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Ministries don't talk to each other

Lack of coordination in the Samak government has led to economic policy mismanagement



Deputy Prime Minister and Commerce Minister Mingkwan Sangsuwan's future with the Samak government is hanging in the balance after he was apparently snubbed by the prime minister twice in less than a week. On Monday, Samak unexpectedly approved the rice-pledging programme while Mingkwan was attending the Asia Pacific Economic Cooperation (Apec) meeting in Peru. On Thursday, Samak planned to instruct him to suspend the "blue flag" project to sell rice at subsidised price.

Mingkwan had to abruptly cut short his trip to Peru and rushed back to Thailand to discuss the rice policy with Samak, who intervened in the rice market without Mingkwan's knowledge. The programme has traditionally been under the responsibility of the Commerce Ministry. His aide Tongthong Chandransu said on Friday that Mingkwan appeared in cheerful spirits after being informed about Samak's remarks.

In spite of Tongthong's assurance, Mingkwan's future is now in doubt. Deputy Prime Minister and Finance Minister Surapong Suebwonglee apparently prefers a different approach on economic policy to Mingkwan, whose relationship with his deputy, Banyin Tangpaporn, is also far from cordial.

In fact, over the past few months, Mingkwan has been subject to much criticism. He oversees the Commerce Ministry, which is responsible for domestic trade, exports, inflation and international trade agreements. Under strong political pressure, he introduced a series of short-term, politically oriented policies that might not solve the economic problems in a sustainable manner. For instance, he tried to assure the public that he would curb the prices of pork and boost rice prices. Unfortunately, the market was not easy to manipulate. A number of his initiatives didn't last long.

The biggest test of his performance is the government's handling of rice prices. The trade involves farmers, millers, exporters, agents and the government. There are long-standing problems in the system that are impossible for any minister to solve in a short period, especially if he does not receive cooperation from the ministries involved.

Mingkwan has to deal with long-term problems and he tends to use short-term solutions. The introduction of "blue flag" rice at subsidised prices was launched to help consumers who otherwise would be adversely affected by the high prices. Nonetheless, the introduction of blue flag rice simply depressed rice prices.

It may be easy for the Samak government to put the finger of blame on Mingkwan for mishaps in policy management. But Samak should also look at the performance of the other ministers.

Rice is and always has been an important issue because it involves the majority of the population. And it requires cooperation. However, we haven't heard anything from Agriculture Minister Somsak Prissanananthakul, even though his ministry directly oversees rice farming and production. Worse still, when it comes to major policy execution, ministers run into conflict with each other. The Finance Ministry's Bank for Agriculture and Agricultural Cooperatives allocated the budget for the rice-pledging programme, even though the Commerce Ministry was reluctant to launch the programme because it would intervene in the market mechanism.

As the head of the government, Samak should ensure better coordination between his ministries and come up with a comprehensive economic plan for a sustainable solution. Economic policy mismanagement under this government stems largely from a lack of coordination among various ministries.

The coalition recently spent time focusing on constitutional amendments. And when it decided to look into depressed rice prices, it chose the knee-jerk reaction of an imperfect rice-pledging programme in response to the threats of farmers to rally in Bangkok.

If Samak decides to review Mingkwan's handling of the rice policy, he should also take time to look at the other ministers and his own performance to see whether he and his Cabinet members have done enough to serve the country's economic interests.


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