Ordinary Shareholders and Thailand’s Political Buffet by Christopher G. Moore

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I like this quote:

“The poor have objected to being governed badly; the rich have always objected to being governed at all.”–G.K. Chesterton

When I posted it on Twitter this week a lot of other people liked and retweeted it. The reason G.K. Chesterton’s quote resonances today in Thailand and many other countries is it sums up the class dissatisfaction that both the rich and the poor feel about being governed.

Let’s face it. Government is a necessary evil we need in order to find a way to live with each other. Anarchy as an alternative creates a dystopia more bleak, dark and dangerous than just about any political system (unless you have the misfortune to live in North Korea or Somalia). Most other systems are in various degrees of crises, revolution, or civil war. Government is a tough racket to keep from running into the ditch.

In Thailand, on the political front, no one is happy with the current impasse. Two polarized sides blame each other for every failure, problem, or mistake over the last dozen years. Now it has all come to a head. The last couple of weeks saw an increase in strong emotions on both sides and once that happened, finding a way to lower the temperature inside the political cauldron has proved elusive.

Over the last few weeks, the traditional elites and their middle-class allies in Bangkok have taken to the streets. Their initial action was in the best traditions of a democracy where people march and give voice their objections to Government policy and decisions. The right to demonstrate is healthy for a democracy. Like freedom of expression, protest demonstrations are an essential part of the democratic process.

The initial goal of the most recent round of demonstrations was to pressure the government to drop an amnesty bill that would have cleared criminal and civil actions against former Prime Minister Thaksin Shinawatra, and that goal was achieved. Success didn’t stop the protest but embodied it to moved on to pressuring the government to accept the validity of a questionable decision by the Constitutional Court that effectively bars the government from amending the Constitution.

The controversial constitutional amendment passed by the Government would have returned the partially elected Senate into a wholly elected body it was before the 2006 coup. And finally the protest demanded that the prime minister and cabinet resign and a caretaker government be appointed. A house dissolution and election were insufficient. The protesters demanded a “People’s Council” to take over governing. But who elects the People’s Council?

There lies the rub. Elections. Thailand’s urban Bangkok elites, who mainly support the Democrat Party, have failed to out vote their upcountry cousins in the North and Northeast who consistently walk away with an electoral majority for the Pheu Thai Party headed by Prime Minister Yingluck Shinawatra, the ousted Thaksin’s sister. The last time the Democrat party formed a government they had the assistance of the military to lever them into the driver’s seat. Following the 2006 coup that tore up the 1997 constitution and removed the government, the Democrats replaced the government, which had won an election mandate to govern.

The demonstration leadership under ex-Democrat MP and ex-Deputy Prime Minister Suthep Thaugsuban, having tasted success and had the Government on the run, saw an opening to implement his plans to radically alter the existing constitutional and political system and install a wholly new system. It is no longer an anti-government demonstration; it was a strange bird, part-coup, part-revolution, part-rock concert with portable toilets, tents and bamboo matt and a well-stocked mobile kitchen. It turns out the real complaint is not just the Government but the political system enshrined (irony alert) in the 2007 Constitution written under the careful eye of the military. How can we put it—the military inspired constitution proved too much on the side of a liberal democracy for the Bangkok elites.

A couple of metaphors might be helpful to understand evolving political handbook the opposition wishes to replace the one in the Constitution. Although I am aware that arguing by metaphor presents dangers and distortions and this attempt will be no exception—especially when the metaphors are “corporations” and “food”.

Despite the polarized political divide in Thailand, both sides are pro-business, pro-capitalists. No one is arguing the free-market economic system in Thailand (where there is full-employment) needs to be destroyed and replaced with a different economic model. It’s not that kind of revolution.

The political issue arises because of a fundamental disagreement of who should be in charge of economic and political systems. Like a large company, Thailand’s resources are spread over a large number of people. Call them voters, or stakeholders, or call them shareholders. In a company, the dividend paid out depends on the earnings and the Board of Directors determine the amount of the distribution to the shareholders. Also the members of a company board of directors stand for election and the shareholders vote. In a parliamentary system, the government acts as the board of directors. Citizens, like shareholders, they choose with their votes among those competing for positions of authority and power.

Political systems also distribute dividends and that is why the stakes are so high and elections are so important. This is where the food metaphor kicks in. To add another layer to the metaphorical cake, think of a buffet. Everyone demands a big share of the buffet and for someone else to pick up the check at the end of the meal. The buffet isn’t unlimited. As the number of chairs around the table expands, it is viewed by the original diners, that these new people are threatening to eat them out of Bangkok condo and holiday house.

The problem for the opposition in Thailand is the new diners feel they’ve had enough of the traditional Bangkok elites who offered them crumbs and leftovers. They had started demanding their fair share of the main course and the pie, cigars, and brandy. Competition comes into play. Like in the corporate world, in the political world those who have a monopoly see no reason to give it up. What we witness in this drama is a page out of the human nature newsreel as people fight over a place at the table, one of the chairs, the food, and the bill. Greed rears its head, talons and fangs appear, and fat cats and skinny cats circle each other around the table. Voters choose candidates for all kinds of reasons, but an important one is they will fairly distribute that buffet to them. Another way of looking at populism is the buffet line becomes much longer.

To return to the idea of political system having similarly with a corporate governance system, it is important to understand the purpose of a stock market, which  is to raise capital. Capital formation depends on convincing shareholders to invest in shares. The democratic political process operates on a similar idea. Politicians need to raise political capital and are willing to pay hard cash to do so meaning that political capital is more than an ego trip. A company raises capital on the financial markets by persuading investors to part with their money. Politicians raise political capital by promising voters benefits so they will vote for them. And in Thailand that can often involve a cash transaction (and no side has clean hands in vote buying). A political system also needs to raise political capital. We judge the legitimacy of a political system by the ways it sets the rules as to how politicians are required to raise political capital sufficient to send them to parliament. Once elected many of those promises may be compromised or forgotten but sooner or later a politician knows that he/she is answerable for an accounting at the next election.

Protest leader Suthep Thaugsuban, has a plan to restructure the political process, which would result in eliminating a citizen’s right to vote. Viewed from a company standpoint, the effect is to replace the ordinary shareholder with the preferred shareholders. Other than calling them the ‘good people’ these preferred shareholders are entrusted with the right to vote, and they will vote for the board of directors of ‘good people’. In other words, the minority calls the shots and there is no mechanism for voting the minority out of office. Back to food: The buffet line is closed. No more chairs at the table. The newcomers are shown the door.

This suspicious looks like a backdoor, hostile privatization of a public company. It is more like an old-fashioned nationalization of shares without compensation for the loss to the ordinary shareholder. In the capitalist world, throwing shareholders out of the buffet room is viewed with suspicion. Drones were built for that eventuality. No ordinary shareholder is going to except the excuse that their interests are better served by the preferred shareholders.

In the case of Thailand, should a trial balloon to suspend election become a reality and should the appointment of a self-governing People’s Council come about, the effect would be to annul general elections. And perhaps be the spark for considerable violence. Inside this, the newly privatized political process, the preferred shareholders, call all of the shots, including the suspension of ‘populist’ policies tricks that anti-democracy proponents believe are the heart of the problem.

As the weekend approaches in Bangkok, there are many unanswered political questions being raised in Thailand. Voters, like ordinary shareholders, like the buffet spread that Thaksin Shinawatra’s political parties have delivered to them. Taking away their plates, spoons and forks and chase them from the table won’t be an easy task. What price will the preferred shareholders, the Bangkok urban elite, pure capitalists in their hearts, be prepared to pay to take back the buffet room for themselves? The answer is unclear.

What is more clear is that many anti-democratic protestors unite around the idea that political capital is only raised from the ‘good people’ and ordinary shareholders aren’t clever or educated enough to be considered ‘good’ and are excluded from direct involvement in the political process. That idea underestimates them. Once you’ve been to a good buffet no one can take away that memory. To be tossed out the door not because you’ve lost an election but because an elite thinks you’re stupid is the kind of argument that won’t win a lot of friends.

The opposition argument isn’t about winning friends; it’s about defeating an enemy. And at the end of the day, a basic complaint by conservative forces is that liberal democracy helps ‘bad’ people obtain political power over the ‘good’ ones. The assumption is that ordinary people should be happy that the good people, the preferred people, are committed to running the system according to old values, traditions, and customs as to running the ‘company’ and the ‘buffet’.

But you other lot—you go back to your bowl of sticky rice, fish sauce and som tum. And this is your karma, actually it is your own fault we are protesting. You, the ordinary shareholders, with your upcountry snout in our Bangkok buffet are enablers of an evil, corrupt family that abuses political power. Besides you are trying to sit in my chair and eat off my plate!

It is doubtful that members of this group of anti-democratic elites would ever go to the capital market to raise funds for one of their companies with such a policy statement set out in their prospectus. But when it comes to the political buffet, in Thailand people are debating the idea in the streets as to when the good people will once again have the authority to decide menu and decide who gets to stay at the head table and second helpings.

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