News / Asia

Thai Economy at Risk as Political Rivals Vow Mass Rallies

People hold candles as they form a peace sign during an anti-violence campaign in center of Bangkok, Thailand, Jan. 3, 2014.
People hold candles as they form a peace sign during an anti-violence campaign in center of Bangkok, Thailand, Jan. 3, 2014.
Reuters
Thailand's finance minister expressed concern about a weak currency and damage to the economy on Friday as supporters and opponents of the government prepared for big rallies this month that risk pushing the divided country to the brink of chaos.
 
Planned infrastructure projects worth $65 billion intended to boost an economy blighted by political tension and sagging exports would be postponed until the end of the year, Kittirat Na Ranong said, while the baht's slide against the U.S. dollar could hurt imports and raise energy prices.
 
Protesters intent on toppling Prime Minister Yingluck Shinawatra's government want to suspend Thailand's fragile democracy by thwarting a February election and installing a "people's council" to reform the political system.
 
They are planning a "shutdown" of Bangkok from January 13, deepening uncertainty about a poll Yingluck's Puea Thai Party would otherwise be almost certain to win. Protesters have yet to reveal exactly what they will target, or for how long.
 
The crisis is similar to previous years, with the country polarized over the political dominance of Yingluck's brother and former premier, Thaksin Shinawatra, 64, who lives in self-imposed exile to avoid a jail sentence.
 
Many of Bangkok's middle classes, old-money elites and royalists are angered by the influence of a man they say is a corrupt crony capitalist who manipulated the poor with giveaways designed to win votes and entrench the power of his billionaire family and business friends.
 
However, millions of poor in the north and northeast who benefited from cheap healthcare, micro-loans and generous subsidies hail Thaksin as a hero and are willing to take to the streets to defend his governments.
 
Those supporters, better known as the "red shirts", held mass rallies in support of Thaksin in 2010, which ended with the deaths of more than 90 people in military offensives to retake occupied sites in Bangkok.
 
The red shirts, who were instrumental in bringing Yingluck to power in 2011, announced on Friday they would enter the fray by holding rallies of their own outside the capital to protect democracy and counter those staged by the anti-government group.
 
'We want election’
 
"Red shirts will gather across the country to show the world who are the owners of sovereignty," said one of their leaders, Nattawut Saikuar, who is also deputy commerce minister. "We want an election and we will go for it."
 
The prospect of rival groups gathering in large numbers does not bode well for Thailand and risks intensifying a crisis that in recent weeks has seen sporadic bouts of violence, including clashes between demonstrators and riot police and several deadly shootings by mystery gunmen.
 
Anti-government demonstrators plan to march through Bangkok daily starting from Sunday in a bid to re-energize supporters after the year-end break, before which more than 200,000 had rallied peacefully in the capital.
 
Political concerns have had an impact on markets and the currency, mainly due to worries that the Feb. 2 election called by Yingluck to reduce tensions would have the opposite effect.

Bearish bets on the Thai baht are at their highest in nearly two years as the political crisis escalates, according to a Reuters poll released on Friday.
 
The baht slid to 32.98 per dollar on Friday, its weakest since February 2010. The benchmark stock index closed down 0.5 percent at 1,224.62 on Friday, with investors selling major stocks. Earlier it hit 1,208.60, the lowest since August 2012, and has lost 15 percent since the start of November.
 
"The current weakness of the Thai baht is a bit of a worry," Finance Minister Kittirat told reporters. "It is supportive to exports but could hurt imports and the cost of energy."
 
Any postponement to the poll, which the Election Commission has asked for, could seriously impact policymaking and expose the government to more attacks and the possibility of military or judicial intervention, analysts say.
 
Yingluck refuses to cave in and says a change of the poll date would be unconstitutional.
 
The crisis seemed unlikely only a few months ago, when Thaksin's opponents appeared to be tolerating Yingluck's government. Her Puea Thai party tried to force through an amnesty bill that would have nullified Thaksin's conviction, sparking the latest round of protests.

You May Like

Video VOA Reporter Tours Devastated Peshawar School

Islamist militants wearing military uniforms and strapped with explosives attacked a military run school Tuesday in the northwestern Pakistani city of Peshawar. At least 141 people were killed in the horrific attack, most of them young students. More

Video Sudan School Becomes Target of Aerial Attacks

Dropout rate at an all-time high in South Kordofan state because many schools have been destroyed during 3-year civil war More

Tennessee Songbirds Fly Coop Long Before Tornadoes Arrive

Researchers say birds apparently alerted to danger by sounds at frequencies below range of human hearing More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
US: Response to Sony Hack Will Be Proportionali
X
Aru Pande
December 19, 2014 1:45 AM
The White House says President Barack Obama considers the cyberattack on Sony Corp. a serious national security matter and that the U.S. will counter with an "appropriate response." VOA correspondent Aru Pande reports.
Video

Video US: Response to Sony Hack Will Be Proportional

The White House says President Barack Obama considers the cyberattack on Sony Corp. a serious national security matter and that the U.S. will counter with an "appropriate response." VOA correspondent Aru Pande reports.
Video

Video Sudan School Becomes Target of Aerial Attacks

The school dropout rate is at an all-time high in Sudan's South Kordofan state because many schools have been destroyed during the three-year civil war between the government and SPLA-N rebel forces. Adam Bailes visited Sudan's Nuba Mountains' region and reports many children are simply too scared to go to school
Video

Video Nigerians Fleeing Boko Haram Languish in Camp Near Capital

In its five-year effort to impose Islamic law in northeastern Nigeria, the Boko Haram extremist group has killed thousands of people and forced hundreds of thousands to flee. Some of those who ran for their lives now live in squalor on the edges of the capital, Abuja. Chris Stein reports for VOA.
Video

Video Putin Says Russian Economy Will Emerge Stronger

Russian President Vladimir Putin has said his country's sinking economy will not only recover but also become stronger, despite falling oil prices and Western sanctions over Ukraine. VOA's Daniel Schearf reports.
Video

Video Detained Turkish Journalists Follow Teachings of US-Based Preacher

The Turkish government’s jailing of critical journalists has sparked international condemnation and is being seen as an effort to undermine the followers of an ailing Turkish preacher based in the United States. VOA religion reporter Jerome Socolovsky has more.
Video

Video ‘Anti-Islamization’ Marches Increase Tensions In Germany

Anti-immigrant rallies in Germany have been building in recent weeks, peaking Monday night in the city of Dresden where tens of thousands of people turned out to demonstrate against what they call the ‘Islamization’ of the West. Germany has offered asylum to more Syrian refugees than any other country, and this appears to have set off the protests. Henry Ridgwell reports from London.
Video

Video Aceh Rebuilt Decade After Tsunami, But Scars Remain

On December 26, 2004 there was an earthquake in the Indian Ocean so powerful it caused the Earth’s axis to wobble a few centimeters. Onshore on the island of Sumatra, the resulting tsunami was devastating. A decade later, VOA Correspondent Steve Herman reports from Banda Aceh, Indonesia, where although there is little remaining evidence of the physical devastation, the psychological scars among survivors remain.
Video

Video Refugees Living in Kenya Long for Peace in the Home Countries

Kenya is host to numerous refugees seeking safe haven from conflict. Immigrants from Somalia face challenges in their new lives in Kenya. Ahead of International Migrants Day (December 18) Lenny Ruvaga has more for VOA News from the Kenyan capital.

All About America

AppleAndroid