Libertarians in Thailand

Promoting Freedom in an Authoritarian nation

The goverment intrusion into the free market place is bad for the population

One if the core tenants of Libertarianism is that the market place – in large – needs to be left alone, when it comes to pricing and availability of goods. The reason for this is because market forces will always be more efficient in dealing with shortage and surplus in a way that doesn’t penalize the wrong individuals. But the urge of an authoritarian, fascistic of communistic government to intrude into the market place is often so strong it overrules any sane economical reasoning. Sometimes it is out of a flawed understanding of the market place and sometimes it is purely out of personal gain.

Please look at the video here and judge for yourself what is the reason in this case.

Translation:

“The Corruption Cycle Behind Thailand’s Rice Pledging Scheme

The government announced the rice would be sold through G2G, through a company called GSSG Import & Export that is represented in Thailand by Mr. Rathanit Sojiratkul (Palm), who is an assistant to the Parliamentary Member, Mrs. Rapipan Pongruengrong, wife of Arisman Pongruengrong one of the core Red Shirt leaders.

Mr. Rathanit then issued a power of attorney to Mr. Nimon Rakdee or Joe, a right hand man of Sia Pieng. Mr. Nimon then brought the rice from the government through the Foreign Trade Department. Sia Piang sold the rice he got for less than market value, as it did not go through the bidding process, and sold it to rice mills at market value.

The government lost out in the first phase because Sia Pieng took the profit from the sell. The mills in turn sold back the rice they got from Sia Pieng to the government’s rice pledging program. The government brought this rice at a price that is 40% higher than market value. Therefore the mills made profit from selling the rice back to the government while the government lost out again for the second time as they now have to pledge their own rice.

The fact that the government lost out twice in this deal is probably not a coincidence due their misjudgment. But it is because Sia Pieng is actually a close friend of Thaksin Shinawatra. They say they are selling the rice through G2G when in fact they are selling to a company owned by Thaksin’s close friend.

Don’t forget that the money the government lost out on twice is actually our tax money.” (Source: TVForum)

February 8, 2014 Posted by | Editorial | Leave a comment