Korn warns upturn at risk

       Renewed political violence could jeopardise Thailand's budding economic recovery, Finance Minister Korn Chatikavanij warns.
       "The economy is improving, thanks to the efforts of all parties," he said yesterday."But [violence] will certainly hurt the business environment, and be a drag on efforts towards economic recovery."
       The Democrat-led government has announced it would use powers under the Internal Security Act to keep law and order from Saturday to Tuesday in anticipation of red shirt protests in the capital on Sunday.
       The protesters, under the banner of the United Front for Democracy against Dictatorship, oppose the government and are largely supporters of ousted prime minister Thaksin Shinawatra.
       Last April, UDD-led protests led to the disruption of the Association of Southeast Asian Nations summit in Pattaya and several days of rioting in Bangkok.
       Mr Korn asked all parties to "remain within the limits of the law", saying the government respected the people's right to peaceful assembly.
       Speaking at a ceremony to launch the Thai-Asean News Network, Mr Korn insisted the government had made strides in reviving the economy.
       The National Economic and Social Development Board this week said the economy shrank 4.9% in the second quarter from last year, a slower pace of decline compared with the 7.1%year-on-year contraction in the first quarter. The economy in the second quarter grew 2.3% from the end of March, compared with a 1.8% decline quarter-on-quarter in the first three months of the year.
       Mr Korn said there were clear signals of economic recovery, and state stimulus programmes had played a key part in helping to reduce job losses as a result of the global economic crisis.
       Unemployment now stood at700,000 people, a significantly better outcome than had been originally feared of 2 million without work.
       The "Thailand Strength" investment programme, to be formally launched next week, would create 2 million new jobs over the next three years and pave the way for sustained, medium-term growth, the minister said.
       Mr Korn said 1.06 trillion baht worth of investment projects under the Thai-land Strength programme had been approved and were ready to begin,out of a total 1.5 trillion baht in spending earmarked through 2012.
       A website would be set up for the public to monitor the progress of each project to ensure the transparency of the programme.
       "The Thailand Strength projects were selected from among those ready to go. We dropped a number of projects,not because they were bad but because they were not ready," Mr Korn said.
       "[These are the] projects that the public have been waiting for."
       Prime Minister Abhisit Vejjajiva welcomed the launch of the Thai-Asean News Network.
       He said the country remained fully committed to press freedom.
       A strong, free press helped increase transparency within a society as well as support democracy, he said.