Kosit Urges Course Correction To Avoid Greek Tragedy

[Flashermac]

Populist policies may put Thailand at risk of a Greek-style debt crisis, says Kosit Panpiemras, the executive chairman of Bangkok Bank.

 

He warned that the country must develop a more balanced economic model to deal with the coming ageing society.

 

Mr Kosit, a former finance minister, yesterday addressed a seminar on population development hosted by the National Economic and Social Development Board.

 

He specified two key flaws of Greece's model - a weak private sector made worse by the low discipline of households with no savings; and the government's populist policies.

 

In Thailand, populist policies are apt to remain in force for a long time as the government encourages domestic consumption by running up unsustainable debt.

 

"Unfortunately, Thailand will become a poor ageing society, unlike Japan and Singapore, which are rich countries," said Mr Kosit.

 

In his view, the model of creating a balanced economy through domestic consumption will not work in an ageing society.

 

Mr Kosit advises young workers to save more, as they will live longer than in the past, averaging 65-70 years for men and 80 years for women.

 

"I think few people know the truth, and a low number of policy makers perceive this issue as a big problem for Thai development," said Mr Kosit.

 

He called on the government seriously to consider the implications of an ageing society that saddles young people with enormous debt.

 

My link

 

 

 

 

 

[baa99]

He forgot the widespread tax evasion by the rich in Greece and Thailand.

[StoneSoup]

In Thailand, populist policies are apt to remain in force for a long time as the government encourages domestic consumption politicians seek to buy votes from the underclasses by running up unsustainable debt promising them "lots of free candy" with no consequences, and with no ability to pay for the goodies.

 

 

There, fixed that......

 

 

SS