Thailand parties’ populist policies pit fiscal stimuli against economic stability

[BANGKOK] Populist policies have been all the rage in the campaign period leading up to Thailand’s general election on May 14, raising worries about the country’s fiscal stability should many of these policies end up getting implemented after the polls.

Thai politics is no stranger to populism, having been first introduced to the election equation in a big way in 2001 by the former Thai Rak Thai Party helmed by telecom billionaire-turned-politician Thaksin Shinawatra.

That year, the party introduced a universal healthcare scheme and provided one million baht (S$39,010) in handouts to every village nationwide, which ultimately helped them clinch the election and won Thaksin instant popularity among the poor and neglected rural communities – a reputation that he still holds to this day, despite living in self-imposed exile since 2008 to avoid a jail term for corruption and abuse of power.