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Published on July 14, 2007

As a passionate observer of all things political in Thailand, a couple of concerns have cropped up on the Kingdom's road back to democracy. While the country is preparing to shift from a military-appointed government to a government elected by and for the people, legislation proposed by the junta called the Internal Security Act (ISA) is quietly making its way to becoming the law of the land.

The ISA is being touted as a cure--all to ensure internal stability in Thailand by means of the military establishment. This means the head of the Army would have unprecedented sweeping powers to address emerging threats. Prime Minister Surayud Chulanont has informed us that with the ISA the government would no longer be required to declare a state of emergency to declare martial law. This very sweeping and often times draconian edict would be used solely at the discretion of the Army commander and not the government elected by the people.

Next we have the Council for National Security seriously advancing what is referred to as the Referendum Act. This new edict by all reports is actually expected to take effect soon. As I understand it this law is directly related to the August 19 vote on the constitutional charter draft. The law is directed at anti-charter advocates and calls for punishments of a maximum of 10 years in prison and fines of Bt200,000 for anyone trying to defeat the charter draft. Advocates for the constitutional draft charter face no such sanctions and will spend millions of baht of taxpayer's money for a full media blitz.

In my opinion both of these proposals do not promote democracy in any form and should be further scrutinised by the Thai people before they are passed into law.

David Barkdull

Bangkok

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Economic revival vital for  political change in Isaan

Re: "Seeking political office might be only way Sonthi can preserve coup's legacy", Letters, July 13.

I fully agree with John de Laurent, however I would like to say that Council for National Security chief Sonthi Boonyaratglin becoming a politician would not help save the goals of the coup.

The brain-loose ideas of Bernard ("General should absolve TRT if he decides to run", Letters, July 13) would make the situation even worse as an amnesty would introduce fraudulent politicians into the political landscape and as such destroy any chance for improvement.

My pessimism was strengthened when I listened to a meeting of farmers in a small village in Isaan yesterday. They all (!) agreed that Thaksin is a great man and that he should come back. "Under Chuan Leekpai every new-born child started with a debt but thanks to Thaksin, who paid back the loan to the International Monetary Fund out of his own pocket, we have no debt anymore," one speaker said.

According to my experience, nearly all Isaan farmers have the same view - that the next election will see a comeback for Thaksin or his proxy and a government without them would not be possible. The quality of a democracy is as good as its population base. Before you can educate the farmers, economic development is necessary. They are in dire straits and the quality of the education they receive is poor. Improve the lives of farmers by subsidising the use of high-yield rice plants, and improve water management as rice fields are only used five months a year and could be used during the remaining seven months for other cash crops.

Last but not least, allow the farmer to sell his land to whoever can give him a fair price. This capital surplus and increased free time among farmers can lead to other productive investments. Higher prices for land can be realised quickly by allowing foreigners to buy land and this would be beneficial for the whole country. Much has to be done before we can expect farmers to become independent, rational voters and this will not happen before the next election, whether Sonthi is running in it or not.

Egon

Bangkok

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BOT wise in facing currency markets head on

Re: "BOT wants to have its cake and eat it too", Opinion, July 13.

Many appear to be worried about the strength of the baht and are urging the Bank of Thailand to take action, but given the circumstances there is little the Bank of Thailand (BOT) can do without causing other problems within the Thai economy.

 The US has about US$1 trillion (Bt33 trillion) in circulation, over 60 per cent of which is held outside the US, thus making it the top reserve currency in the world, followed by the euro at 23 per cent.

International investors are dumping the US dollar because of worrying economic indicators in the US. The Fed has two choices: either raise the interest rate and thereby raise the value of the dollar, or reduce the interest rate and thereby protect the economy from the recent sub-prime lending problem, from which the major banks will be suffering. The latter would probably result in a credit squeeze, which is bound to depress the economy, thus the Fed is between a rock and a hard place. The general view is that the Fed will opt for reducing the interest rate, thus weakening the dollar even more.

A further worry for investors is that the US is not particular concerned at the moment about the fall of the dollar, thus the heavy increase in the purchase of foreign stocks and selling of the dollar is continuing.

With $1 trillion in circulation, and with several trillion traded every day on the currency markets, it is impossible for the BOT to take on the US dollar.

The BOT is doing the right thing, first by observing, and then by following, the principle of the once mighty former German Bundesbank, the master of independent national currency control prior to the arrival of the euro. That bank followed this philosophy: "The competitiveness of a nation's economy is decided not on the currency markets, but by its capacity for restructuring, innovation and efficiency." Its successor, the European Central Bank, the independent controlling bank of the euro, follows the same principle.

The BOT should be praised for not giving in, and thus creating more problems for the Thai economy, for a short-term gain. Let the Thai economy face the currency markets head on, showing the world what it is made of. This will result in a prosperous Thailand.

C Croft

Bangkok

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Questions remain on replacement charter

Constitution Drafting Committee chair Prasong Soonsiri said that rejecting the draft constitution would mean that the Council for National Security (CNS) could pick any charter it wished and apply it. That's true - but, on July 4, CNS deputy chief Chalit Pukphasuk confirmed that the CNS would adapt the abrogated 1997 constitution if the draft were rejected.

If Prasong believes that Chalit knows General Sonthi Boonyaratglin's mind, the government and he should get on with showing us how much better the new charter is than the old - and stop saying that rejection would lead to uncertainty and unrest.

If, on the other hand, the CNS's choice is still up in the air, then Prasong should join in pressuring the CNS to reveal its hand.

In either event, the referendum should not be viewed as a yes-or-no choice on the draft. Rather, it should be seen as choosing between two versions of our constitution - and our choice should not be construed as being pro- or anti-junta.

I suggest that Sonthi should clear the air once and for all by stating his choice of charters, plus any changes he'd make.

Burin Kantabutra

Bangkok