TDRI: Populist policies create more public debts and corruptions

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BANGKOK, 1 August 2012  – The Thailand Development Research Institute (TDRI) has advised the government to reconsider its populist policies as they create more public debts and open chances for more corruption activities. 

TDRI Research Director for Macro-economic Development and Income Distribution Somchai Jitsuchon stated that even if the Thai GDP growth this year is 7%, he would not consider it a high growth because the economy last year was slow. He suggested a five-year economic outlook should be able to tell the real growth. He said that the government’s populist policies are obstructing the economic growth as they show lack of spending discipline, affecting the nation’s finance and pave the way for more corruption activities.

Meanwhile, Federation of Thai Industries (FTI) Chairman Payungsak Chartsutthipol said corruption is among the biggest problems hindering the country’s growth, especially when the government has many projects planned.

Executive Vice President of Bangkok Bank PCL Kobsak pootrakool speculated that the economic growth this year will be only 5-6%. He said the last quarter in particular will experience high growth compared to the same period last year, when the nation was hit by the devastating flood. He added the European economic crisis will also have impacts over the Thai economy, especially in the export sector.