12.11.2009
By Jared Ferrie
PHNOM PENH - In his first act as Cambodia's newest economic advisor, former and exiled Thai prime minister Thaksin Shinawatra lashed out at his country's government, which has recalled its ambassador and taken other measures to protest his appointment.
"Their domestic political compulsions force them to false patriotism. Let's pray that they too will one day appreciate this partnership for the best," he said in a speech delivered Thursday at the Cambodian finance ministry, before security officials removed all journalists from the room apart from those working for three government-favored Cambodian media outlets.
Thaksin, who was sentenced to two years in prison on corruption charges in August 2008, has been living in exile since his conviction. He and his supporters have used the Internet to great effect to keep in touch with his supporters and taunt the Thai government from afar. Thailand issued an extradition request for Thaksin on Tuesday, but was rebuffed by the Cambodian government the following day.
In a joint interview on Wednesday on the state run TVK network, Cambodian Prime Minister Hun Sen read aloud the letter his government sent to the Thai embassy in response to the extradition request. It was a public display of friendship to Thaksin, which has further enraged the Thai government led by Prime Minister Abhisit Vejjajiva.
Thaksin's 2008 conviction was "logically the consequence of the military coup d'etat in September 2006 which resulted in his removal from the post of Prime Minister while he was overwhelmingly and democratically elected by the Thai people," said the letter, which was also released to the media.
In an interview yesterday, Cambodian government spokesman Phay Siphan insisted that Thaksin's appointment was not political. Cambodia is struggling to weather the global financial crisis and simply wants the benefit of Thaksin's experience, he said, adding that Thaksin can also use his personal business connections to encourage foreign investment in Cambodia.
Analysts, however, say the situation is somewhat more complex. Some wonder whether Hun Sen aims to tap Thaksin's knowledge and experience in managing and rehabilitating bad debts, which the political opposition claims have spiraled in Cambodian banks in the wake of the global economic crisis.
Thaksin became prime minister in 2001, four years after the Asian financial crisis broke in 1997, with failed businesses and bad debt still burdening the economy and financial sector, and the country owing money to the International Monetary Fund.
Jacques-Chai Chomthongdi, a researcher at the Bangkok-based think tank Focus on the Global South, pointed to a string of provocative statements made by Hun Sen before Thaksin's appointment.
Hun Sen has spoken out in support of Thaksin's opposition party, he publicly offered Thaksin a residence in Cambodia, and he promised that Cambodia would not extradite the former Thai prime minister. He made the last remark in Thailand during a meeting of the Association of Southeast Asian Nations.
"If he only wanted Thaksin as an economic advisor he could do it without all these moves," said Chomthongdi.
He said Thaksin's economic policies have not succeeded in alleviating rural poverty in Thailand, but by using state funds to make cash payments, Thaksin did manage to gain "long term genuine support" from the rural poor. "This may be something that Hun Sen is interested in," said Chomthongdi.
Chheang Vannarith, executive director of the Cambodian Institute for Cooperation and Peace, said both Thailand and Cambodia have politicized the issue. "It's very difficult to understand the real motivation of the Cambodian government behind the appointment of Thaksin as economic advisor," he said.
Even so, "Abhisit over-reacted. I don't think Cambodia expected to have such a strong reaction from the Abhisit administration."
Chheang pointed to Thailand's threat to close down the border, and its decisions to recall its ambassador and to cancel a Memorandum of Understanding overseeing the development of offshore oil reserves in disputed territory. Thailand's cabinet approved nullifying the MOU, but it must also be voted on by parliament.
"I think this is a lose-lose situation for both countries," said Chheang, noting that Cambodia hopes to begin extracting oil in the next couple of years.
The MOU relates to a 27,000-hectare area in the Gulf of Thailand that is claimed by both countries. Oil companies including Chevron are set to begin operations once the maritime border is demarcated, according to the MOU.
"Until a resolution is reached, Chevron will adhere to current conventions and will not conduct any activities in these blocks," said Gareth Johnstone, the company's Asia-Pacific media advisor, in an email.
Regardless of the diplomatic dust up, Chheang said Cambodia could benefit from Thaksin's experience in addressing rural poverty.
"What Cambodia cares about is how to learn from Thai expertise - not corruption expertise, but expertise in other fields," he said, suggesting that Thaksin could bring some fresh ideas about how to alleviate rural poverty.
In his speech, Thaksin mentioned building demonstration farms to allow the poor to be "self sufficient", a reference to Thai King Bhumibol Adulyadej's sufficiency economy concept, as well as drafting laws that encourage foreign investment.
The comment came amid new allegations that Thaksin expressed disloyalty to the Thai crown in a recent interview he gave to the Times of London where he said royal institutions should be reformed upon the 81-year-old and ailing Bhumibol's eventual passing from the scene.
Thaksin has consistently maintained his loyalty to the Thai monarchy, and since landing in Phnom Penh on Tuesday sent a message via Twitter to his supporters claiming that he is "homesick" and that "nation, religion and monarchy are always in my mind".
Jared Ferrie is freelance journalist based in Phnom Penh.
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