Thailand’s recently elected Prime Minister, Srettha Thavisin, has encountered a tumultuous start to his tenure. Controversy surrounded his ascension, as his party formed an alliance with the military-backed establishment, thwarting the progressive Move Forward party from assuming power. Amidst this backdrop, Srettha’s first month in office has been punctuated by tragedy and marked by attempts to revive the country’s economy through populist policies. However, political observers express concerns that these measures may be symbolic or shortsighted, lacking clear direction for long-term national development goals.
Srettha’s Policy Initiatives:
In his initial weeks as Prime Minister, Srettha has endeavored to position his leadership as one of benevolence. He urged the military to delay procurement plans to allocate funds for urgent assistance to the public and has even donated his salary to charity. Additionally, he has actively sought to transform Thailand into an investment hub by engaging in trade talks with global leaders and initiating bilateral trade agreements.
The centerpiece of Srettha’s policies lies in the realm of domestic economic populism. Initiatives such as reducing electricity and fuel prices, implementing a three-year debt moratorium for farmers, and introducing a digital wallet scheme to distribute funds to every Thai citizen above 16 years old aim to stimulate domestic spending and inject funds into the economy. However, critics argue that Srettha’s policy agenda lacks concrete plans for achieving long-term national development goals and only focuses on short-term economic relief.
Critiques and Concerns:
Critics from different political factions have expressed their reservations about Srettha’s populist policies. Politicians from progressive and conservative parties alike assert that the proposals fail to address the root causes of Thailand’s deep-rooted socio-economic challenges. For example, the reduction of energy prices without restructuring undermines long-term sustainability, while the debt moratorium for farmers falls short in addressing their underlying low income levels.
The Echoes of Past Populist Policies:
Srettha’s economic proposals are reminiscent of the populist policies introduced by former Prime Minister Thaksin Shinawatra. While those policies garnered substantial support, they also came under scrutiny for prioritizing political gains over economic soundness. Previous populist initiatives, such as Yingluck Shinawatra’s rice-pledging scheme, resulted in substantial economic losses and political upheaval. The current Thai public, however, has indicated a desire for systemic democratic reform rather than the type of economic promises traditionally offered by Pheu Thai.
The Need for Reform and Political Challenges:
Pheu Thai, the party behind Srettha’s appointment, finds itself in a challenging position. Despite its initial anti-military coalition with the progressive Move Forward party, it eventually formed a coalition government with military-aligned parties, which alienated some of its supporters. Consequently, the current sentiment among the Thai public demands political reform alongside economic policies. However, achieving these reforms with coalition partners who are resistant to change presents a formidable obstacle. Srettha’s proposed amendments to the military-drafted constitution, though promising, have been criticized for their generous time frame and uncertain scope.
In the first month of Srettha Thavisin’s premiership, the attention has been on his populist policies aimed at jump-starting the Thai economy. However, concerns persist regarding the sustainability and effectiveness of these measures in addressing long-term socio-economic challenges. The need for political reform has also emerged as a prominent issue, with coalition politics creating obstacles for Pheu Thai’s promised progressive agenda. As Srettha continues his term as Prime Minister, it remains to be seen if he can navigate these challenges and establish a legacy of impactful reform.
Market Capital Research 