Thai junta risks fracture as royal transition nears
Subject The junta's political priorities. Significance The annual October 1 military reshuffle and promotions strengthened Prime Minister General Prayuth Chan-ocha's power base. The junta is attempting to expand and consolidate its rule in the face of two approaching transitions: fresh parliamentary elections that have been promised in late 2017 and a royal transition. Expectations of the latter are rising as the palace releases increasingly pessimistic reports on the health of King Bhumibol Adulyadej. Impacts A counter-coup against the Prayuth administration is unlikely and would probably fail. A royal transition would unsettle markets, albeit temporarily; the baht would fall, but quickly recover. Beijing will continue to accommodate Bangkok's political tactics, while Washington will maintain its security alliance with Thailand.