"Economics is the deciding factor": Labour politics in Thaksin's Thailand

Pacific Affairs

Volumn 78, Issue 3, 2005, Pages 353-375

  Brown, Andrew ^a   Hewison, Kevin ^b  

^a UNIVERSITY OF NEW ENGLAND   (Australia)

^b University of North Carolina at Chapel Hill   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

CAPITALISM; POLITICAL ECONOMY; STATE ROLE;

ASIA; EURASIA; SOUTHEAST ASIA; THAILAND;

EID: 33144481099     PISSN: 0030851X     EISSN: None     Source Type: Journal    
DOI: 10.5509/2005783353     Document Type: Review

References (111)

1. The quote in the title is from Thaksin Shinawatra, cited in Pasuk Phongpaichit and C. Baker, Thaksin. The Business of Politics in Thailand (Chiangmai: Silkworm Books, 2004), p. 101. Our research was supported by a City University of Hong Kong research grant. Thanks to Chris Baker, Ben Kerkvliet and anonymous referees for useful comments on earlier versions of this paper.
2. On the impact of the crisis on domestic capital see K. Hewison, "Pathways to Recovery: Bankers, Business, and Nationalism in Thailand," in E. Gomez and M. Hsiao, eds., Chinese Enterprise, Transnationalism, and Identity (London: RoutledgeCurzon, 2004), pp. 232-277;
3. and Suehiro Akira and Nate-napha Weilerdsak, "Family Business Goes Wrong? Ownership Pattern and Economic Performance in Thailand," unpublished draft paper for the Asian Development Bank, February 2001.
4. For the impact of the crisis on wage labour see Sumali Pitayanon "talat raengngan thai kap nayobai rat" [The Thai Labour Market and State Policy] (Bangkok Chulalongkorn University Press, 2002);
5. and Voravidh Charoenlert "Thailand and Industrial Restructuring: Government Policies and the Labor Situation Since 1997," Journal of Comparative Asian Development vol. 1, no. 2 (2002), pp. 245-62.
6. Business had been involved in politics previously. However, for the most part, big Bangkok-based business had not been directly involved in seeking elected seats in Parliament. Rather, their interests had been supported by government policy and a range of technocrats who favoured the development of private enterprise. See C. Baker, "Pluto-populism: Thaksin and popular politics," in P. Warr, ed., Thailand Beyond the Crisis (London: RoutledgeCurzon, 2005) pp. 107-138.
7. Baker, "Pluto-populism."
8. A. Brown, Labour, Politics and the State in Industrializing Thailand (London: RoutledgeCurzon, 2004).
9. See Baker, "Pluto-populism," p. 133.
10. This is not the place to discuss all of these changes. For details, see Pasuk and Baker, Thaksin;
11. and D. McCargo and Ukrist Pathamanand, The Thaksinization of Thailand (Copenhagen: NIAS Press, 2005).
12. See M. Connors, "Framing the 'People's Constitution,'" in D. McCargo, ed., Reforming Thai Politics (Copenhagen: Nordic Institute of Asian Studies 2002), pp. 37-56.
13. From the mid-1980s, industry became the predominant sector in terms of contribution to the GDP. However, agriculture continues to be the sector that provides the most employment.
14. On challenges to the bank-based conglomerates, see K. Hewison, "Pathways to Recovery: Bankers, Business, and Nationalism in Thailand";
15. on the diversification of business, see Pasuk Phongpaichit and C. Baker, "Power in Transition: Thailand in the 1990s," in K. Hewison, ed., Political Change in Thailand (London: Routledge, 1997), pp. 21-41.
16. See D. Arghiros, Democracy, Development and Decentralisation in Provincial Thailand (Richmond: Curzon Press, 2001);
17. and J. Girling, Interpreting development: capitalism, democracy, and the middle class in Thailand (Ithaca: Southeast Asia Program, Cornell University, 1996).
18. Surin Maisrikrod. and D. McCargo, "Electoral Politics: Commercialisation and Exclusion," in Hewison, ed., Political Change in Thailand, pp. 132-48.
19. M. Connors, Democracy and National Identity in Thailand (London: RoutledgeCurzon, 2003), p. 154.
20. D. McCargo, "Introduction: Understanding Political Reform in Thailand," in McCargo, ed., Reforming Thai Politics, p. 10.
21. Connors, "Framing the 'People's Constitution,'" p. 37.
22. P. Robertson, "Driving Forward with Determination: Thai Labor and the Constitution of 1997," in M. Nelson, ed, Thailand's New Politics KPI Year Book 2001 (Bangkok: King Prajadhipok's Institute and White Lotus, 2001), pp. 95-144.
23. For details, see Brown, Labour, Politics and the State, pp. 107-110.
24. Raengngan porithat, vol. 11, no. 3 (1997), pp. 4-5.
25. Raengngan porithat, vol. 11, no. 11 (1997), p. 3.
26. Raengngan porithat, vol. 1l, no. 9 (1997), p. 3
27. Raengngan porithat, vol. 11, no. 9 (1997), p. 4.
28. Robertson, Driving Forward with Determination, pp. 103-6.
29. See K. Hewison, "The World Bank and Thailand: Crisis and Safety Nets," Public Administration and Policy, vol. 11, no.1 (2002), pp. 1-21;
30. and Voravidh Charoenlert, 'Thailand and Industrial Restructuring: Government policies and the Labor Situation Since 1997."
31. The TRT, "Thai Rak Thai Party Policy," posted online 28 October 2003, available at , site last accessed 28 September 2005. The reference to "balanced development" was an acknowledgement that the previous export-oriented industrialization strategy had contributed to vulnerability.
32. Baker, "Pluto-populism." The economic crisis meant the destruction of hundreds of businesses and a trander of ownership to Japanese, American and European investors.
33. See Suehiro Akira and Nate-napha Weilerdsak, "Family Business Goes Wrong? Ownership Pattern and Economic Performance in Thailand," unpublished manuscript (undated). The authors estimate that more than a quarter of listed firm saw ownership changes.
34. Policy of the Government of H.E. Prime Minister Thaksin Shinawatra, delivered to the National Assembly, 26 February 2001, available online at , site last accessed 8 July 2002.
35. The TRT, "Thai Rak Thai Party policy," posted online 28 October 2003, available at , site last accessee 13 November 2005.
36. Far Eastern Economic Review, 17 October 2002, p. 11.
37. "2 Years of Thaksin - All the PM's Men," The Nation, 10 February 2003.
38. McCargo and Ukrist, Thaksinization, chapter 4.
39. "Constitutional Court - Three new judges have ties to govt," Bangkok Post, 1 March 2003.
40. Baker, "Pluto-populism."
41. Baker, "Pluto-populism."
42. Human Rights Watch estimates that more than 2,000 "drug dealers" were killed. See Human Rights Watch, "Thailand: Bush Should Press Thaksin on Extrajudicial Executions, Burma," posted online 9 June 2003, available at , site last accessed 5 December 2004.
43. See, for example, Pasuk Phongpaichit, "Thailand Under Thaksin: Another Malaysia?" working paper no. 109 (Perch: Asia Research Centre, Murdoch University, 2004), p. 5.
44. K. Hewison, "Crafting a New Social Contract: Domestic Capitalist Responses to the Challenge of Neo-liberalism," in J. Ungpakorn, ed., Radicalising Thailand. New Political Perspectives (Bangkok: Institute of Asian Studies, Chulalongkorn University, 2003), pp. 120-151.
45. See Brown, Labour, Politics and the State.
46. See A Brown, Bundit Thonachaisetavut and K. Hewison, Labour Relations and Regulation in Thailand: Theory and Practice, working paper series, no. 27 (Hong Kong: Southeast Asia Research Centre, July 2002).
47. At the same time, organized labour has its own internal weaknesses that limit its role. These include: corruption and nepotism, especially at peak labour council level, infiltration by the military and employers, and internal factional hostilities. See Brown, Labour, Politics and the State, especially chapters 6 and 7.
48. Arghiros, Democracy, Development and Decentralisation, p. 16.
49. See details in Hewison, The World Bank and Thailand.
50. Banthit Thonachaisetavut, "Cham la nayobai raengngan rataban taksin chinawat" [Scrutinizing Thaksin Shinawatra's Government Labour Policy], Raengngan porithat, vol. 15, no. 3 (2001), pp. 5-10.
51. Tula Batachimwet, Naewnom banha raengngan pi 45 khetphun thai omnoi-omyai [The Direction of Labour Problems in the Omnoi/Omyai Region in 2002], Raengngan porithat, vol. 16, no. 1 (2002), pp. 14-15.
52. Government of Thailand, "Letter of Intent," 14 August 1997, posted online 26 November 2002, available at , last accessed 28 September 2005.
53. K. Hewison, "Resisting Globalization: A Study of Localism in Thailand," The Pacific Review, vol. 13, no. 2 (2000), pp. 279-96.
54. J. Dempsey, "Thailand's Privatization of State Owned Enterprises During the Economic Downturn," Law and Policy in International Business, vol. 31, no. 2 (2000), pp. 373-402.
55. See Phak thai rak thai kap nayobai phatana saphayakonmanut lae kan sang khrong khai khwam phlotphai thang sangkhom [Thai Rak Thai, the Development of Human Resources and the Building of Social Safety Nets], Raengngan porithat, vol. 15, no. 2 (2001), pp. 17-18.
56. We know of no data regarding electoral support for the TRT by occupational category. A number of labour leaders gave their support to the New Aspiration Party, which merged with the TRT following the elections; see J. Glassman, Thailand at the Margins. Internationalization of the State and the Transformation of Labour (Oxford: Oxford University Press, 2004), p. 198.
57. See "Memorandum of the International Labour Office on the Draft Labour Relations Bill of 1999 of Thailand" (1999). We thank Phil Robertson, former country director at the American Center for International Labor Solidarity Thailand, for providing us with a copy of this unpublished document.
58. P. Robertson, "Information on Labor Situation in Thailand," unpublished manuscript (Bangkok: 2002).
59. Kesince Taengkhieo and Sucheera Pinijparakarn, "Supreme Court Verdict: Fired iTV staff win legal fight," The Nation, 9 March 2005.
60. Figures for strikes and lockouts are from tables compiled by the labour Standards Development Bureau, at the Department of labour Protection and Welfare, the Ministry of Labour, and are available online at , site last accessed 28 September 2005.
61. Ministry of Labour, Yearbook of Labour Statistics 2003 (Bangkok: Center of Information Technology and Communication, Office of the Permanent Secretary, n.d.).
62. Brown, Banthit and Hewison, Labour Relations and Regulation in Thailand, p. 29.
63. See Canya Yimprasoet, Khrai wa khonngan thai orne [Who Says Thai Workers are Weak?] (Bangkok: Duantula Press 2002);
64. Canya Yimprasoet and Banjong Caroenphon, Master Toy 72 wan haeng kan tosu bon thongthanon [Master Toys: 72 Days of Struggle] (Bangkok: Duantula Press, 2002).
65. See P. Robertson and Somsak Plaiyoowong, The Struggle of Gina Workers in Thailand: Inside a Successful International Labour Solidarity Campaign, working paper series no. 75 (Hong Kong: Southeast Asia Research Centre, November 2004).
66. Voravidh, Thailand and Industrial Restructuring, pp. 245-62.
67. "Alien Labor Abuse - Workers drugged to work long hours," Bangkok Post, 18 June 2003.
68. A useful case study is D. Arnold, The Situation of Burmese Migrant Workers in Mae Sot, Thailand, working paper series no. 71 (Hong Kong: City University of Hong Kong, Southeast Asia Research Centre, September 2004).
69. Voravidh, Thailand and Industrial Restructuring, p. 249.
70. D. Jarvis, "Problems and Prospects in Thaksin's Thailand," Asian Survey, vol. 42, no. 2 (2002), pp. 297-319.
71. See Suwat Liptaphanlop, "San ratamontri wa kan krasuang raengngan nai okat wan raengagan haengchat," [speech of the minister of Labour on Labour Day 2003], Daily News (Bangkok), 1 May 2003.
72. F. Deyo and K. Argatan, "Markets, Workers, and Economic Reform: Reconstructing East Asian Labor Systems," Journal of International Affairs, vol. 57, no. 1 (2001), pp. 55-79.
73. Cited in Raengngan porithat [Labour Review], vol. 15, no. 4 (2001), p. 11.
74. Director-general, Department of Labour Social Welfare and Labour Protection, "Sathanakan kansongsoem lae yomrap seriphap nai kan samakhom lae kan caraca torong" [Situation with Regard to the Promotion and Acceptance of Freedom of Rights of Association and Collective Bargaining], Raengngan porithat, vol. 17, no. 10 (2003), pp. 10-14. Such suggestions have not been taken up for the proposed new Labour Relations Act, which, as mentioned, will have the effect of weakening the capacity of trade unions to effectively represent members.
75. Such views have long been advocated by sections of the Thai bureaucracy, business and politicians, see Brown, Labour, Politics and the State, p. 78.
76. Ministry of Labour, "Nayobai, wisaithat, phantakit" [Policies, Orientation, Commitments] (Bangkok: MOL, 2002), posted online 13 March 2003 at , site last accessed 24 October 2004.
77. "Labour Officials Fired," The Nation, 27 February 2003.
78. ILOLEX Database of International Labour Standards, available online at , site last accessed 28 September 2005.
79. "Rat traprong anusanya ILO 138 khumkhrong raengngan dek" [Government ratifies ILO convention 138 on Child protection] Matichon (Bangkok) 6 March 2003.
80. "Work Standards to Improve," Bangkok Post, 17 May 2001.
81. The code is voluntary for employers, but there has been no rush to sign up. There are also reports that employers in the sensitive textile industry have also been urged to adopt the social accreditation (SA 8000) that, inter alia, limits the working week to 48 hours and limits overtime to less than 12 hours a week, paid at special rates. See "Local firms urged to adopt international labour standards," Bangkok Post, 21 May 2002, p. 3. By late 2002, however, only six employers possessed SA 8000 certificates.
82. See "Private Sector told to strive for international standards," Bangkok Post, 12 August 2002, p. 4.
83. "200,000 Thai workers injured," The Nation, 23 February 2004.
84. "Chambers to help Ministry" The Nation, 31 December 2003.
85. This article cannot detail the argument regarding this new social contract. For details, see the related articles: K. Hewison, "Crafting Thailand's New Social Contract," The Pacific Review, vol. 17, no. 4 (2004), pp. 503-522;
86. and K. Hewison, "Neo-liberalism and Domestic Capital: the Political Outcomes of the Economic Crisis in Thailand," The Journal of Development Studies, vol. 41, no. 2 (2005), pp. 310-330.
87. The TRT, "Thai Rak Thai Party Policy," posted online 28 October 2003, available at , site last accessed 13 November 2004.
88. See Voravidh Charoenlert and Naphapon Atiwanitchaiyaphong, Phatana rabop sawatdikan samrap klum lukcang nai utsahakam [The Development of a Social Welfare System for Industrial Workers], unpublished manuscript, 2003.
89. Charut Misit, Chatakam khong raengngan thai: nai mummong khong thanaikhwam sitmanutchon dangraengngan [The Fate of Thai Labour: A View from a Human Rights Lawyer], Raengngan porithat, vol. 16, no. 1 (2002), pp. 8-9.
90. "Bid to extend coverage for informal jobs," Bangkok Post, 7 January 2004
91. Worawan Chandoevwit, "Thailand's Grass Roots Policies," TDRI Quarterly Bulletin, vol. 18, no. 2 (2003), pp. 3-8.
92. "Thousands to rally against funds merger," Bangkok Post, 17 September 2002.
93. On housing see "B68bn budget for homeless," Bangkok Post, 24 June 2003;
94. for Thaksin's speech see Penchan Charoensuthiphan and Yuwadee Tunyasiri, "Labour Day: Prime minister promises to take better care of workers," Bangkok Post, 2 May 2003.
95. Penchan Charoensuthiphan, "Social programmes; unemployed go waiting for benefits," Bangkok Post, 19 June 2004.
96. See McCargo and Ukrist, Thaksinization of Thailand, chapter 6.
97. Pasuk and Baker, Thaksinization of Thailand, chapter 8.
98. "Who stands to gain from privatization?" Bangkok Post, 26 February 2004.
99. Penchan Charoensuthiphan and Yuwadee Tunyasiri, "PM to talk with union," Bangkok Post, 2 March 2003.
100. Surveys indicated great suspicion about the government's motives and potential conflicts of interest. See Watcharapong Thongrung and Sathien Wiriyapanpongsa, "50,000 defy PM at Egat protest," The Nation, 3 March 2004.
101. "State Privatisation: NGOs muster forces," The Nation, 21 June 2004.
102. "EGAT Privatisation; Protests against sale gather pace," Bangkok Post, 1 March 2004.
103. Wattana Khamchoo and Samatcha Hunsara, "General Election: TRT faces 'green' crusade," The Nation, 20 January 2005.
104. See Thai Labour Campaign, "Voice of the Workers," (Bangkok: TLC, 2004), posted online 8 March 2004, at , site last accessed 28 September 2005.
105. See Sirilaksana Khoman, "Education: The Key to Long-term Recovery," in P. Warr, ed., Thailand Beyond the Crisis (London: RoutledgeCurzon, 2005), pp. 251-284.
106. See reports (in Thai) on the Thai Labour Campaign Web site, available at , site last accessed 29 September 2005.
107. "New faction refuses to back union stance," Bangkok Post, 4 February 2005
108. Anoma Srisukkasem, "Minimum wage should rise: BOT," The Nation, 22 April 2005. Eventually, in July 2005, the minimum wage was increased by a minimal 2 to 8 baht, depending on the province where a worker is employed.
109. "Wage hike will scare investors: Thaksin," The Nation, 2 May 2005.
110. Wasant Techawongtham, "Increase in wages isn't all that it seems," Bangkok Post, 13 May 2005.
111. Umesh Pandey, "The economy; All is not quite as rosy as predicted," Bangkok Post, 8 June 2005.