Asia Times: Skeptics doubt business's pro-poor pitch



	January 13, 1999	atimes.com

Southeast Asia

Skeptics doubt business's pro-poor pitch
By Prangtip Daorueng

BANGKOK - Tough economic policies and austeritybeing pursued by the Thai government have been a burden on theshoulders of the poor, but the country's high-flying businessmensay they are hurting too.

But while the poor do not have many options, the rich and morepowerful do.

Worried by the prospect of tighter bankruptcy and foreclosurelaws, a group of 19 members of the Upper House of Parliament hasdecided to visit the International Monetary Fund (IMF) inWashington and directly convey their opposition to thesemeasures being pursued by the Thai government.

The move by these legislators reflects yet another round ofinterruption of economic reforms that are being undertaken by thegovernment in the wake of the financial crisis.

The group of senators, led by Jirayuth Vasurat, the chairman ofthe Senate committee monitoring the economic crisis, plans to tellIMF Managing director Michel Camdessus that the Fund's requirementfor Thailand to enact certain laws is opposed by many Thais whoequate it with foreign colonisation.

A number of leading businessmen plan to join the trip.Organisers say they intend to meet as well with U.S. TreasurySecretary Robert Rubin.

The economic measures that have agitated Thai businessmen areproposed stricter laws on bankruptcy and foreclosure - loopholesthat critics say helped lead to the collapse of the financialsystem. For Thai Finance Minister Tarrin Nimmanaheminda, they arecrucial to restoring confidence in the financial system.

These measures are part of a package of economic reforms thatthe government of Chuan Leekpai is working to passed into law.

The effects of these reforms will be felt by businessmen, whosay they are already struggling under recession. Since theeconomic downturn began in 1997, Thai businesses - big and small -find themselves mired in huge debts almost impossible to settle.

As a result, many business debtors have adopted a silentstrategy known as ''no talk, no pay, no run away'' to deal withtheir creditors. If passed, the pending bills will force debtorsto choose between speeding up with debt restructurings plandeclaring bankruptcy.

Businessmen opposed to the bills have been explaining thatthese would hurt small businesses, but not everyone is convinced.

Many critics, for example, say they are merely trying to winpublic support for vested interest. The fact that the group ofsenators represent some of the biggest names in Thai business hasmade them see the U.S. trip it as a self-serving act.

For Sarawut Pratoomraj, a human rights lawyer with the Unionfor Civil Liverty based in Bangkok, the move of senators doesn'thave anything to do with the poor.

''How can we believe this would benefit us? The issue (they arefighting over) itself is not an issue of the poor. Instead, itbelongs to the minority rich or perhaps some middle class,'' headded. ''This group of senators has never done anything for thepoor."

''If there is anyone who wants to talk to foreigners as arepresentative of majority of Thai people, I would like to seeissues related directly to them included such as what do we dowith the prices of agricultural products in the world market,'' heexplained.

''Given their troubled financial background, one must wonderwhether these senators are serving the country or just trying toprotect their own crumbling empires,'' says a recent editorial inthe English-language daily 'Bangkok Post'.

Others say the senators' trip and their avowed efforts to takeup the cudgels for ordinary Thais are simply an attempt to delaythe legislation of key bills to allow some more time for theircompanies to renegotiate their debt.

For many of the poor, the test of wills that has been going onsince last year between the Chuan government and interest groupsopposed to certain economic reforms is like a fight going on wayabove their heads.

''I don't understand how it would help my situation - eitherthe government bills or those who opposed them,'' said 43-year-oldPrachak, a former small-business owner turned taxi driver.

''I couldn't survive with high bank interest rates and now I'mdriving a taxi just to keep myself busy, waiting for the situationto be better. But I can't see how it would happen,'' he explained.

''I always think that the government forgot the poor. Are therich being forgotten too?'' Prachak asked, hearing about thesenators' trip to the U.S.

''But what would help we ordinary people if they (the senators)get what they want? Would food in the market or oil prices becomecheaper? If so, I would support them,'' he added.

Sarawut believes no government has ever paid attention to thereal issues of the poor.

''Poor people have been ignored all the time, until theylearned not too expect much from the elites. What happens is theyhave to help themselves always. I think we will have to put ourown efforts for things to change,'' he explained.

Prachak says he has modest hopes for this year, during whichthe Thailand Development Research Institute says economic growthwill be just 0.9 percent. ''I myself don't expect any growth,'' helaughed. ''I just hope to remain with what I have now. Not losingit is lucky enough."

(Inter Press Service)

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©1999 Asia Times Online Co., Ltd.