THE THAKSINIZATION OF THAILAND Ukrist Pathmanand Duncan McCargo Duncan McCargo and Ukrist Pathmanand For decades, Thailand was economically dynamic, yet politically shambolic. 1997 changed all that: the Asian economic crisis, closely followed by the promulgation of a new liberal constitution in Thailand, paved the way for the political rise of Thaksin Shinawatra, a fabulously wealthy telecommuni- cations magnate often compared with Italian premier Silvio Berlusconi. Although presenting itself as a national, transformative party, at heart Thaksin’s ruling Thai Rak Thai Party was little more than a vehicle for the OF THAILAND THE THAKSINIZATION interests and ambitions of its founder-leader. After winning a landslide election victory in 2001, Prime Minister Thaksin exercised an extraordinary degree of personal dominance over the Thai political scene. He was re- elected in 2005, the first Thai premier to do so. Though toppled by a military coup in 2006, Thaksin continues to exert a powerful influence on Thai poli- tics today, both in terms of his legacy and ongoing political activities. This book – by two leading scholars in the field – is an analysis of Thaksin at the height of his power. It examines Thaksin’s background, his business activities, the emergence of Thai Rak Thai, his relationship with the military, Thaksin’s use of rhetoric through media such as radio, his wider political economy networks, and what this all meant for the future. The result is essential reading for students, academics, journalists, dip- lomats, investors – and anyone else who needs to understand the Thaksin phenomenon in present-day Thailand. Winner of the 2009 Bernard Schwartz Book Award for his Tearing Apart the Land, Duncan McCargo is professor of Southeast East Asian politics at the University of Leeds. Ukrist Pathmanand is a senior researcher at the Insti- tute of Asian Studies, Chulalongkorn University, where he focuses mainly on the political economy of development in contemporary Thailand. ‘… a fascinating and detailed account of new patterns of wealth and power that THE amount to a “Thaksinisation” of Thailand’s political and economic order.’ – Kevin Hewison, The Bangkok Post ‘McCargo and Ukrist’s book is essential reading for anyone interested in under- standing ‘‘Thaksinization’’ and what is clearly an extraordinary chapter in modern THAKSINIZATION Thailand’s political history.’ – Andrew Brown, Journal of Contemporary Asia OF THAILAND www.niaspress.dk Duncan McCargo and Ukrist Pathmanand McCargo_2nd-reprint-cover.indd 1 15/09/2010 11:52 Thaksin_pbk-prelims.fm Page i Tuesday, November 9, 2004 10:20 AM THE THAKSINIZATION OF THAILAND Thaksin_pbk-prelims.fm Page ii Tuesday, November 9, 2004 10:20 AM Nordic Institute of Asian Studies STUDIES IN CONTEMPORARY ASIAN HISTORY Series Editor: Robert Cribb, Australian National University Indonesian Politics in Crisis The Long Fall of Suharto 1996–98 Stefan Eklöf The Indonesian Miltary After the New Order Sukardi Rinakit Power and Political Culture in Suharto’s Indonesia The Indonesian Democratic Party (PDI) and Decline of the New Order 1986–98 Stefan Eklöf The Thaksinization of Thailand Duncan McCargo and Ukrist Pathmanand Thaksin – The Business of Politics in Thailand Pasuk Phongpaichit and Chris Baker Pirates in Paradise A Modern History of Southeast Asia’s Maritime Marauders Stefan Eklöf Thaksin_pbk-prelims.fm Page iii Tuesday, November 9, 2004 10:20 AM THE THAKSINIZATION OF THAILAND Duncan McCargo and Ukrist Pathmanand Thaksin_pbk-prelims.fm Page iv Tuesday, November 9, 2004 10:20 AM First published in 2005 by NIAS Press Nordic Institute of Asian Studies Leifsgade 33, DK–2300 Copenhagen S, Denmark tel: (+45) 3532 9501 • fax: (+45) 3532 9549 E–mail: [email protected] • Website: www.niaspress.dk © Duncan McCargo and Ukrist Pathmanand 2005 British Library Cataloguing in Publication Data McCargo, Duncan The Thaksinization of Thailand. - (Studies in contemporary Asian history ; 4) 1.Thailand - Politics and government - 1988- 2.Thailand - Economic conditions - 1986- I.Title II.Pathmanand, Ukrist 320.9’593’09051 ISBN 87-91114-45-4 (cloth) ISBN 87-91114-46-2 (paper) Typesetting by Translations ved LJ Printed in Thailand and the European Union Thaksin_pbk-prelims.fm Page v Tuesday, November 9, 2004 10:20 AM Contents Charts … vi Tables … vi Preface and Acknowledgements … vii Chapter 1 Introduction: Who is Thaksin Shinawatra? … 1 Chapter 2 Thaksin and the Politics of Telecommunications … 23 Chapter 3 Thai Rak Thai: A New Form of Thai Party? … 70 Chapter 4 Thaksin and the Repoliticization of the Military … 121 Chapter 5 Thaksin’s Political Discourse … 166 Chapter 6 Thaksin’s New Political Economy Networks … 209 Conclusion: The Thaksinization of Thailand and Future of Thai Politics … 248 Bibliography … 255 Index … 265 Thaksin_pbk-prelims.fm Page vi Tuesday, November 9, 2004 10:20 AM The Thaksinization of Thailand vi Charts 4.1: Assignments of Class 10 Members, 2004 … 138 4.2: Office of the Supreme Commander … 148 4.3: Office of the Permanent Secretary of the Ministry of Defence … 149 6.1: Thailand’s new political power network since 1997 … 220 Tables 2.1: Approvals and modifications of Thai telecom concessions, 1988–2002 … 26 2.2: Total liabilities of Thai telecom companies, 1996–2002 … 38 2.3: Shin Corporation performance 1998–2002 … 49 4.1: Rotation and appointment of military officers connected to Thaksin Shinawatra … 143 6.1: Police Reshuffle, September 2003 … 229 Thaksin_pbk-prelims.fm Page vii Tuesday, November 9, 2004 10:20 AM Preface and Acknowledgements THIS BOOK REPRESENTS A MODEST ATTEMPT to review a number of important issues raised by the premiership of Thaksin Shinawatra. It makes no claim to be a comprehensive overview of Thaksin, nor is it a political biography. Rather, we focus on five key areas relevant to Thaksin’s rise: the telecommunications business, Thai Rak Thai as a political party, the repoliticization of the military, Thaksin’s use of language and media and his creation of new politi- cal economy networks. Ukrist was the primary author of chapters 2, 4 and 6, and McCargo of chapters 1, 3 and 5. Ukrist Pathmanand would like to thank his research assistants, Benjamas Yodpanya and Rappeport Thanamai. He is very grateful for the support of the Centre for Southeast Asian Studies (CSEAS) at Kyoto University, where he was a visiting research scholar from February to July 2004. Under the excellent directorship of Professor Koji Tanaka, CSEAS provided Ukrist with the time and space to work on this manuscript. Duncan McCargo would like to thank Chunyao Yi for her re- search assistance and indexing, and Chris Baker, Michael Connors, Shawn W. Crispin, Michael H. Nelson, Naruemon Thabchumpon and Sombat Chantornvong for their helpful advice. Thanks also to Larry Diamond for encouraging him to work on Thaksin. We are both very grateful for the support of Gerald Jackson at NIAS, who encouraged us to pursue a book project which started from a chance conversation at ICAS 3 in Singapore. None of those thanked here are in any way responsible for the tone or content of the book. All the mistakes are ours. Leeds and Bangkok October 2004 Thaksin_pbk-prelims.fm Page viii Tuesday, November 9, 2004 10:20 AM Thaksin_book.fm Page 1 Monday, October 25, 2004 12:14 PM CHAPTER 1 Introduction: Who is Thaksin Shinawatra? ‘He likes to be called Police Lt. Col. Thaksin Shinawatra’, one senior official said on condition of anonymity. ‘He went to a police academy, not the most liberal setting. If you picture him with a police uniform, that is basically the inner man’.1 ON HIS FIRST DAY AS PRIME MINISTER, Thaksin Shinawatra ate a simple lunch with representatives of the Forum of the Poor – a grassroots organization whose protests on a range of environmental and livelihood issues had dogged the term of his Democrat predecessor, Chuan Leekpai. His actions immediately following the 6 January 2001 electoral landslide were rather different: he took a day off to drive around Bangkok in his Porsche, popping into a branch of Starbucks. The contrast between these two faces of Thailand’s new leader nicely illustrated the contradictions epitomized by the Thaksin phenomenon. On the one hand, Thaksin was a representative of the nouveau riche Sino-Thai business elite, given to the flaunting of wealth and conspicuous consumption. Yet his choreographed and scripted first day in office reflected his populist agenda, his courting of special interests and his strong desire to distance himself from the image of bureaucratic inflexibility and high-minded disdain that had characterized the 1997–2000 Chuan government. Just who Thaksin is remains a difficult question to answer, given his multi- faceted political identity. Understanding where he came from involves first briefly reviewing developments in Thai politics prior to 2001. Thailand has long been characterized by competing tendencies towards democracy and authoritarianism. Such tendencies were Thaksin_book.fm Page 2 Monday, October 25, 2004 12:14 PM The Thaksinization of Thailand 2 evident from the manner in which the absolute monarchy was brought to an end in 1932: Thailand (then Siam) experienced a transition to constitutional rule which was initiated by a small group of elite actors, some of a liberal orientation, but many possessed of an authoritarian orientation that reflected their military backgrounds. For the next 41 years, Thailand alternated between short periods of parliamentary rule and longer spells of military rule.2 The armed forces, especially the army, became intensely politicized and staged numerous destabilizing coups d’état. Rivalries between the army, the navy, the police and the civilian bureaucracy were often virulent and corrosive. Following the onset of the Cold War, Thailand’s armed services received substantial support from the United States, which increasingly looked upon the country as an important bulwark to prevent the spread of communism in Southeast Asia. Until the 1960s, Thailand’s competing forces could operate relatively unchecked by any higher authority.