Policies of the Surayud government

The polices of General Surayud Chulanont, Prime Minister of Thailand, affected the Thai economy, human rights, education, and numerous other areas. Appointed Prime Minister by a military junta that overthrew the government of Thaksin Shinawatra, he has been praised for his efforts to reverse the policies of the Thaksin government and to reduce the role of foreigners in the Thai economy. However, his policies have been controversial, and he been accused of economic mismanagement, rampant human rights abuses, and allowing the escalation of the South Thailand insurgency.

New constitution

The junta's 2006 Interim Constitution authorized it to appoint a 2,000 person National Assembly which would select members to become candidates for a Constitution Drafting Assembly. From the onset of his appointment as Premier, Surayud Chulanont was urged by academics to override the junta's control of the constitution drafting process. Surayud eventually gave the junta a free hand in drafting the constitution.

The junta had originally promised to draft a permanent charter within eight months and to hold elections in October 2007. However, the Prime Minister's Office Minister Thirapat Serirangsan later announced that elections might not occur until one year and five months. [The Nation, [http://nationmultimedia.com/2006/10/18/politics/politics_30016453.php Drafting new charter 'may take 17 mths'] , 18 October 2006]

Thaksin Shinawatra

Surayud warned deposed Premier Thaksin Shinawatra several times against returning to Thailand, calling his return "a threat". [The Nation, [http://nationmultimedia.com/2006/09/28/headlines/headlines_30014841.php Thaksin's return 'a threat'] , 28 September 2006] During a November 2006 trip to China for the ASEAN-China Summit, Surayud refused to meet Thaksin, who was also in China at the time. [The Nation, [http://nationmultimedia.com/2006/11/02/headlines/headlines_30017851.php Deposed PM's in China to meet Surayud: Gen Sonthi] , 2 November 2006] Surayud later denied Thaksin the opportunity to return to Thailand to contest in eventual elections, and said that the appropriate time for him to return would be "after a year," when a newly elected government was already in place. [The Nation, [http://nationmultimedia.com/2006/11/13/headlines/headlines_30018799.php PM quashes Thaksin return] , 13 November 2006]

Thaksin's diplomatic passport was revoked by the Foreign Ministry on 31 December 2006 after the government claimed he had engaged in political activities while in exile. Thai embassies were ordered not to facilitate his travels. Traditionally, all former prime ministers and foreign ministers of Thailand were permitted to hold on to their diplomatic passport for life. [The Nation, [http://nationmultimedia.com/2007/01/10/headlines/headlines_30023787.php FM cancel ousted premier and wife's diplomatic passports] , 10 January 2007]

Thaksin later publicly announced that he was quitting politics. Surayud's Defense Minister later announced that the junt would refuse Thaksin's reconciliation offer, claiming that Thailand was being threatened by "ill-intentioned people" and capitalism. [Bangkok Post, [http://bangkokpost.net/breaking_news/breakingnews.php?id=116526 General scorns Thaksin reconciliation] , 3 February 2007]

Telecommunications

* The planned merger of state-telecom companies TOT and CAT. [The Nation, [http://www.nationmultimedia.com/2006/10/16/business/business_30016254.php Call for end to policy corruption] , 16 October 2006]
* The cancellation of plans to list TOT, CAT, and Thai Post on the Stock Exchange of Thailand. [The Nation, [http://www.nationmultimedia.com/2006/10/28/business/business_30017353.php Sweeping changes in state telecom boards] , 28 October 2006]
* The cancellation of the Thaksin government's telecom excise tax policy. The Thaksin government imposed an excise tax on privately offered fixed and cellular services, and then allowed telecom companies to deduct the amount they paid in excise tax from concession fees they had to pay to state concession owners TOT or CAT Telecom. The total amount paid by the private telecom firms did not change. The Surayud government's excise tax cancellation meant that TOT and CAT Telecom would receive their full concession payments. However, TOT and CAT were then forced to increase their dividends to the Ministry of Finance to account for their increased income. [The Nation, [http://nationmultimedia.com/2007/01/24/headlines/headlines_30024946.php Telecom excise tax revoked] , 24 January 2007]
* Changing the publicly-listed state-enterprise media company MCOT's policy from focusing on monetary benefits to social benefits. MCOT's stock prices dropped 5.13% to an 11-month low as a result. [The Nation, [http://nationmultimedia.com/2006/11/04/business/business_30018020.php MCOT plunges on policy reversal] , 4 November 2006]

Culture

* The planned ban against all forms of advertising for alcoholic beverages.The Nation, [http://www.nationmultimedia.com/2006/10/13/national/national_30016065.php Bt30 health fee may be scrapped] , 14 October 2006]
* The banning of all "sexually-arousing dances" (locally called "coyote dances") during the Loy Kratong festival. [The Nation, [http://nationmultimedia.com/breakingnews/read.php?newsid=30017866 No 'coyote dances' for Loy Krathong: Culture Ministry] , 3 November 2006]

Public health

* Making the 30-baht universal healthcare program completely free. The Budget Bureau criticized the move. [The Nation, [http://nationmultimedia.com/2006/10/31/national/national_30017578.php NHSO backs plan to ditch Bt30 fee] , 31 October 2006] The government later cut the universal healthcare program budget by over 3.8 billion baht, providing a subsidy of just 1,899 baht per head, compared to the previously proposed figure of 2,089 baht. The number of eligible people was cut from 48 million to 46 million people. [The Nation, [http://www.bangkokpost.com/News/20Dec2006_news11.php Alarm overB3.8bn slash to healthcare] , 20 December 2006]
* License the production and sale of patented HIV and heart disease drugs without the permission of the foreign patent owners. Lack of public health budget was cited as the reasons for breaking the patents. "It has stunned our industry," said the President of the Pharmaceutical Research and Manufacturers Association (PReMA). The Minister of Public Health claimed that pharmaceutical industry was reaping "colossal" profits. Under World Trade Organization rules, a government is allowed to break patents under after declaring a "national emergency." [Scientific American, [http://www.sciam.com/article.cfm?chanID=sa001&articleID=C9BD2D5F2FB6CEA41198DC6A2F817331 Thailand stuns drug firms with generic licenses] , 25 January 2007] Breaking the patents of Abbott's HIV treatment Kaletra and Sanofi-Aventis' blood clot drug Plavix was estimated to save Thailand US$24 million a year. [Motley Fool, [http://www.fool.com/investing/high-growth/2007/01/31/youre-only-hurting-yourself-thailand.aspx You're Only Hurting Yourself, Thailand] , 31 January 2007]

Energy

* The indefinite delayal of the previous government's policy of converting all octane 95 gasoline sales to gasohol. [The Nation, [http://nationmultimedia.com/breakingnews/read.php?newsid=30016599 Energy minister says abolition of octane-95 oil sale to be indefinitely delayed] , 20 October 2006]
* The cancellation of state electricity company EGAT's guaranteed 50% share in all new power plant construction. [Bangkok Post, [http://bangkokpost.net/Business/09Nov2006_biz35.php Ministry to cancel Egat's 50% promise] , 9 November 2006]
* The prevention of EGAT from participating in bidding for new electricity plants under the Independent Power Producer (IPP) program. [Bangkok Post, [http://bangkokpost.net/Business/16Dec2006_biz46.php Egat will not be invited to IPP bids] , 16 December 2006]
* The cancellation of plans to import hydroelectric power and natural gas from Myanmar.Asia Times, [http://www.atimes.com/atimes/Southeast_Asia/HK14Ae02.html Unplugging Thailand, Myanmar energy deals] , 14 November 2006]

ecurity and the southern insurrection

* An increase in military spending. Since 1999, military spending had remained stagnant at approximately $2 billion in 2000 dollars. [The Nation, [http://www.nationmultimedia.com/2006/11/01/national/national_30017701.php 'Under-strength' military expecting funds] , 2 November 2006] [Australia Defence Intelligence Organisation, [http://www.defence.gov.au/dio/documents/det2004.pdf Defense Economic Trends in Asia-Pacific 2004] ]
* Issuing a formal apology regarding the the Tak Bai incident. [The Nation, [http://nationmultimedia.com/2006/11/04/headlines/headlines_30018061.php Warrants soon in Somchai 'murder' case] , 4 November 2006]
* Revealing for the first time to the public that the insurgency was being finance by a network of restaurants and stalls selling Tom Yam Kung in Malaysia. Surayud claimed that the Tom Yam Kung network collected money from local businessmen through blackmail and demands for protection fees and channelled the sum to the separatists. [The Nation, [http://nationmultimedia.com/2006/11/21/headlines/headlines_30019561.php Tam Yam Kung networks in Malaysia finance insurgents: PM] , 21 November 2006] Malaysian Deputy Security Minister Fu Ah Kiow described the revelation as "absolutely baseless," and "very imaginative." [The Nation, [http://nationmultimedia.com/2006/11/22/headlines/headlines_30019679.php Not all Tom Yam Kung restaurants fund insurgency: Interior] , 22 November 2006]
* Appointing Seripisut Temiyavet as Police Commissioner General, replacing Kowit Watana

Education

* The cancellation of Thailand's participation in the One Laptop Per Child (OLPC) program. [Bangkok Post, [http://bangkokpost.net/News/28Nov2006_news04.php Education Ministry axes 3 schemes] , 28 November 2006] The project has been criticized as unrealistic. [Wikipedia, [http://en.wikipedia.org/wiki/One_Laptop_Per_Child#Good_use_of_money] , OLPD Citicism]
* The cancellation of plans to install personal computers and broadband internet connections in every public and secondary school in Thailand. [Bangkok Post, [http://bangkokpost.net/News/28Nov2006_news04.php Education Ministry axes 3 schemes] , 28 November 2006]
* Forcing 430 prestigious schools across the country to accept half of their students from the local neighborhood. All other schools would be required to accept all applicants; if applicants exceeded seats, a random draw would choose which applicants would be accepted. [The Nation, [http://nationmultimedia.com/breakingnews/read.php?newsid=30018847 Famous schools ordered to take in half of new students from neighbourhood] , 14 November 2006]
* The continuation of the Thaksin Shinawatra government's "One District, One Scholarship" program under the name "Scholarships for Community Development] . The maximum annual income for eligible recipients' families was rased from 100,000 baht to 150,000 baht. [Bangkok Post, [http://nationmultimedia.com/2007/01/05/national/national_30023330.php Scholarship scheme to continue] , 5 January 2007]

Economy and agriculture

* A budget deficit of 147 billion Baht for fiscal year 2007. This was the first budget deficit since 2003. [The Nation, [http://nationmultimedia.com/2006/11/15/headlines/headlines_30018962.php Massive loss from Thaksin projects] , 16 November 2006]
* Elimination of subsidies for rice farmers. The price of rice, set at 30% above market prices during the deposed Thaksin Shinawatra government, was dramatically lowered. It was claimed that the high price of rice seriously affected farmers and caused social burdens. [The Nation, [http://www.nationmultimedia.com/2006/11/10/headlines/headlines_30018585.php Pridiyathorn explains sufficiency economy concept to investors] , 10 November 2006]
* The cancellation of the Million Cows project. Under the project, the government lent five million cows to one million farming families. The families were allowed to sell milk and calves for profit. The program was highly popular among politicians. [Bangkok Post, [http://bangkokpost.net/News/29Nov2006_news03.php Ministry scraps one-million-cows project] , 29 November 2006]
* Capital controls in an attempt to reverse a massive appreciation of the Thai Baht. The moves caused a crash in the Thai stock market, with a one-day loss of 820 billion baht (approx. US$22 billion) in market value. The move resulted in harsh criticism both within Thailand and abroad. "My definition of what's going on is 'Welcome to amateur hour,'" said Donald Gimbel, fund manager for Carret & Co. Korn Chatikavanij of the Democrat party noted of a policy reversal, "That can't repair the damage that was caused in one historic day." [Bloomberg, [http://www.bloomberg.com/apps/news?pid=20601109&sid=aNHJkVP9TpXA&refer=home Thailand's Rules Retreat Won't Halt Investor Backlash] , 20 December 2006]
* Amid pressure from the junta to find wrong-doing in Thaksin Shinawatra's sale of Shin Corp to a Singaporean company, the Commerce Ministry altered regulations concerning foreign ownership companies. This impacted the legality of thousands of local subsidiaries of foreign companies operating in Thailand. [Bangkok Post, [http://bangkokpost.net/breaking_news/breakingnews.php?id=115830 Foreign businesses await law change] , 7 January 2007]
* Amendments to the Foreign Business Act that would limit foreign companies investing in List I and II businesses (including media, telecoms, and aviation) from holding more than 50% of shares. List III businesses (including retailers and hotels) were exempted from the new restrictions. Investors holding more than 50% would be forced to lower their stakes within a year. Investors holding more than 50% of voting rights would be forced to lower their voting stakes within a year. Finance Minister Pridiyathorn noted, "If they (foreign investors) had seen the details (of the foreign investment law), I am sure that they would be happy." [The Nation, [http://nationmultimedia.com/2007/01/09/headlines/headlines_30023662.php Thailand to limit foreign stake in firms to 50 per cent] , 9 January 2007] [Bloomberg, [http://www.bloomberg.com/apps/news?pid=20601087&sid=apnV.j9kiuXc&refer=home Thailand Tightens Overseas Investment Rules, Caps] , 9 January 2007] Brokers and analysts criticized the move (widely seen as necessary in order to punishment Temasek Holdings for its acquisition of deposed Premier Thaksin Shinawatra's Shin Corporation) as politics intervening to hurt the economy. [Asia Sentinel, [http://www.asiasentinel.com/index.php?option=com_content&task=view&id=337&Itemid=32 Thailand Moves Against Foreign Firms] , 10 January 2007] The governments of the United States, Canada, Switzerland, Japan, and European Union protested the move. [The Nation, [http://nationmultimedia.com/2007/02/10/headlines/headlines_30026486.php Reconsider amendment, envoys urge] , 10 February 2007]
* The approval of debt-relief measures for farmers. This prompted Northeastern farmer leaders from cancelling a planned protests in Bangkok. [The Nation, [http://nationmultimedia.com/breakingnews/read.php?newsid=30024286 Cabinet approves debt-relief measures for farmers] , 17 January 2007]
* Reopening Don Muang Airport for domestic and international flights after allegations that the newly opened Suvarnabhumi Airport alone was incapable of handling future traffic volume. The decision met with strong opposition from Airports of Thailand, the Civil Aviation Department, and domestic and international airlines. [The Nation, [http://nationmultimedia.com/2007/02/08/opinion/opinion_30026265.php Making the best out of airport debacle] , 8 February 2007] Surayud made the decision based on his personal advisors, without waiting for the Ministry of Transport to finish a study. [Bangkok Post, [http://bangkokpost.net/topstories/topstories.php?id=116644 And then there were two airports] , 7 February 2007]

Human rights

* Censorship of broadcast television. Troops were dispatched to all television stations on the night of the coup and remain there as of late December 2006. An interview with the late Nuamthong Phaiwan broadcast by television channel iTV came to an abrupt end after the Director of Army-owned Channel 5 called the station to warn them against the broadcast. Additional troops were dispatched to "keep order" at the station. [The Nation, [http://nationmultimedia.com/2006/11/02/headlines/headlines_30017813.php Taxi driver 'sacrificed himself for democracy'] , 2 November 2006] Broadcast media were to stop airing news about former Prime Minister Thaksin Shinawatra and his associates. [Bangkok Post, [http://bangkokpost.net/breaking_news/breakingnews.php?id=115911 CNS to get tough with broadcast media] , 10 January 2007]
* Censorship of community radio. Thousands of community radio stations were shut down after the coup. Community radio operators were only allowed to rebroadcast if they reported in the "spirit of national unity." The junta retained the authority to shut down any station at any time. [The Nation, [http://nationmultimedia.com/2006/12/20/politics/politics_30022031.php Broadcasters may be manipulated, experts warn] , 20 December 2006]
* Censorship of Somtow Sucharitkul's opera "Ayodhya". It was thought that the on-stage death of the demon-king, Thotsakan, would constitute a bad omen. Somtow, a critic of deposed Prime Minister Thaksin Shinawatra, criticized the move but agreed to modify the scene. [International Herald Tribune, "Governed by Omens", 18 November 2006] [The Nation, [http://www.nationmultimedia.com/2006/11/16/opinion/opinion_30019095.php Why artistic freedom matters] , 17 November 2006]
* Massive censorship of the internet. Pre-coup, the government blocked 2,475 websites, while as of January 2007, the government blocked 13,435 websites - an increase of over 500%. [ [http://facthai.wordpress.com/2007/02/05/rsf-thailand-annual-report-2007/#comments RSF: Thailand - Annual report 2007] ] In addition, the popular Midnight University web board was shut down for what the government claimed were posts offensive to the monarchy. [Bangkok Post, The Role of the Monarchy in Censorship, 28 July 2006]
* The repeal of junta restrictions against organizing protests on 9 November 2006. However, martial law has been lifted in most of the country. [The Nation, [http://nationmultimedia.com/breakingnews/read.php?newsid=30018522 NLA revokes ban on demonstrations] , 12 November 2006]
* The approval of a law that would imprison anyone found guilty of forwarding a pornographic email up to three years. [Bangkok Post, 3 Years in Jail for a Porn Email, 16 November 2006]
* The establishment of a 14,000-strong special operations force with a mandate to control anti-junta protests. The 556 million baht fund allocation came from a request by the Council for National Security. The rapid deployment force began operations on 1 December 2006. Surayud refused to explain why his Cabinet approved funding of the force after it had already started, which was contrary to PM's Office directives. Government spokesman Yongyuth Mayalarp promised that the force would be dissolved in 30 September 2007, along with the CNS. The funds would be diverted from the Defense Ministry and Police Office, but if those two agencies lacked funding, they would be diverted from the government's reserve fund for emergency situations. Yongyuth revealed that no Cabinet members questioned the use of the fund. General Saprang Kallayanamit, assistant Secretary-General of the CNS, was appointed Commander of the force. [The Nation, [http://nationmultimedia.com/2006/12/27/headlines/headlines_30022635.php Secret military division deployed] , 27 December 2006] [Bangkok Post, [http://bangkokpost.net/News/27Dec2006_news03.php CNS to have own B500m peace-keeping force] , 27 December 2006]
* Arresting 26 Bo Bae Market illegal vendors protesting their forced relocation following a major fire. The protestors were charged with participating in an illegal gathering attended by more than 10 people. [The Nation, [http://nationmultimedia.com/2007/01/05/headlines/headlines_30023371.php Police arrest Bo Bae market vendors] , 5 January 2007] They later refused to air an interview that Thaksin had earlier made. [The Nation, [http://nationmultimedia.com/2007/01/16/headlines/headlines_30024245.php Thaksin: Enough is enough] , 16 January 2007]
* Censorship of all mention of Thaksin Shinawatra from television. [ [http://facthai.wordpress.com/2007/01/15/pull-thaksin-cnn-interview Thai generals pull plug on Thaksin CNN interview « FACT - Freedom Against Censorship Thailand ] ]
* The torture of suspected insurgents by the military in the South. The Asian Human Rights Commission accused soldiers of seriously harming suspects by beating them, burning their genitals with cigarettes, smashing beer bottles over their knees, and chaining them to dogs. [Asian Human Rights Commission, [www.asiaobserver.com/component/option,com_joomlaboard/Itemid,91/func,view/catid,18/id,238/ Emergency decree legalises torture chambers] ]

Other

* The granting of unprecedented salaries for the leaders of the military junta. [The Nation, [http://www.nationmultimedia.com/2006/11/08/politics/politics_30018384.php Junta gets fat-cat allowances] , 8 November 2006] [Bangkok Post, [http://www.bangkokpost.com/breaking_news/breakingnews.php?id=114095 Minister testy over 'coup rewards' crack] , 8 November 2006]
*Expanding Bangkok's mass transit rail network by 5 new routes, using the same amount as budgeted by the deposed Thaksin government. [The Nation, [http://nationmultimedia.com/2006/11/06/business/business_30018162.php Govt set to unveil 5 rapid rail lines] , 6 November 2006]

References