PM launches 'people's state' policy !!

Prime Minister Prayut Chan-o-cha says his "Pracha Rat"
 strategy will strengthen the grassroots and empower
communities - but denies it is populism.
(Post Today photo)

Prime Minister Prayut Chan-o-cha has unveiled a new strategy

 to build "a people's state" to bring together the state,

 the people and businesses for the long-term sustainable

 development of the country.

The prime minister said the Pracha Rat (people's state)

 strategy aims to strengthen the country's economy at the

grassroots level and empower local communities and local

 enterprises.

 

The strategy is in line with the government's recently-

approved 136-billion-baht stimulus package to boost

 the economy.

 

 The government has also introduced a second stimulus

measure to help small and medium-sized enterprises (SMEs)

 gain access to loans. The measure includes 100 billion baht

 in soft loans, a 100-billion-baht credit guarantee to encourage

banks to lend to SMEs, a 10% tax rate for two years,

 a five-year corporate income tax exemption for SME

 start-ups and 6 billion in venture capital to be contributed

 by state-backed banks.

 

 Gen Prayut insisted the people's state is different from

 political populism which seeks to give away money to win

the support of voters. The premier was presiding over the

opening of a forum entitled "Uniting the state and the

people for the grassroots economy" at Impact Arena,

 Muang Thong Thani on Sunday.

 

 The Pracha Rat model means the people, the government

 and businesses must work closely together to pursue

 sustainable development and help farmers, workers and

communities secure  their livelihoods.

Under the model, the relationship between the people,

 the state, and businesses should be "horizontal", which

means they should be equal, and support and encourage

 each other to achieve their aims.

 

 "We make a pact together to solve problems and fix

past mistakes.

 

 This is not populism. It is cooperation between the

 government and the people," he said. "If we give away

 money all the time, the problem is we will have to

continue to give more and more and this will become

a debt of gratitude. But this government does not want you

 to owe us a debt of gratitude.

 

 Thailand is a people's state and and populism has no place here."

The government will act as a facilitator to clear the way for

 the private sector and the people to work together, the prime

minister said.

 

 The government will promote marketing  for farm produce

 with plans to open central markets in the provinces so

farmers can be in direct contact with consumers and traders,

he said.

 

Vichai Assarasakorn, vice-chairman of the Thai Chamber of

Commerce, said the 136-billion-baht stimulus package,

particularly lending through the village funds, will help boost

 the economies of local communities, with about 200-300

 billion baht expected to be generated.

 

The Thai Chamber of Commerce will also propose the

 government sets up provincial economic teams to ensure

the stimulus measures are followed through, Mr Vichai said.

 

However, Surapong Tovichakchaikul, who sits on Pheu Thai

 Party's economic team, said the Pracha Rat policy has been

 lifted from old populist programmes.

 

 "It's alright if the people benefit from them," Mr Surapong said.


Mr Surapong also defended populist programmes initiated by

 the previous Pheu Thai-led government, saying several of

 them have been widely praised such as the 30-baht universal

healthcare programme.

The Pracha Rat model has three measures to help Thai

small- and medium-sized enterprises, farmers and

low-income earners.

 

 For the first measure, the state-owned Bank for Agriculture

 and Agricultural Cooperatives (BAAC) and the Government

Savings Bank (GSB) will be the lenders of a seven-year term

 loan to 59,000 Village Funds at 1 million baht each.

 They will offer interest-free loans for the first two years,

with the government subsidising the interest to the tune

of 2.2 billion baht.

 Low-income earners in rural areas are prohibited from

borrowing from the nearly 60 billion baht in funds to

repay debts.

 

The second measure involves the Interior Ministry acting as

the core agency responsible for allocating the 36.275 billion

 baht available from the reserve budget in the 2015 and 2016

 fiscal years to 7,255 tambons.

Each tambon will receive 5 million baht to implement any

 project related to building or repairs in the area, and

development projects in line with the sufficiency economy.

Projects must be completed in three months.

 

The third measure will call for state agencies and state-owned

 enterprises to accelerate budget disbursement for small projects

 worth less than one million baht nationwide.

 

News,Politics, 21 September 2015.

 

The Pracha Rat model has three measures to help Thai

 small- and medium-sized enterprises, farmers and

low-income earners.

 

In conclude,the three measures are :

 

1 A seven-year term loan to 59,000 Village Funds at 1 million

 baht each.

 

2.The for allocating of  36.275 billion baht to 7,255 tambons.

 

3.The state agencies and state-owned enterprises will accelerate

 

 budget disbursement for small projects worth less than one
 

million baht nationwide.

 

These three measures will be the source of fund for all roots

and every parties to have more money for investment in their

projects and their enterprises which I think can stimulate

the economic and GDP of the country.

 

Sincerely Yours.