Thai PM unveils big spending plans to shore up country's economy
Tuesday, 19 February 2008
BANGKOK, Feb 18 (AFP): Thailand's newly-elected Prime Minister Samak Sundaravej today unveiled an ambitious spending plan that he said would shore up the kingdom's economy despite worries over a global slowdown.
In his first speech to parliament, Samak also vowed to mend divisions exposed by a 2006 military coup against then-premier Thaksin Shinawatra, whose support helped propel the prime minister to victory in December elections.
Samak warned that Thailand's export-driven economy would face strains resulting from economic problems in the United States, the kingdom's biggest trading partner.
"Thailand will face severe problems in the world economy, tied to the sub-prime mortgage crisis in economically powerful countries, which has affected financial markets and damaged other countries," he said in the hour-long televised speech.
"Rising oil prices will also affect inflation around the world and in Thailand," he said.
Samak said the government will dedicate itself to "creating a balanced economy immune to these troubles, by ensuring sustainable growth while improving the confidence of Thai and foreign investors."
Samak was sworn in as prime minister last month after leading the People Power Party to victory in elections by openly campaigning as Thaksin's proxy.
The linchpin of Samak's plan is an ambitious spending programme, originally proposed by Thaksin's government, including hefty investments in Thailand's infrastructure.
Samak called for adding nine new rail lines to Bangkok's mass transit while overhauling the national rail system. He also proposed new irrigation projects and improvements to sea ports and airports.
His policy plan included restoring many Thaksin-era rural aid schemes which had been scrapped by the military and which are often derided by Bangkok's elite as populist handouts designed to win votes.
The plan also features loan schemes for villages, debt assistance to farmers, guaranteed commodity prices, and increased protection against natural disasters.
Analysts said that while Samak had spelled out a clear economic plan, he had given no clear direction for social policies, including resolving the southern unrest.
In his first speech to parliament, Samak also vowed to mend divisions exposed by a 2006 military coup against then-premier Thaksin Shinawatra, whose support helped propel the prime minister to victory in December elections.
Samak warned that Thailand's export-driven economy would face strains resulting from economic problems in the United States, the kingdom's biggest trading partner.
"Thailand will face severe problems in the world economy, tied to the sub-prime mortgage crisis in economically powerful countries, which has affected financial markets and damaged other countries," he said in the hour-long televised speech.
"Rising oil prices will also affect inflation around the world and in Thailand," he said.
Samak said the government will dedicate itself to "creating a balanced economy immune to these troubles, by ensuring sustainable growth while improving the confidence of Thai and foreign investors."
Samak was sworn in as prime minister last month after leading the People Power Party to victory in elections by openly campaigning as Thaksin's proxy.
The linchpin of Samak's plan is an ambitious spending programme, originally proposed by Thaksin's government, including hefty investments in Thailand's infrastructure.
Samak called for adding nine new rail lines to Bangkok's mass transit while overhauling the national rail system. He also proposed new irrigation projects and improvements to sea ports and airports.
His policy plan included restoring many Thaksin-era rural aid schemes which had been scrapped by the military and which are often derided by Bangkok's elite as populist handouts designed to win votes.
The plan also features loan schemes for villages, debt assistance to farmers, guaranteed commodity prices, and increased protection against natural disasters.
Analysts said that while Samak had spelled out a clear economic plan, he had given no clear direction for social policies, including resolving the southern unrest.