At this point, many people are also feeling worried about what will happen to their pocketbooks and their jobs. The economy is facing a slowdown. Consumption is weak. Oil prices are high. Interest rates have peaked and confidence in general is shaken. The political crisis has augmented fears that there is more violence to come.

Currently, the Thai economy is kept alive by exports and tourism, while most other indices are plummeting. Bandid Nijathaworn, the deputy governor of the Bank of Thailand, said the economy should bottom out in the fourth quarter of this year, before rebounding in the first quarter of next year.

But this all depends on whether the political crisis carries on into next year, whether confidence can be restored and whether private investment will return to become an engine of growth. Exports may not be as strong next year with demand weakening in major markets.

For the immediate future, it is important that Thailand puts its political house in order. There must be a definite resolve to end the looming confrontation before a free and fair election can be held. Then businesses and investors will know the direction ahead and start to invest again.

So far, they have been reluctant to invest further into the country because they don't yet know the face of the new government, as Thailand has not had a sitting government for more than six months.

Officials now believe that the new budget for fiscal 2006-2007 will be delayed by at least six months, due to the difficulties involved in forming the new government. Government spending, however, will be kept alive by the carry-on budget from the current fiscal year. Civil servants' salaries will definitely be paid, and most other ongoing projects will be adequately financed.

The problem lies with new investment projects, such as the mega-projects, which cannot be implemented until a new government is formed.

The next government will have three important tasks in front of it. First, it has to bring about national reconciliation and put an end to the political divide. Second, it must embark on political reforms. Third, it will have to revive confidence in the sagging economy. Many people question whether the next government can achieve anything much beyond political reforms, which it has to complete before dissolving Parliament and calling for a fresh election.

Looking ahead, and taking it for granted that there will be no further mishaps, there will be two elections within a short time span. In this case, the new government would stay on for only one or two years - too short to accomplish any other important initiatives. Political parties might be tempted to go for short-term gains at the expense of Thailand's long-term prosperity. Short-term policies will be proposed to win votes, while long-term policies on the demand side such as improving our school system, strengthening workers' skills and upgrading the country's productivity will be overlooked once again. Thailand will not have many years to live on its low-wage workforce and natural resources, which have been depleted quickly.

However, political reforms constitute a big-ticket item that is worth the cost at this juncture. They should restore good governance and the checks and balances system to democracy. They should result in an effective mechanism to prevent bad people from entering politics and they should strengthen the democratic framework to allow the economy and Thai society to prosper.

It is time we hold the politicians more accountable to a long-term commitment to improve Thailand's competitiveness