Royals, capitalists, and inequality

28 01 2021

An op-ed at both Asia Sentinel and Eurasia Review, titled “Hierarchy, Power And Inequality In Thailand,” and published a few days ago, there’s a useful, short account of the country’s oligarchy. We reproduce the interesting bits:

Although Thailand is one of the region’s wealthiest states and has been cited as a success story of modernization and development, the gap between rich and poor is widening. Thailand is placed in the world’s top inequitable countries, in terms of wealth and income distribution.

According to a recent Credit Suisse study, one percent of the population holds 66.9 percent of the nation’s wealth, with 36 percent of equity held by only 500 people. According to the World Bank, poverty has grown from 7.21 percent in 2015 to 9.85 percent in 2018.

It has probably grown further with the impact of the virus.  The article then moves on to the oligarchs:

While more Thais are struggling to make ends meet, sections of Thailand’s elite class have been increasing their wealth. A survey by Money and Banking Magazine with the Faculty of Commerce and Accountancy at Chulalongkorn University using Stock Exchange of Thailand (SET) data, found that Charoen Sirivadhanabhakdi, the founder of Thai Beverage and chairman of the TCC Group, Vonnarat Tangkaravakoon, chairman of TOA Paints, and Khunying Wanna Sirivadhanabhakdi, chairperson of Sangsom Group and Beerthip Brewery, had actually increased their wealth during the pandemic.

Notice that three are mentioned but it is only two families. The discussion adds:

Thailand is economically dominated and ruled by a small close-knit elite composed of the monarchy, the military, and a small number of families who control Thailand’s major businesses. This small group is interrelated through family ties, intermarriage and long-held relationships.

Don’t for a moment think this is something recent. Back in 2011, PPT posted on “maps” of elements of the ruling class going back to the early 1950s. For us, what has changed is eerily reminiscent of the destruction of symbols of 1932. The ruling class has been re-sculpted to be royalist.

From 1932, the People’s Party and the regimes that followed, at least until World War 2, had altered the nature of the ruling class by limiting the monarchy and the princes.

It was the ninth reign that changed this. One of Bhumibol’s great successes was in rebuilding the monarchy’s enormous wealth. Forget all the propaganda about royal projects and a frugal king. He was a determined acquirer of wealth. He did this in alliance with the military and selected Sino-Thai capitalists. It is that arrangement which produced the oligarchy of today. Some of the names have changed, but there’s continuity too.

Of course, many of the top generals did exceptionally well. A much-neglected and very detailed doctoral dissertation by David Morell, “Power and Parliament in Thailand: The Futile Challenge, 1968-1971” has lots of data, including claims about the wealth and economic connections of the top generals who were also ministers. Here’s a taste:

Thailand has long been a highly unequal society, and the palace, the military and the connected capitalists will fight tooth-and-nail to protect the inequality that allows them to suck the wealth from the country. That also means controlling politics. As the op-ed has it:

Right-wing political groups with monarchist ideologies developed, representing the elite. The elite classes were boosted with ethnic Chinese business families, civil leadership developed at both provincial and local levels, and military personnel. Nationalism and monarchy became more important than democracy, a doctrine which has been espoused to maintain the establishment grip on power beyond question. This espoused cultural-political concept of ‘Thainess’ totally encapsulates the need to maintain status quo of the position of the elite within politics and society.


Actions

Information

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.




%d bloggers like this: