Thaksinomics
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Thaksinomics (a
The term was coined by President Gloria Macapagal Arroyo of the Philippines during the 2003 Nikkei in which she explained how she conducted her economic policy by following Thaksin's "domestic consumption-based (and) managed asset reflation".[1]
Overview
Thaksinomics is a
- A four-year debt moratorium for farmers, combined with orders to Thailand's state-owned banks to increase loans to farmers, villages and SMEs (small and medium-size enterprises) at low interest rates.
- EGATto partially subsidize electricity tariffs.
- Creating cartels or consortiums to increase the price of exports. (Such as in the rubber industry)[1]
- In the policy of public health, Thaksin started the 30-baht universal healthcareprogram, which guarantees universal healthcare coverage for just 30 Baht (about US$0.95) a visit at state hospitals. Although highly popular, especially among lower income Thais who were previously denied healthcare because of their income, the policy was strongly criticized by physicians.
- The small and medium-sized enterprises.
- Thaksin has pushed for continued privatization of state-owned enterprises. Although it is a continuation of the Democrat-initiated policies of the late-'90s, Thaksin has consistently pushed for the privatization of the state-owned electricity company EGAT. However, EGAT is still state-owned.
- "Mega Projects": During Thaksin's tenure, this involved investing over $50 billion in public infrastructure, including roads, public transit, and a new international airport.
Supporters of Thaksinomics argue that these policies, implemented in the aftermath of the Asian Financial Crisis, have driven a stable, demand-driven recovery of Thailand's economy, which was previously dependent on
These policies have made Thaksin Shinawatra popular. After an unprecedented four years as Prime Minister, his
Critics of Thaksinomics claim that Thaksin's economic policies amount to little more than traditional
Thaksinomics in practice
By 2001, the currency had appreciated to an export-friendly level, and the economy had fully recovered from the
Since 2005, however, there has been considerable controversy concerning Thaksinomics. Although the reelection of Thaksin and his
Another important feature of Thaksinomics, is free trade. From 2002 to 2007, the Thaksin government signed free trade agreements (FTA) with China, New Zealand, Australia, India and United Arab Emirates. Prior to being overthrown by a
Even after the 2006 coup, the Thai government yearly reports give an overtly positive picture of free trade agreements only showing increase trade volumes with the 'partners'. Export gains by and large benefit agricultural co-operates like the giant Charoen Pokaphan, multi-nationals like Toyota, Mitsubishi, Nissan, Nike and others. FTAs also gave Thaksin's family business a big boost. After years of negotiating, the Chinese government finally allowed iPSTAR of the Shin Corporation to operate its broad band satellite telecommunication. The Australian Ministry of Foreign Affairs and Commerce made one announcement after the FTA – 'Australians will now have access to broad band telecommunication with the investment of $280 million from Thailand's iPSTAR'.
See also
- Clintonomics
- Obamanomics
- Reaganomics
- Rogernomics
- Thaksinocracy
- Thatcherism
References
- newsweek.com The Economics of Thailand's Thaksin is Catching OnGeorge Wehrfritz 8/22/08
External links
- Thaksinomics Archived December 18, 2014, at the Wayback Machine
- The Nation – "Abhisit's Fame Taken in Vain", October 7, 2005