Thailand's financial crisis: its causes, consequences, and implications

Journal of Economic Issues, March, 2007 by Jonathan E. Leightner

Thaksin also controls Thailand's police force. In 2001, Thaksin told Thailand's police to eradicate drugs from Thailand. When questioned about the 1700 to 2500 extra judicial killings that occurred in Thaksin's campaign against drugs (McCargo and Pathmanand 2005, 245), Thaksin was unrepentant. Thaksin's efforts to use similar strong-arm tactics against Muslim rebels have been less successful in Thailand's deep south, where over 1000 died between January 2004 and December 2005. Thaksin repeatedly says things that further alienate the Muslims. For example, Veera Prateepchaikul of the Bangkok Post (Nov. 7, 2005) reports that, Thaksin said that provinces that voted wholly for his party "would get special attention from the government while the others would have to wait in the queue." In the 2005 elections, the deep south voted overwhelmingly for the Democratic party, not for Thaksin's Thai Love Thai party. All evidence to date shows that Thaksin insists on absolute control; will use whatever methods it takes to get that control; and gets very angry when criticized.

Thaksin has tried several methods to silence criticism from the press. Immediately prior to the 2001 elections, one of Thaksin's companies "purchased a controlling interest in iTV, an 'independent' television station with a reputation for strong and critical news coverage. More than 20 of the more outspoken iTV journalists were immediately fired" (McCargo and Pathmanand 2005, 189). After the iTV purchase, Thaksin controlled all Thai TV networks. Critics cannot use radio waves because the Thai military controls all radio waves and Thaksin controls the military. When the newspaper, Manager Daily, published the sermon of an important Buddhist monk, which compared Thaksin to one of Buddha's most evil adversaries, Thaksin sued the paper for 500 million baht (US$12 million). The Bangkok Post (Oct. 12, 2005) explained that the monk, who accused Thaksin of ruining the country, being ungrateful and arrogant, and wanting to abuse his power, could not be sued due to his religious position. The Thai press is scared--Thaksin is extremely rich and powerful and, if you dare to criticize him, he sets out to destroy you. Thirayuth Boonmi, a student activist from the 1970s and now a sociology lecturer at Thammasat University, is one of Thaksin's most vocal critics. Thirayuth coined words like "Thaksinisation," "Thaksinocracy," and "Thaksinocronies" (McCargo and Pathmanand 2005).

Since the February 2005 election gave the Thai Love Thai political party so much of a majority that censure motions are not possible and since the scrutiny role of the press has been squelched, some could argue that the checks and balances necessary for a democracy have been short circuited in Thailand. However, perhaps having a CEO run a developing country like a corporation may produce good results--the economy has greatly improved. The key issues are: (1) can Thaksin successfully run Thailand as a corporation; and (2) will Thaksin's desire to create a legacy for himself as Thailand's savior keep his desire for personal profit sufficiently in check? No matter what Thaksin's ultimate legacy, the crisis has caused Thai political institutions to evolve by: (1) replacing coalition governments with a single party rule; (2) discrediting the new constitution and the anti-corruption institutions it set up; (3) moving away from free press and free speech towards censorship and government control of the media; and (4) moving from a parliamentary form of government toward the domination of the entire political system by one man--the prime minister.