Tisk tisk thaksin

[Guest]

Ignoring critics, Thaksin tightens his grip on nation



The popular gossip is over whether PM Thaksin can even last a full 4-year term.


The Darker Side Of Thaksinomics

BANGKOK: -- Signs of coming hard times are evident on both the economic and political fronts, which is probably making Prime Minister Thaksin Shinawatra more than just a little anxious over his prospects for being able to achieve his larger goals - a longer rule and a firmer grip on the country.

Just months before the twin outbreaks of the crisis in the three southernmost provinces and bird flu the situation was favourable to our CEO, allowing him to do whatever he wanted. He was so confident, in fact, that he saw fit to declare that Thai Rak Thai would be in government for 20 years.

Now the popular gossip is over whether he can even last a full 4-year term. He has not repeated his boast that Thai Rak Thai will win more than 400 House seats in the next general election, due just a year from now, for some time.

Though it has won the prime minister some applause from other ASEAN leaders, the so-called "dual track" of Thaksinomics - pumping up exports and stimulating domestic consumption - has had only temporary success in boosting the economy. In fact, the country has come close to overheating as consumers went on a spending spree for cars and homes.

However, the positive effects of the dual track hide another dual track, a negative one, that has been masterfully laid out by our CEO. Though it has taken smart people two years to feel it, it will be a while yet before the prime minister's admirers come to their senses and see that the evil of the second dual track will have a long-lasting corrosive effect on our political, economic and social structures.

The most obvious result of the second dual track is that it has blurred the public's sense of right and wrong, especially among the gullible and naive, who have been lulled into complacency by government freebies and debts disguised as easy money.

This dual track, which has been publicly declared not with pride but with great gusto, is a combination of "crony politics" and "crony capitalism". During the past three years, Cabinet posts have been transformed into seats in a game of musical chairs, allowing the prime minister's political cronies to get on-the-job training.

It has not mattered that most, if not all, of them, have unsavoury reputations, character problems and a tendency towards dishonesty. Crony politicians who fail to perform their duties to the satisfaction of the boss are routinely sidelined or given less important assignments in obscure positions through a process known as a Cabinet reshuffle.

Enlightened and disillusioned members of the public are starting to judge our CEO by the company he keeps.

Crony politics and capitalism are important tools in keeping certain issues out of the public domain. No wonder that our CEO does not want to be the target of a no-confidence debate. He avoids questioning in the House by raising embarrassing issues to display his intellectual superiority over the people he rules.

Cronyism has created massive wealth among those loyal to the administration. Kickbacks are being made in higher percentages and with greater audacity.

Big money has been reaped from the stock market through sweetheart stock allocations. Thanks to price manipulation and the use of insider information, the stock market has enjoyed a bullish period and the beneficiaries from this sudden boom are politicians and their business cronies.

Alas, the good times fuelled by crony capitalism do not last long. New stocks have to be listed to maintain the upward momentum. When the listing of the Electricity Generating Authority of Thailand encountered stiff resistance from state enterprise workers, the weakness of Thaksinomics was revealed to disillusioned minds.

It is no longer easy for our CEO to use the stocks of profitable state enterprises to boost market capitalisation and create a new mirage for the GDP figure.

Rising steel prices have shaken the real estate sector, which is one of the main underpinnings of GDP growth. With weaker consumer purchasing power and growing debts due to the days of easy money, the punishment for the sins of crony politics and crony capitalism will be passed on to the common people.

The atmosphere of doom and gloom is not quite here. But all the signs that it is imminent are there. Maybe the public has been too slow in understanding the complexity of "Thaksinomics", which, like a coin, has two sides.

One side bears the dual track of strong exports and domestic consumption, while the other hides the evil of crony politics and capitalism. This side benefits only the few.

Source: New York Times 2004-03-15

[Snick]

BANGKOK €” In a country where people pride themselves on tranquillity and deference, Prime Minister Thaksin Shinawatra of Thailand shows little of either trait.

Mr. Thaksin, a former policeman who got rich in the telecommunications business, is out front and boastful, asserting that Thailand can serve as the leader of a newly vibrant Southeast Asia. He is the region's modern man, he says.

But complaints about an increasingly authoritarian style and perceptions that his government's decisions benefit his family's financial interests have taken the sheen off the region's rising star.

His most immediate political problems center on unrest in the Muslim-dominated south and anger over his government's failure to warn about the outbreak of Asian bird flu even though officials knew the disease was at hand.

In the capital, intellectuals refer to Mr. Thaksin as the Berlusconi of Asia, a reference to Prime Minister Silvio Berlusconi of Italy, a business tycoon who has faced continuing accusations of conflict of interest.

Mr. Thaksin ran his corporation as a one-man show, and he runs the country the same way, his critics assert. He has tightened his grip on television, radio and the newspapers €” leaving few news outlets free of political influence.

"He doesn't have a democratic instinct," said Ammar Siamalla, one of the country's leading economists.

Asked by Thai reporters about the growing criticism, Mr. Thaksin responded, "Decisiveness isn't dictatorship." Anyway, he said, his wife, Pojamarn, a general's daughter and businesswoman, always keeps him in check. "The Thais have my wife as a warning machine," he said.

The United States added to the criticism recently, saying in its annual human rights report that the Thaksin government had killed many civilians during its crackdown on drug trafficking last year.

In response, Mr. Thaksin called the United States a "useless friend," perhaps implying that Washington should be more grateful for Thailand's contribution of nearly 500 troops in Iraq.

In many respects, Mr. Thaksin, 54, who has a degree in criminal justice from Sam Houston State University in Texas and recently wore a watermelon pink shirt to a cabinet meeting, has delivered on his promises.

Thailand's economy was one of the standouts in Asia last year, growing by more than 6 percent. With steady demand from China for electronic parts, petrochemicals and rubber, Thailand can expect even higher growth this year, said Supavud Saicheun, chief of research at Phatra Securities.

In a major face-lift for the country, Mr. Thaksin is pushing ahead on plans for Heaven City, a satellite city intended as a smog-free alternative to the traffic-choked capital. He says he will replace the worn-out international airport, and he wants to upgrade the railways. He has challenged the Thai auto industry to become the Detroit of the region, and he has urged Thailand's little-known fashion designers to elevate Bangkok to become the Paris of the East.

Along with the increased public spending, he has encouraged easy credit for corporations and consumers. He has provided the nation's 70,000 villages with a system of microcredits and introduced almost free health care at hospitals.

These programs have increased his popularity: he is regarded as the first Thai prime minister to act on behalf of the poor. But the programs have not worked smoothly.

Villagers in Mr. Thaksin's home area around the northern city of Chiang Mai say many poor people have run up large debts because they have little understanding of the obligations of borrowing.

Tong Taan Wong, 66, a shopkeeper, said he resigned from his village's loan committee because he did not want to be involved in the unpopular cause of debt collection. Tang-on Ong-sun Torn, 28, said her husband bought 18 bicycles for a rental business but found few customers. He gave up the business and still had a big loan to pay back, she said.

In the capital, nepotism is a major concern. The prime minister's cousin, Gen. Chaiyasit Shinawatra, is now commander in chief of the army. One of Mr. Thaksin's sisters, Yaowapha Wongsawat, heads a faction within the governing Thai Rak Thai Party. Another sister, Yaovares Shinawatra, is the leader of the National Council of Women.

Somkiat Tangkitvanich, an economist and a research director at the Thailand Development Research Institute, recently completed a study of how political connections affected Thai businesses.

His analysis showed that companies on the Bangkok stock exchange in which the Shin Corporation, the Thaksin family's company, owned significant holdings, did spectacularly better in 2003 than other listed companies, including those whose major shareholders included families of cabinet members.

Further, Mr. Somkiat said, a government decree effectively barred the liberalization of the Thai telecommunications industry, which is dominated by the Thaksin family company. The decree added an excise tax on new telecommunication companies.

In another decision, Mr. Somkiat said, a government board provided a corporate income tax exemption for eight years on revenue generated overseas from new communications satellites. The Shin Corporation is about to launch its fourth satellite, he said.

Since Mr. Thaksin took office, the press has come under intense pressure from the government. The editor of an influential English-language daily, The Bangkok Post, Veera Pratheepchaikul, was removed last month after the newspaper ran articles critical of Mr. Thaksin. Other journalists and editors have been dismissed. The family of a cabinet member has become a major stockholder of a second English-language daily, The Nation.

Asked about the assertion that the government policies favored the prime minister's family interests, Mr. Thaksin's spokesman, Jakrapob Penkair, said: "The prime minister wants the economy to be better off because then everyone benefits. He compares the economy to a container. When it rains, a big container collects more water, a small container less."

Giving a rendition of trickle-down economics, Mr. Jakrapob said those who had a big container in the economy €” the wealthy €” received "more reward" but those with a small container also benefited.

Mr. Somkiat, who studied the administration, said, "I'd say Thaksin has the only container

Source: NYTimes March 14, 2004

[stogie bear]

Thanks for the articles... Good read.

[Guest]

Taksin has openly expressed his admiration for such dictators as  Field Marshal Sarit Thanarat (who had 50 mistresses and 100 Million Dollars in ill-gotten capital gains at the time he died in 1963). This DRUNK also had cirrhosis of the liver; the very anal-retentive former Prime Minister Lee of Singapore (who closed down wonderful Bugis Street, a prime ladyboy venue back in the 1970s and early 1980s).
Taksin built his fortune on the back of his INCREDIBLY WEALTHY wife.
Hey, he made his money the old-fashioned way:
HE MARRIED THE BOSS' DAUGHTER.
Mr. Lonely