Thai voters: Do we need politicians?

Crisis? What crisis?

Six months after the dissolution of parliament triggered a botched election that left a political vacuum, Thailand seems to be doing just fine.

The trash is collected on time, the currency is up 10 percent against the dollar, and exports hit a new monthly high in July. Nor has the political gridlock in Bangkok kept millions of tourists away from Thailand's sun-drenched beaches, which have shaken off their post-tsunami slump. Despite high oil prices, economic growth is likely to stay above 4 percent this year.

As Thai politicians begin stumping for the Oct. 15 election, voters might be wondering if they're better off without them. The situation is reminiscent of the 1995-96 US federal government shutdown that prompted similar musings. But for all the talk of turmoil, Thailand's buoyant economy points to the strength of a private sector that has for decades ridden the wave of East Asia's postwar boom without relying on its political masters to steer the ship.

"Our secret is that our governments are quite inept, so the economy keeps growing. We've succeeded because the government has mostly left the private sector alone," says Supavud Saicheau, managing director of Phatra Securities and a former adviser to the Ministry of Finance.

Thailand's hands-off approach contrasts with that of China and Vietnam, where five-year plans are the norm and industrial champions are hand-picked. Authoritarian China and Vietnam have outpaced rivals in recent years, sending ripples of concern across Southeast Asia's less regimented economies, where business leaders bemoan a slowdown in foreign investment.

Thailand shouldn't adopt a centrally planned economy, or usurp the role of entrepreneurs, say Thai economists and politicians. A lighter government touch can give Thailand the edge, they say.

"I don't believe that politicians are the best people to decide which industry is likely to do well or not over the next 20 or 30 years," says Korn Chatikavanij, deputy leader of the opposition Democrat Party and a former investment banker. "Governments should aim to be smaller."

However, Mr. Korn and other politicians argue that Thailand's resilience shouldn't be taken as a sign that it's business as usual. They say that political gridlock is crimping consumer confidence and deterring local and foreign investors who want a new government in place before they commit capital. Without an end to the political crisis, Thailand's gains could quickly evaporate.

Tony Sukreepiron, an entrepreneur with a hand in property, tourism, and manufacturing, agrees that the standoff is damaging. He worries that major projects that generate jobs and spin-off opportunities will be shelved as the politicians duke it out. "If we don't have a real government, foreign investors might give up on Thailand," he says.

Page: 1 | 2