Abstract:
The thesis has purposes and aims in three objectives. First, is to carry out the governments manifesto in order to find the solutions to Asian Economic crisis in 1997 and financial management of the 2nd term of Chuan Leekpais Government during the financial globalization period. Second, is to study the economic policy implementation and financial management of Thaksins Government in the period of financial globalization. And last, is to compare the effectiveness of the economic and financial policy between these two government in team of their suitability to the period of financial globalization. This thesis was done by examining from the time of the development of financial globalization to the beginning of financial turmoil in South East Asia, in 1997 and analyzing the reaction of the two governments towards solving the crisis by using macroeconomic and new economic institution approach. The result of studying the thesis show that financial globalization has established a connection of the world financial system especially decreasing role of international border. Furthermore, the key variable that responsible for the movement of financial capital is the speculation of money without transparency and legitimacy, which had appalling effects on the Thai economic turmoil in 1997. Aftermath of the Asian financial crisis, the Thai socio-economy has acknowledged the possible answers to deal with this turmoil, creating more strength and confidence for our economy. Three simple philosophies are considered as effective way out of this crisis and the system in which the country should adopt in order to live harmoniously through the difficult financial globalization period. The first way is the Sufficiency Economy, the second way is Economic Nationalism and the third way is good governance economy system. Although Chuans economic policy is capable for reestablishing the strength in Thai economy in a short time but his policy in his second term is inefficient to deal with the financial and economic in the time of financial globalization. On the other hand, the policy and regime of Thaksins Government are focus on the countrys economy in his first four years but has not taken into account the importance of financial institution, legitimacy, ethic and good governance. In addition, these governments even ignore or violate its crucial elements as clearly identified in his first term of the Thaksins Government. These negative factors caused by Thaksins Government not only have a positive multiplier effects on his own party but also manipulation in the financial,macroeconomic and political institution. These illegitimate actions as mentioned above carried out by Thaksins Government are classified as an unfair advantage. However, they do not aware of the fact that their activities will limit public opinion which may later on ruin the image of the society, the populist policy implemented by Thaksins Government during their first term were widely used across the country making people in the rural area to be less self reliance and might further cause class division in Thai Society. All of the points summarized above will affect the political situation and economic growth in short term only. These short term effects do damage Thai economic structure in the long-run. The only hope of Thai economy is the three economic philosophies above; unfortunately, these three principles have been ignored by the regime and management of Thaksins government in his first term in the office.