15 November 2008

Subtle Crisis?



Thailand's current financial crisis
in the Nytimes last week:

"The poor may also benefit. Along with fuel, the price of rice has fallen sharply"

There is some irony in these words - given that more than 50% of Thailand's population works in agriculture - falling rice prices won't do much good for the rural poor. Last winter's food crisis manifested in high prices for mills and exporters, while farmers were stuck with the prices they earned before the market spiked.

Further, how will factory workers benefit from a slowdown in exports? Lower prices for consumer goods won't last forever, and the current low price for fuel is unbelievable to farmers. Perhaps the current crisis will show the problems created by export-led growth and the government will begin supporting sustainable rural economies. Or maybe we're just dreaming?

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