Thaksinomics in Light of the Heterodox View on Economic Development

Abstract

general elections in Thailand ultimately illustrated former Prime Minister Thaksin Shinawatra's (2001-2006) unbowed popularity in most parts of the country. The election result was all the more impressive when one takes into account that the figurehead of the People Power Party, Thaksin himself, had been literally absent for sixteen months. The coup against Thaksin's Thai Rak Thai (TRT) government on 19 September 2006 had drawn on widespread dissatisfaction within the urban middle-class, sparked by Thaksin's authoritative and alleged corruptive practices. This dissatisfaction was especially visible in early 2006, when anti-Thaksin rallies took place in Bangkok. The coup makers, led by General Sonthi Boonyaratkalin, tried to legitimize the overthrow by stating several reasons, such as the rift in Thai society, corruption, power abuse, and lese majeste charges. During its term, the military-installed government under Prime Minister Surayud Chulanont more or less effectively banished everything associated with Thaksin. Popular policies were either removed or renamed and media coverage on the deposed Prime Minister restricted, among other things. In early 2008, shortly after the elections, top executives of the People Power Party announced a revival of most policies introduced during the TRT government's period. Thaksin's socioeconomic policies have constituted the main reason for his sustained popularity. "Thaksinomics"-the development strategy during his term-claimed to be an alternative to the "Washington Consensus," which through powerful institutions, such as IMF and World Bank, promote neoliberal policy making (through export orientation, attraction of foreign direct investment, minimal market intervention by the state, liberalization, privatization, the rule of law etc.). Aside from Thaksinomics, another set of development theories has emerged to challenge orthodox-meaning neoliberal-economic theory. The latter type shares with Thaksinomics the perception that orthodox economic theory as promoted by the IMF usually fails to solve the economic problems of crisis-ridden developing countries. Moreover, some nations have achieved economic success despite ignoring such liberal policies, China being the prime example here. This "heterodox" view on economic development first emerged within the neoliberal school, but it has slowly become an alternative to it (Sabel, 2005, p. 4). Whereas the global institutions IMF and World Bank still promote economic development according to the neoliberal model, the heterodox view on economic development seems to increasingly have gained ground within institutions of the United Nations. 1 As the development model of this school of thought includes all factions within societies, it ensures democracy and compliance with human rights. Since the Thaksinomist development strategy is likely to shape Thailand's future under the banner of the People Power Party, this paper will outline the most promi