Backgrounder: Thailand's power changes after Thaksin ousted in 2006

Backgrounder: Major protests in Thailand since 2008

    by Xinhua writer Fei Liena

    BANGKOK, April 14 (Xinhua) -- Weeks of anti-government demonstrations in Thailand are hurting the kingdom's economy, seriously dampening its chance and speed of recovery, experts warned.

    The Manila-based Asian Development Bank (ADB) has forecast that Thailand's economy will shrink by 2 percent in 2009 as it is hit by the double whammies of the global economic crisis and its domestic turmoil.

A burning bus is seen on a street near the Government House in Bangkok, capital of Thailand, on April 13, 2009. (Xinhua/Zhang Fengguo) Photo Gallery>>>

    "If the social instability continues, that growth rate could moderate," ADB acting chief economist Jong-Wha Lee said on a visit to Washington.

    Lee said the continuing violent protests would further hurt tourism, a major money-maker for the Thai economy, as well as foreign investment due to lack of confidence in the country's stability.

    He also regretted that the demonstrations forced the ASEAN (Association of Southeast Asian Nations) summit to postpone, at which Asian leaders could have come up with some solutions againstthe global economic crisis.

    Bank of Thailand Governor Tarisa Watanagase also warned that the political instability has dampened the country's sluggish economy.

    "Confidence is crucial to economic recovery. So, I hope everybody will cooperate to solve the economic problem," the governor said.

    The Thai Finance Ministry earlier forecast the country's gross domestic product (GDP) for 2009 could contract as much as 3 percent due to the sharply falling revenues from the export and tourism sector. Also, the sharp contraction of private investments will largely contribute to the GDP contraction.

    According to Kongkrit Hiranyakit, chairman of the Tourism Council of Thailand, the violence between anti-government protesters and security forces in the past few months, including November's airport shutdown, is likely to slash the country's tourism revenue by a third this year, or 200 billion baht (5.6 billion U.S. dollars), and cut 200,000 jobs in the industry which directly employs about 2 million people.

Thai army soliders stand guard on a street near the Government House in Bangkok, capital of Thailand, on April 13, 2009. (Xinhua/Zhang Fengguo) Photo Gallery>>>

 

    "This is very serious," Kongkrit said. "I've never seen anything like this."

    What's even worse, the turmoil will scare away foreign investment and business, whose confidence, unlike tourism, is not that easy to be restored.

    "New industries such as automobile, auto parts, electronic parts, and food may look at other countries," said Santi Vilassakdanont, president of the Federal of Thai Industries.

    Thailand's export-dependent economy, Southeast Asia's second-largest after Indonesia, is contracting as demand dries up for autos, electronics and other goods.

    The World Bank earlier predicted Thailand's economy would contract 2.7 percent this year after growing 2.6 percent last year.

    Standard & Poor's and Moody's, which already have a negative outlook for Thailand's sovereign ratings, said on Monday that this week's renewed unrest had increased the risk of a further downgrade of the country's ratings.

    "The negative pressure on Thai ratings has increased," said Kim Eng Tan, analyst at Standard & Poor's, which had downgraded Thailand's BBB+ long-term foreign currency rating outlook from stable to negative last December amid government changes and political turmoil.

    "When we downgraded Thailand's outlook we felt that political problems would continue to impact the economy. Right now we are seeing that this was more than speculation," Reuters quoted Tan assaying. "Tourism can rebound, but investor confidence will be very hard to get back."

    "It could lead to increased investment outflow out of Thailand," he warned.

    The "red-shirted" anti-government protestors have been demonstrating in Bangkok for more than two weeks, aiming to topplethe current coalition government led by Prime Minister Abhisit Vejjajiva and requiring a restoration of power for ousted former prime minister Thaksin Shinawatra.

Thai army to disperse protesters at Gov't House 

    BANGKOK, April 14 (Xinhua) -- Thai Army spokesman Sansern Kaewkamnerd said Tuesday in a live TV address the army is prepared to disperse the protesters at the Government House, ready to shooting into air, if necessary.

    He said there are about 2,000 protesters around the Government House, the only encampment of the protesters now. Full story

Thai PM says mission to restore order nearly completed

    BANGKOK, April 13 (Xinhua) -- After 24 hours of chaos and violence around the Thai capital, Thai Prime Minister Abhisit Vejjajiva concluded at the end of the day that his mission to bring back peace and order to the country has nearly completed.

    Abhisit delivered a late-night speech on national television on Monday that the military was just carrying out their duties to restore law and order, and blamed the red-skirted protesters for inciting violence, after soldiers moved to disperse anti-government protesters around Bangkok during the day. Full story

Thai Supreme Commander vows to restore peace quickly in Bangkok

BANGKOK, April 13 (Xinhua) -- Thailand's peace and stability would be restored as quickly as possible in order to bring normal life back to Thai people in capital Bangkok, Supreme Commander Songkitti Chakkrabat, who is a director of a newly-set-up emergency-tackling-command, reiterated on Monday afternoon. Full story

Thai soldiers marching to Gov't House

    BANGKOK, April 13 (Xinhua) -- Thai soldiers are now marching to the Government House Monday afternoon, the main venue for the red-shirted anti-government protestors.

    Earlier, the security authorities have managed to disperse red-shirted protestors from many areas in capital Bangkok as traffic near Victory Monument and nearby roads have resumed, acting government spokesman Panithan Wattanayagorn said. Full story

Thai former Senate speaker seeks King's intervention

    BANGKOK, April 13 (Xinhua) -- Thailand's former Senate speaker Suchon Chaleekrua Monday led a group of former senators to file a petition, seeking Thai king's intervention to end the current political violence, according to a report by the website of local newspaper The Nation.

    He filed the petition to Intharachan Buraphan, deputy secretary-general of the Royal Household Bureau. Full story

Protesters drive gas tankers into residential area in Bangkok

    BANGKOK, April 13 (Xinhua) -- Residents of Din Daeng area in Bangkok began to evacuate when protesters drove two tanker trucks fueled by NGV (Natural Gas for Vehicles) gas into the compound.

    Reporters saw two NGV cylinders on the trucks and the red-shirted protesters shouted that the flat residents there should leave immediately, prompting speculation that the protesters would explode the gas tanks. Full story

Thai gov't, Army try negotiation before shooting into air 

    BANGKOK, April 13 (Xinhua) -- The acting government spokesman and Army spokesman insisted in a press conference Monday morning that soldiers tried to talk protesters out of stopping road-blockade at the Din Daeng Intersection before dispersing them by force, Thai media reported.

    Acting Government Spokesman Panithan Wattanayakorn and Army Spokesman Col Sansern Kaewkamnerd said soldiers had to fire teargas and shot into the air after protesters threw bombs and teargas at the troops and drove some vehicles rushing towards them, The Nation said on its website. Full story

At least 77 wounded in army-protester clash in Bangkok

    BANGKOK, April 13 (Xinhua) -- At least 77 were wounded when hundreds of army soldiers and anti-government protesters clashed in Bangkok early Monday morning 14 hours after Thai PM declared a state of emergency in the capital city, Thai media reports.

    The Nation quoted hospital reports as saying at least 77 people suffered injuries mainly from teargas, with five seriously injured. Full story

Thai PM talks to assure people: gov't in charge

    BANGKOK, April 13 (Xinhua) -- Thai Prime Minister Abhisit Vejjajiva made two television speeches in early hours of Monday in a bid to restore people's confidence on his government's capability to control situation, after anti-government protests turned violent and forced him to declare state of emergency twice in two days.

    Abhisit appeared on state TV NBT after midnight, first time flanked with ministers, army and police top officials in charge of securities, the second alone. The two speeches carried the same key information, which was that the Abhisit government was not as soft and lonely as some people has judged from what they have seen in events in the past 48 hours. Full story

Thai gov't takes tough actions to control Bangkok situation

    BANGKOK, April 12 (Xinhua) -- The Thai government has taken tough actions in an attempt to control the situation in capital Bangkok as thousands of protesters keep confronting the government.

    On Sunday afternoon, Thai Prime Minister Abhisit Vejjajiva announced a state of emergency in Bangkok and areas in five neighboring provinces, citing danger of escalating violence by anti-government protesters in the capital. Full story

Thai deputy PM believes no coup in the country

    BANGKOK, April 12 (Xinhua) --- Thai Deputy Prime Minister Suthep Thaugsuban said Sunday night he was confident that there would not be a coup.

    He said the government declared the state of emergency in time to control the situation after the red-shirted movement planned to create political disturbances.  Full story

Thai PM: authorities now ready to suppress protesters

    BANGKOK, April 12 (Xinhua) -- Thai Prime Minister Abhisit Vejjajiva announced on TV at about 05:20 p.m. Sunday local time hat the authorities were now ready to suppress protesters, Thai media reported.

    He urged the public to remain calm during the operations, The Nation website said.  Full story

Soldiers, armored vehicles appear on street in Bangkok

    BANGKOK, April 12 (Xinhua) -- Bangkok has seen soldiers and armored carriers deployed on Sunday soon after the prime minister declared a state of emergency in the city and some areas of five provinces, Thai media reported.

    The Nation reported on its website that the military Sunday afternoon has blocked the roads around Chitralada Palace for security after the declaration of the state of emergency.  Full story