Kaew Loss - An Odd Pattern In Thai Reaction To International Rules?

[Gadfly]

Actually, I think those in power don't give shit. For the most of the Thai elite it never seems to be about Thailand, but about personal gain (and for their peer group) and about power and control. For their gain the thai elite seems to play always to a certain audiences (red, yellow, military, middle class, farmers, whatever), without any second thoughts about results for the people outside their realm and even less outside the country.

 

Just have a look at the current rice buying scheme. By playing to the main supporters of the government, within a year Thailand has lost more than 45%!!!!! of its rice export market. As a result the exporters are going down in numbers (except the ultra rich and well connected of course). At the same time the quality of Thai rice seems to suffer (the quality combined with price sold Thai rice until now). Other countries are happy to jump in. Nevertheless the government doesn't seem to give a shit... Link

 

PS: Nevertheless LOS is still doing really well, since in the surronding countries corruption, level of eduction, infrastructure, e.g. are worse.

 

 

I suspect you are right, but I would modify the PS to say "since in most of the surrounding countries..." The world is changing - even this little part of the world. Several large MNCs have moved out of Thailand in the last several years one. One, surprisingly, moved to Singapore. Direct costs were much higher, but the cost of corruption and a dysfunctional and dishonest government were far higher. That company makes a beverage I bet many on this board drink regularly, and it doesn't contain any alcohol.

 

And on this subject, the latest train wreck I see coming down the pipe (which receives no press here) is Australia's frustration with Thailand over its failure to comply with the Thai-Australian Free Trade Agreement. Wine is way over priced here, and Thailand is supposed to reduce the customs duty over a ten year period on Australian wine. Problem is that Thailand is selectively raising the excess Thai on Australian wine as it lowers the customs duty. Its pretty blatant, but as we all know the liquor baron is richer than even Mr. T himself. What the Thai authorities don't seem to recognize that bland promises to do address the problem are only making Australian trade officials more angry. Other countries as well are fed up with empty promises, and I really do think that many Thai officials don't get it - you can't keep delaying hoping that the pesky foreign government which expects you to honor your promises will give up and go away. It won't happen. And if a trade dispute erupts, Thailand won't have any allies. Som nom na.

[Flashermac]

Wine in general costs about 4 times as much here as in the US.

 

Of course, Singapore is a benevolent fascist dictatorship. That makes governing much easier - and is what Thaksin has always had in mind for LOS.

 

 

 

 

 

[kamui]

Wine in general costs about 4 times as much here as in the US.

 

Of course, Singapore is a benevolent fascist dictatorship. That makes governing much easier - and is what Thaksin has always had in mind for LOS.

 

 

Singapore has 5 mio plus inhabitants with one small leadership group while LOS 70 mio citizen with several power centers. Mr. T. could have only kept on ruling by including some other fractions, which he was unable to do so for whatever reason. That's why he is visiting Hun Sen frequently, since Hun Sen was able to eliminated or embrace his opponents But again Cambo is much smaller and the old elite was partly/mostly killed.

[Flashermac]

Takky was even trying to make Bangkok look like Singapore. Remember the topiaries that suddenly appeared along Wipawadi Rangsit and on other main road? Bushes and trees shaped to resemble elephants, buffaloes, Thai dancers, Kinaree etc. He never stopped to think that Thailand is a helluva lot bigger than just one island. Plus instead of trying to work with the old Chinese families who controlled the country, he tried to push them out of the way. Bad move ...

[Gadfly]

Wine in general costs about 4 times as much here as in the US.

 

Of course, Singapore is a benevolent fascist dictatorship. That makes governing much easier - and is what Thaksin has always had in mind for LOS.

 

It costs more because of combination of customs and excise ("sin") taxes. The latter is meant to discourage behavior considered harmful and cover the health costs of dangerous activities. The excise tax on the high octane alcohol tax your local motor cycle driver drinks is a few Satang on every bottle of that poison he drinks. On wine, which might have only 12% alcohol content (because its fermented, I don;t think it can go above about 19%), it can be several multiples of the 'deemed' price. Go figure?

 

Why? Local parties who manufacture the high octane stuff have captured and control the regulatory system.

 

Wine is subject to a high tax for "health" reasons. Thailand has an unusually high alcoholism rate for its level of income. It has one because cheap locally produced high octane white spirits are readily available. A researcher who pointed out the perverse incentive system of the Thai regulatory system was unceremoniously asked to leave and generally harassed. I think we can guess why.

 

When complaints were raised about the bogus tax system rigged to protect local liquor interests, Thailand responded by sulking and saying rich countries were bullying it and trying to encroaching on its sovereignty. The old nationalism card. And it has worked.

 

But the problem is that Thailand has signed treaties that oblige it address this issues in a rational fashion. This bit of misdirection won't work with an international tribunal. That is where the friction is now. This is why Thailand howls with outrage (or censors it local press) when it is pressed and compelled to comply with the international rules that govern these matters. In the main, most, but not all, countries do honor these obligations. In the main, Thailand plays games and sulks (you cannot count on the local press to get it right) fails to abide and dissembles when pressed to abide. I can't see this a winning strategy in even the medium term.