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

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

His Majesty King Bhumibol Adulyadey and Prime Minister Thaksin

On January 1, 2006, Thaksin appeared invincible. By March 1, 2006, Thaksin's position looked much more vulnerable. The change is primarily due to His Majesty King Bhumibol Adulyadey and to Thaksin's family selling their telecommunications assets. Thailand's king is forbidden by law from interfering in politics. However, the Thais adore this king because he has spent his adult life helping Thailand. He developed better hybrids of rice, ways to revitalize Bangkok's canals, and flood/ drought control methods. He brought electricity to remote villages, medicine to the sick, and education to the poor. He is the ultimate, loving, father figure for the Thais. Because of their love for King Bhumibol, the Thais study his every word and deed to try to discern his views and then whole-heartedly support him.

For example, the King stopped the April Fool's Day coup of 1981 by leaving the capital with the then current prime minister, Prem Tinsulanonda. The Thais interpreted the King's presence with the current prime minister as showing his tacit support (Wright 1991). In 1992, when two powerful men started shooting at each other in Bangkok and some of the King's citizens were killed, the King interrupted Thai television to demand that the two leaders come to his audience chamber immediately. Within the hour, Thai television showed both men on their knees in front of the King who was condemning them for being immature. The king then commanded them to stay in an adjacent room until they found a way to live in peace.

The King has several times checked Thaksin's power. Thitinan Pongsudhirak of the Bangkok Post (Sept. 20, 2005) reported that the latest military promotion list underwent major revisions before the King would approve it. In the past, Thaksin used the military promotion process to place his former military classmates in key military positions. The 1977 coup, the 1981 and 1985 coup attempts, and the 1991 coup were all based on the domination of the military of specific classes from the Armed Forces academy (McCargo and Pathmanand 2005).

The King is also suppose to endorse the appointments of key political figures including Thailand's Auditor-General. After being appointed by the Senate and endorsed by the King, Auditor-General Jaruvan Maintaka started investigating accusations of corruption against Thaksin's government. Subsequently, the Constitutional Court found that Jaruvan's selection had been incorrect and the Senate appointed a replacement for Jaruvan. Pongsudhirak, in the above-mentioned Bangkok Post article, reported that the King ignored the Senate's request that he endorse the new Auditor-General. Jaruvan argued that this implied the King wanted her to remain as the Auditor-General. The person appointed by the Senate to replace Jaruvan withdrew his name because the King did not endorse him. The Senate had the locks changed on the Auditor-General's door to keep Jaruvan out, but she kept in contact with her staff via phone. Because the King, in his 2005 birthday speech, called on everyone to accept criticism, the senate ultimately re-instated Jaruvan.