Junta populism and promoting business

5 11 2015

The junta has spent a considerable amount of effort indoctrinating its children (of all ages). One of its several themes has been damning politicians as corrupt for implementing populist policies and programs.

Indeed, since 2001, the royalist elite has spent a lot of time, supported by tame “academics,” denigrating popular and even mild redistributive programs that were associated with the Thaksin Shinawatra-aligned political parties. These “populist” innovations were denounced as “corrupt” because they were electorally popular, leading to the ideological linking of “populism” and “evil, corrupt and self-serving” civilian politicians.

“Populism” has been made a dirty and denigrating word, with “policy corruption” was added to constitutional drafting considerations of something to be controlled or banned.

Fortunately for the military junta, it doesn’t have to play by any rules, and it claims to operate with a curious anti-politics agenda, so by its own definitions and rulings, it can’t possibly engage in either populism or policy corruption.

As reasonable observers know, this is smoke and mirrors. PPT has posted on the junta’s populist-inspired policies for some time. Back in October 2014, we posted on a considerable sum earmarked for programs labeled “not populism.” This included measures to increase consumption and employment: 40 billion baht in aid for farmers and 129 billion baht  to create jobs through investment projects. The “populist” attention to its anti-democrat support base in the south has also been noted.

With the military junta already having engaged in politically-inspired handouts and having appointed former Thaksin economic czar Somkid Jatusripitak to try to throttle some life into the junta-deadened economy, it is not surprising to to read in Khaosod that the military junta “has approved USD$1.3 billion (46.1 billion baht) in rural subsidies, akin to the populist policies of the government it ousted, to appease disgruntled and politically powerful farmers who are struggling with record low commodity prices and weak exports.” The political motive is clear:

The rural heartland of Thailand’s deposed leader Yingluck Shinawatra and her exiled billionaire brother Thaksin is hurting as a result of the military government’s economic policies, stirring discontent and the threat of protests.

But the military dictatorship had also “pledged to wean farmers off expensive subsidies used by the previous government…”. It is now doling out “around $1 billion (35.5 billion baht) to help rice farmers and … $365 million (12.9 billion baht) to help rubber farmers who had threatened to rally in defiance of a ban on political gatherings.” This comes on top of the earlier funding and soft loans to villages, a la Thaksin in 2001, where another 60 billion baht is allocated.

Yingluck’s government is alleged to have spent some $14-15 billion in such schemes. It seems the military junta, if it could be added up, is spending amounts that would match Yingluck’s on an annual basis. This is likely to increase.

There’s also a king of “populism for the rich” at work for the junta. Following several reports of villagers being dispossessed and jailed in acts of “primitive accumulation,” by the regime for various “projects.” Such work is conducted for the military junta’s business allies. This support is now reported at Prachatai to be extended to include legal manipulation in the interests of business.

The junta “has given a green light to the proposal to shorten the EIA [Environmental Impact Assessment] process by half to speed up mega construction projects.” The projects are the “PPP (Public and Private Partnership) mega projects.” The reduction means that the EIA can be reduced “from about 22 months currently to only nine months.”

Minister Somkid is reported as lauding the proposal as it will “will increase the speed and efficiency of the process to give out public concessions to private companies.” We can hear the Sino-Thai tycoons and favored investors – the junta likes the Chinese state companies and Somkid is close to Japanese corporates – smacking their lips now.

The current seven PPP Fast-Track projects are: the Bangkok Transit System (BTS) railway line extension, highway projects in the west and northeast, and “Garbage factories” in the central and northeastern regions.

The shortened EIA process will replace but more likely work in concert with the junta’s use of  the draconian Article 44 of the Interim Charter, that allows the junta to clear obstacles and people to make way for business.


Actions

Information