Populist policies is a strategies of political party who
want
to win the election.Over decade that it has been used
and
Thai people admire it although it is good in the short
run
but can ruin the economic in the long run.
At the beginning the populist policies try to solve
basic
welfare of the citizens,such as 30 health care scheme,
free education and loan to the commutinity at the
grassroots society.Later
it change into “promise to give”
in order to win election which many policies use by the
Yingluk government such as tax-exempt for the first car,
moratorium loan for farmers,free tablet,tax-exempt for
diesel and rice pledging scheme.
The rice pledging scheme has huge loss from corruptions
and debts carry forward to the next generation for about
30 years,
while tax-exempt for diesel use more than 100 billion
baht too.
Populist policies cause more expenditure to the government
and
also the opportunity loss from other projects.There will
be no
sufficient budget to do important projects for the long
run.
In the Prayuth government there are also use populist polities
but they are not obviously,such as subsidiary to rice
scheme
and moratorium loan for farmers.
Meanwhile in business sector,the populist policy are not
ambiguously such as decreasing corporate tax to 20 per cent
by the Yingluk government and still the same in this
government.
According to the fact that economic and political
stability depend on
each other so the government try to promote economic too.
At the last meeting the government promised that they
will
consider the suggestion of business sector to promote
economic although they do not specification the
alternatives.
The request from the business sectors are :
1.Devalue the baht currency.
2.Subsidize the financial need.
3.Subsidized the tax measures need.
Every alternative exercise will have an effect on other
alternatives so the decision must make carefully.
-Devalue if baht currency can promote export good but
it is also increasing the cost of import which leading
to
the high cost of goods sold.
-Subsidize the financial need will lead to unstability
of financial
policy of the government because transfer of internal
and external
money depend on the market condition which can not
precisely
estimated.
-In subsidize the tax measures need,I think the 20 per
cent
Corporate tax is very low and should not decrease more.
If we want stimulate economic to open the the boundary
of tax,
to promote import and export are the alternatives.
To promote investment promotion by BOI,in industries
that have
value added to the economic and society is need.
Although populist policies in business sectors do not
use a lot
of money as in public populist but if it do not plan
carefully,
the will siginicant impact because business sectors have
more
opportunity than the individual people right now in the society.
If we put more help into them it will create unbalance
opportunity and the rich will get more rich but the poor
will even more poor.In that situation social division
will
be more difficult to solve.
I think helping business sectors is need to make more
growth
to the economic but the policies must use precisely,
clearly
and carefully to aim that business can growth by their
strength
rather than by the support of the government.
For public populist policies ,I think it is need too,but the scope,
the alternatives and the budget must be operate and
control
stickly to least corruption and make the benefit go
directly
to the citizens.
Hope for economic and social stability in Thailand.
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