Some people firmly believe that the 50-year repayment period is too long. There is no assurance at all to guarantee that the investment for infrastructure will be corruption-free. Much of the fear stems from the fact that the plan is being initiated by the Pheu Thai government, the former Thai Rak Thai Party, which intimidated many with its grandiose schemes.
Point by point, the fears seem reasonable. Fifty years is a long time. Concerns are rising as public debt will increase by another Bt2 trillion on a mandate given to one government. Thai governments have borrowed all the time; public debt is now around Bt5 trillion and it remains unknown when it will be paid off.
On the second point, there is no mechanism to guarantee no corruption. The government promises that all investment projects will be screened as thoroughly as other projects included in the annual budgeting process. It is the same process all governments have followed – the same process that has resulted in notoriety for the Kingdom in terms of corruption ranking.
Concern triples when it is Pheu Thai initiating the project. Most people on the social media have memories of TRT leader Thaksin Shinawatra and his grand plan to take control of this country. This must be a part of his plan. Certainly, Thaksin’s populist policies – involving handing out free money – are so successful that many fear that infrastructure investment will be just like that.
Few remember that Pheu Thai ministers said during the debate that the Anti-Corruption Organisation of Thailand would take part in overseeing the transparency of the scheme. To those who do recall, they appear to have no confidence in the organisation. The scepticism is reasonable, as the organisation doesn’t have its own channel to communicate with the public. It still has no website.
The level of distrust is so high that some people think it best that we put the investment plan on hold.
Is it so? Over the past 10 years, annual budgets for government investment averaged below Bt400 billion, or below 20 per cent of total expenditure. What did we get in return? No new ports, new electric train lines or motorways. For the governments of those years, Thailand had so little money for major infrastructure projects. Based on the Purple Line’s cost of about Bt100 billion, those governments apparently believed that it was unfair to put one-fourth of the annual investment budget in an electric train line that would only benefit Bangkok people.
In the past few decades, without a synchronised plan, bidding for expressways was called for by several governments. The result is that while people in west Bangkok pay Bt55 maximum to get downtown, those in the east pay Bt105. But despite the higher toll, people in the east still thank respective governments for the expressways. Yes, in this twisted world, we can still see a good side in a bad thing.
Unlike some poorly-planned populist policies, Pheu Thai’s infrastructure projects may somehow benefit us. So if the government can lose Bt100 billion in excise tax for its first-car-buyer scheme and Bt100 billion a year for the rice-price pledging scheme, we should be glad that it will pour money into lasting steel and concrete structures.
I’m also concerned about the debt burden, but such fear should not hold us from moving ahead. Instead, all of us should strike at our fear at its root. First, we can press for the government to explain the benefits of each project. Second, make sure that the procurement process is posted clearly on the Internet as promised by the government. Third, compare the cost of the projects with something relevant. Fourth, keep an eye on bid winners, to make sure that they are not connected to politicians. Fifth, make sure that the government keeps the promise to pay the Bt2 trillion debt within the specified period.
The must-do list is lengthy, but most importantly we must deal with corruption at its root.
What corrupts people? I’m convinced that money comes with power, and vice versa. But why do the rich yearn for power, and why do powerful people crave money? Convenience is the ultimate dream, or is it because of recognition, or both?
Last week, an acquaintance admitted that at social functions, as she rubs elbows with hi-so people who wear wristwatches worth millions of baht, she is embarrassed that she only has a Cartier. I don’t blame her. People can be intimidated. As long as people still look at others’ accessories to determine the level of interaction, that will only drive people to impress through accessories not true values.
Knowing this, some countries have put in place systems to prevent corruption. Singapore in particular demands that all of its ambassadors report gifts, big or small. The government evaluates the gift’s value and if the ambassador wants to keep it, he or she must pay the evaluation price. The money goes to the government.
Many countries put in place rules to control malpractice. In March, American regulators implemented a so-called “Sunshine Law” designed to improve transparency in drug companies’ dealings with doctors. France passed a similar law in 2011. Firms in Britain are planning voluntary disclosures. According to consultancy Deloitte, by 2015 more than 70 per cent of drug sales will be in countries with such measures.
These systems can be applied here. Alas, distrust will make some people say, “It can’t prove that we will be free of corruption.” I guess that corruption and instability in Thailand has got to the point where we have lost trust in everything. While corruption prevents us from moving upward, paranoia and distrust effectively pulls us backward.
It was not surprising to hear a diplomat say last week that without political stability, Thailand’s per-capita income could have doubled to US$8,000 by now. Thailand has a lot of potential, he said. Yes, but only if we can slay our old ghosts and move forward.