Devnet – Democracy and Economic Policy of New Thai Government

Fumiyasu Akegawa, Chair & CEO DEVNET International/Japan

On August 22, 2023, the Thai upper and lower houses of parliament elected a new prime minister, Mr. Srettha Thavisin, a former businessman from the Pheu Thai Party, a faction of former PM Thaksin Shinawatra. A grand coalition government of a total of 11 parties, including two pro-military parties, is launched.

In the general election held in May, the progressive opposition party, the “Move Forward Party”, which called for reform of the monarchy, rose to the top position, and together with the Pheu Thai Party in second place, won a majority. The pro-military ruling party, led by former PM Gen Prayut, suffered a crushing defeat. The Move Forward Party aimed to form a coalition government with eight parties, including the Pheu Thai Party, by unifying the leader of the party, Mr. Pita, as the prime minister’s candidate. It didn’t come true.

The result is a setback to democratization in Thailand and has raised concerns in the international community. Thailand was ruled by a military government after a military coup in 2014. Although the 2019 general election resulted in a transition to civilian rule, the influence of the military government remained.

The results of May’s general election showed that the Thai people want to eliminate the influence of the military government and realize democracy. The Move Forward Party is a political party that has maintained a critical stance against the military government, and the fact that it has become the number one party is a manifestation of the Thai people’s strong will for democracy.

In order to realize this will of the people, the new administration must address the following issues.

1. Senate election reform

Under the current system of electing senators, half of the senators are appointed under military rule, making it difficult to eliminate the influence of the military. By changing the selection of senators to a direct election system, it will be possible to eliminate the influence of the military and build a democratic political system.

2. Respect for the freedom and rights of the people

In Thailand, under the rule of the military government, civil liberties and rights such as freedom of speech and freedom of assembly and association have been restricted. It is important to eliminate political intervention and human rights violations by the military, respect the freedom and rights of the people, and conduct politics that reflects the opinions of the people.

3. Mr. Thaksin’s influence and the relations with the monarchy

Mr. Srettha is a man who is reportedly close to former PM Mr. Thaksin Shinawatra. Mr. Thaksin’s influence over the Pheu Thai Party remains significant. The Pheu Thai Party is also said to have good relations with the monarchy. Mr. Thaksin’s influence over the party and the relationship between the party and the monarchy are issues that are at the root of Thailand’s political conflict.

At the same time, the most important thing for the coalition government that eliminated the 1st party, the Move Forward Party, and included pro-military forces, was to revive the Thai economy. The expectations of the Thai people regarding Mr. Srettha’s economic policies can be broadly summarized in the following two points.

1. Economic growth and job creation

Thailand’s economy is stagnant due to the impact of the new coronavirus infection and the impact of the Russia-Ukraine war. Therefore, the public expects Srettha’s government to achieve economic growth and job creation, and to improve people’s lives. Specifically, policies such as infrastructure development, support for small and medium-sized enterprises, and agricultural promotion will be necessary.

2. Improving the lives of the poor

Thailand’s poverty rate is about 6.7% (2022), which is high among ASEAN countries. As such, the public expects Srettha’s government to work to improve the lives of the poor. Specifically, these policies include the payment of benefits to low-income earners and the provision of free education and medical care.

For the Pheu Thai Party, which has been criticized for making deals with pro-military forces to bring Mr. Thaksin back home, reviving the Thai economy is an absolute requirement for running the government without relying on pro-military forces.

After 15 years of fugitive life, Mr. Thaksin returned to Thailand as the Pheu Thai Party took power this time, and has been arrested and imprisoned. However, if the new administration gets on track, he should receive a pardon from the king in about three months. If that happens, the Thai economy will also pick up at once. The success of economic policy is the key to Thailand breaking away from military rule and realizing democratization. I am looking forward to Mr. Srettha’s leadership.