Never-Ending Destruction

EC 1 Section 8
13 May 2010
Instructor: Mr. Billy
Never-Ending Destruction
Thailand’s economy side by side with South Korea, Malaysia, Indonesia and others in Southeast Asia has been recovering and growing dramatically since the Asian economic crisis in the late 90s. All of that has changed when Thailand’s most successful and corrupt prime minister in the Thai history; Thaksin Shinawatra, has torn the country along with its economy apart after he was forced out of power my a military coup. Series of demonstrations against Thaksin and his nominees by groups of people, the largest one being the “Yellow Shirts” which led to problems that results to further destructive reactions that would take years for the country to recover. Right after the Yellow shirts stopped their activity, the opposition demonstrators started their movement and it is still going on today, even getting violent. The “Red Shirts” started their demonstrations and pulled the Land of Smile deeper into chaos, and this decade-long crisis has affected Thailand’s economy in a large perspective with no obvious effective solution in sight.
The economy of South East Asia has benefited from a shift in foreign investment from the West to the East. Thailand’s Economy has attracted enormous amount of foreign liquidity inflow on the grounds that the government at the time has set economic regulation, ambition, healthy-looking conditions (Laplamwanit, N.D.), and other external elements, such as the expansion o the Japanese economy and a minor recession in Europe. To illustrate starting with the past, Thailand had a very regulated economy with many public companies ran by the government, however during the reign of General Prem Tilasulanont from 1980 to 1988, General Prem deregulated or in other words, opened up the economy of Thailand. This eventually led to a striking performance of 8.08% to 8.94% in GDP during 1991 to 1995 (Laplamwanit, N.D.). This period of 1985 to 1995 was a time of...