Thai Niyom scheme comes under scrutiny

Thai Niyom scheme comes under scrutiny

Pundits say B100bn programme is aimed at propping up regime

FAIR PLAY? Vendors sell their goods at a fair to promote the state-funded Thai Niyom Yangyuen (Sustainable Thainess) programme in Bangkok.
FAIR PLAY? Vendors sell their goods at a fair to promote the state-funded Thai Niyom Yangyuen (Sustainable Thainess) programme in Bangkok.

The state-funded Thai Niyom Yangyuen (Sustainable Thainess) programme is gathering steam as the disbursement of a budget of nearly 100 billion baht has now come under close scrutiny, particularly the nationwide distribution of a grant of 200,000 baht per village and community.

Critics say the government's new development programme is aimed at scoring political points to help Prime Minister Prayut Chan-o-cha to reclaim premiership after the next general election tentatively scheduled to take place on Feb 24 next year, though politicians from two major parties -- Pheu Thai and the Democrats -- are confident the campaign will have little impact on their support bases.

Launched in February this year, the implementation of the scheme has entered its sixth month now, with a budget totalling 95.75 billion baht being injected into local development projects nationwide.

Gen Prayut has ordered the budget disbursement to be completed by next month to raise the income of those living below the poverty line.

The development scheme is intended to make state agencies and local scholars collaborate to raise people's living standards in line with goals set by the government's 20-year national strategy.

The new development campaign consists of three major strategies.

The first strategy is to improve the life quality of low-income earners who hold state welfare cards. It targets 11.4 million welfare-card holders and is funded by a budget of 21.07 billion baht, with the Finance Ministry supervising its implementation.

The second is to reform the farm sector financed by a budget of 24.3 billion baht under the supervision of the Agriculture and Cooperatives Ministry.

The third strategy is to develop local economy and assist community development with a budget of 50.37 billion baht set aside for it. The Interior Ministry is responsible for implementing the strategy.

In particular, the third strategy is also sub-divided into three projects. The first project involves developing driving the grassroots economy with a budget of 20 billion baht earmarked for it.

Under the project, villages and communities will receive a grant of 200,000 baht each.

The grants will be paid into bank accounts of village or community committees set up to supervise projects. Project proposals will be drawn up based on local needs and submitted for approval by the Interior Ministry. The second project funded by a budget of another 20 billion baht is the follow-up phase of the 200,000-baht village grant offers.

Villages which prove to be efficient in spending the 200,000-baht grants will each receive another grant of no more than 300,000 baht. The National Village and Urban Community Fund Office is responsible for the follow-up phase project.

The third project is the development of local tourism funded by a budget of 9.3 billion baht.

Politicians accuse the government of raining cash on villagers with an aim to solidify political popularity in preparation for the next general election so the regime will return to power after the poll.

However, supporters point out that criteria for requesting funds under the programme are stricter than similar cash-injecting schemes initiated by previous governments to prevent misspending.

For example, local opinions must be sought on each project proposals. Most importantly, budgets will be paid directly into bank accounts of village or community committees, preventing middlemen or politicians from pocketing the money for their own use.

According to the Interior Ministry, local demands were surveyed between Feb 21 to June 31.

Of a total of 727,043 projects proposed by villages and communities, only 91,373 have met the criteria requirements for the grants, with a total of 80,751 villages or communities nationwide standing to benefit from the grant offers.

The local demands that have not been translated into projects will also be compiled for "big data'' analysis so the government can use the information for the benefit of further local development.

However, a total of 1,482 villages and communities nationwide declined the grant offers, reasoning they have no need for the money.

However, it has been found that most of these villages submitted project proposals and requested the grants but their proposals failed to meet the strict criteria.

For example, the grants must not be used for lending or used as a revolving fund; the grants must not be spent on holding training sessions, seminars, study trips or exhibitions; and they must not duplicate state projects which have already been planned for the 2018-2019 fiscal years.

Also, they must not be spent on building any structures in forest reserves, national parks and wildlife sanctuaries.

Regarding the more than 1,400 villages which were not given the grant offers, the cabinet decided on July 17 that local governing bodies will work with community representatives and help them to decide on project proposals which will meet the criteria.

The move is intended to make sure all the budget under the scheme will be disbursed by September.

Politicians from the Democrat and Pheu Thai parties are keeping a close watch on the budget spending under the Thai Niyom Yangyuen programme.

Still, they do not think the scheme, which is seen as a ploy to score political points for the government ahead of the election, will cause them to suffer any major erosion in their support base.

Former Pheu Thai MP Cholnan Srikaew said no corruption has been detected in the spending of the Thai Niyom Yangyuen programme because the money has just been disbursed.

However, he said a close watch is being kept on projects which did not undergo public hearings forums such as weir construction projects worth 109 million baht in 45 provinces under the programme.

Dr Cholnan said that projects that will win the hearts and minds of local people must address their needs, such as the 30-baht universal healthcare scheme which was initiated by the Thai Rak Thai government and is still popular with the people.

He said the Thai Niyom Yangyuen programme is not for the long-term benefit of the public and the recipients feel it is no different from other projects initiated by previous governments.

He said the offer of a 200,00-baht grant per village or community has its limitations as it is limited by strict criteria and often fails to respond to local needs. For example, construction of a local crematorium is now allowed.

The village grant is no different from the SML (small, medium and large) fund started by the Thaksin Shinawatra government as part of a policy to empower villagers and eliminate poverty, Dr Cholnan said.

The SML fund allocated between 50,000 and 300,000 baht to communities according to their size but was scrapped by the military government in July 2014.

Mr Cholnan said the Thai Niyom Yangyuen programme is unlikely to affect the support base of the established major parties.

Deputy Democrat Party leader Nipit Intarasombat said the Prayut administration's Thai Niyom scheme is similar to populism programmes initiated by the Pheu Thai-led government.

However, the Thai Niyom Yangyuen programme has not been met with much resistance because currently there is no opposition party dare to keep it in check, he said.

Mr Nipit said the budgets under the Thai Niyom Yangyuen programme are spent by provinces, districts, kamnan, village heads, not by local administrative bodies.

This will only strengthen the bureaucratic system at the expense of decentralisation, he said.

"Another difference is that Gen Prayut rarely has major projects that will affect people's livelihoods as in previous governments such as the rice-pledging scheme," Mr Nipit said.

"But there are only small projects such as fertiliser-making, fish-farming, and dredging projects. These small projects will not improve people's livelihoods in any significant way."

He also said he did not think the programme would have any impact on "A-list'' politicians who won elections repeatedly in their constituencies and still enjoy popularity in their support bases, though politicians of a lower calibre may feel the heat as result of the programme and may have to defect to other parties.

Thosapol Kaewtima, spokesman of the New Palang Dhamma Party, suggested that the government form special task forces and deploy them to accelerate projects under the Thai Niyom scheme.

Using bureaucratic mechanisms to follow up on the projects will be not workable, because state agencies always tend to report positive sides, he said.

Despite the huge amount of cash injected into the economy, the people feel the situation has not yet improved and they are still struggling to make ends meet, Mr Thosapol said.

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