A policy recommendation for the new cabinet… For Thailand’s next step forward

As you read this article you will notice that Thailand is now in the hands of its new cabinet, led by Prime Minister Abhisit Vejjajeva. While a variety of different attitudes to this new cabinet will inevitably lead the Thai people in their reaction to the new lineup, certain inescapable and important tasks now press on cabinet agenda and to these crucial tasks, attention must be given. Policies are to be formulated for each ministry and old problems remain to be solved. Thailand must even be protected from an inflowing barrage of problems; not only economic in nature – though this will very soon be a back-breaking burden for the government, but a plethora of other chronic problems also queue for the attention of Thailand’s new cabinet, whether the serious issues of crime, poor-quality education, or environmental degradation, to name a few.

Asian Financial Cooperation and the Hamburger Crisis

The recent global financial surge has been “upside down.” In financial markets, the rich generally accumulate assets and act as creditors lending to those who are poorer. Ironically, Asian creditors have supported major Western countries, particularly USA, although the average per capita GDP of Asia is far less that of the West. But USA has vast current account deficit, and Asia has enormous current account surplus, with this international trade imbalance leading naturally to US Dollar depreciation and Asian currency appreciation.

Asian Financial Cooperation and the Hamburger Crisis

The recent global financial surge has been “upside down.” In financial markets, the rich generally accumulate assets and act as creditors lending to those who are poorer. Ironically, Asian creditors have supported major Western countries, particularly USA, although the average per capita GDP of Asia is far less that of the West. But USA has vast current account deficit, and Asia has enormous current account surplus, with this international trade imbalance leading naturally to US Dollar depreciation and Asian currency appreciation.

The Hamburger Crisis and Asian Financial Cooperation

Two words best fit our global financial surge of recent times: “upside down.” In financial markets, the rich generally accumulate assets, and therefore play a role as creditors lending their financial resources to those who are poorer. Ironically, Asian, especially East Asian, countries have been the creditors of major Western countries, especially the USA, although the average per capita GDP of Asian countries is far less that of the Western hemisphere countries.

The Hamburger Crisis and Asian Financial Cooperation

Two words best fit our global financial surge of recent times: “upside down.” In financial markets, the rich generally accumulate assets, and therefore play a role as creditors lending their financial resources to those who are poorer. Ironically, Asian, especially East Asian, countries have been the creditors of major Western countries, especially the USA, although the average per capita GDP of Asian countries is far less that of the Western hemisphere countries.

Economic Decoupling (2): Statistics

Last time, I mentioned Economic Decoupling, which suggests that Thailand’s economic growth does not necessarily depend on the US economy. In this article I will point to some statistics that corroborate this theory.

Economic Decoupling (1): Concept

From the Subprime crisis to Lehman’s bankruptcy, economic instability has triggered apprehension as to its possible effect on Thailand’s economy.

How should the Thai government respond to the US economic crisis?

Amidst economic risk, the Thai government has proposed several ways to cope with the forthcoming crisis, including policy interest rate cuts, Baht devaluation, megaproject stimulation, finding new export markets, and extending the full deposit protection period from one year to three years. In this article, I will present my perspective on these issues.

How should the Thai government respond to the US economic crisis?

Amidst economic risk, the Thai government has proposed several ways to cope with the forthcoming crisis, including policy interest rate cuts, Baht devaluation, megaproject stimulation, finding new export markets, and extending the full deposit protection period from one year to three years. In this article, I will present my perspective on these issues.

Why is Bangkok unlivable?

Recently I purchased a survey report from Mercer, a most prestigious quality-of-life research institution, and discovered some intriguing facts about Bangkok’s livability.

Thailand’s Political Stalemate: No End in Sight?

Thailand’s political conflicts recommenced on May 26th, 2008, with PAD’s opposition to the Constitutional amendments of PPP, and then with governmental administration issues of concern to the nation; notably an agreement with Cambodia over Preah Vihear temple, government officials shuffled for political benefit, and the construction of new parliament buildings with the inconsiderate eviction of students and local residents. These events led to the expulsion of Samak’s government through the seizure of Government House on August 26th, 2008, which prevented the daily work of government. In addition, strikes took place at airports, railway stations, and at Klong Toey port, affecting normal conditions for Thai society and the economy.

Deposit Protection Agencies: What Will Their Impact Be?

The Deposit Protection Agency Act, 2008, went into effect on the 11th of August 2008. Sound in principle, it requires depositors to know the true risk of a deposit, and helps to reduce depositors’ fear where financial institutions have problems or the government is burdened to support financial institutions, identifying specific amounts of money to be paid back to depositors. Nevertheless, it may also bring change and impact in both positive and negative ways.

The impact of Deposit Protection Agencies

The Deposit Protection Agency Act, 2008, will go into effect on the 11th of August 2008. Under this Act, bank deposits will be fully guaranteed during the first year of the Deposit Protection Agency having been established, but the guaranteed amount of deposit will be deducted every year from the fifth year onward; with the guarantee only for deposits of up to one million baht per person per agency (August 11, 2012).

Is the NGV Bus Project a Form of Exploitation?

The purpose of the NGV bus rental project of the Bangkok Mass Transit Authority (BMTA) is to reduce the operational losses of the BMTA, which have presently accumulated to more than 70 billion baht in total. The Minister of Transport also claims that steeply increasing diesel fuel prices will aggravate BMTA’s losses, to the tune of 140 billion baht in the next ten years. However, according to the Minister, replacing diesel buses with NGV buses will lower costs, and reduce accumulated losses for BMTA by 50 percent in the next ten years.

Bangkok: A Doughnut City

From his new home on Srinakarin Road bought five years ago, Somsak must drive his daughter to university in Samyan on a daily basis. He then continues to drive to his office on Soi Asoke. The oil price rise made it difficult for him to decide to sell his childhood home. He sometimes grieves that over the previous decade Bangkok has not had the same feel about it that it once had in the past.

It’s Thai’s time for logistics system development

Logistics is defined according to the Council of Logistics Management as "a process involved with planning, operating, and controlling an organization, included the management of information and related money transactions in order to have them moved, gathered, collected, and distributed as products, raw materials, parts, and services having the purpose to gain most efficiency and effectiveness using customer satisfaction as the main focus."

Don't "sell the family rice paddy," try contract farming

Thai people are strongly patriotic. Thus, selling the family rice paddy to foreigners is almost unthinkable and would inevitably trigger much social controversy. Former Prime Minister Thaksin’s rumoured invitation to Middle Eastern leaders to view Thailand’s rice industry therefore became the talk of the town, spawning bitter newspaper protests of national betrayal.

Contract farming rather than “selling the family rice paddy”

It is no exaggeration to say that the Thai people are a patriotic race. Thus, the thought of selling the family rice paddy to foreigners is an almost unthinkable notion, even though this is a neutral economic transaction. Inevitably such deals trigger much social controversy and high emotions.

Residential areas … A big-city problem

Shelter is one of the four basic requirements for living, an important necessity especially in a big city such as Bangkok. Having a secure place to live ensures human life security. It would be very difficult if we had to live with the uncertainty of different accommodation arrangements day by day.

Bangkok, a World Heritage City

According to Thailand’s Minister of Tourism and Sport, his proposal to develop old cities to be World Heritage sites is good policy. To me, it is also a very interesting idea. Currently, only five places in Thailand are registered as World Heritage Sites by the United Nations Educational Scientific and Cultural Organization, (UNESCO). This is far fewer in number than the many architectural, cultural, and national resource sites found altogether in Thailand.

Legalizing abortion: A pyrrhic victory

No one, except perhaps some criminals, is fond of crimes. Thus, we create many mechanisms to solve them. Steven Levitt, a famous neo-classical economist, has postulated that the crime rate can be lowered by legalizing abortion because legalization would enable women who fear their children will not have a good life to abort their foetuses. Levitt attributes a decrease in teen delinquency (illegal abortions by pregnant teens) in the 1990s to the fact that abortion rates increased in the 70s.

The rise in rice price: who is gaining this benefit?

Now at this time we find most food and product prices to be on the rise, including rice prices, which are usually low in the market. Though the rice price rise can be viewed as a benefit contribution to farmers, we are arguing if this is real.

Policy coordination to attack the inflation problem

Due to present sky-high oil prices, all countries are in double jeopardy; not only do they face slowing economic growth, but there will also be a significant increase in their consumer price index, the so-called inflation.

Is it Time to Invest in Environmental Mega-Projects?

Right now, tourists can see changes all over the city of Beijing. Previously plagued with environmental pollution problems, Beijing has taken on a new look with improved atmospheric freshness. Today, in preparation for the upcoming 2008 Olympic Games, China’s government aims for an all-out impression on the world by dealing with environmental problems that have been ignored for many years. One sad realization is, however, that if not for China hosting the 2008 Olympics, this environmental management would not be happening.

Is it Time to Invest in Environmental Mega-Projects?

Right now, tourists can see changes all over the city of Beijing. Previously plagued with environmental pollution problems, Beijing has taken on a new look with improved atmospheric freshness. Today, in preparation for the upcoming 2008 Olympic Games, China’s government aims for an all-out impression on the world by dealing with environmental problems that have been ignored for many years. One sad realization is, however, that if not for China hosting the 2008 Olympics, this environmental management would not be happening.

Economic stimulus package : Tax cuts, populism ,or Negative Tax?

There is one political truth that a government may have many macroeconomic goals to monitor, yet will still wish as rapid economic growth to take place as possible.

Public TV in Thailand

The rising popularity of the Thai Public Broadcasting Service (TPBS) opens our eyes to new possibilities for television broadcasting in Thailand. This station was established so all groups of people can participate.

Will the Subprime Crisis affect Thai economic stability?

Although the subprime problem emerged over a year ago, it has not affected Thailand that much. However, many worry that in 2008 the Thai economy will face “double trouble” or the real fallout from this worldwide crisis. In the condition that Thai economy has not recoverd yet, this problem will be a difficult task that the new government’s economic team has to solve it.

The Economic Policies of Visionary Leaders

Our economy is relatively small in global terms. Yet, globalisation compels us to carefully manage our participation in the fluctuating worldwide economy. The process of navigating the policies of trade-partner countries can be especially tricky.

The Economic Policies of Visionary Leaders

Our economy is relatively small in global terms. Yet, globalisation compels us to carefully manage our participation in the fluctuating worldwide economy. The process of navigating the policies of trade-partner countries can be especially tricky.

How will Vietnam’s growth affect our economy?

Although Thailand’s annual economic growth rate in the past has been higher than 8 percent until more modest growth over the past few years, we must keep an eye on Vietnam, which has achieved some of the most rapid economic growth among Thailand’s neighbors.

The Economic Policies of Political Parties Reflect the Vision of Political Leaders

Thailand is a small country in terms of the world economy, though globalisation compels Thailand to become aware of its need to participate in worldwide systems. Thailand’s economy makes this essential considering the fluctuation and impact of evolving economic situations, as well as the policies of trade-partner countries that must be faced.