Thailand

August 2004 | Risk Summary

An increase in government spending across rural areas in Thailand has fuelled speculation that Prime Minister Thaksin, whose electoral mandate runs out in January, may be about to call an early election. Thaksin remains firm favourite to be re-elected for a second term, although recent events, such as the outbreak of bird flu and the growing violence in the south of the country, have dented his popularity. The spending increases, which include an extra THB20bn for poverty alleviation and THB6bn for infrastructure projects such as new roads and dams, were announced by Thaksin during a week-long tour of 15 provinces.

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