Support for Thai government will be heavily strained

Subject Thai government's clampdown on the opposition and struggle with various crises. Significance The Constitutional Court last week dissolved the opposition Future Forward Party for receiving an illegal loan from its leader, Thanathorn Juangroongruangkit. Future Forward had in recent months emerged as a vigorous opponent of the military-backed government. Army Chief Apirat Kongsompong and Prime Minister Prayut Chan-o-cha may be relieved to be rid of the party, but there is unlikely to be any let-up in opposition pressure as the administration grapples with crises relating to military corruption, water shortage and infectious disease. Impacts The military will try to help the government manage an approaching drought and the spread of the Wuhan coronavirus. The central bank will step up currency management to keep Thai exports as competitive as possible amid the economic downturn. Erstwhile Future Forward MPs may form a new opposition party.

Subject Pre-election politics in Uganda. Significance The long-expected announcement on June 15 by sacked Prime Minister Amama Mbabazi that he will run for president will bring bitter tensions between him and President Yoweri Museveni out into the open. It is highly unlikely to threaten the latter's 30-year rule but may provoke internal disruption within the ruling party as Museveni makes an example of internal dissent. Impacts Loyalty among the military and police forces will remain central to Museveni's power. Museveni effectively distances himself from graft scandals, while Mbabazi's reputation remains tarnished by several high-profile cases. Oil firms could see some benefits, if Museveni decides to assure them of his solid hold on power. The government was already likely to unleash inflation-inducing spending during the election, but Mbabazi's campaign increases this risk.


Significance The next election will be the first since the military, led by then general, now Prime Minister Prayuth Chan-ocha, deposed Yingluck Shinawatra’s administration in May 2014. Impacts The prime minister’s Washington visit later this month will be portrayed as a pre-election display of foreign policy strength. The government will increase public investment for the remainder of this year, at least. This, it hopes, will maintain economic momentum, and strengthen the junta’s popular appeal. The post-election possibility of fresh political interventions by the military will concern investors.


Subject Thailand's long-delayed election. Significance More than 40 new political parties have been registered in Thailand since March 2, and established parties will be allowed to begin registering members on April 1, as Prime Minister Prayut Chan-o-cha and the military-led National Council for Peace and Order (NCPO) begin a process of preparing for a long-delayed general election. The 2017 constitution initiated by the NCPO allows the (to be re-established) House of Representatives to select an ‘outsider’ as prime minister if it is unable to decide on a party-affiliated figure. Impacts Persistent election delays will not affect Thailand’s current economic recovery. Despite mounting political pressure on the government to commit to a poll, anti-government protests will not grow. Improving relations with the United States could insulate the government from EU pressure on delayed elections.


Significance Prime Minister Prayut Chan-o-cha remains under pressure to carry out a cabinet reshuffle to contain government infighting. At the same time, the government is trying to spur a recovery from the economic slump caused by the COVID-19 crisis. Impacts The departure of technocratic ministers from the cabinet would set back investor confidence. A COVID-19 state of emergency could be extended beyond end-July, even though Thailand appears to have the pandemic under control. The government will continue to direct legal cases against opposition leaders to hamper their parties.


Significance The Constitutional Court earlier this month banned the Thai Raksa Chart Party, an offshoot of exiled former Prime Minister Thaksin Shinawatra’s Pheu Thai Party. A 500-member House of Representatives, based on mixed-member proportional representation, and a 250-member Senate, hand-picked by the military-led National Council for Peace and Order, will together decide on the next prime minister. Impacts The military will exercise considerable influence over post-election policymaking through the Senate. Foreign direct investment may increase following the installation of a civilian administration. Relations with the West, especially the EU, are likely to improve under a civilian government.


Subject Pakistan's Prime Minister Nawaz Sharif faces disqualification. Significance Amid the fallout from the ‘Panamagate’ scandal in 2016, the Supreme Court in April appointed a Joint Investigation Team (JIT) to investigate accusations of tax fraud and money laundering against Prime Minister Nawaz Sharif. With the court now having examined the report of the JIT, pressure is rising on Sharif and the ruling Pakistan Muslim League-Nawaz (PML-N). Impacts The government may struggle to respond to demands relating to the Trump administration's Afghan review. Pakistan under Khan would be neutral between Saudi Arabia and Iran; Sharif has leant towards the Saudis. India-Pakistan ties may deteriorate, with the military less keen on improving relations.


Subject Problems facing the Thai government. Significance Thailand’s government, led by a party with ties to the junta that ruled until July, is facing political and economic headwinds as it tries to establish civilian rule. The king is consolidating his authority, political opponents are pushing back on the ruling coalition and exports are weakening, raising quandaries for Prime Minister Prayut Chan-o-cha. Impacts A worsening trade outlook will prompt the government to step up efforts to secure a free trade agreement with the EU. Thailand and the United States will take time to strengthen bilateral ties, nominally mended when Prayut visited Washington in 2017. The army units under the king’s direct control could provide cover for rival factions to Prayut’s in the event of another military coup.


Subject Latest on Thailand's long-awaited elections. Significance Prime Minister Prayut Chan-o-cha recently suggested the general election would be held only after the coronation of King Maha Vajiralongkorn, after earlier saying it would occur by February 2019 at the latest. The ban imposed by the military-led National Council for Peace and Order (NCPO) on political activities remains in place, but the Constitutional Court has cleared the organic laws governing political parties and MPs. The Pheu Thai Party (PTP) faces the prospect of losing members to the new pro-military Phalang Pracharat party. Impacts Pressures surrounding the poll will not affect the government’s spending plans. Prayut will likely engage in negotiations with veteran politicians and provincial clans to canvass support ahead of the elections. Despite improvement in EU-Thailand ties, full normalisation will only happen under a civilian government.


Significance Since coming into power on the back of public protests in April-May 2018, Prime Minister Nikol Pashinyan has committed to a robust overhaul of state institutions including the judiciary, where the Constitutional Court is a high priority. To move forward, the government has to tackle multiple legacy issues and resistance to change within state institutions. Impacts An all-new government faces teething problems including lack of capacity. The unexplained resignations of Armenia's intelligence and police chiefs hint at frictions within the governing team. Down the road, the government plans reforms to the electoral process and the political party system. Closed borders with Azerbaijan and Turkey are an obstacle to growth.


Significance The government vows that freeports will represent “hubs of enterprise which will allow places to carry out business inside a country’s land border but where different customs rules apply”. The creation of freeports are a central component of Prime Minister Boris Johnson’s government to facilitate global trade and promote regional regeneration in the post-Brexit era. Impacts With Brexit, London will have more flexibility regarding the concessions it can offer businesses operating in freeports. The government vows to create freeports in the devolved regions but faces the difficult task of cooperating with the devolved governments. Some poorer regions will miss out on freeports, which could leave them even more deprived and stoke local resentment against London.


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