Travel Reference
In-Depth Information
which represented the urban middle class and business interests. Its major base of support
came from the southern Thai population centres. Formerly port towns, these were now
dominated by tourism and exports (rubber, tin and fishing). On the other side of the spec-
trum were the former pro-military politicians based in the central plains and the people of
the agrarian northeast in new provincial towns who focused on state-budget distribution
to their provinces. These political lines exist today.
In 1997, the boom years went bust and the Asian economic crisis unfolded. The coun-
try's economy was plagued by foreign-debt burdens, an overextension in the real-estate
sector and a devalued currency. Within months of the crisis, the Thai currency plunged
from 25B to 56B per US$1. The International Monetary Fund (IMF) stepped in to impose
financial and legal reforms and economic liberalisation programs in exchange for more
than US$17 billion to stabilise the Thai currency.
In the aftermath of the crisis, the Democrats returned to power uncontested, but were
viewed as ineffective as the economy worsened.
Without the job of being absolute monarch, King Bhumibol had to find new work so he started the Royal
Project Foundation in 1969 to help struggling farmers. The foundation's most lauded effort was eradica-
tion of opium cultivation among the northern hill tribes.
Thaksinocracy
In 2000, the economic slump began to ease and business interests eclipsed the military as
the dominant political force in Thai politics. The telecommunications billionaire and
former police officer, Thaksin Shinawatra, through his Thai Rak Thai (TRT or 'Thai Lov-
ing Thai') party, capitalised on this rising nationalism and won a majority in the elections
of 2001. Self-styled as a CEO-politician, Thaksin swiftly delivered on his campaign
promises for rural development, including agrarian debt relief, village capital funds and
cheap health care.
Thanks to the 1997 constitutional reforms designed to strengthen the prime minister's
position, Thaksin's government was one of Thai history's most stable. The surging eco-
nomy and his bold, if strong-arm, leadership won an outright majority in 2005, effect-
ively introducing one-party rule. His popularity among the working class and rural voters
was immense.
In 2006 Thaksin was accused of abusing his powers and of conflicts of interest, most
notably in his family's sale of their Shin Corporation to the Singaporean government for
