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Industry Council Warns Populist Campaigns Risk Thailand's Long-Term Economy

Industry Council Warns Populist Campaigns Risk Thailand's Long-Term Economy

Thansettakij•Economy•248d ago

Reader Briefing

Thailand's Industry Council expresses grave concern over massive populist campaign pledges totaling over 25 trillion baht, warning they jeopardize the nation's long-term economic stability.

  • •The Federation of Thai Industries (FTI) cautions that political parties' extensive populist policies, amounting to over 25 trillion baht, pose a significant risk to Thailand's future economy.
  • •FTI President Kriengkrai Thiennukul highlights that short-term benefits from these policies are misleading, similar to medicine that loses its effect, leaving underlying issues unresolved.
  • •The council attributes the prevalence of short-term, populist policies to the fragile Thai political landscape, where governments average 1-2 years in office, discouraging long-term planning.
  • •An analysis by "Than Setthakit" categorizes parties based on the high and low budget estimates for their campaign promises.

Overview

  • •Political parties have submitted campaign pledges totaling over 25 trillion baht to the Election Commission, prompting concern from the private sector.
  • •The Federation of Thai Industries (FTI) warns that these short-term, populist policies could worsen Thailand's economic problems in the long run.
  • •The FTI attributes the focus on short-term policies to Thailand's fragile economy, low purchasing power, high household debt, and difficult access to credit.
  • •FTI President Kriengkrai Thiennukul stated that populist policies provide only short-term relief and are ultimately ineffective for long-term growth.
  • •Kriengkrai Thiennukul expressed alarm over the 25 trillion baht expenditure, suggesting it might lead to public dependency on aid rather than development.
  • •The short tenure of Thai governments, averaging 1-2 years and sometimes less, discourages them from implementing long-term structural reforms.
  • •Political parties are leveraging the public's current economic vulnerability and need for immediate relief, like 'freebies' or special promotions, during election campaigns.
  • •"Than Setthakit" is analyzing the submitted budget figures, dividing political parties into groups based on their highest and lowest spending pledges.

Full article content is available on the original source.

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Source: Thansettakij (Original)

Key Quotes

Kriengkrai Thiennukul
"The total expenditure of 25 trillion baht across all parties is considered a very frightening matter."
การใช้เงินมากถึง 25 ล้านล้านบาทในภาพรวมของทุกพรรคถือว่าเป็นเรื่องที่น่ากลัวอย่างมาก
Kriengkrai Thiennukul
"Past populist policies have been proven not to be beneficial in the long term."
นโยบายประชานิยมที่ผ่านมาถูกพิสูจน์แล้วว่าในระยะยาวไม่ใช่เรื่องที่ดี
Kriengkrai Thiennukul
"Governments are staying shorter, so it's difficult to think of long-term projects or structural adjustments."
รัฐบาลยิ่งอยู่ยิ่งสั้น เพราะฉะนั้นหากจะให้ไปคิดโครงการระยะยาว หรือไปปรับโครงสร้างคงทำได้ลำบาก

Key Entities

Organization

Federation of Thai Industries(สภาอุตสาหกรรมแห่งประเทศไทย)ℹ️
A key representative body for Thai industry that has warned about the economic impact of populist election pledges.
Election Commission(คณะกรรมการการเลือกตั้ง)ℹ️
The independent agency responsible for overseeing elections in Thailand, which received the political parties' campaign pledges.
Than Setthakit(ฐานเศรษฐกิจ)
A media outlet that conducted an analysis of political parties' budget pledges.

Person

Kriengkrai Thiennukul(นายเกรียงไกร เธียรนุกุล)
The President of the Federation of Thai Industries who voiced concerns over populist campaign promises.
General Prayut Chan-o-cha(พลเอกประยุทธ์ จันทร์โอชา)ℹ️
Former Prime Minister of Thailand, whose tenure is cited as part of a trend of shorter government lifespans.