Challenges await new Thai government

Thaksin will be the first Thai prime minister to secure a second term through democratic election, in a nation where military dictatorships and coup d'etats were the status quo for a long time.

In his second term, he is also going to lead a one-party government for the first time in the nation's history. The voter turnout for the general election was also the highest ever.

The most significant outcome of the last election is that it has paved the way to establishing a civilian government in the country. It is also important to note that a very stable government, one with more than 70 percent of the seats in the lower house, will be created after this fair election.

However, some questions remain over whether long-term rule by the same government can be realized in Thailand where democracy has just begun to take root.

Thaksin, a telecom business tycoon, has adopted a chief-executive-officer-style approach to politics since he took office in 2001. He has demanded efficiency and achievement from government bureaucrats and dealt with important issues in a top-down way.

Privileged populist

On the other hand, Thaksin took a populist line. He spent a huge amount of money on aiding small-hold farmers and the poor, and succeeded in increasing his support base, though the opposition criticized this action as a dole-out policy. In the last election, voters gave Thaksin an overwhelming mandate to lead.

At issue in his second term is how he will use his power, considered by critics to be excessive. Opposition parties and civic groups warn that the prime minister's political style will become even more high-handed. Additionally, he has been constantly criticized for cronyism for appointing relatives and associates to important political posts.

Nonetheless, Thaksin is going to have a bigger voice internationally since he has succeeded in cementing his domestic ground.

In his first term, the prime minister has been working on the independence of the Thai economy, learning a lesson from the Asian currency crisis of late 1990s. Under Thaksin, Thailand has voluntarily weaned itself from Japan's official development assistance, stressing the need to become independent of foreign aid. Meanwhile, Thaksin has emphasized regional integration and joined those advocating the creation of an Asian bond market.

Key Asian nation

The destiny of the Association of Southeast Asian Nations depends on how Thailand, now the largest regional power with its steady economic growth, will balance its own interests and burdens from regional integration.

Thailand will also be a key country for Japan's Asian policy, which is now challenged by the rapidly-growing influence of China in the region. Placing importance on its relationship with Japan, the biggest investor in Thailand, the Thaksin government has been trying to strengthen its ties with China and India, and also discussing free trade agreements with many countries around the world.

Negotiations on a free trade agreement between Japan and Thailand have entered a final stage. With the end of the general election, the stalled talks will start moving forward again.

The government should make it a high priority to conclude a favorable free trade agreement with Thailand, which can become the new foundation for further enhancement of the bilateral relationship, and must utilize the agreement to revitalize its general policy on Asia.

(From The Yomiuri Shimbun, Feb. 13)