Thai economist tipped to be finance minister

The Straits Times, March 6, 2007
By Nirmal Ghosh, THAILAND CORRESPONDENT


BANGKOK - THERE are indications that economist Chalongphob Sussangkarn may be named finance minister in an imminent Cabinet reshuffle following the abrupt resignation last week of Mr Pridiyathorn Devakula.

The Bangkok Post and Dow Jones Newswire yesterday both quoted sources as saying Dr Chalongphob, 57, who has a PhD in economics from Cambridge and was an economist with the World Bank in Washington DC from 1979-1985, had been approached for the job.

He is currently the president of the Thailand Development and Research Institute, a private non-profit think-tank based in Bangkok.

The Post quoted a source in the Cabinet as saying that Dr Chalongphob - who could not be reached for comment - had agreed to take the post.

Dow Jones Newswire's 'government source' was quoted as having said: 'Unless something goes wrong at the last minute, he will be the next finance minister and it will be announced this week.'

Other candidates considered earlier may be reluctant to give up lucrative private sector careers for the government job - which under Thai laws could hamper their re-entry into the private sector. Hence the choice of Dr Chalongphob.

Dr Chalongphob is a noted economist who, among other things, taught at the University of California, Berkeley's department of economics from 1977-1979.

His areas of specialisation have been macroeconomic policy, economic and econometric modelling, international economics, poverty and income distribution, employment and human resources and transportation policy.

He is also a member of Thailand's appointed National Legislative Assembly, which functions as the country's Parliament.

Among the new finance minister's main priorities will be to restore investor confidence in Thailand, which has been shaken by a series of policy decisions and flip flops that have had a negative impact on business sentiment and the markets.

The job is a daunting one, say analysts, especially given that this government is, by the ruling military's own roadmap, expected to be in power only until the end of the year.

The Cabinet reshuffle is seen as a chance for Prime Minister Surayud Chulanont to banish the image of policy drift that his government has acquired - which has had a negative effect on his own popularity.

Thailand's powerful army chief, General Sonthi Boonyarataglin, head of the Council for National Security, yesterday said he had full confidence in the prime minister and would not interfere in the reshuffle.