Abstract
This edited volume sheds light on the state of the current Thai political economy by merging macro and micro themes from various authors that add distinctively to scholarship surrounding Thai studies. This volume brings together 16 authors which allows for a rounded conceptualization of the dynamics pushing Thai politics from a national to local level since the Asian financial crisis. The strength of this volume lies in the authorship and the authors’ ability to access distinguishing and original research which has not previously been studied in-depth.
Several studies in this volume are unique and far overdue to the field of Thai studies. The central theme of this edited volume is that the 1997 economic crisis has affected Thai domestic capital in a detrimental fashion yet it also acted as a primer for increased consolidation. Domestic capital which survived has done so by largess of political connections and a grudging withdrawal to foreign investment. The crisis itself dramatically changed the nature of provincial politics which was coupled with political reforms enacted under the 1997 constitution; these twin factors have impacted strongly on Thailand’s political economy causing both a strong revival as well as a retrenched political stance by Thailand’s domestic business elite.
Porphant Ouyyannont’s analysis of the Crown Property Bureau’s (CPB) role in the formulation and practice of Thai capitalism is far overdue and severely understudied. Ouyyannont concedes that the crisis forced the CPB to reorganize its business operations, in particular Siam Cement and Siam Commercial Bank in order to rationalize its operations and stave off permanent damage. The unique role and relation of the CPB and its investment strategy is explicated and shown to be one that supports social functions by providing discount services in land rental while engaging in competitive business operations. The opaque nature of the CPB and its special status within the greater Thai political and business environment is given distinct mention with reference to its legal standing and intangible power due to its standing as an investment vehicle of the monarchy.
Nualnoi Treerat’s study of Mr Charoen and Thai Beverage is illuminating as to the twin role of informal/personalized politics intertwining with the formal economic sector and manifesting themselves within the greater sphere of socio-political life. Nualnoi distinctly shows that political connections have been a cornerstone of Charoen’s success, allowing him to build and maintain a virtual monopoly in Thailand’s liquor industry. The degree of political connections combined with his business acumen allowed Charoen to benefit and expand his business during the crisis while emerging stronger from the crisis.
Original research of local politics in Rayong was undertaken by Chaiyon Praditsit and Olarn Thinbangtieo which demonstrates the nature of economic change along Thailand’s eastern seaboard and fashion in which three dominant political clans have competed for political influence in local, provincial and national politics in order to secure their local business interests. Viengrat Netipho takes the same case study position and illustrates how business, politics and immigrant Chinese have come to dominate the political scene in the northern city of Chiang Mai.
Individual economic sectors of the automobile, services and telecommunications are analyzed within the framework of crisis politics. The telecommunications sectoral analysis undertaken by Ukrist Pathmanand and Chris Baker is of particular importance as this directly relates to Thailand’s current political situation and ex-Prime Minister (PM) Thaksin Shinawatra’s rise and use of political connections and power to enrich and protect his business empire from liberalization, regulation and ultimately by being able to set the rules of the game to favor his own personal interests.
The automobile sector is analyzed by Sakkarin Niyomsilpa, who illustrates the dynamic change and vital interests of this particular sector to the Thai economy. Sakkarin further shows that the crisis damaged domestic entrepreneurs’ positions and opened the door for foreign capital and ownership to fully engulf Thailand’s automobile industry.
Veerayooth Kanchoochat undertakes a comparative study of the retail and hypermarket industry to show how the crisis allowed for full foreign penetration in this sector, which has had dramatic social and cultural effects within Thailand’s consumer behavior as well as logistics infrastructure. The crisis is shown to have set an agenda within the Thai government at the time that saw foreign investment as essential and due to the lack of a strong regulatory environment foreign retail giants were able to penetrate the Thai market and continue to expand their operations.
Thanee Chaiwat and Pasuk Phongpaichit demonstrate the changing nature of Thai political economy in their examination of the changing dynamics of rents and rent seeking behavior under the premiership of ex-Prime Minister Thaksin Shinawatra. Their study sheds light on the role which the former PM played in delegating political rents within economic circles while changing the entire nature of how political power is deployed in the post-1997 constitution era.
This volume will assist readers’ understanding of the Thai political economy and is more than highly relevant given the current political situation which is reflective of the works undertaken in this volume. The economic crisis and 1997 constitution have served to create an environment in Thai politics where business and political interests have adapted in the face of a conservative backlash best exemplified by the 2006 coup and subsequent constitution installed under the military junta regime. The 2007 constitution was an attempt to curtail the power of certain business-minded politicians who exploited the liberalist 1997 constitution which can be seen as a direct attempt by Thailand’s urban elite to constrain the growing power of provincial politicians who attained great influence due to the very conditions which this volume demonstrates. Economic growth, globalization, local politics and ultimately the rise of money politics is at the heart of this volume and it indeed shows with critical validity how, in Thailand, business is politics and politics is business. The symbiotic nature of this relationship and how it plays itself out in Bangkok and its periphery is what gives readers a truly insider’s view of Thailand’s political space.