Ex-DPM quits as Thai economic adviser

The Straits Times, February 21, 2007
By Nirmal Ghosh, THAILAND CORRESPONDENT


BANGKOK - FORMER deputy prime minister Somkid Jatusripitak has quit, barely a week after he was appointed by Thailand's military rulers to help boost flagging investor confidence in the country.

His appointment as spokesman for Thailand's 'sufficiency economy' policy had drawn growing opposition and threats of street protests, despite his credentials as a respected economist.

'The country cannot face any more division,' Dr Somkid told a press conference in Bangkok yesterday. 'I am deeply disappointed that some people view my sincere voluntary work has a hidden political agenda.'

'I do not want the conflict to become a burden of the PM. I know that if I stay on, the PM will protect me, but what good will it do for the country?'

Though his role was that of an adviser, not policy-maker, his resignation was still a blow to the government's credibility as it followed a series of abrupt shifts on issues ranging from capital controls to the status of Thailand's airports.

Dr Somkid was the chief architect of the previous government's free-market economics and populist spending policies widely known as 'Thaksinomics'.

His appointment drew protests from the media and politicians.

The daily Matichon published a cartoon of Dr Somkid with the caption 'Sufficiency Capitalist' to make its point that he was the wrong man for the job of selling a policy that emphasises sustainable development and living within one's means.

Critics contend that 'Thaksinomics' bought ousted prime minister Thaksin Shinawatra loyalty, but would have drained the country's treasury with its policies on cheap health care and easy credit for farmers.

Said National Legislative Assembly member Akapol Sorasuchart: 'Somkid was the architect of populist policies and political marketing, and I doubt whether he is qualified to become a spokesman for the sufficiency-economy theory.'

Former prime minister Banharn Silapa-archa also slammed Dr Somkid's appointment, as did Democrat Party deputy leader Alongkorn Pollabutr, who noted that 'Somkid's reputation is at complete odds with sufficiency-economy thinking'.

Other critics assailed Dr Somkid not just as a turncoat, but, more importantly, as a remnant of the discredited regime.

On Tuesday, the so-called People's Alliance for Democracy (PAD) - which had spearheaded last year's street protests against Mr Thaksin - threatened to revive the protests unless Dr Somkid stepped down.

His resignation was welcomed by the PAD and a jittery stock market, which closed 0.25 per cent higher yesterday.

Dealers attributed this to relief that Dr Somkid's resignation had defused the potential for trouble.

But analysts like Chulalongkorn University's Suthiphand Chirathivat see no positive outcome to Dr Somkid's departure, telling the AFP news agency that 'foreigners will be more confused by Thailand's economic policies'.

It is also a setback to Premier Surayud Chulanont, who announced the surprise appointment last week.

The Premier said yesterday: 'Now, we have to think of how we are going to solve this problem of weak investor confidence.'