
Thaksin phoned in to his supporters gathered for a training session organised by the 111 Thai Rak Thai Foundation in Phuket.
He said three years after the military coup that brought down his government, the country had been destroyed economically and politically, with respected institutions discredited and politicised.
"The country's credibility is ruined. No country wants to bring its investment to Thailand because of the country's political instability,'' he said.
Thaksin accused the Abhisit government of being in neutral gear.
"He is unable even to appoint a national police chief. Running the country nowadays is harder than 20-30 years ago because the world is thoroughly linked. Leaders must have strategies,'' he added.
Thaksin also suggested that the government should solve the violence in the deep South not by initiating negotiations with the insurgents, but by doing anything that makes them want to come to the negotiation table.
"Nowadays the government just does one thing - pay soldiers allowances. That's why they cannot fight. They can only seize television stations,'' he said.
Thaksin denied reports that he was suffering from a serious disease, saying his health was strong and he was just homesick.