Thailand's post-coup leaders have sent mixed signals on economic policy by both embracing and rejecting deposed prime minister Thaksin Shinawatra's drive for robust growth and globalization.
General Surayud Chulanont, who was sworn in as the new prime minister following a bloodless coup on Sept. 19, started his term by say-ing he would focus on people's hap-piness more than growth in GDP.
Thailand would opt for the "self-sufficiency" economic model advocated by the revered king, he said, which stresses moderation and stands in sharp contrast to the gung-ho capitalist "Thaksinomics" of the former CEO-prime minister.
The happiness comment was welcomed by three quarters of people in Bangkok, according one survey. But abroad it raised fears that Thailand, after decades of export-led growth, may be turning its back on the global economy.
Bank of Thailand Governor Pri-diyathorn Devakula, the chief economic adviser to the new military rulers, has sought to reassure foreign trade partners and investors about the junta's approach.
He said the royally inspired model aimed at sustainable growth, based on domestic savings, to shield the economy from the hot money inflows that led up to Thailand's 1997 economic meltdown and the Asian financial crisis.
The Thai economy should not expand beyond its own resources and savings, and growth should "not affect the environmental balance and the quality of people's lives," said Pridiyathorn, according to the state-run Thai News Agency.
But Pridiyathron, who is set to become deputy prime minister or finance minister, also said the post-coup government would stick with many of Thaksin's economic policies.
He said this would include three Bangkok railway projects worth US$3.8 billion that are to be financed by foreign investors.
Thailand's revered King Bhumibol Adulyadej famously advocated the self-sufficiency philosophy after the 1997 crisis, telling his subjects to be frugal rather than materialistic, in line with Buddhist concepts.
"It is not important to be an economic tiger," the king said at the time. "What matters is that we have enough to eat and to live ... It helps us to stand on our own and produce enough for our consumption."
Bhumibol, 78, advocated Thailand scale back its reliance on exports and emphasize a system where local production makes up one quarter of the economy.
By contrast, Thaksin sought to turn Thailand into an economic tiger, promoted free-spending stimulus policies and oversaw a shift to sharply higher consumer spending and debt.
During Thaksin's time in office, GDP grew 45 percent to 7.1 trillion baht (US$188 billion) at the end of last year from 4.9 trillion baht in 2001. Exports now account for 60 percent of GDP.
Thailand's economy is now expected to grow at around 4.0 percent this year, down from an earlier estimate of 5.0 percent, due to the months-long political crisis.
TYPHOON: The storm’s path indicates a high possibility of Krathon making landfall in Pingtung County, depending on when the storm turns north, the CWA said Typhoon Krathon is strengthening and is more likely to make landfall in Taiwan, the Central Weather Administration (CWA) said in a forecast released yesterday afternoon. As of 2pm yesterday, the CWA’s updated sea warning for Krathon showed that the storm was about 430km southeast of Oluanpi (鵝鑾鼻), Taiwan’s southernmost point. It was moving in west-northwest at 9kph, with maximum sustained winds of 119kph and gusts of up to 155kph, CWA data showed. Krathon is expected to move further west before turning north tomorrow, CWA forecaster Wu Wan-hua (伍婉華) said. The CWA’s latest forecast and other countries’ projections of the storm’s path indicate a higher
SLOW-MOVING STORM: The typhoon has started moving north, but at a very slow pace, adding uncertainty to the extent of its impact on the nation Work and classes have been canceled across the nation today because of Typhoon Krathon, with residents in the south advised to brace for winds that could reach force 17 on the Beaufort scale as the Central Weather Administration (CWA) forecast that the storm would make landfall there. Force 17 wind with speeds of 56.1 to 61.2 meters per second, the highest number on the Beaufort scale, rarely occur and could cause serious damage. Krathon could be the second typhoon to land in southwestern Taiwan, following typhoon Elsie in 1996, CWA records showed. As of 8pm yesterday, the typhoon’s center was 180km
TYPHOON DAY: Taitung, Pingtung, Tainan, Chiayi, Hualien and Kaohsiung canceled work and classes today. The storm is to start moving north this afternoon The outer rim of Typhoon Krathon made landfall in Taitung County and the Hengchun Peninsula (恆春半島) at about noon yesterday, the Central Weather Administration (CWA) said, adding that the eye of the storm was expected to hit land tomorrow. The CWA at 2:30pm yesterday issued a land alert for Krathon after issuing a sea alert on Sunday. It also expanded the scope of the sea alert to include waters north of Taiwan Strait, in addition to its south, from the Bashi Channel to the Pratas Islands (Dongsha Islands, 東沙群島). As of 6pm yesterday, the typhoon’s center was 160km south of
STILL DANGEROUS: The typhoon was expected to weaken, but it would still maintain its structure, with high winds and heavy rain, the weather agency said One person had died amid heavy winds and rain brought by Typhoon Krathon, while 70 were injured and two people were unaccounted for, the Central Emergency Operation Center said yesterday, while work and classes have been canceled nationwide today for the second day. The Hualien County Fire Department said that a man in his 70s had fallen to his death at about 11am on Tuesday while trimming a tree at his home in Shoufeng Township (壽豐). Meanwhile, the Yunlin County Fire Department received a report of a person falling into the sea at about 1pm on Tuesday, but had to suspend search-and-rescue
RSS