Anand warns of recession

Anand warns of recession

Pleas for both sides to put country first

A continuation of Thailand's current political impasse could lead the country into recession and by that time calls for political and democratic reform would be sidelined, warned two-time former prime minister Anand Panyarachun.

Former prime minister Anand Panyarachun gives an interview at his residence on Sukhumvit 53 Road, Bangkok. (Photo by Thanarak Khoonton)

"I think that we have now reached an impasse. I do not see a quick end in the near future. And if this is allowed to continue much longer I fear that the economic and financial situation in our country would become much worse," Mr Anand said in an interview with the Bangkok Post over the weekend.

''In the past a crisis developed rather quickly, but within a few months there would be a conclusion. But this time this has been going on for years,'' he said.

In the fourth quarter of last year, economic growth for 2014 was projected to be between 4.5 and 5%.

Now the Bank of Thailand, the Board of Trade, reputable foreign banks and financial analysts have reduced the expectation to 2.5 to 2.8%. That's likely to go down even further if this instability continues, Mr Anand said.

He said the "grievous deterioration" of the economy would affect unemployment and reduce incomes. Purchasing power has already been eroded, he said, adding: "The poor cannot pay for their meals. The farmers are suffering. The more well-to-do are not spending as much as they should.

"We are moving gradually towards a recession. This is to me the critical problem for Thailand now," he said.

"And by that time we will be so preoccupied with the economic and financial problems that the issues that are being debated now about politics, democracy, reform will be automatically relegated to the background, which is a shame. That would be another lost opportunity for Thailand.''

Mr Anand said at present we have the "luxury of debating issues," namely political and electoral reform and democracy.

"My point is that in a few months time it may not be as important or as relevant as they are now because they will be taken over by the economic crisis. I hope I am wrong.'' The former prime minister added that during this "political warfare" it is obvious that neither side can win and neither side is in a position to govern the country.

"No side would be able to function in a full and proper manner because of legal and political restrictions. Some are self-inflicted and some are not. But that's beside the point.''

Asked to comment on the statement by former deputy prime minister MR Pridiyathorn Devakula that the Yingluck administration was a "failed government" and that the prime minister should step down, Mr Anand said: "I would use the word dysfunctional.''

''The government by dissolving the House and transforming itself into a caretaker government by law cannot do so many things. It cannot engage in new programmes.

''Of course there are political obstacles and economic constraints that have been put in its path. When I say it [the government] has become dysfunctional I am not saying that it's entirely the government's fault. But I am saying this is the situation in Thailand now.

''The point is Thailand needs a government that can function normally, fully and effectively. We cannot afford to continue to live in limbo like this much longer," he said.

Mr Anand added that a compromise is the only way out. "You need two to tango," he said, with all sides engaged in a "quiet place out of the glare of public scrutiny and public relations antics''.

"What you are fighting about today will no longer be relevant compared to the crisis in the future that we have to face. I think we have to look at the national interest first. We have to look at the larger picture," he sa id.

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