The big issue: The man in the middle

The big issue: The man in the middle

Deputy Prime Minister Somkid Jatusripitak (centre) stands next to Prime Minister Prayut Chan-o-cha (left) and Deputy Prime Minister Wissanu Krea-ngam at Privy Council president Prem Tinsulanonda' residence in Bangkok to mark the statesman’s 95th birthday. (Photo by Pattarachai Preechapanich)
Deputy Prime Minister Somkid Jatusripitak (centre) stands next to Prime Minister Prayut Chan-o-cha (left) and Deputy Prime Minister Wissanu Krea-ngam at Privy Council president Prem Tinsulanonda' residence in Bangkok to mark the statesman’s 95th birthday. (Photo by Pattarachai Preechapanich)

Prime Minister Prayut Chan-o-cha took a bold gamble last week when he appointed one of the architect’s of Thaksin Shinawatra’s populist economic policies to steer the country’s finances.

Deputy Prime Minister Somkid Jatusripitak wasted little time getting into his stride, outlining his stimulus strategy to 800 business leaders on Wednesday.

A marketing man by instinct, Mr Somkid said he was hopeful cabinet would this week approve his plan, which includes increasing the spending power of grassroots Thais by injecting more money into the Village Fund scheme and hastening government projects in the provinces to boost jobs.

The short-term plan is aimed at kick-starting the national economy which has been flat-lining for two years. Mr Somkid told the business figures he was confident his measures could be implemented within a matter of months.

But his long-term goals sounded like they were from the playbook of all Thai finance supremos: support new businesses outside Bangkok, strengthen competitiveness, motivate innovators, accelerate mega projects and cut the red tape.

With the policies of his predecessor MR Pridiyathorn Devakula barely a memory, business leaders were loathe to draw comparisons between the dramatically different approaches of the two economic czars the junta has turned to in just over a year in power.

“We cannot compare policies outlined by two different planners during two different time periods, as the planners must formulate them based on the circumstances of the moment,” said Supant Mongkolsuthree, chairman of the Federation of Thailand Industries after Mr Somkid’s battle plan was unveiled.

However, Mr Supant did praise Mr Somkid’s speech as containing practical measures to breathe new life into the ailing economy.

“This speech meant a lot to us [the business sector]. We need to be more confident about the domestic economy reviving as soon as possible,” he said.

Mr Somkid also received a vote of confidence from Isara Vongkusolkit, chairman of the Thai Chamber of Commerce, who said the government had painted a clearer picture of where it wanted to go with the economy.

“We’re more confident now that the government has shown us more clearly what they are going to do to improve the Thai economy,” he said.

Gen Prayut has taken a brave, some might believe foolish, step to appoint Mr Somkid.

Already there are echoes of what he did in 2001 when his economic policies helped steer Thaksin to electoral supremacy.

Strengthening the Village Fund, promising state help for “new economic warriors” such as SMEs and start-ups and “adding value” to locally-made products and enhancing the Thai competitive edge are all from the Thaksin era.

The junta has given him control of the Foreign Ministry, which played a key role previously in Thaksin’s plans to turn Thai embassies into business centres.

That Gen Prayut has turned to a former lieutenant of the establishment’s nemesis indicates he has a generosity of spirit few gave him credit for, or, is desperate to find a new direction for the economy irrespective of the helmsmen.

If Mr Somkid can re-fire the economy no one will blame him if he makes Gen Prayut as popular as his old boss.

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