Thai talk: Reform agenda: Separate politics from state enterprises

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THAI TALK
Reform agenda: Separate politics from state enterprises
Suthichai Yoon
The Nation

BANGKOK: -- We have yet to hear from the "superboard" what measures will be taken to overhaul the country's state enterprises. But if the State Enterprise Policy Commission, as the board is officially known, fails to "depoliticise" all the government agencies vital to national development, the mission will be a non-starter.

One member has made it clear that the board is no "Superman". Nor is it such a powerful group of people that its members are "untouchable". In fact "super" here stands for "supervisory", which suggests that its main duty is to lay the foundation for a long-term solution for the trouble-plagued state enterprises.

State enterprises are supposed to belong to the public. They are there to serve public interests. But politicians have all along considered the 56 state enterprises their personal property to be used in their own interest. Corruption has been so deep-rooted in these enterprises that nothing short of a major shake-up will begin to offer any hope of a lasting solution.

Any effective overhaul will have to begin with a change of "mindsets" - both in politicians and in taxpayers. That means a "reset" of general thinking about whom the state agencies serve. Political parties have used them as their own empires for so long that most people on the street have come to accept politicians stuffing the boards of these agencies with their own people, regardless of their lack of relevant experience or qualifications. Accountability and transparency have been abandoned in favour of nepotism and opaque management.

Another major drawback in the system has been the lack of proper supervisory power. In other words, most state agencies have operated without professional, independent supervision and audits. Or if there was any supervisory mechanism, it was inevitably swayed by undue political influence, rendering it almost impossible for professionals to effectively contribute to the success of these state bodies, some of which have claimed to be "too big to fail" while in fact their rationale for existence has long been made irrelevant.

Officially, all state enterprises come under the supervision of the Office of the State Enterprise Supervision Committee which, in turn, comes under the Finance Ministry. "Policies" are usually handed down by the finance minister, whose allegiance lies with his or her party rather than the general public.

In order for real change to take place, the supervisory board will have to be revamped - with the ultimate goal of eradicating politics from the operation of state enterprises. To achieve that goal, comprehensive amendments to existing rules and regulations will have to be effected. Under normal circumstances, though, such changes can't happen since any legislative revisions have to be approved by politicians in Parliament.

At the same time, the reason for the existence of each state enterprise will have to be clearly articulated and put in writing. A new review of the original objectives for setting up the agency will have to be conducted so that a proper Key Performance Index (KPI) can be laid down to constantly measure whether it has met its goal - and if not, what action should be taken to ensure its relevance.

The 56 state enterprises have a combined annual budget of Bt4.6 trillion which, along with their yearly investment budget of no less than Bt500 billion, in effect doubles that of the national coffers. But the two main flaws remain inefficiency and control loopholes.

With the national drive for reform in all fields, the transformation of state enterprises must receive top priority if the overall effort to pull the country out of its deep-rooted abyss is to offer any real chance of success.

Source: http://www.nationmultimedia.com/opinion/Reform-agenda-Separate-politics-from-state-enterpr-30246090.html


-- The Nation 2014-10-23

[rickirs]

Want to separate politics from the state enterprises? How about eliminating politics from state enterprises completely. Sell off the 56 state enterprises to private investors in IPO's for at least a 10 times gross revenue multiplier, reinvest the Bt.46 trillion on the nation’s infrastructure, education, and capital for small business enterprises.