The antigovernment protesters in Thailand successfully
disrupted the vote which could have provided Yingluck with a foundation to form
a new government, causing the elections not to be able to take place on the
same day nationwide. Thailand’s constitutional court ruled the February
elections invalid due to this disruption from the opposing Democrats’ boycott.
The crisis in Thailand is negatively impacting the kingdom’s
economy. The head of Finance Ministry’s fiscal policy office had cut its export
growth forecast from 6.5% down to 5% and has also cut its forecast for GDP
growth to 2.6%. Tourism has declined in Thailand as well, which has contributed
to their underperformance. If the crisis drags on much longer, more bad news
might be ahead. It is obvious that an systematic change is needed, but the
conflict between Yingluck and her critics makes this tricky.
4 comments:
Tourism sector in Thailand's economy is huge. Bangkok is one of the most visited cities in Asia and political instability in Thailand definitely decreases the number of foreign tourists. Also most of street merchants' income in Bangkok comes from tourists's pocket and continuing declination in number of tourists will affect the living of low class family.
Thailand as a developing nation has been able to industrialize rather well producing labor intensive goods that can be exported out easily due to the low valuation of the Baht. Though this kind of political instability will no doubt worry overseas investors and hurt progress.
Corruption and mismanagement are big reasons to oust out a leader. But is this the only way to hold leaders accountable?
Why would the government cut its exports? It should be investing in exporting goods to boost its economy and minimizing imports. Why is the government purposely decreasing GDP. Is this due to corruption?
With all of these protests going on Thailand is loosing out on tourism which is a vital part of its economy. I know I cancelled plans to go there because of the unstable government. This should be an incentive to the government to get their act together.
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