  |
 |
 ECONOMY -
Back to Index page Back to Bangkok Post
|
Government promises remain to be fulfilledThough the agriculture sector is the only one showing real growth, much needs to be done to ensure Thailand remains competitive in an area that accounts for 14% of the country's export value. Phusadee Arunmas
With over half the country's workforce in the farm sector and export value representing 14% of the country's total exports, together with its relative independence from foreign input, it is no wonder this sector is the only one showing growth. Despite the slashing of the 1998 budget for the Agriculture Ministry, the farm sector continued to grow at 1.4%, prompting the government to project a subsequent annual growth rate of 2.9%. That was when the Agricultural Sector Programme Loan scheme was introduced. Worth $600 million baht, half the loan was from the Asian Development Bank (ADB) and the other half from the Overseas Economic Cooperation Fund (OECF), now called Japan Bank for International Corporation. Its primary purpose is to create sustainable growth through upgrading production efficiency, increasing yields, and restructuring management. As a result, six programmes, comprising 20 smaller projects were launched. (see table) The loan scheme has been under fire from grassroot activists who have accused the government of prejudice against the poor by agreeing to charge them for water. Under the policy matrix attached to the loan, the government must seek "cost recovery" from irrigation systems: "To promote the optimal use of irrigation water in the country, the government will undertake the following reform measures: 1. Development of participatory irrigation management. 2. Privatisation of operations in public irrigation schemes through contracts with the private sector. 3. Development of a medium-term programme to improve the rehabilitation, operation and maintenance of the existing irrigation schemes of the Royal Irrigation Department. "...The government recognises the importance of ensuring that costs of supplying irrigation water from public irrigation schemes are recovered on the condition that doing so will not cause an undue burden to stakeholders," says the development policy letter the government submitted to ADB. A colossal amount The scheme has been scrutinised by the public as it is considered a colossal amount of money in a time of crisis. Moreover, the money is under the care of the Chart Thai Party whose leader, Banharn Silpa-archa, is notorious for his need to know trivial details of everything his ministers are doing. So far, only seven projects, worth 4.12 billion baht baht, have been approved by the Board of ABD Loan Management, headed by Agriculture Minister Prapat Pothasuthon. The other 13 projects are now pending approval. The Board also comprises The Office of the National Economic and Social Development Board, the Public Debt Administrative Office, the Auditor-General of Thailand, the Budget Bureau, the Comptroller-General's Department, the Fiscal Policy Office and the Agricultural Economics Office. The approved projects account for this year's spending of 1.81 billon baht. The first project is the Irrigation Department's production efficiency plan. The project, scheduled for three years until 2003, is about land management in nine provinces - Chainat, Karnchanaburi, Lopburi, Phichit, Suphanburi, Udonthani, Ubon Ratchathani, Maha Sarakham and Prathumtani. The second project is by the Agricultural Extension Department which aims to improve the quality of goods. Worth 3.1 billion baht, it is divided into 15 small schemes, five of which have already been given the go-ahead - a production and rice/crop market development project, a milk pasteurisation project, a raw milk collection centre, a corn silo project and a raw rubber collection centre - in total worth 1.21 billion baht. Land reform programme The third and fourth projects are about an increase in production capacity on land under a land reform programme totalling 650 million baht. The last three projects are on research and development worth 1.15 billion baht. The budget has been separated across several agencies including the Agriculture Department, 783.74 million baht; the Livestock Department, 286.36 million baht; and the Fishery Department, 79.9 million baht to set up a gene bank of its own in Pathum Thani as well as a laboratory to certify biotech products. There is also a 699.49-million-baht project to develop and certify 40 agricultural products with four agencies receiving stakes - the Office of Agriculture Economics, 55.37 million baht; the Agriculture Department, 259 million baht; the Livestock Department, 313.3 million baht; and the Fishery Department, 71.82 million baht. The goods include 28 crops - lychee, durian, longan, mango, pomelo, tangerine, rambutan, mangosteen, guava, young coconut, strawberries, sapodilla, bananas, egg bananas, pineapples, baby corn, soybean, leafy vegetables, sweet corn, jasmine rice, tomatoes, green roselle, orchids, jasmine, roses, anthurium, marigold, and curcuma. The livestock goods are pork, beef, buffalo meat, chicken, duck meat, milk, eggs and animal feed, and four marine goods including black tiger prawns, fish, squid and clams. As for three special economic zone projects, there has been no approval yet. For the restructuring plan on related institutes and a database, which has five separate projects, only two from the Forestry Department were given approval, worth 800 million baht. Straingent controls In order to ensure transparency, stringent controls are a must. The ministry has ordered agencies overseeing the projects to take full responsibility for monitoring and evaluation. General-inspectors and the Office of Agricultural Economics will in turn monitor the agencies with an independent consultant's help. Finally, a non-government organisation will be invited to make a final evaluation. On top of this, the agencies must report to the cabinet every three months until the completion of the project. Now is the right time for the government to prove itself - whether it really cares for its people - and it has plenty of time. |
The government's promise to deliver a better livelihood to millions of farmers - who account for over 30% of the nation's 60 million population - through its agricultural sector restructuring programme, remains to be fulfilled.© Copyright The Post Publishing Public Co., Ltd. 2000
Privacy Policy
For comments and letters to the editor see : notes
Comments to: Webmaster
Advertisng enquiries to Internet Marketing