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6 March, 2006
Inside Thailand’s current political turmoil and Prime Minister’s Thaksin Sinawatra’s rush to elections next month to solidify his authority rests the issue of privatisation and whether or not a country’s resources belong in public control or sold off to capital markets.
There is little question of where Thaksin stands, judging from his own business dealings and his government’s actions to break up the Electricity Generating Authority of Thailand (EGAT), as well as Metropolitan and Provincial electric utilities.
A central demand by the political opposition, which seeks Thaksin’s resignation, is immediate debate and introduction of new constitutional amendments. Thaksin is seeking a quick victory, allowing him to continue setting constitutional precedents, including the ones he has used as the means to sell public-vested enterprises to investors. Initial listing of EGAT on the stock markets was scheduled for November 2005, but has been suspended pending a court review.
New debate also has surfaced over privatising the regional electric power authorities, scheduled for later this year. Last month, the Thai Finance Ministry raised uncertainties on privatising these utilities by stating electricity rates are set by government policy, raising questions on profitability and revenue forecasts. Even more to the point, a ministry official said new investment decisions cannot necessarily be made just on commercial reasoning, but also must be made on social needs.
“The plan to shift transmission wires underground will in no way help boost profits, but rather is aimed at improving service quality and the community,” the official told the Bangkok Post. The outcome in Thailand over the next several weeks promises to be the watershed that will shape political decision-making well into the future.