the attempt to limit the influence of money in Thai politics. The
so-called ‘people’s constitution’ represents a victory of democracy groups
over supporters of the old political system based on clique politics.^69
The first general election to be held under the 1997 constitution was in 2001 , since
the previous election had been held in 1996. The 2001 general election witnessed
the rise and victory of the Thai Rak Thai (Thais Love Thais) Party. Established in
July 1998 by telecommunications tycoon Thaksin Shinawatra, the party adopted a
populist platform that appealed greatly to Thailand’s rural poor. Among its most
popular policies have been the thirty baht (US$ 1. 00 ) per hospital visit scheme, and
the 1 million baht (US$ 32 , 000 ) microcredit development fund for all rural dis-
tricts.^70 The party also favoured an extended debt moratorium for farmers affected
by the Asian financial crisis of 1997.
In the 2001 election, Thaksin’s new party scored a landslide victory over incum-
bent Chuan Leepai’s Democrat Party, winning 40 per cent of the popular vote and
248 of the 500 seats in the National Assembly, Thailand’s parliament. By negotiat-
ing a merger with the New Aspiration Party and a coalition with the Thai Nation
Party, Thaksin was able to form a government that controlled 325 of the 500 seats.
For the first time a political party commanded a majority of seats in the Assembly.
Thaksin’s Thai Rak Thai Party gained an even tighter grip on the Assembly after
the 2005 general election when it secured 377 of the 500 seats.
71
The period of
stability and calm following the drafting of the 1997 constitution was considered
remarkable and marked ‘a significant achievement for reformers committed to
democratic consolidation’.
72
However, Thaksin’s victory in the 2005 elections
signalled the start of widespread attacks against him. Shortly after his election
victory, protests broke out in Bangkok between his supporters and conservative
elements close to the palace. The reasons for discontent were many and varied,
ranging from cronyism to tax evasion to Thaksin’s anti-royalist agenda.^73
While the Thai Rak Thai Party retained its popularity in the rural regions, it was
unpopular among the Bangkok elite and the middle classes, who felt that Thaksin
had overstepped his bounds and was becoming increasingly authoritarian and
corrupt. Thaksin’s opponents – including his highly influential former ally
Sondhi Limthongkul – also exploited Thaksin’s sale of holdings in his family’s
flagship company, Shin Corporation, to Singapore sovereign wealth fund Temasek
Holdings in early 2006. This highly controversial sale netted Thaksin’s family
(^69) Suchitra Punyaratabandhu, ‘Thailand in 1997 : financial crisis and constitutional reform’
( 1998 ) 38 ( 2 )Asian Survey 161 at 165.
(^70) Shawn W. Crispin, ‘Thailand election trade-off’,Far Eastern Economic Review,
28 December 2000.
(^71) See Robert B. Albritton, ‘Thailand in 2005 : the struggle for democratic consolidation’
( 2006 ) 46 ( 1 )Asian Survey 140.
(^72) Ibid.
(^73) See ‘A right royal headache’,Far Eastern Economic Review, 10 January 2002 ,at 8.