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Chavalit, 6-party coalition to lead Thailand
November 18, 1996
Web posted at: 4:30 p.m. EST (2130 GMT)BANGKOK, Thailand (CNN) - Following its narrow election victory, Thailand's New Aspiration Party (NAP) has moved to change its coalition partners in what is widely seen as an attempt to distance itself from the previous scandal-ridden government. But proponents of electoral reform said their cause had been delivered a setback, and Thailand's financial markets plunged in anticipation of the line-up.
Monday, the NAP, led by Prime Minister-elect Chavalit Yongchaiyudh, said it had agreed to form a six-party coalition that would have a majority of 221 seats in the 393-seat parliament. Previously, Chavalit had talked about a coalition of four parties, including that of caretaker Prime Minister Banharn Silpa-archa, whose short-lived administration of barely 16 months was brought down by allegations of corruption and economic mismanagement.
Chavalit's latest coalition proposal excludes Banharn's party. Instead, it includes the party of Chatichai Choonhavan, a former prime minister.
Chatichai was not part of the Banharn administration, and analysts say his party has a relatively better image than most players in Thai politics. That, they say, is especially important in the wake of Sunday's elections, which were described as the dirtiest in years, with widespread allegations of vote-buying on an unprecedented scale. By some estimates, at least 20 billion baht -- the equivalent of $U.S.800 million -- were spent on vote-buying.
Setback for reform
For those advocating electoral reform, Sunday's vote represented a bitter defeat. The Democrat Party of Chuan Leekpai, dubbed the "Mister Clean" of Thai politics, lost to the NAP by a margin of just two seats. The Democrats were widely favored by Thailand's urban elite, as well as the financial community.
Thailand's stock exchange of Thailand fell nearly 6 percent Monday morning when it became clear the Democrats had lost. For most of the past year, the exchange index had declined steadily under Banharn's watch. But it regained some ground recently, as investors hoped Chuan and his respected team of economists would sweep to power.
Chuan's best showing was in Bangkok and other urban centers. Much of the rural vote, however, went to the NAP and its allies, especially in the north and northeast, where vote-buying and voter intimidation were said to have been at their most intense.
Chavalit now must hold his allies together until next week, when parliament resumes and King Bhumibol Adulyadej approves his nomination, normally a formality.
Aware of the averse reaction in the capital to his victory, Chavalit has promised to form what he calls a "dream team" to steer the economy. He has also pledged to clean up politics within 18 months. Now the financial markets, and Chuan Leekpai's Democrat Party, are waiting to see if he'll keep his word.
Correspondent Tom Mintier and Reuters contributed to this report.
Related story:
- Thai candidates in close race for Sunday vote - November 15, 1996
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