Thailand Shows Off Its Capitalistic Side
Friday, November 17, 2006SUSIE GHARIB: Two months ago, Thailand's controversial prime minister was ousted by a military coup. Its leaders quickly appointed a civilian cabinet, but still faced condemnation by the international community, including the U.S. State Department. Still, as Rian Maelzer reports from Bangkok, there are still some positive signs of change.
RIAN MAELZER, NIGHTLY BUSINESS REPORT CORRESPONDENT: With not a soldier on the streets, you wouldn't know this was a country under martial law. The current calm contrasts to a year of turmoil marked by allegations of corruption against Prime Minister Thaksin Shinawatra, mass protests and a disputed election.
THITINAN PONGSUDHIRAK, PROFESSOR, CHULALONGKORN UNIVERSITY: The coup itself is regrettable; no coup is a good coup. But at the same time, you look at Thaksin, how he abused power, how he was unchecked, how he was unaccountable.
MAELZER: Several of Thaksin's policies that actually won praise from economists and business people got shelved during the months of turmoil leading up to the coup. Among them was the privatization of major state enterprises, major infrastructure projects and negotiations on a free-trade deal between Thailand and the U.S. That policy limbo contributed to a stagnant stock market, lackluster economic growth and slumping consumer and business confidence. But already there are signs of a turnaround, with foreign capital flowing back into the country.
SAKKARIN NIYOMSILPA, SENIOR ANALYST, KASIKORN RESEARCH CENTER: I have a lot more confidence in the economy right now than a few months ago and Kasikorn (ph) as a center has adjusted the Thai GDP upward -- our forecast upward after the coup.
MAELZER: One reason for the optimism is the highly respected economic team the coup leaders put in place, led by the former head of the Central Bank.
PRIDIYATHORN DEVAKULA, MINISTER OF FINANCE & DEPUTY PRIME MINISTER: The thing which is done with ambiguity, which doesn't smell, that smells fishy, we should get rid of it, because you have to bring back good governance to the country first. The economy that grows without good governance is not a sound economy.
MAELZER: Still, the interim rulers don't intend to throw out Thaksin's entire economic agenda, but say they plan to do things in a cleaner and more efficient manner.
DEVAKULA: A lot of Thaksin's ideas accompanied with waste, because he's quick in his mind, and instead of testing it or instead of studying it, implemented it right away.
MAELZER: They're pushing ahead with expanding Bangkok's rapid transit system and modifying policies such as cheap health care and assistance for the rural poor. And in a move welcomed by U.S. business, they say they'll resume free trade talks, but unlike Thaksin, will seek public input first.
STEVE GREEN, PRESIDENT, AMERICAN CHAMBER OF COMMERCE THAILAND: Most of the American businesses in the chamber have not seen any effect on their business from the recent political activities and we still believe Thailand is a very attractive place to do business.
MAELZER: But the current calm may not last. Thaksin retains strong support among the urban and rural poor and that's not likely to change unless the authorities can prove he was corrupt. And the middle class who despised Thaksin will expect the interim rulers to return Thailand to democracy next year, as promised.
SOMCHAI JITSUCHON, THAILAND DEVELOPMENT RESEARCH INST.: If we lost one year to try to clean the house and then try to make politics more transparent and more freer of corruption, I think that's worthwhile.
MAELZER: And if they achieve all that, the coup leaders may win over even their harshest critics. Rian Maelzer, NIGHTLY BUSINESS REPORT, Bangkok.
