Thai politicians ignore future challenges
Policymakers are focused on short-term populist measures, but for Thailand's economic and social development to reach a higher level, genuine statesmanship is required.
This says Prasarn Trairatvorakul, governor of the Bank of Thailand in an exclusive interview with Bangkok Post.
Although Prasarn understands that politicians must keep their election promises, he denounces their short-sighted view. They also need to take long-term challenges into account. Prasarn lists five:
- Education is one of the main challenges for the country's future competitive position. 'But no one wants to tackle the problems, while the benefits will only be seen in 5 or 10 years.'
- The aging of the population will have a major impact on the economy. In 2017, the number of employees per retiree is 4 compared to 6 in 2007.
- The tax system needs to be reviewed. The existing income tax must be supplemented by a wealth tax.
- The existing subsidy program must be rationalised. For example, the rice mortgage system incurs high costs when the market price does not rise.
- More needs to be spent on research. As an example, Prasarn cites the South Korean giant Samsung, which spends 3 percent of its expenditure on research and development. As a result, Samsung's profit last year was as high as the profits of the entire Japanese sector that makes electrical appliances. In Thailand, only 0,2 percent of gross domestic product is spent on research.
Prasarn also believes that the impact of the recent increase in the minimum wage should be examined, particularly on small and medium-sized enterprises. He says Singapore had a similar policy decades ago that led to a recession. But Prasarn acknowledges that Thailand's income gap is partly a result of wages not keeping pace with price increases in recent years. "It is clear that the benefits of economic growth have gone to capital owners and not to labor."
www.dickvanderlugt.nl – Source: Bangkok Post
There are so many to add
1. Improving Water Management
2. Improving infrastructure and logistics.
3. Improving bureaucracy and border barriers
4. Tackling corruption and open procurement
This, of course, makes less sense in the short term.
First everything must be done to grant our great hero amnesty.
Apart from populist regurgitations, little constructive can be expected from this government.
I see the Thai long term bleakly, they are now freewheeling, and they are being overtaken left and right by more active ASEAN countries and neighbors.
We keep hoping
Caro
Yes agree, they hurt themselves unnecessarily with all their conflicts and waste of time.
I just saw Thaksin singing “Let It Bee” on TV… Ok, there is always “hope”.
If Prasarn throws the bat into the coop, it's a good sign. It's not the first. Governor of the Bank of Thailand has the guts to say so. Everyone in Thailand can read that and in the Bangkok post.
Also the highly educated students who
have great difficulty finding a job. Thailand is moving. No one (even with a lot of money) can stop that.
J. Jordan
That interview was in the Bangkok Post. So no Thai who reads that except for a few, but then again those are not the ones who should read it. Shame.
“Short-term” thinking is typical of politicians. Most people don't look beyond the next election. This has long been the case in the Netherlands. Indeed, it is a must for Thailand to think further. If not, countries such as Vietnam, Cambodia and later Myanmar will probably win in SE Asia.
The current puppet government is busy with the eventual return of Mr T.
And that's really all she does.
Barring the heaving and vomiting of populism.
What hunger for power can't do.
Looking back
Moderator: Marcus if you want to write an article you have to send it to the editors. A comment is not suitable for that.