Friday, July 25, 2003
Thaksin and Thailand
If one were to believe the macro-economic numbers, Thailand seems to have recovered from the Asian financial crisis well. GDP growth hit 5.3% last year and 6.7% first quarter this year; not comparable to the country's incredible growth in the nineties, but still making Thailand one of the fastest growing economies in Asia. How much of the turnaround in Thailand can be attributed to Thaksin Shinawatra, telecom tycoon and prime minister, who enjoys popularity ratings in excess of 70%? Business Week explores the issue.
The Bangkok stock exchange is up 41% for the year. Hard-currency reserves have hit $40 billion. Interest rates have fallen to 1.25%, their lowest level since the crisis. Thaksin is helping peasants and poor urban laborers with affordable medical care and microloans to small businesses and farms. He's cracking down on drugs, prostitution, and organized crime by ordering police sweeps and going after elected officials and civil servants accused of corruption.
Yet while many Thais admire Thaksin and his accomplishments, others are very uneasy over what this politician is doing. Opponents fear Thaksin is increasing his grip on power by cutting down potential rivals and filling key government and military posts with family members and associates from Shin Corp., the telecom and media empire he built up in the 1990s. They say he targets vocal opponents in Thailand's nongovernmental organizations. Others point to a brutally effective campaign against drug dealers as an assault on civil rights.
The Bangkok stock exchange is up 41% for the year. Hard-currency reserves have hit $40 billion. Interest rates have fallen to 1.25%, their lowest level since the crisis. Thaksin is helping peasants and poor urban laborers with affordable medical care and microloans to small businesses and farms. He's cracking down on drugs, prostitution, and organized crime by ordering police sweeps and going after elected officials and civil servants accused of corruption.
Yet while many Thais admire Thaksin and his accomplishments, others are very uneasy over what this politician is doing. Opponents fear Thaksin is increasing his grip on power by cutting down potential rivals and filling key government and military posts with family members and associates from Shin Corp., the telecom and media empire he built up in the 1990s. They say he targets vocal opponents in Thailand's nongovernmental organizations. Others point to a brutally effective campaign against drug dealers as an assault on civil rights.
