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Asean

The two faces of Thai authoritarianism

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Author: Thitinan Pongsudhirak

Thai politics has completed a dramatic turn from electoral authoritarianism under deposed premier Thaksin Shinawatra in 2001–2006 to a virtual military government under General Prayuth Chan-ocha. These two sides of the authoritarian coin, electoral and military, represent Thailand’s painful learning curve. The most daunting challenge for the country is not to choose one or the other but to create a hybrid that combines electoral sources of legitimacy for democratic rule and some measure of moral authority and integrity often lacked by elected officials.

A decade ago, Thaksin was practically unchallenged in Thailand. He had earlier squeaked through an assets concealment trial on a narrow and questionable vote after nearly winning a majority in the January 2001 election. A consummate politician and former police officer, Thaksin benefited from extensive networks in business and the bureaucracy, including the police and army.

In politics, his Thai Rak Thai party became a juggernaut. It devised a popular policy platform, featuring affordable universal healthcare, debt relief and microcredit schemes. It won over most of the rural electorate and even the majority of Bangkok. Absorbing smaller parties, Thai Rak Thai virtually monopolised party politics in view of a weak opposition.

Thaksin penetrated and controlled supposedly independent agencies aimed at promoting accountability, particularly the Constitutional Court, the Election Commission and the Anti-Corruption Commission. His confidants and loyalists steered these agencies. His cousin became the army’s Commander-in-Chief. His police cohorts were fast-tracked to senior positions, including his brother-in-law, who became national police chief. Similarly, Thaksin’s business allies and associated partners secured plum concessions and choice government procurement projects.

After his landslide victory in February 2005, Thaksin became the first prime minister to be re-elected and to preside over a government composed only of one party. But his virtual monopoly on Thai politics and accompanying hubris inevitably got the better of him. Making a lucrative business out of politics led to his demise in the September 2006 military coup. Thaksin’s rule was democratic on paper but authoritarian in practice.

Yet Thaksin’s legacy is already strong. His subsequent proxy governments in 2008 and 2011–2014, under his sister Yingluck Shinawatra, were politically paralysed by anti-Thaksin street protests. When Yingluck looked poised to complete her term, Thaksin’s Pheu Thai party came up with a blanket amnesty bill that upended her government, assisted by the independent agencies that had turned against Thaksin in the 2006 coup. The putsch on 22 May 2014 was merely the knock-out blow on an ineffectual administration that was not allowed to govern.

Now the pendulum has swung to the other, authoritarian end. General Prayuth now heads a regime with no democratic pretences, ruling with absolute power. His is a military government both on paper and in practice. The tone of the 22 May coup clearly signalled that the military would dominate politics, epitomised by the general himself becoming prime minister.

Prayuth’s allies under the National Council for Peace and Order (NCPO) have now taken key portfolios relating to the Thai economy and society, foreign affairs and internal security. The structure of power under the NCPO is clear.

Two months after seizing power, the NCPO rolled out an interim constitution and appointed a National Legislative Assembly (NLA). Today the NLA is filled not with business cronies and spouses of politicians but with military classmates and siblings, who in turn chose Prayuth as prime minister. The caretaker prime minister then selected his cabinet, more than one third of which is military. The National Reform Council (NRC) will soon be formed, leading to a constitution-drafting committee, which will be nominated by the NRC, NLA, cabinet and NCPO.

Like a politburo, the NCPO is thus the nexus of this interim governing structure, comprising the NLA, cabinet, and NRC. This monopoly of power is reminiscent of the Thaksin juggernaut a decade ago. It was a parliamentary dictatorship then as it is now. But the fundamental difference is that the current authoritarian period completely bypassed the electorate.

Prayuth enjoys the same immense personal popularity as Thaksin did. His no-nonsense state of the nation speeches have been to the point and delivered in appealing tones. The NCPO’s anti-corruption campaign is popular and would certainly score more points if it dared to aim at higher-up corruption schemes and concessions, not just low-hanging fruits like extortion rackets that run motorcycle taxis and the state lottery.

Prayuth and the NCPO also benefit from the fact that public expectations started from a low base. After six months of anti-government street protests and policy paralysis, the coup was a relief. Everyone had to make do with the coup because there was no initial alternative in the face of continuing martial law. But reality will start to bite as the military-dominated government starts its day-to-day work. The next 14 months of the NCPO’s timetable to return to democratic rule may be long and hard.

The military-backed government faces a tall order dealing with the grievances and expectations of a neglected electorate. Those who spoke out against the political monster that the Thaksin regime eventually became must now be wary of the potential for the military-backed government setting on a similar path. Unaccountable power with absolute authority and direct rule is inadvisable in Thailand. Past experiences in the 1960s, early 1970s and 1991–1992 have shown that such governments eventually end in tears.

Thitinan Pongsudhirak teaches International Political Economy and is Director of the Institute of Security and International Studies at Chulalongkorn University in Bangkok.

A version of this article was earlier published here in The Straits Times.

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The two faces of Thai authoritarianism

Asean

ASEAN weathering the COVID-19 typhoon

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Vietnam's Prime Minister Nguyen Xuan Phuc addresses a special video conference with leaders of the Association of Southeast Asian Nations (ASEAN), on the coronavirus disease (COVID-19), in Hanoi 14 April, 2020 (Photo:Reuters/Manan Vatsyayana).

Author: Sandra Seno-Alday, Sydney University

The roughly 20 typhoons that hit Southeast Asia each year pale in comparison to the impact on the region of COVID-19 — a storm of a very different sort striking not just Southeast Asia but the world.

 

Just how badly is the COVID-19 typhoon thrashing the region? And what might the post-crisis recovery and reconstruction look like? To answer these questions, it is necessary to investigate the strengths and vulnerabilities of Southeast Asia’s pre-COVID-19 economic infrastructure.

Understanding the structure of the region’s economic house requires going back to 1967, when Southeast Asian countries decided to pledge friendship to one another under the ASEAN framework. While other integrated regions such as NAFTA and the European Union have aggressively broken down trade barriers and significantly boosted intra-regional trade, ASEAN regional economic integration has chugged along slower.

Southeast Asian countries have not viewed trade between each other as a top priority. The trade agreements in the region have been forged around suggestions for ASEAN countries to lower tariffs on intra-regional trade to within a certain range and across limited industries. This has lowered but not eliminated barriers to intra-regional trade. Consequently, a relatively significant share of Southeast Asian trade is with countries outside the region. This active extra-regional engagement has resulted in ASEAN countries’ successful integration into global value chain networks.

A historically outward-facing region, in 2010 around 75 per cent of Southeast Asian commodity imports and exports came from countries outside of ASEAN. This share of extra-regional trade nudged closer to 80 per cent in 2018. This indicates that ASEAN’s global value chain network embeddedness has deepened over time.

Around 40 per cent of ASEAN’s extra-regional trade is with the rest of Asia. From 2010 to 2018 Southeast Asian countries forged major trade relationships with four Asian countries: China, Japan, South Korea and India. Outside Asia, the United States is the region’s major trading partner. ASEAN’s trade focus on Asia’s largest markets is not surprising. Countries tend to establish trade relationships with large, geographically close, and culturally similar markets.

Fostering deep relationships with a few large markets, however, is a double-edged sword. While it has allowed ASEAN to benefit from integration in global value chains, it has also resulted in increased vulnerability to the shocks affecting its network connections.

ASEAN’s participation in global value chains has allowed it to transition from a net regional importer in 1990 to a net regional exporter in 2018. But the region’s deep embeddedness in a small and tightly-coupled network cluster of extra-regional global value chain partners has exposed it to disruption to any and all of its external partners. By contrast, ASEAN’s intra-regional trade network structure is much more loosely-coupled: a consequence of persistent intra-regional trade barriers and thus lower intra-regional trade intensity.

In the pre-COVID-19 period, ASEAN built for itself an economic house held up by just five extra-regional markets, while doing less to expand and diversify its intra-regional trade network. The data shows that ASEAN trade became increasingly concentrated in these few external markets between 2010 and 2018.

This dependence on a handful of markets does not bode well for risk and crisis management. All of the region’s major trading partners have been significantly affected by COVID-19 and this in turn is blowing the ASEAN economic house down.

What are the ways forward? The immediate task at hand is to get a better picture of the region’s position in global value chain networks and to get on top of managing its network risk exposure. Already there are red flags around the region’s food security arising from its position in food value chains. It is critical to look for ways to introduce flexibility into existing supply chains for greater agility in responding to crises.

It is also an opportune time for ASEAN to harness the technology transfer gains of global value chain participation and invest in innovation-driven diversification of products and markets. The region’s embeddedness in global value chain networks certainly places it in a strong position to readily access large export markets not just in Asia but also Europe and the Americas.

Over the longer term, ASEAN is faced with the question of whether it should seriously look…

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Tiger Trade Launches SGX Trading, Meeting Demand from Asian Investors

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Asean

Can Asia maintain growth with an ever ageing population ?

To boost productivity in the future, Asian governments will have to implement well-targeted structural reforms today.

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Asia has been the world champion of economic growth for decades, and this year will be no exception. According to the latest International Monetary Fund Regional Economic Outlook(REO), the Asia-Pacific region’s GDP is projected to increase by 5.5% in 2017 and 5.4% in 2018. (more…)

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