The right track

The right track

After shedding three finance ministers and experiencing an
economic crisis that dragged Asia down in its wake, Thailand
finally seems to have found the political courage to get its
finances back on track.

The decision to permanently close 56 out of 58 suspended
finance houses exceeded expectations. It shows a new-found
willingness to take decisions that benefit the whole nation, not
just the wealthy families who stand to lose from the closures.
But whether this is a turning point in Thailand's attitude to the
overdue task of economic restructuring depends on how it now acts
to dispose of the assets and bad debts of these companies.

In fact, there are encouraging signs that Asian economies as a
whole are finally beginning to move in the right direction.
Malaysia's austerity package, which even included a cut in pay
for cabinet ministers, marks a more positive response to its
economic crisis than the initial reaction of putting the blame on
foreigners. Only in South Korea is the picture less promising.
The election campaign there is tempting politicians to doubt
pledges already made to the International Monetary Fund. Only
after next week's poll will it become clear if Seoul is prepared
to follow the lead of Thailand and Malaysia in taking the tough
measures necessary for recovery.

-- South China Morning Post