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Thaksin Shinawatra (Thai: ทักษิณ ชินวัตร, IPA: ,"framed":false,"icon":"volumeUp","label":{"html":"]"},"data":{"ipa":"","text":"","lang":"en","wikibase":"","file":"Thaksin.ogg"},"classes":}">]; born July 26, 1949), Thai politician, is the current caretaker prime minister of Thailand and the leader of the populist Thai Rak Thai party. On 4 April 2006, following protests against his policies and a snap election were he won the majority of votes, he announced that he would not accept Parliament's nomination for the Premiership and would be handing over his responsibilities to caretaker Deputy Prime Minister Chidchai Wannasathit. Before entering politics Thaksin was the founder of Shin Corporation, which included Advanced Info Service (AIS), the largest mobile phone operator. He was one of the richest individuals in Thailand, although prior to becoming Prime Minister, he transferred ownership of his companies to his family members, maids and drivers. He is married to Khunying Potjaman Shinawatra (Damapong) and has three children: Panthongtae, Pinthongtha and Praethongtharn. Thaksin is commonly referred to by the press and his critics as "Na Liam" (Thai: หน้าเหลี่ยม - "square face") and "Maeo" (Thai: แม้ว - a derogatory term for people of the Hmong hilltribe).

Early career

Thaksin was born in Sankamphaeng in Chiang Mai Province. Thaksin's great-grandfather Seng Sae Khu (also known as Khu Chun Seng; surname 丘) was a Hakka Chinese immigrant from Meizhou, Guangdong who arrived in Siam in the 1860s. In 1908 he settled in Chiang Mai. He married a Thai woman called Sangdi. His eldest son, Chiang Sae Khu, was born in Chanthaburi in 1890, and also married a Thai woman, called Saeng Somna. Chiang's eldest son, Sak, adopted the Thai surname Shinawatra ("does good routinely") in 1938 during the Phibun regime's anti-Chinese campaigns, and the rest of the family also adopted it, including Loet, Thaksin's father, born in Chiang Mai in 1919. Loet married Yindi Ramingwong. Thaksin is thus one-eighth Chinese by descent.

Thaksin's grandfather Seng Sae Khu made his fortune through tax farming — a common (though unpopular) occupation in those days. Later the Khu/Shinawatra clan added to their fortunes via the silk trade (Shinawatra Silks), catering to the tastes and interests of the Thai bureaucratic elite, and then by moving into the spheres of finance, construction and property development.

Thaksin's father, Lert Shinawatra, expanded beyond the family's traditional silk business and opened a coffee shop, grew oranges and winter flowers in Chiang Mai's San Kamphaeng district, and acquired two movie theatres, a gas station, and a car and motorcycle dealership. As a young boy, Thaksin helped his father brew and serve coffee and also wash glasses. In 1968, Lert Shinawatra entered politics and became an MP for Chiang Mai and deputy leader of the now-defunct Liberal party. Lert Shinawatra quit politics in 1975. By the time Thaksin was born, the Shinawatra family was one of the richest, most influential and powerful families in Chiang Mai, enjoying close relations to the royal family, the army and the bureaucratic elite, as well as other wealthy families in the region.

Thaksin attended Montfort College, a high school in Chiang Mai. He went on to the Thai Police Cadet Academy and upon graduation, he joined the Royal Thai Police Department in 1973. He later went on to obtain a master's degree in criminal justice from the Eastern Kentucky University in the United States, in 1975. In 1978 he received a doctorate in criminal justice at Sam Houston State University in Texas. He reached the position of Deputy Superintendent of the Policy and Planning Sub-division, General Staff Division, Metropolitan Police Bureau.

Thaksin quit the police force in 1980. Thaksin and his wife, Potjaman, ventured into various business, from selling Thai silk products and movies to property development and renting computers to government agencies. Some of these ventures failed, and the couple was heavily in debt.

From 1982-1984, Thaksin became the first to introduce cable TV, paging devices and mobile phones to Thai consumers. The Shinawatra Computer and Communications Group was founded in 1987 and listed in the Securities Exchange of Thailand in 1990. One of the group's members, Shinawatra Paging, is now Thailand's largest mobile phone operator AIS. In 1990, Thaksin made a daring but successful bid for a 20-billion baht, 20-year concession to operate the Thaicom Satellite.

Entry into politics

Political debut as Foreign Minister in the first Chuan government

Thaksin entered politics in late 1994 under the invitation of Chamlong Srimuang, who had just reclaimed the position of Palang Dharma Party (PDP) leader from Boonchu Rojanastien. In a subsequent purge of PDP Cabinet ministers, Thaksin was appointed Foreign Minister in December 1994 as a non-MP minister.

Soon after joining the Cabinet, the Parliament approved amendments to the Constitution (specifically, Article 114) that prohibited ministers from receiving state concessions. Not waiting for the Constitution Tribunal to rule whether this would require him to sell his shares in Shinawatra Computers and Communications Group, Thaksin resigned after only 3 months in his Cabinet post.

The PDP soon withdrew from the government over the Sor Por Kor 4-01 land reform corruption scandal, causing the government of Chuan Leekpai to collapse.

PDP leader and Deputy Prime Minister in the Banharn government

Chamlong, strongly criticized for mishandling internal PDP politics in the last days of the Chuan-government, retired from politics and hand-picked Thaksin as new PDP leader. Thaksin ran for election for the first time in July 1995, winning a parliamentary seat from Bangkok. However, the weakened and internally divided PDP won only 23 seats, compared to 46 in the 1992 elections. Thaksin joined the government of Banharn Silpa-acha and was appointed Deputy Prime Minister in charge of Bangkok traffic.

Many have claimed that Thaksin promised to solve Bangkok's traffic problems in six months. Thaksin vigorously denied this, saying "I never made that promise... I am not so stupid not to understand that it would take years. If you can prove I said that I will totally tackle all the traffic problems in six months, you can kill me". Some have noted that he did help improve traffic; however many have noted that capital's notorious traffic remained a problem.

In May 1996, Thaksin and 4 other PDP ministers quit the Banharn Cabinet (while retaining their MP seats) to protest widespread allegations of corruption, prompting a Cabinet reshuffle. Many have claimed that Thaksin's move was designed to help give Chamlong Srimuang a boost in the June 1996 Bangkok Governor elections, which Chamlong returned from retirement to contest. Chamlong lost the election - he and incumbent Governor former PDP-member Krisda Arunwongse na Ayudhya were defeated by Pichit Rattakul, an independent.

Chamlong's stunning failure to buttress the PDP's failing power base in Bangkok amplified internal divisions in the PDP, particularly between Chamlong's "temple" faction and Thaksin's faction. Soon afterwards, Chamlong announced he was retiring again from politics.

Thaksin and the PDP pulled out of the Banharn-government in August 1996. In a subsequent no-confidence debate, the PDP gave evidence against the Banharn government. Soon afterwards, Banharn dissolved Parliament in September 1996.

Fall of the PDP

Thaksin announced that he would not run in the subsequent November 1996 elections, but would remain as leader of the PDP. He claimed that he wanted to devote his energies to campaigning for political reform and supporting other PDP candidates. Some speculated that Thaksin wanted to resign from the party leadership . The PDP suffered a fatal defeat in the elections, winning only 1 seat in Parliament. The PDP soon imploded, with most members resigning. However, the PDP is still in existence, with a different leadership and an insignificant presence in the political sphere.

Although there was much controversy about the root causes of the fall of the PDP, with some blaming Thaksin, most agree that it was due to internal divisions in the party. Particularly divisive were conflicts between the Chamlong "temple" faction and subsequent generations of outsiders, including Thaksin. Many have noted that these divisions caused the party to have an inconsistent stand on whether or not to support the majority government party, resulting in voter cynicism.

Deputy Prime Minister in the Chavalit government

On 15 August 1997, Thaksin was invited to become Deputy Prime Minister in Chavalit Yongchaiyudh's government. This occurred soon after the Thai Baht was floated and devalued in 2 July 1997, sparking the Asian Financial Crisis. Thaksin held this position for only 3 months, leaving on November 14 after Chavalit resigned.

During an unsuccessful censure debate on 27 September 1997, Democrat MP Suthep Thaugsuban accused Thaksin of cashing in on insider information about the government's decision to float the baht. However, this accusation was not investigated during the subsequent Democrat or TRT governments. During 1997, Thaksin's flagship company Advance Info Service suffered 1.8 billion THB in foreign exchange losses and saw it's debt more than double due to the devaluation. Nevertheless, skeptics point out that Thaksin's business empire suffered much less from the devaluation than rival companies.

Formation of the Thai Rak Thai Party and the 2001 elections

Thaksin founded the Thai Rak Thai ("Thais Love Thais" - TRT) party in 1998 along with Somkid Jatusripitak, PDP ally Sudarat Keyuraphan, Purachai Piumsombun, and 19 others. With a populist platform often attributed to Somkid, TRT promised universal access to healthcare, a 3-year debt moratorium for farmers, and 1 million THB development funds for all Thai villages.

After the fall of the Chuan-government in 2001, TRT won a sweeping victory in the January 2001 elections, the first election held under the People's Constitution of 1997. It was the first time in Thai democratic history that a single party had won a governing mandate. The new Election Commission (EC), mandated by the People's Constitution, played an active role in attempting to reduce vote buying and other fraudulent activities. However, there were still accusations of vote-buying from all parties.

Prime Minister of Thailand

As Prime Minister, Thaksin Shinawatra initiated many distinctive policies affecting the economy, public health, education, energy, drugs, and international relations. Some view his policies as being very effective and popular with the majority of the Thai people, resulting in two landslide re-election victories. Thaksin's policies have been particularly effective at alleviating rural poverty. However, his government have been plagued with allegations of dictatorship, demagogy, corruption, conflicts of interest, human rights offences, acting undiplomatically, and use of legal loopholes. A controversial leader, he has also been the target of numerous allegations of lèse-majesté, treason, usurping religious and royal authority, selling assets to international investors, religious desecration, and siding with gods of darkness.

Economic and health policies

Thaksin's government has designed its policies to appeal to the impoverished majority, initiating programs like subsidized universal health care, village-managed development funds, low-interest agricultural loans, microcredit, infrastructure development, low-cost universal access to anti-retroviral HIV medication (ARVs), and the One-Tambon-One-Product (OTOP) rural small and medium enterprise development program.

Together called Thaksinomics, many feel that these policies are responsible for bringing about Thailand's economic recovery from the 1997 Asian Financial Crisis and substantially reducing rural poverty. The GDP grew from THB 4.9 trillion to THB 7.1 trillion. Thailand was able to repay its Chuan-government debts to the International Monetary Fund 2 years ahead of schedule. Between 2000 and 2004 poverty in Thailand fell from 21.3 per cent to 11.3 per cent, according to the World Bank. Farm income in the poorest part of the country, the north-east, rose 40 per cent in that period. The Stock Exchange of Thailand, outperformed other markets in the region.

Critics, however, charge that Thaksinomics is little more than a Keynesian-style economic stimulus policy re-branded as something new and revolutionary. An anti-Thaksin academic has claimed that increased rural income resulting from anti-poverty projects has been spent on mobile phones, pickup trucks, and other flashy consumer items. Thaksin's supporters have countered that no other democratically-elected Prime Minister has reduced poverty by as much as Thaksin. The Nation newspaper called Thaksin's populist platform "a revolution in Thai public policy". Although successful in expanding access to ARVs, there have been some concerns that free trade agreements with the US could endanger Thailand's ability to produce low-cost treatments. Ironically, this has made people living with HIV/AIDS some of his most vigorous political enemies.

Following public pressure amid the political chaos after Thaksin's refusal to accept the Premiership in the 2006 elections, Thaksin's Cabinet suspended a planned 1.8 trillion THB infrastructure investment plan. Economists have estimated that suspension of the plan, which included 10 new light rail lines in Bangkok, could reduce GDP growth by up to 0.5%.

Anti-drug policies

Thaksin initiated a series of effective but highly controversial policies to counter a boom in Thailand's illegal drugs market, particularly in methamphetamines. After earlier anti-drug policies like border blocking (most methamphetamines are produced in Myanmar), public education, sports, and promoting peer pressure against drug use proved ineffective, Thaksin launched a suppression campaign that aimed to eradicate methamphetamine use in 3 months. The policy consisted of changing the punishment policy such that users would be considered patients in need of treatment, setting targets for each province for the number of arrests and seizures, awarding government officials for achieving targets, and most controversially, targeting dealers and "ruthless" implementation.

Over the next seven weeks, press reports indicate that around 2,700 people were killed. The Government claimed that only around 50 of the deaths were at the hands of the police, and then in self-defense. Human rights critics say a much larger proportion were targets of extrajudicial execution. Victims were overwhelmingly poor, while only a minute portion of "kingpins" were arrested or targeted for arrest. The government went out of its way to publicize the implementation of the policy, through daily announcements of arrest, seizure, and death statistics, while entire provinces vowed absinence at orchestrated mass ceremonies. After growing international concern, the "ruthless" element of the policy was reduced and the killings stopped.

The policy was effective in reducing drug intake of users by substantially increasing the price of methamphetamines, but did nothing to reduce their availability. Despite some public revulsion, Thaksin's popularity increased substantially. Thaksin's anti-drug campaign drew comments from the king, who said in his 2003 birthday speech, "The victory of the drug suppression campaign was good. And those who have criticized, saying 'hey, the 2,500 dead people', or whatever, that's a small thing ... Who is going to take responsibility? Some say the prime minister has to be held accountable after the war he led resulted in 2,500 deaths. But the deaths are attributed to many causes. Some are killings among traffickers; some may have been killed by the authorities. I suggest that the national police chief disclose the details of how the 2,500 deaths happened... It is not fair to blame the entire death toll on the 'super-prime minister'. The prime minister has delegated the task to his deputies. He says he is the victor in the war. It is said he should take responsibility for the killings. But his subordinates should share the blame." In September 2004, George W. Bush announced in his Annual Determination of Major Illicit Drug Producing and Drug-Transit Countries to remove Thailand from the list of major drug-transit or major drug-producing countries.

Education policies

Thaksin implemented a series of revolutionary but highly controversial series of educational reforms during his government. Chief among those reforms was school decentralization, as mandated by the 1997 People's Constitution. Decentralization would have delegated school management from the over-centralized and bureaucratized Ministry of Education to Tambon Administrative Organizations (TAOs). The plan met with massive widespread opposition from Thailand's 700,000 teachers, who would be deprived of their status as civil servants. There was also widespread fear from teachers that TAOs lack the skills and capabilities required to manage schools. In the face of massive teacher protests and threats of school closure, Thaksin compromised and gave teachers whose schools were transferred to TAO management two years to transfer to other schools. Teachers formed a core part of the anti-Thaksin People's Alliance for Democracy (PAD). The issue was extremely controversial.

Other reforms included learning reform and related curricular decentralization, mostly through greater use of holistic education and less use of rote learning. Thaksin also initiated the controversial "One District, One Dream School" project, aimed at developing the quality of schools to ensure that every district has at least one high-quality school. The project was criticized, with some claiming that the only beneficiaries were Thaksin and companies selling computers and educational equipment.

Thaksin also reformed the state university screening system. Whereas the former system relied exclusively on a series of nationally standardized exams, Thaksin pushed for a greater emphasis on senior high-school grades, claiming this would focus students on classroom learning rather than private entrance exam tutoring. Thaksin's reforms were strongly attacked, with academics claiming that it would "tend to lead to inappropriate selection of students".

Thaksin also initiated the Income Contingency Loan program to increase access to higher education. Under the program, needy students may secure a loan to support their studies from vocational to university levels. Thai banks had traditionally not given education loans.

Energy policies

In energy policy, the Thaksin government continued the Chuan government's privatization focus, but with important changes. Whereas the Chuan government's policies sought economic efficiency through competition and regulatory oversight, Thaksin's policies placed confidence in the prospect that partially privatized, largely self-regulated monopoly utilities would work as economic powerhouses, providing profits to the treasury and private investors alike. The Thaksin administration has also initiated a policy process to encourage renewable energy and energy conservation. Thaksin's privatization policies and actions have been srongly criticized on grounds that they offer little protection to consumers and ample opportunities for conflict of interst. The Thaksin government has been commended for paying attention to energy conservation and renewables, but actual conservation policies put in place have been criticized as ineffectual, poorly targeted and burdensome.

Privatization

On September 2001, the National Energy Policy Office (NEPO) approved the partial listing of PTT, the state-owned oil and gas company. Like Chuan, Thaksin has repeatedly attempted to privatize the Electricity Generating Authority of Thailand (EGAT). One of the goals of the privatization was to raise THB 42 billion from an IPO and use the funds to invest in three new natural-gas powered power plants.

PTT promptly became the largest company by market capitalization upon listing in the Stock Exchange of Thailand (SET). PTT greatly benefited from the global increase in world-wide oil prices following the invasion of Iraq, and the rise in its stock price helped propel the SET to a boom in 2003. However, anti-Thaksin critics have claimed that PTT's bull run was due to manipulation by Thaksin.

In early 2004, massive employee protests forced the EGAT Governor to resign, thus delaying the planned corporatization and privatization of the state enterprise. New Governor Kraisri Karnasuta worked with employees to address their concerns about the privatization, and by December 2004, approximately 80% of employees supported privatization. Permanent protest stages and tents at the EGAT headquarters were taken down as the state enterprise returned to normalcy. After the Mahachon Party (the only party that was officially against privatization of state enterprises) won only 2 seats in the February parliamentary elections, the process towards EGAT's privatization was restarted. The agency was corporatized in June 2005, transforming it from the Electricity Generating Authority of Thailand to EGAT PLC. However, EGAT's privatization was abruptly delayed when some NGOs and some Union members filed a petition with the Supreme Court a few days before the scheduled listing.

On 23 March 2006, the Supreme Administrative Court ruled against the privatization of EGAT PLC, citing conflicts of interest, public hearing irregularities, and the continued right of expropriating public land. The court said that Olarn Chaipravat, a board member of PTT and Shin Corporation (both business partners with EGAT), was on a committee involved in the legal preparation for Egat's privatisation. The court questioned the neutrality of Parinya Nutalai, chair of the public hearing panel on the Egat listing, because he was Vice Minister of Natural Resources and the Environment. It also ruled that insufficient opportunities were given for EGAT employees to make themselves heard - there was only one public hearing for employees during which only 1,057 attended. Lastly, EGAT PLC continued to have the right to expropriate public land to build power plants and transmission lines, a right reserved for the state. Two decrees were nullified: one ordering the dissolution of the status of EGAT as a state enterprise, and the other serving as a new charter for EGAT PLC.

Union leaders and anti-Thaksin protestors cheered the ruling, and called for the renationalization of other privatized state enterprises, like PTT Exploration and Production (PTTEP) and Thai Airways International (both privatized in 1992), PTT PCL, TOT PCL, MCOT PCL, Thailand Post Co Ltd, and CAT Telecom PCL. Like EGAT, PTT also retained land expropriation rights after it privatized. However, this was one of the grounds for the nullification of the EGAT privatization. Caretaker Finance Minister Thanong Bidaya has noted that the delisting and renationalization of PTT could force the government to borrow massively from foreign institutions.

Some criticized that the listing of PTT on the SET on the grounds that it represented a massive transfer of public assets for the benefit of a relative few. Though the government initially targeted over 100,000 first-time investors, there were reports that the majority of the shares for sale to retail investors had been reserved for politicians, banks’ preferred clients and journalists, leaving retail investors who stood in long lines to return home empty-handed. A nephew of Suriya Juengrungruangkit, the minister of Industry overseeing PTT and TRT Party secretary general, for example, was reported to have acquired 22 times the maximum amount of PTT shares distributed to retail investors . Fears of this being repeated were often cited as the reason why EGAT's privatization was delayed. Another key argument for delaying privatization was that privatization preceded the establishment of an independent energy regulatory authority. In international experience, there are no examples of successful monopoly utility privatization without regulatory oversight. Under pressure, the Thaksin administration formed an interim electricity regulatory body, but some view that it currently lacks authority to force compliance, levy fines, or punish defaulters. EGAT employee concerns about employment security were also common. Some expressed concern that partial ownership of Thailand's largest electricity producer by foreign shareholders would impact national security.

However, the anti-privatization petitioners (including the Confederation of Consumer Organisations, People Living with HIV/Aids, Alternative Energy Project for Sustainability, Free Trade Area Watch, and the Four Region Slum Network) have been harshly criticized by both Thai and international investors, who accuse them of using underhand tactics in delaying the listing. They also point to the public mandate of the 2005 election, during which the only anti-privatization party suffered a near complete loss. International power sector governance experts from Harvard University, University of Delaware, and the World Resources Institute lauded the successful repeal of EGAT privatization as an important step towards increased accountability and transparency in the Thai power sector.

Conservation and renewables

To counteract rising energy prices, the Thaksin government started a massive energy conservation drive. Consumers were encouraged to reduce household usage, some companies were forced to reduce their opening hours to reduce electricity consumption, and gasohol became more widespread. Although the government attempted to subsidize energy prices, it eventually had to float diesel prices in early 2005 due to global price trends. Thaksin's government has also targeted that by 2011, 8% of the nation’s total energy demand (approximately 1,900 MW) would come from renewable sources. Renewable sources accounted for only 1% of electricity generated in 2004.

A key component of the renewable strategy is the Renewable Portfolio Standard (RPS). Under the RPS, power companies that wish to bid to supply power to EGAT must produce 5% of their installed energy generating capacity from renewable sources. Dr. Surachet Tamronglak, director of the Energy for Environment Foundation estimates that the RPS will result in the generation of 600 MW of power from renewable sources within the next 10 years. The remaining 1,300 MW of renewable power is expected to be supplied by SPPs (small power producers - most of which already use renewable energy or natural gas), enabling the country to achieve its 8% renewable energy target.

The RPS has been criticized by NGOs, who claim that only large power companies will have the technical resources to efficiently generate electricity using renewable sources.

South Thailand insurgency

A resurgence in violence began in 2001 in the three southern provinces of Thailand. There is much controversy about the causes of this escalation of the decades long insurgency. Attacks after 2001 concentrated on police, the military, and schools, but civilians have also been targets. Thaksin has been widely criticized for his management of the situation, in particular the storming of the Krue Se Mosque, the deaths of civilians at Tak Bai, and the unsolved kidnapping of Muslim-lawyer Somchai Neelapaijit. In March 2005, Thaksin established the National Reconciliation Commission, chaired by respected former Prime Minister Anand Panyarachun to oversee efforts to bring peace to the troubled South. Despite much criticism of the Thaksin-government's policies, the Commission has to date refused to submit a final report on the situation.

Foreign policies

On foreign policy, Thaksin has said that "Thailand requires a progressive foreign policy that firmly supports its domestic counterpart". This included forcing diplomats to support domestic economic programs, for instance promoting abroad the products of the OTOP small and medium enterprise development program. This policy has been fiercely attacked by some prominent career diplomats, with Surapong Jayanama, former ambassador to Vietnam, spokesperson of the Ministry of Foreign Affairs, and candidate in the 2006 Senate elections claiming that Thaksin's domestic-consumption focused policies are "demeaning" and did little to enhance Thailand's global stature. He has also initiated negotiations for several free trade agreements (FTA) with China, Australia, Bahrain, India, and the US. This policy has also been strongly criticized. It has been claimed, for instance, that the FTA with Australia will wipe out Thailand's domestic dairy industry, initiated by King Bhumibol Adulyadej nearly 40 years ago, but with costs 30% higher than Australia's.

In a highly controversial move, Thailand joined George W. Bush's multinational coalition in the invasion of Iraq, sending a 423-strong humanitarian contingent. It withdrew the last of its troops on 10 September 2004. Thailand lost two soldiers in Iraq in an insurgent attack. Thaksin has also announced that Thailand would forsake foreign aid, and work with donor countries to assist in the development of neighbors, especially in the Greater Mekong Sub-region.

Thailand has drawn international criticism regarding the massacre at Tak Bai. Former diplomat Surapong Jayanama claimed that it harmed diplomatic relations with Malaysia and other Islamic countries. The former respected diplomat said "Thaksin had tried to copy the tough style of Malaysian statesman Mahathir Mohamad and Singapore leader Lee Kuan Yew but only succeeded in adopting their more negative qualities,"

Thaksin has also been attacked by influential former diplomats for acting undiplomatically with foreign leaders. Kasit Pirom, former Thai ambassador to Japan and the United States, noted at an anti-Thaksin rally "When Khun Thaksin went to the United Nations to attend a joint UN-Asean session, he did not behave properly when addressing the session, which was co-chaired by the UN secretary-general and the Malaysian premier. In his address Thaksin did not mention the name of the Malaysian premier".

Thaksin has also been attacked for supporting Deputy Prime Minister Surakiart Sathirathai's campaign to become UN Secretary General. In an anti-Thaksin rally, former Thai ambassador to the UN Asda Jayanama called Surakiart "weak", "embarrassing", “a third rate politician”, and "lacking a brand name".

2005 re-election

He was re-elected in the February 2005 elections. In spite of allegations of widespread corruption in his administration, Thaksin won a landslide victory, with his Thai Rak Thai party sweeping 374 out of 500 seats in Parliament, while the main opposition Democrat Party lost more than a quarter of its representation, retaining only 96 seats. Thaksin's party gained the seats mostly from the north and north-eastern area with his populist campaign. The extensive publicity that Thaksin received on television in the aftermath of the Indian Ocean tsunami is cited as an important factor in driving Bangkok's unpredictable middle-classes to elect Thai Rak Thai in a surprising 32 out of 37 constituencies. TRT also did well in the central provinces, the traditional stronghold of the Chart Thai Party. However, in the southern region , where several border provinces are plagued by a separatist insurgency, Thaksin's party only managed to win one seat.

Other criticisms

There have also been complaints that Thaksin has been stacking the civil service and independent commissions with his relatives and business associates, for example by elevating his cousin, General Chaiyasit Shinawatra, to Army commander-in-chief. General Chaiyasit had been transferred from the Army to become special advisor of the Supreme Command Headquarters under the Chuan-administration. August 2001, General Chaiyasit was promoted to Deputy Commander of the Armed Forces Development Command. In August 2002, he was promoted to become Deputy Army Chief. Both General Chaiyasit and Defense Minister General Chavalit Yongchaiyudh have denied charges of nepotism at the time. "If I'm appointed to a significant post in the Army because of my connection with the prime minister, I won't have any friends left in the armed forces," said Chaiyasit. Gen Chavalit claimed that Thaksin would not interfere with any high-level military reshuffles, and that "It's a shame that the prime minister's name was tainted by such a groundless rumour". General Chaiyasit replaced General Surayud Chulanont (who was promoted to become Supreme Commander) as Army commander-in-chief in August 2003.

Thaksin was also accused of interference after the Senate appointed Wisut Montriwat (former Deputy Permanent Secretary of the Ministry of Finance) to the position of Auditor General, replacing Jaruvan Maintaka. The Constitution Court has earlier found Jaruvan's nomination unconstitutional ; however, she refused to aknowledge her ouster without a direct order from the King. The Senate and State Audit Commission (which nominated Jaruvan and 2 other candidate) are technically an independent bodies and the Senate is technically non-partisan.

Respected former Thai ambassador to the UN Asda Jayanama, in an anti-Thaksin rally, claimed that Thaksin's two state visits to India were made in order to negotiate a satellite deal for Thaksin's family-owned Shin Corporation. Asda did not cite any evidence for his claim. Asda's claim was countered by Foreign Minister Kantathi Suphamongkhon, who accompanied Thaksin on the state visits. "I travelled with the prime minister and was by his side from dusk to dawn. I can guarantee he never talked about personal matters" said Kantathi.

Facing increasing criticism from the media, In 20 November 2005, Thaksin cancelled his weekly press conferences until the end of the year, claiming with a smile that "Mercury is not in an auspicious orbit now. Just wait for the star to move across this year". The Prime Minister was widely criticised for being superstitious. "I appoint my own Mercury," he told reporters jovially on 21 November. Government Spokesman Surapong Suebwonglee clarified that Thaksin would actually be devoting the end of the year to clearing a backlog of work. He would, however, "continue to answer policy questions but he won't comment on details delegated to his respective ministers".

Political crisis of 2005-2006

Target of accusations by Sondhi Limthongkul

The tense political situation was catalyzed by several accusations published by Sondhi Limthongkul, owner of the Phoochatkarn Daily newspaper and former Thaksin supporter. Although some of these accusations were made without evidence, all of them together contributed to increase public opposition to the Thaksin government. These included accusations that Thaksin:

• Committed lèse-majesté against the King
• Usurped the Royal powers of the King in presiding over a religious ceremony
• Restricted press freedom by suing Sondhi after Sondhi printed a sermon by a controversial monk that many regarded as slanderous
• Masterminded the desecration of the Phra Phrom Erawan shrine in order to replace the shrine's main statue with a force aligned to his own fortune

Shin Corporation transaction

Main article :Thaksin Shinawatra $1.88 billion deal controversy

On Monday, January 23, 2006, three days after new Thai Telecommunication Act (2006) passed on Friday January 20, the Shinawatra family sold their entire stake in Shin Corporation, a leading communication company in Thailand, to Temasek Holdings. The Shinawatra and Damapong (Potjaman's maiden name) families netted about 73 billion baht (about US$1.88 billion) tax-free from the sale, exploiting a regulation that individuals (as opposed to corporations) who sell shares on the stock exchange pay no capital gains tax.

The Thailand Securities and Exchange Commission investigated the transaction. "The investigation concluded that Prime Minister Thaksin Shinawatra and his daughter Pinthongta are clear from all wrongdoing," said SEC secretary-general Thirachai Phuvanatnaranubala on February 23, 2006. However, the SEC did find that Thaksin's son, Panthongtae, violated rules with regard to information disclosure and public tender offers in transactions between 2000 and 2002. He was fined 6 million THB (about 150,000USD). "The case is not severe because Panthongtae did inform the SEC but his report was not totally correct" said the SEC's deputy chief Prasong Vinaiphat.

Allegations of insider trading by the Shinawatra family, Shin Corporation Corp executives, and major shareholders were also investigated. No irregularities were found

The transaction made the Prime Minister the target of accusations that he was selling an asset of national importance to a foreign entity, and hence selling out his nation. The Democrat party spokesman called Thaksin worse than Saddam for not protecting the Thai economy from foreigners: "Dictator Saddam, though a brutal tyrant, still fought the superpower for the Iraqi motherland". Supporters, however, counter that Thailand's mobile phone industry is highly competitive, and that little criticism was raised when the Norwegian firm Telenor acquired Total Access Communications, the country's second largest operator. Democrat Party leader Abhisit Vejjajiva had criticized Thaksin earlier for not sufficiently opening up the Thai telecom sector to foreigners. Supporters further counter that the complete sale of Shin Corporation by the Shinawatra-Damapong families had been a long-standing demand of some public groups, as it would allow Thaksin to undertake his duties as Prime Minister without accusation of conflicts of interest.

Anti-Thaksin and pro-Thaksin rallies

Background

The prime minister faced growing pressure to resign since the sell-off of his family’s controlling stake in Shin Corporation to Temasek Holdings, the Singapore government's investment agency. Although the SEC's investigation of the transaction cleared Thaksin of all wrongdoing, critics still accused him of insider trading, use of tax law loopholes, selling out the nation, and other offenses.

Anti-Thaksin protestors, who together called themselves the People's Alliance for Democracy (PAD), consisted mainly of academics and intellectuals, mobilising the first organized groups of Thammasat University students since the 1992 crisis, and drew a large number of middle-class residents of the capital. Sondhi Limthongkul, publisher of Manager Daily newspaper was a prominent leader of the protests. They also included prominent socialites (dubbed the "Blue Blood Jet Set" by the Bangkok Post) and members of the Thai royal family. These were joined by supporters of the controversial Santi Asoke Buddhist sect (led by Thaksin's former mentor Chamlong Srimuang) and followers of the controversial monk Luang Ta Maha Bua. State enterprise employees who oppose privatization followed, even though most employees of the Electricity Generating Authority of Thailand had early in 2005 supported privatization. Protestors camped out for months outside Government House in Bangkok.

The protests were divisive. The controversial Dharmakaya Buddhist sect came out in support of Thaksin. Massive pro-Thaksin rallies were mobilized in several provinces. Several members of King Bhumibol Adulyadej's Privy Council asked protestors to seek a peaceful resolution to the situation. In response to Sondhi Limthongkul's "We Fight For the King" battle-cry, Supreme Commander General Ruengroj Mahasaranond said "I should like to direct my message at a certain person who resorts to self-promotion by invoking the name of His Majesty...Rivals should not involve the monarch in their quarrels". Following increasing calls from the protest leaders for the king to appoint a prime minister, academics urged the protestors to adhere to the constitution and not pressure the king -- a message the king later repeated.

The chief source of controversy has been Thaksin's overwhelming support in the poor Northeastern provinces and his own hometown of Chiang Mai and nearby areas, leading to the crisis being protrayed as a conflict between the urban middle class and the rural poor.

House dissolution and the First 2006 Legislative Election

House dissolution

Thaksin announced a House dissolution on 24 February 2006, in a bid to end the political crisis triggered by the sale of Shin Corporation. General elections were scheduled for 2 April. In his weekly radio address following the announcement of his decision, the prime minister promised a series of new populist measures, including pay rises for government workers, an increase in the minimum wage and debt relief for farmers. The opposition Democrat, Chart Thai and Mahachon parties announced a boycott of the election on 27 February.

Thaksin was widely criticized for calling the snap elections. In an editorial, The Nation noted that the election "fails to take into consideration a major fallacy of the concept , particularly in a less-developed democracy like ours, in which the impoverished, poorly informed masses are easily manipulated by people of his ilk. And Thaksin's manipulation has been well documented. ."

Anti-Thaksin protestors demand royal intervention

On March 24, 2006 in front of a rally of 50,000 at Sanam Luang, Democrat party leader Abhisit Vejjajiva asked that King Bhumibol Adulyadej appoint a new Prime Minister and Cabinet to resolve the political crisis. The People's Alliance for Democracy's (PAD), The Law Society of Thailand, and the Press Council of Thailand also called for royal intervention . Pongsak Payakavichien, of the Press Council, also called on the civil service to detach itself from the government and demand royal intervention.

The king himself in speeches on 26 April to newly appointed judges dismissed the notion, saying Article 7 of the Constitution invoked by the anti-Thaksin protestors did not give him that power. "Asking for a Royally appointed prime minister is undemocratic. It is, pardon me, a mess. It is irrational." . Earlier, a law lecturer at Thammasat University noted "We're trying to involve the monarch in politics, but it's still not time. If we appeal for a new prime minister, aren't we asking the monarch to take sides?". Passakorn Atthasit and 20 relatives of people killed in the October 1973 democracy uprising tied a black cloth around the Democracy Monument and said "We don't care if Mr. Thaksin remains in the post. All we care is that the prime minister is elected. Asking for a royally-bestowed prime minister is akin to ripping the charter apart.".

Election results

Unofficial results as of 3 April 2006 gave Thaksin's TRT Party a landslide victory, with 462 seats in Parliament and 66% of votes cast, though 38 TRT candidates, all in the Democrat-dominated south, failed to win the 20% of votes they needed to win running unopposed in their inconstituency, thus forcing the Election Commission to hold by-elections on April 23. Election Commission commissioner Prinya Nakchudtree said that election laws would allow new applications in the April 23 by-elections, allowing the Democrat Party (which had boycotted the April 3 elections) to run in the by-elections. The Democrat Party demurred and petitioned the Central Administrative Court to cancel the by-elections.

TRT won 16 million votes cast nationwide, with 10 million abstentions and invalid ballots, but with the abstention ("no-vote") option outweighing TRT support in many constituencies in the capital and the South. This gave Thaksin more than half of the popular vote. Thaksin had earlier promised to not accept the premiership if he received less than half the total vote

Even in Bangkok, TRT won in every district with more than 20% of votes, despite a large number of abstentions. Out of 2,329,294 Bangkok votes counted as of 22.31 hrs on 3 April 2006, TRT won 1,035,254 votes, the remainder being abstentations and invalid ballots..

After unofficial voting tallies became public, the People's Alliance for Democracy (PAD) petitioned the Administrative Court to suspend the results of the election. Chamlong Srimuang declared that the PAD would ignore the results of the election and that the "PAD will go on rallying until Thaksin resigns and Thailand gets a royally-appointed prime minister".

By-elections

By-elections were held in 40 constituencies, mostly in the South. The Democrat party continued to boycott the elections. Unofficial results as of 25 April 2006 showed that Thaksin's Thai Rak Thai party won in 25 of the constituencies. In 2 constituencies, TRT lost to smaller parties. In 13 constituencies, TRT ran uncontested but did not win at least 20% and yet another round of by-elections on 29 April was scheduled there. These elections were suspended when the Constitution Court reviewed whether or not to annul the results of the official election.

Invalidation of the first elections

On 8 May 2006, the Constitution Court ruled 8-6 to invalidate the April election and ordered a new election to be held. The Court also unsuccessfully demanded the resignation of the Election Commissioners. The Democrat Party, which had boycotted the April elections, said they are now ready to contest a new election.

After the first 2006 election

Thaksin proposes reconciliatory panel

On 3 April 2006, Thaksin Shinawatra appeared on television to declare victory in the controversial 2006 election, called for unity in the kingdom, reiterated his proposal for a government of national unity, and proposed the creation of an independent reconciliatory commission to end the political stalemate. He offered to resign if the new panel recommended it. The commission could consist of three former parliament presidents, three Supreme Court presidents, three former prime ministers and rectors of state universities. He also suggested that four potential candidates from the TRT could replace him if he stepped down, including former House Speaker Bhokin Bhalakula and and caretaker Commerce Minister Somkid Jatusripitak.

The Democrat Party and the PAD immediately rejected the reconciliation panel. "It's too late for national reconciliation," said Chamlong Srimuang. The PAD claimed that once again Thaksin was using votes to justify himself, and called for a nation-wide protest on Friday 7 April to force the Prime Minister to resign.

Stepping down

After an audience with King Bhumipol, Thaksin announced on April 4, 2006 that he would not accept the post of Prime Minister after the Parliament reconvenes, but would continue as Caretaker Prime Minister until then.

"My main reason for not accepting the post of prime minister is because this year is an auspicious year for the king, whose 60th anniversary on the throne is just 60 days away...I want all Thais to reunite," said Thaksin in a nationally televised speech. He then delegated his functions to Caretaker Deputy Prime Minister Chidchai Wannasathit, moved out of Government House, and scheduled a vacation with his family.

Thaksin's announcement provoked mixed reactions among the public and the anti-Thaksin coalition. Grassroots supporters were seen weeping when they bade Thaksin farewell. A Bangkok poll taken 3 weeks after Thaksin's announcement found that TRT policies were still overwhelmingly popular in Bangkok, with 54.2% preferring TRT policies versus 7.5% for the Democrats. The Democrat Party at first welcomed the decision and promised to cooperate to resolve the political crisis. However, they continued their boycott of by-elections. In a celebration at Sanam Luang on 7 April, PAD leaders announced their new goal was the eradication of the "Thaksin regime". PAD leaders subsequently formed the Mass Party, with the stated goal of fighting against Thaksinomics. The Law Society of Thailand, which had earlier campaigned for Thaksin's ouster, filed a suit with the Supreme Administrative Court alleging that Thaksin's leave was illegal.

Miscellaneous

• In January 2006, Thaksin staged Back Stage Show: The Prime Minister, a reality show about his work on solving poverty in Amphoe At Samat, Roi Et Province. Although many people and scholars commented that this show was nothing but a marketing event to boost the PM's image, Thaksin claimed the show was a learning model for other government officers to follow.
• In Chinese-language media, Thaksin's name is given as Qiu Daxin (丘达新; pinyin: Qiū Dáxīn); Qiu is the surname of Thaksin's great grandfather and Daxin is a transliteration of Thaksin. It is accepted tradition in the Chinese-language world that a man's Chinese surname remains the same, despite various versions or changes in the English, Philippine, Thai, Indonesian or other languages, because it is the Chinese clan name passed on to male descendants.

See also

• List of Prime Ministers of Thailand
• Thai Constitution in PDF format

Notes

1. Kingdom of Thailand: Legislative Elections of 2 April 2006
2. Riding the silk Road to power, 2 November 2003, Asian Tribune
3. Mr. Clean runs for Bangkok governor, soc.culture.thai Newsgroup Thread
6. Post, 3 Feb 1995, It is not ended yet
7. Post, 7 Feb 1995, Outsiders making good
13. Post, 13 Mar 1994, Power Struggle in PDP
21. Pasuk Phongpaichit & Chris Baker, Thaksin: The Business of Politics in Thailand (Chiang Mai, Thailand: Silkworm Books, 2004), pp. 57-59.
22. SONDHI’S LATEST CLAIM: Thanong tip-off ‘profited Shin Corp’ - Kamol Sukin & Kornchanok Raksaseri, The Nation, December 17, 2005
24. Pasuk & Baker (2004), p. 58.
35. HIS MAJESTY'S SPEECH: Monarch urges unity, responsibility, The Nation, 6 December 2003
84. |Thaksin
91. ]
104. Constitution Court invalidate the April election and order new election, The Nation, 8 April 2006
117. New parties sprouting already, The Nation, 17 May 2006

External links

• Biography at the Thai government
• Biography at the Thai embassy in the US
• the website of Thaksinomics
• Thaksin's reality show on 2Bangkok.com
• Thailand descends into political paralysis Extract from Jane's Intelligence Review, March 2006
• High tension in Thailand - Anti-Thaksin rallies

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