Chuan caught between a rock and a hard place
Perhaps out of respect for the poor, Prime Minister Chuan Leekpai
deliberately avoided mention of Thailand's strategy for the "new
economy" in his address to the Foreign Chambers of Commerce and Business
Associations in Thailand on Wednesday.
He emphasised the need for Thailand to build up its competitiveness if it
wants to lay down the foundations for future prosperity.
But in doing so, he could not afford to give the impression that the
government would be promoting the establishment of a two-tiered economy. One is
represented by the more modern and technologically-advanced manufacturing
sector, and the other by the agricultural sector that employs more than half of
the Thai people and uses primarily basic farming techniques with lower
productivity.
This is a dilemma that Chuan and other Thai leaders have to deal with. For
balancing the interest between rural folk, most of whom are still struggling
with their daily life, and town folk is a politically noble task. The past
decades of economic development have failed to bring the majority of Thais a
higher living standard and better education and health care. Without social and
economic equity, it will be impossible for democracy to flourish.
"We have therefore attached priority to the restructuring of our
agricultural sector - this, to complement efforts already underway to
restructure 13 of our key manufacturing industries," Chuan told the
gathering of top-notch business leaders.
Ideologically, he made it clear Thailand would not make a policy U-turn from
free market principles, which should also provide adequate consumer protection
and prevent business or economic monopolies. These principles have been laid
down more conspicuously since the Anand government.
Yet the new millennium also signals the move into top gear of the age of
globalisation and the IT revolution, which are fast changing the face of this
planet. Unfortunately, these forces come at a time when Thailand - its
industrial and manufacturing sector in particular -- is still suffering from the
economic crisis. Thailand is ranked 33rd among 47 countries in terms of
competitiveness in a survey by the Swiss-based International Institute for
Management Development.
So another equally difficult policy challenge for Chuan is to bring Thailand
on board the globalisation trend. To do so, his government has committed itself
to financial, legal and other structural reforms to rectify the flawed practices
and structures of the past. This important task has won Chuan very few friends,
creating instead a host of enemies. Chuan and his fellow Democrats are facing
the growing prospect of a hostile electorate. The financial and business
establishment also hates the Chuan government, for the reform measures have
taken their toll on their vested interests.
Ironically, long-term foreign investors appreciate the reform efforts that
the Chuan government has been doing for Thailand, which are good for business
and the economy and will strengthen the foundation for long-term growth and
stability. But a big thumbs-up from the foreign investors is the last thing
Chuan would want. With nationalism popping up from time to time, Chuan and his
finance man, Tarrin Nimmanahaeminda, have been viewed as politicians who favour
foreigners at the expense of Thais.
Certainly, ordinary Thais, who have been hit hard by the crisis, don't
appreciate the legal and regulatory framework that will change Thailand for the
better five or 10 years from now. In the past, they were condemned to live in
poverty anyway. What they are more concerned with is their pay cheques, which
are meagre these days. They are not happy. They want to vote the Democrats out
next time.
But if Thais in general ask whether they will have more basic rights,
political freedom, better choices of work, better education and health care and
a stronger economic and legal system with good governance five years from now,
the answer is certainly a big yes. But nobody wants to wait for another five
years for the answer. This is what politics is all about.
BY Thanong Khanthong
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