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IMF Preliminary Proposal for THAILAND

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Presentation on theme: "IMF Preliminary Proposal for THAILAND"— Presentation transcript:

1 IMF Preliminary Proposal for THAILAND
October 10, 2002 2/23/2019

2 2/23/2019

3 Thailand’s Current Situation
Introduction/Welcome Brief overview of Thailand’s financial status 2/23/2019

4 Goal of PRIVATIZATION:
Help solve Balance of Payments problems, while encouraging long-term sustained growth. 2/23/2019

5 How/Why Privatization Works
Promotes Efficiency Provides Debt Relief 2/23/2019

6 1. EFFICIENCY Privatization of enterprises strengthens the economic performance of those enterprises. Leads to increased productivity, and Higher profitability 2/23/2019

7 1. EFFICIENCY (cont’d) Allows for competition
Leads to lower prices, and More choices for consumers 2/23/2019

8 2. DEBT RELIEF Proceeds generated from the sale of SOEs
Discontinuation of subsidies 2/23/2019

9 Applying Privatization to Thailand’s Current Economic Situation
Real world application for Thailand’s key economic sectors:  Energy  Telecommunications  Water  Transportation 2/23/2019

10 Energy Thailand produces billion kWh (1999) of energy but uses billion kWh (1999) of electricity. Stimulation of competition in the industry will increase output, lower prices for the end user, and stimulate economic recovery through cheaper energy. 2/23/2019

11 Telecommunications Deregulation: open the industry to private investment Stimulate infrastructure growth through improved communications media CIA World FactBook General Assessment:  Investment in technological upgrades reduced by recession Multi-channel cable and microwave radio relay network 2/23/2019

12 Water Strong IMF policy for clean and self-sufficient water sources
Help stave off environmental and social inequality concerns 2/23/2019

13 Transportation Functional transportation systems essential in the development of a functional economic system Privatize Thai Airways International with a Joint Foreign Partner, providing foreign capital Quickly establish more modern and efficient modes of transportation 2/23/2019

14 Available Options Timetable of Financial Disbursements
Floating Tranche Approach Structural Measures Reconciling Conditionality and Country Ownership Increased Private Sector Participation 2/23/2019

15 2/23/2019


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