family's wealth. On the contrary, I would think that she would be most prudent in using corrupt practices in an effort to increase her or her family's wealth. Seems like many hate the family because of their wealth. While Thaksin surely violated the law with regard to taxes, money laundering, etc. why is everyone assuming Yingluck has done the same? Please rather than guilt by association, provide facts with regard to corrupt practices regarding wealth.

I guess you could say it is corrupt wwhen the government PTP=big T refuses to provide transparency of any and all rice transactions, how much bought, how much in storage and how much sold and at what cost. The PM is also in charge of a committee that deals with the rice scam and they decide how much will be paid out and how much they will buy. There is just too much secrecy around the whole program not to think it isn't corrupt and the major players in the government who are involved In the scam and benefiting from it.

Edited January 22, 2014 by moe666

[englishoak]

This government is truly evil. THB 680,000,000,000 gone and still no money for the farmers. If Thaksin's clan would have stolen a little bit less, there would have been enough money for the poor farmers.

Shame on you Shin clan!!

Is there any proof that the Shinawatra Clan directly profited (increased their wealth) from this scheme? If so please provide some sources of information. These are just more claims, like many others, that the family is profiting from every outlandish scheme brought forth. I think the rice pledging scheme was a populist idea floated to help the PTP's political base. Sure it is probably rife with corruption but I don't think everything that goes wrong in Thailand in the way of corruption can be said to originate from or profit the Shinawatra family. I think there is just too much assumption that the Shinawatra clan is in complete control of everything that occurs in Thailand. I personally don't think this is the case. I think the bigger problem is that there are just too many in at all levels that scheme to increase their wealth and they don't necessarily ask permission of the Shinawatra clan first. The way some of the posters speak, one would have to assume that Thaksin is in control like some mafia don that controls every aspect of Thailand's business. That just isn't the case. No one will convince me that Yingluck is Thaksin's stand in for mafia boss and that she or her government is their to simply increase the her family's wealth. On the contrary, I would think that she would be most prudent in using corrupt practices in an effort to increase her or her family's wealth. Seems like many hate the family because of their wealth. While Thaksin surely violated the law with regard to taxes, money laundering, etc. why is everyone assuming Yingluck has done the same? Please rather than guilt by association, provide facts with regard to corrupt practices regarding wealth.

This must have been the funniest post i read in a while.

Taksin boasts his wealth has grown 450% (nobody has done something like that in this current economic climate) and it all happened when his sister was in charge here in Thailand. Now unless the guy is a genius and really lucky (and both are not true) its corruption money. But its good to see your wearing your red t shirt in your AV

So you think that seeing as all stock markets have increased three fold and some more and its likely he has an army of investment professionals salivating over where he can get the best returns the main increase in wealth is down to transfers of huge sums of money out of Thailand ?

If nearly every rich mogul has tripled and more their wealth in the last 5 or 6 years in the markets you really think hes done it by stealing money from a country hes not been in for as many years when he has no need to ?

Okaayyy

Edited January 22, 2014 by englishoak

[moe666]

I have to wonder where all the red supports are who are very active on other threads but refuse to lend their support to poor old Yingluck when the rice scam is mentioned. This scam will bankrupt the country unless it is stopped.

[robblok]

This government is truly evil. THB 680,000,000,000 gone and still no money for the farmers. If Thaksin's clan would have stolen a little bit less, there would have been enough money for the poor farmers.

Shame on you Shin clan!!

Is there any proof that the Shinawatra Clan directly profited (increased their wealth) from this scheme? If so please provide some sources of information. These are just more claims, like many others, that the family is profiting from every outlandish scheme brought forth. I think the rice pledging scheme was a populist idea floated to help the PTP's political base. Sure it is probably rife with corruption but I don't think everything that goes wrong in Thailand in the way of corruption can be said to originate from or profit the Shinawatra family. I think there is just too much assumption that the Shinawatra clan is in complete control of everything that occurs in Thailand. I personally don't think this is the case. I think the bigger problem is that there are just too many in at all levels that scheme to increase their wealth and they don't necessarily ask permission of the Shinawatra clan first. The way some of the posters speak, one would have to assume that Thaksin is in control like some mafia don that controls every aspect of Thailand's business. That just isn't the case. No one will convince me that Yingluck is Thaksin's stand in for mafia boss and that she or her government is their to simply increase the her family's wealth. On the contrary, I would think that she would be most prudent in using corrupt practices in an effort to increase her or her family's wealth. Seems like many hate the family because of their wealth. While Thaksin surely violated the law with regard to taxes, money laundering, etc. why is everyone assuming Yingluck has done the same? Please rather than guilt by association, provide facts with regard to corrupt practices regarding wealth.

This must have been the funniest post i read in a while.

Taksin boasts his wealth has grown 450% (nobody has done something like that in this current economic climate) and it all happened when his sister was in charge here in Thailand. Now unless the guy is a genius and really lucky (and both are not true) its corruption money. But its good to see your wearing your red t shirt in your AV

So you think that seeing as all stock markets have increased three fold and some more and its likely he has an army of investment professionals salivating over where he can get the best returns the main increase in wealth is down to transfers of huge sums of money out of Thailand ?

If nearly every rich mogul has tripled and more their wealth in the last 5 or 6 years in the markets you really think hes done it by stealing money from a country hes not been in for as many years when he has no need to ?

Okaayyy

Could you show me what stock markets have increased 3 fold ? in time of 2 years ? And give me some examples of other rich moguls that have done the same in those 2 years. I mean if presented with enormous evidence many rich have done the same (forbes does not seem to agree as most have not made those kind of gains..) Ill take back my words.

[Thai at Heart]

Well now. Hold on a second. I would consider the allied intervention into Iraq disastrous.

I would consider famine in africa disastrous. I would consider a tsunami where thousands die as disastrous

Thailand and its people will survive the rice scandal, and thailand is in the process of learning a very valuable lesson. Thaksins aura is slipping because not even he can hold the market to ransom.

That said, I have no problem whatsoever with social development.

[american12bthai]

one tablet per child... is one of those schemes. how much was spent on NOTHING. As a developer. i dont get money till they get the product. similar to the drug dealers under thaksins foot. no money no drug, no money no honey. no money. .oh wait... one family seems to have the bulk of it.

[englishoak]

without making any real checks and just simply looking in Forbes Shinawatra disclosed to FORBES in October that Thai authorities had returned to him close to $1 billion of his $2.3 billion in frozen assets meaning his net wealth has gone from 600 m - 1.7b in 1 year

A few examples of other rich thais chalerm Fortune more than doubled in 1 year thanks to strong sales of energy from 250 - 500m but thats small potatoes

#1 Head of agribusiness Charoen Pokphand, Dhanin Chearavanont doubled in 2 years from 7b - 14b

#2 Chirathivat. near doubled in the last year from 6.9 - 12.3b

# 3 Sirivadhanabhakdi up from 6.2 11.7 b last year

And I didnt even look outside Thailand

Edited January 22, 2014 by englishoak

[tonneke breda]

This government is truly evil. THB 680,000,000,000 gone and still no money for the farmers. If Thaksin's clan would have stolen a little bit less, there would have been enough money for the poor farmers.

Shame on you Shin clan!!

Is there any proof that the Shinawatra Clan directly profited (increased their wealth) from this scheme? If so please provide some sources of information. These are just more claims, like many others, that the family is profiting from every outlandish scheme brought forth. I think the rice pledging scheme was a populist idea floated to help the PTP's political base. Sure it is probably rife with corruption but I don't think everything that goes wrong in Thailand in the way of corruption can be said to originate from or profit the Shinawatra family. I think there is just too much assumption that the Shinawatra clan is in complete control of everything that occurs in Thailand. I personally don't think this is the case. I think the bigger problem is that there are just too many in at all levels that scheme to increase their wealth and they don't necessarily ask permission of the Shinawatra clan first. The way some of the posters speak, one would have to assume that Thaksin is in control like some mafia don that controls every aspect of Thailand's business. That just isn't the case. No one will convince me that Yingluck is Thaksin's stand in for mafia boss and that she or her government is their to simply increase the her family's wealth. On the contrary, I would think that she would be most prudent in using corrupt practices in an effort to increase her or her family's wealth. Seems like many hate the family because of their wealth. While Thaksin surely violated the law with regard to taxes, money laundering, etc. why is everyone assuming Yingluck has done the same? Please rather than guilt by association, provide facts with regard to corrupt practices regarding wealth.

This must have been the funniest post i read in a while.

Taksin boasts his wealth has grown 450% (nobody has done something like that in this current economic climate) and it all happened when his sister was in charge here in Thailand. Now unless the guy is a genius and really lucky (and both are not true) its corruption money. But its good to see your wearing your red t shirt in your AV

So you think that seeing as all stock markets have increased three fold and some more and its likely he has an army of investment professionals salivating over where he can get the best returns the main increase in wealth is down to transfers of huge sums of money out of Thailand ?

If nearly every rich mogul has tripled and more their wealth in the last 5 or 6 years in the markets you really think hes done it by stealing money from a country hes not been in for as many years when he has no need to ?

Okaayyy

Englishhoax with most of his assets frozen and the lack of will by the Thai government to revoke his Thai passport, so he could have been extradited to Thailand, it looks like Yeah…….

[RubbaJohnny]

With coconuts removed does it make unsticky rice,or is it beyond joke?

[looping]

Let's wait and see if a Thai farmer scorned is as dangerous as a Thai woman scorned.

Maybe they will cut off the Thai government's proverbial penis.

[tingtongteesood]

without making any real checks and just simply looking in Forbes Shinawatra disclosed to FORBES in October that Thai authorities had returned to him close to $1 billion of his $2.3 billion in frozen assets meaning his net wealth has gone from 600 m - 1.7b in 1 year

A few examples of other rich thais chalerm Fortune more than doubled in 1 year thanks to strong sales of energy from 250 - 500m but thats small potatoes

#1 Head of agribusiness Charoen Pokphand, Dhanin Chearavanont doubled in 2 years from 7b - 14b

#2 Chirathivat. near doubled in the last year from 6.9 - 12.3b

# 3 Sirivadhanabhakdi up from 6.2 11.7 b last year

And I didnt even look outside Thailand

And why exactly would the government give his frozen assets back to him especially when he is a convicted fugitive on the run ? What this says to me is that his assets were frozen and through graft the Please Taksin cronies have returned that much of it to him by stealing from the country / tax payers money. Yet more crime to add to their very long list. DETRITUS !!