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