Handouts are not an investment in our future
The Nation March 3, 2011 12:00 am
Populist policies are designed to win votes and nothing else. There is no plan for the country beyond the election
As of press time, it is uncertain if the US federal government will be forced into a shutdown, in the same way it experienced in 1995, because of the budget crisis.The budget battle has often become a serious political issue during times of economic difficulty. During fat years, all governments have the luxury of spending to appease voters. But the ongoing economic downturn has brought about a reality check as governments around the world are forced to execute budget cuts.The US public is naturally not keen to see its benefits diminishing. Proposed cuts can bring people out onto the streets, as witnessed in the recent standoff in Wisconsin. And now the labour battles are spreading nationwide because American workers do not want to see cuts to pay or benefits, or a weakening of their collective right to bargain.The possible showdown in the US should serve as a lesson for Thailand, especially as the Thai government has justified an increase in spending to support its populist policies by claiming that we are enjoying a buoyant economy. In short, the government is trying to ensure that it will have enough money to finance a series of welfare programmes, to which it's committed, to continue for several years to come.But even the best economists in the world cannot predict economic fortunes. American economists are still perplexed at how this severe situation has come about in their nation. The US fiscal stance has changed from surplus to massive deficit in less than 10 years.The Thai government, meanwhile, has pushed its luck on external factors. The Thai economy has enjoyed steady growth over the past few years largely because of the booming export sector. This is in part thanks to the rise of demand in China and other countries in Asia. But there is a big question over whether the wealth generated has been fairly spread. Many observers agree that this is not the case; that the prosperity has been concentrated among a small group of people with greater opportunities. The "coloured" political movements have risen on the back of increasing public discontent. Demonstrations are seen by the public as channels to vent anger over the disparities in income distribution and business opportunity. This is not a promising sign either.The Abhisit government, however, has responded by injecting more money into programmes to appease Thai voters, even though many of these programmes are unnecessary and clearly designed for short-term political benefit. Some of these schemes are a waste of taxpayers' money - such as fuel subsidies and cash handouts. This money is not being spent to boost our economic strength or competitiveness, but for a one-off political purpose: for the government to be able to win the next election. Even worse, the government has borrowed the money, increasing the public debt for future generations in order to satisfy the appetite of this generation. The fuel subsidy is a case in point. We should be learning to maximise the efficiency of energy consumption instead of leaving the burden of an Oil Fund that runs in the red.As the debate in the US has shown, the amount of money available for the government to spend is not the real issue. The more serious question to address is whether the money is being spent wisely or stupidly. The question is whether the money is being spent to realise a future vision for the country.The government must abide by proper guidelines and principles in its spending. The definition of the role of government is that should exist to enhance the strength of civil society and the private sector, not to increase the latter's dependency on the government. The ongoing protests in this country, and the government's interventions in the economy, have shown that the public has - due to populist saturation - come to perceive the government as simply a provider. Every single baht should be spent in a calculated manner, under proper principles. The evaluative assumption must be that it will contribute to a national "master plan". If the government wants to enhance the capacity of future generations, the question now is whether money is being effectively invested for this purpose. Unfortunately, it seems at the moment that money is being thrown around meaninglessly. So don't be surprised if Thailand sees a budget showdown in the near future.
เอกสารประกอบคำบรรยายจะไม่ลงทุนในอนาคตของเราประเทศ 3 มีนาคม 2011 12:00 am นโยบายประชานิยมออกแบบมาเพื่อชนะโหวดและอะไร มีการวางแผนที่ประเทศนอกเหนือจากการเลือกตั้งAs of press time, it is uncertain if the US federal government will be forced into a shutdown, in the same way it experienced in 1995, because of the budget crisis.The budget battle has often become a serious political issue during times of economic difficulty. During fat years, all governments have the luxury of spending to appease voters. But the ongoing economic downturn has brought about a reality check as governments around the world are forced to execute budget cuts.The US public is naturally not keen to see its benefits diminishing. Proposed cuts can bring people out onto the streets, as witnessed in the recent standoff in Wisconsin. And now the labour battles are spreading nationwide because American workers do not want to see cuts to pay or benefits, or a weakening of their collective right to bargain.The possible showdown in the US should serve as a lesson for Thailand, especially as the Thai government has justified an increase in spending to support its populist policies by claiming that we are enjoying a buoyant economy. In short, the government is trying to ensure that it will have enough money to finance a series of welfare programmes, to which it's committed, to continue for several years to come.But even the best economists in the world cannot predict economic fortunes. American economists are still perplexed at how this severe situation has come about in their nation. The US fiscal stance has changed from surplus to massive deficit in less than 10 years.The Thai government, meanwhile, has pushed its luck on external factors. The Thai economy has enjoyed steady growth over the past few years largely because of the booming export sector. This is in part thanks to the rise of demand in China and other countries in Asia. But there is a big question over whether the wealth generated has been fairly spread. Many observers agree that this is not the case; that the prosperity has been concentrated among a small group of people with greater opportunities. The "coloured" political movements have risen on the back of increasing public discontent. Demonstrations are seen by the public as channels to vent anger over the disparities in income distribution and business opportunity. This is not a promising sign either.The Abhisit government, however, has responded by injecting more money into programmes to appease Thai voters, even though many of these programmes are unnecessary and clearly designed for short-term political benefit. Some of these schemes are a waste of taxpayers' money - such as fuel subsidies and cash handouts. This money is not being spent to boost our economic strength or competitiveness, but for a one-off political purpose: for the government to be able to win the next election. Even worse, the government has borrowed the money, increasing the public debt for future generations in order to satisfy the appetite of this generation. The fuel subsidy is a case in point. We should be learning to maximise the efficiency of energy consumption instead of leaving the burden of an Oil Fund that runs in the red.As the debate in the US has shown, the amount of money available for the government to spend is not the real issue. The more serious question to address is whether the money is being spent wisely or stupidly. The question is whether the money is being spent to realise a future vision for the country.The government must abide by proper guidelines and principles in its spending. The definition of the role of government is that should exist to enhance the strength of civil society and the private sector, not to increase the latter's dependency on the government. The ongoing protests in this country, and the government's interventions in the economy, have shown that the public has - due to populist saturation - come to perceive the government as simply a provider. Every single baht should be spent in a calculated manner, under proper principles. The evaluative assumption must be that it will contribute to a national "master plan". If the government wants to enhance the capacity of future generations, the question now is whether money is being effectively invested for this purpose. Unfortunately, it seems at the moment that money is being thrown around meaninglessly. So don't be surprised if Thailand sees a budget showdown in the near future.
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