Populist policies, often aimed at short-term gains, have led to unsustainable economic practices and hindered long-term planning. These measures, while appealing to certain segments of the population, risk deepening economic inequality and eroding trust in democratic institutions.
Additionally, the focus on immediate benefits has diverted attention from critical structural reforms needed to strengthen Thailand’s economy and governance. Addressing this issue requires a balanced approach that prioritizes sustainable development, transparent policymaking, and fostering public understanding of the long-term implications of populist strategies.
Populism is not a new phenomenon in Thailand. It has been a dominant feature of Thai politics since the rise of Thaksin Shinawatra, the billionaire tycoon who became prime minister in 2001 and was ousted by a military coup in 2006. Thaksin’s populist policies, such as universal health care, village funds, and cheap credit, were popular among the rural poor and the urban working class, but they also increased public debt, corruption, and inequality. Thaksin’s ouster triggered a decade of political turmoil and polarization between his supporters (the “red shirts”) and his opponents (the “yellow shirts”), who accused him of abusing his power and undermining the monarchy.
But when the military junta seized power in 2014 claimed to restore stability and reform the country, it also resorted to populist policies to maintain its grip on power. The junta increased spending on infrastructure projects, welfare programs, and price subsidies, while suppressing dissent and delaying elections.
Populism is a political strategy that appeals to the emotions and interests of the masses, often by promising unrealistic or unsustainable benefits, such as cash handouts, subsidies, or debt relief. Populism can erode fiscal discipline, distort market mechanisms, create moral hazards, and reduce accountability and transparency.
According to some analysts, Thailand’s prime minister, Srettha Thavisin, who came to power in August 2023 after a controversial coalition deal with the military-backed establishment, has also been pursuing populist policies to win public support and legitimacy. Some of his measures include lowering electricity and fuel prices, offering a three-year debt moratorium for farmers, and distributing 10,000 baht to every Thai person above 16 years old through a digital wallet scheme. These policies may provide short-term relief to the economy, which has been hit hard by the pandemic and falling investor confidence, but they are not sustainable or effective in the long term.
The problem of populism in Thailand is rooted in the lack of an effective income tax system, the avoidance of company taxes, and the reliance instead on indirect taxes, especially the value-added tax.
This fiscal imbalance can lead to long-term economic vulnerabilities, as the government may struggle to maintain sustainable growth or respond effectively to future crises. Furthermore, the absence of transparent dialogue about the implications of populist measures risks fostering a political environment where short-term gains are prioritized over strategic, long-term planning. This not only undermines economic stability but also erodes public trust in democratic institutions, as citizens may feel excluded from critical decision-making processes that impact their lives.
Thailand must tackle the challenges posed by populism through reinforcing its institutions, improving fiscal discipline, advancing market mechanisms, and nurturing civic education. These measures are essential for fostering balanced and sustainable development that equitably benefits all sectors of society.
