The Journal of the Siam Society Vol. LXIV, Part 1-2, 1976 - Khamkoo

HEVIEWS 405
does not represent the "Westminster model", but it is welcome nevertheless.
His essay, however, is rather peripheral to the theme of the volume,
but his view on the present instability of the international monetary
system has already been justified by events. (p. 17) :-
''I cannot venture to predict how long the present upheavals in the
payments positions and prospects will last. This may take 2-3
years. But for all we know monetary conditions may take as long
as a decade to stabilize."
Thailand has benefited considerably
monetary management over the period from !965.
from Dr. Puey's conservative
Dr. Puey's views
on policy changes {pp. 17-21) are virtually all being gradually accepted,
although his preference for a system of "stable exchanges" (p. 20) is
unlikely to be realised for some years.
The central role of the SDR
(Special Drawing Right) predicted by Dr. Puey has already been
accepted.
The book then begins (Part 2) with an excellent overview, "Stability,
Growth and Distribution in the Thai Economy" (pp. 25-48) by
Ammar Siam walla.
He correctly stressed the remarkable stable growth
of the open and agricultural-based Thai economy from 1955-1972.
The
inflationary difficulties of 1974-1975 are ascribed not to the "commodities
boom" and sharp increase in the price of imported crude oil and
petroleum products, which left Thailand "a small net loser" (although by
the end of 1975 Thailand was a large loser), but the problem caused by
fixing the baht in terms of the dollar at a time when the dollar was
falling. Again the rise of the dollar from June-September 1975 is presumably
a factor favourable to lower inflation in 1975-1976. Certainly
Thailand is not likely to return to the stability enjoyed during the
period up to 1972. Thai growth is hampered by the problem of rice
production (p. 37) "which has now been roughly static for about 8 years"
and a rather disorganised industrial policy run by the Board of Investments
which bas been uncritical on foreign investments and lacked any
strategy on industrial exports. Dr. Amrnar concludes by focussing on
income inequality and (p. 4 7) ''the government policies which tend to
accentuate the inequality,.,.''. The problem of increasing rural/urban