Barnham Resigns: Political instability in Thailand hampers economic growth

22nd September 1996

Prime Minister of Thailand Barnham has indicated he will step down in a week, ending months of speculation.

Leading a coalition of 6 parties, Barnham has never really been able to govern effectively, his own failings being his major downfall. A master at buying votes in rural areas by attaching Baht notes to voting slips, Barnham has also repeatedly denied "buying" his local degree, and lying about his age and ancestry.

During his 15 months in power Barnham has been unable to stem the downward spiral of the Thai economy, inherited from the previous administration. Only five years ago Thailand, despite enormous infra structural problems was experiencing strong growth and positioning itself to be the gateway to the growing Indo China region with a strategically central and politically neutral position. However the last couple of years has seen an economy in decline, rampant inflation, repeated rumors of the devaluation of the Baht, while businesses who had already made heavy investments in the country are starting to hedge their bets.

The military, responsible for 17 coups in the past 60 years since the replacement of absolute monarchy with parliamentary democracy, are quiet at present, and commentators are cautious and realistic on what sort of effect a simple change of leadership would have.

The next few months are critical to whatever turnaround can be achieved. As usual regular visits to the Nation and Bangkok Post newspapers, accessable from our News Page, will be informative.