• 
• 

Published on August 16, 2007

I, too, share George Morgan's and Eckhard Helbig's view that foreign investment can support the development of an emerging market, and that there are no absolute truths in the matter. I agree that every country needs restrictions on investment - but I question what role nationality has in the matter - especially since throughout history, foreigners/minorities have served as convenient villains for the powers that be of the moment, eg, the Chinese in Indonesia, or the Jews in Nazi Germany.

Helbig says, "Morgan wants greater freedom for foreign investment than the US gives to Thais and others." Would he please give some specific examples? In my 20 plus years of living in the US, including buying a house and shares, nobody asked what nationality I was or checked about foreign limits.

Helbig says, "Maybe [Thais] don't like the dollar signs in the eyes of some investors." The basic motive for investors is to make profits - and that's not limited to foreigners. We live in a market economy, which teaches that investors buy equity so that the firm can make profits - which are then shared with shareholders. Thus, the investment is a win-win situation, including for society. Yes, there are plenty of swindlers, and that's why investors have to be financially sophisticated and why the regulatory authorities have to be vigilant - but the basic economic philosophy, and mutual benefits, hold.

Burin Kantabutra

Bangkok

-----------------------------------------------------

Outside investment a key feature in rich countries

I would like to correct Eckhard Helbig's assertion in his letter that I want greater freedom for foreign investment in Thailand than the US gives to Thais and others. Actually the US allows Thais and all other foreign nationals to own 100 per cent of businesses, with the exception of certain sensitive sectors, and to own land and property with few restrictions.

I believe that most foreign businessmen would in fact be happy if Thailand were to allow foreign investors reciprocal rights based on the rights of Thai investors in their countries. For British businessmen, such as myself, this would mean virtually no restrictions on investing in any business sector or owning any type of property. Thais, Russians and other foreigners now own our Premier League football clubs along with huge London mansions and vast country estates; the Spanish run our airports; Americans own our newspapers; Egyptians own our department stores; and there are hundreds of foreign banks and other financial institutions operating freely in the city of London.

The UK economy thrives on this freedom of competition and choice and I believe that Thai economy would too, with the right environmental controls and limited protection for genuinely sensitive sectors in place. Unfortunately the losers would be those Thai business owners that have failed to make good use of the last 35 years since the first foreign business law was enacted ostensibly to protect for a limited time those sectors not yet ready for foreign competition.

It is clear from the recent articles about Thai investment in Vietnam, which is being actively promoted by the Thai government, that the attitude of Thai businessmen to investment abroad is no different to that of foreign investors here. Thai investors in Vietnam are rejoicing that they can now own their own businesses under Vietnam's newly liberalised investment laws and are eagerly jettisoning Vietnamese joint-venture partners regarded as adding no value or actively getting in the way.

George Morgan

Bangkok

-----------------------------------------------------

US a case study in dangers of rampant consumerism

Re: "Financial discipline, not xenophobia, required", Letters, August 15.

I appreciate Burin's lecture on economics. He is correct that there is no difference between the basics of "foreign economics" and "Thai economics.

He also advises me that I should check my facts before writing.

Here are some facts that he might consider:

Fifty years ago in America there were no credit cards. There also were few psychiatrists and few lawsuits.

Currently in America there are a record number of credit cards, lawsuits and psychiatrists.

Twelve years ago when I first visited Thailand there were few credit cards. There were also few psychiatrists and almost no lawsuits.

Today, there is an ever increasing number of credit cards, psychiatrists and lawsuits.

The "Happiness Index" in Bangkok continues to show that Bangkokians are less happy every year and now it is spreading to the provinces, and yet neither economists nor anyone else for that matter seem able to put these various facts together.

America is currently heading for an economic disaster because of the creative financing of homes. This happened because the use of credit became so accepted that things got out of hand.

The practice, as opposed to the basics, of Thai economics are about 40 years behind the Western world's so there is still time to learn from what is happening there, and yet no one wants to acknowledge the lesson to be learned.

Burin talks of "mature people". Is he suggesting that Thais are more mature than Westerners? That they, through education, can learn to be mature in the use of credit? That they can beat the scourge that all of mankind has been fighting since the beginning of recorded time and have to date still not been able to conquer - namely greed and the desire to show off to one's neighbours? It may be that my facts are cloudy and that I am relatively uneducated in the science of economics, but I would suggest that my contact with reality is light years ahead of the army of economists who would tell us that credit is good and that those that push it have our best interests in mind.

John Arnone

Yasothon

-----------------------------------------------------

Can the People Power Party 'tame' Samak?

Re: "Samak's being quite tight-lipped for now", News, August 15.

Veteran politician Samak Sundaravej is well known for his rightist extremism. Yet there is something dubious about his decision to join forces with his former antagonists within the Thai Rak Thai group under the banner of the People Power Party: people such as Surapong Suebwonglee and Sutham Saengpratum from the left-wing October group; and Sudarat Keyuraphan, his bitter opponent in the 2000 Bangkok gubernatorial election whom he defeated. One could say this is the strangest political hook-up in Thailand's history.

During his decades-long career as a formidable politician, Samak has been likened to great and majestic animals such as the tiger and the lion: animals that are symbolic of greatness and dignity. Let's hope his latest decision doesn't put him into a sticky situation and turn him into somebody's poodle.

Chavalit Van

Chiang Mai

-----------------------------------------------------

Criticism of US needs to be constructive to help

Re: "The 'American empire' now in its end stages", Letters, August 15.

It is a terrific letter that Daniel W Delaware writes. This is America-bashing at its best. It is easy to attack the United States. As I have stated, the country has done much wrong. And, sometimes, behaved immaturely. But when analysing the United States and the world order, a long view must be taken.

While the United States may be in decline and the world may not need a "policeman that promulgates a Frankenstein Judeo/Anglo-Saxon-Christian-capitalism-driven democracy" (cut back on the coffee), the question that must be asked is what is to become of the world? What will a diminished United States suggest for the functioning of the world order? Who will do the policing: the United Nations, Nato, Asean, the European Community? Is policing needed? How will the world function?

Delaware may be correct that the United States will go the way of all previous empires. But that is old news. Criticise the United States, please. But be constructive. Build a case based on what the future will be. Airing nihilistic comments is blowing hot air. It serves only to degrade the writer.

Tom Fin

Bangkok

Send us your views in an instant E-mail your opinion, with 'Letters to the Editor' in the subject box, to: letters@nationgroup.com