PM plans to beat 'middle income trap'

News > Politics

PM vows splurge on megaprojects

Big spend aims to exit 'middle-income trap'

Published: 23 Jan 2013 at 00.00
Newspaper section: News

Prime Minister Yingluck Shinawatra has promised to drag Thailand out of its so-called "middle-income trap" with massive investments in megaprojects.

The middle-income trap is an economic term for when a country's growth plateaus and eventually stagnates after reaching middle-income levels.

Ms Yingluck yesterday said Thailand had not completed any major infrastructure projects for several years. Its latest development project was Suvarnabhumi airport seven years ago.

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DonAleman
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Discussion 16 : 24 Jan 2013 at 13.1816
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Why Y.L, "megaprojects " ? Why not just make Thailand a nicer place to live, a nicer place to visit/holiday, a place where people, all of them, are genuinely happy and, the smiles really mean something, a COMPLETED place where everything works and is shiny and clean. Stop relying on those who have been poorly advising for decades, put some of the "mega projects" money into global counseling companies, real experts who can devise totally new educational systems,transportation
methods,quick fluent English programs,refurbishing shabby, dangerous infrastructure.........
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BobbyAk

Discussion 15 : 23 Jan 2013 at 18.4115
Sounds like a big payday for certain individuals!
from iPhone application.
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geoffo
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Discussion 14 : 23 Jan 2013 at 18.1114
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78% of the expenditure will be on rail of which the majority will go to China to pay for rolling stock, material and "guest worker"s. A solid portion of expenditure will also go to acquiring land owned by " lucky ones". How can they run a line South when terrorists can blow up anything anytime. They won't.

Note her use of the word "hope" . Look at what happened to the 350 billon flood money.
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cockeral
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Discussion 13 : 23 Jan 2013 at 13.2913
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The systems within Thailand have not matured to the extent that such massive investments can be properly managed so as to avoid the horrendous problem that so many of their past projects have experienced. Just recently it transpired that a contract to build a few police stations in mired in alleged scandal, as we're most other projects. Thailand has so many fundamental problems to put right, education, good governance, Southern terror, health care, corruption, social division, none will be made good by borrowing vast sums to invest in projects that are unlikely to have universal benefit.
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dao
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Discussion 12 : 23 Jan 2013 at 13.2012
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If PT hadnt exhausted its coffers on its populist handouts then they would have money for mega projects .Now the middle class have to shoulder the debt for PT top skim off as well ?
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drsmith
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Discussion 11 : 23 Jan 2013 at 12.5011
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Not one mention to increase education. Maybe Yingluck cannot remember back this far, however, the last 30+ years of mega-projects in Thailand has done nothing for the people but enslaved them to credit debt and enriched all the politicians through corruption. To make a claim this will increase salaries in the middle class is not substantiated by any evidence or fact. The true fact is all the politicians will get rich, the people will get nothing and sink even further into debt.
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topcat_bk
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Discussion 10 : 23 Jan 2013 at 11.2710
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On the face of it, the PM's stated goal is admirable and shows the first signs of an actual vision for the country.

However, I believe it is unlikely to succeed, unless the profound deficiencies in education and the rampant corruption are dramatically reduced. If not, this will just result in a gigantic free-for-all for corrupt officials and their cronies in business and industry.
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Eric
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Discussion 9 : 23 Jan 2013 at 10.249
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That's an admirable vision and right strategy for Thailand. To break out and reach the next middle income level in 10-15 years would require at least 5-6% GDP growth continuously. Big infrastructure spending in next 7-8 years will much improvement in our service aector and contribute to positive GDP growth. Tourism growth will be phenomenon in next 10 years in tandem with growing middle income in Asia and budget airlines. Human resource vis education must be a major aspect of this national strategy. Of course, most importantly, we need political stability.
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rebel4ever
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Discussion 8 : 23 Jan 2013 at 09.458
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Why borrow money for Mega Projects? Increasing debts for an unstable country will lead to a EU like financial crisis. Just reduce the Army budget. Most of their investments were a disaster and therefore wasted money anyway... Reducing the number of generals, admirals and other high ranked officers would be of help as well...
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mogy71
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Discussion 7 : 23 Jan 2013 at 09.187
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Thailand cannot use Malaysia as an example to follow as they were able to tap their returns from their massive natural gas fields. Thailand doesn't have anywhere near the size of these.
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