Under pressure from investors

The snap resignation of Thai finance minister Pridiyathorn Devakula on February 28 reveals that the ruling military junta is lurching from one crisis to the next without any clear plan for dealing with the country’s underlying economic problems.

Pridiyathorn offered no real explanation for his decision, but his comments pointed to the inner turmoil. “I don’t want to work under the influence of some people whose behaviour is not entirely transparent, especially some ministers,” he told the media. “People with links to the previous government still hold political office. I don’t want to work under circumstances in which there are hidden agendas and influences.”

Pridiyathorn was appointed as deputy prime minister, as well as finance minister, after the military led by General Sonthi Boonyarathkalin ousted the government of Prime Minister Thaksin Shinawatra on September 19 and dissolved the national parliament. The inclusion of Pridiyathorn, a former central bank chief, was aimed at reassuring international markets and nervous investors following the coup.

One of the key issues behind Thaksin’s ousting was opposition to his turn to market reform, privatisation and restructuring, which was affecting the weaker sections of Thai business. Key sections of the Thai ruling elite launched a protest movement against Thaksin, denouncing his corruption and autocratic methods of rule. Amid growing political unrest, the military stepped in, with the sanction of the country’s king, and announced it would protect Thai businesses and champion a “sufficiency” economy.

The economic figures underscore the crisis. Ampon Kittampon, secretary-general of the government’s economic advisory agency, announced last week that prospects for economic growth for 2007 were “limited”, blaming poor investor confidence. The country’s fourth quarter growth was 0.7 percent, the lowest in two years. Some predictions put growth for 2007 as low as 3.5 percent, compared with 5 percent for 2006.

Economic instability can only heighten social and political tensions. Just six months after seizing office, the military junta is facing open criticism in political and media circles. The English-language Nation warned on March 1: “The credibility of the government has sunk almost to the point of no return by now. There are increasingly strong rumours that Pridiyathorn’s resignation marks the beginning of a far deeper crisis to come.”

From Here

blog master .... Its mean that Thaksin was destroyed because he had touched the untouchable things. He have a self confidence so much. In the past , the politicians had been dare to touch their anything before.
The finance minister who insolently criticize to Thaksin's policies all the time during him in the Central bank. But , I think he was monitor the situation of Thai's economics , he found that its too worse. I don't understand why the coup maker and their government have to be care to a little protestor group(PAD).