Pridiyathorn explains sufficiency economy concept to investors
Deputy Prime Minister and Finance Minister Pridiyathorn Devakula said sufficiency economy is in fact the other side of the coin of sustainable development.
Speaking at the Open House Economic seminar, Pridiyathorn said that the government has incorporated the sufficiency economy in the government policy, he said.
Contrary to what many believe, sufficiency economy is not against the world movement of trade or globalisation. In fact, the government has adopted the sufficiency economy as a conduit between trade and people. For instance, on the household, the sufficiency economy should not lead to excessive spending that would result to debts.
Sufficiency means the Equilibrium of incomes and expenses.
Growth expansion without reigning in the spending is a poison chalice.
Expansion without reigning in the spending would result in the inevitable collapse of the economy, resulting to the number of bankrupted companies.
Over reliance on foreign funds resulted to high level of debts, three times the level of national reserve. This led to the close of 56 financial institutions.
Sufficient use of natural resources would result in longevity and flexibility of the economy.
Firstly profit has been made in finalising the budget, which can be dispersed ...
He criticised the previous government for implementing populist policies, which resulted to widespread social problems.
For instance, the previous government set price the rice price at 30 per cent above the market price, which severely affects the farmer. It has become a burden on government's fiscal responsibility. Rice would be pledged for the current market price.
On the government housing projects, 600,000 units of house. 20% of cost subsidised by the government. After 20 months of implementation. 13,400 units were completed. But these 300,000 units required billions of baht in subsidy.
He said the government wants to ensure sustainable growth.
In a question-answer session, Pridiyahtorn thought that the government didn't have planned to intervene the stock market. "Thai stock market is functioning well and vibrantly we should not interfere or provide any unnatural boost. The fundamentals are strong export and domestic consumption."
Jeerawat Na Thalang and Ki Nan Tsui