Thu Apr 28, 2011
By Martin Petty
PHANOM DONG RAK, Thailand (Reuters) – Thailand’s military is on the offensive — and not just in its deadly border skirmishes with Cambodia.
For decades, the country’s history has been shaped by the balance of power between three institutions – the monarchy, the military, and parliament. With elections looming that could upset this fragile balance once again, Thailand’s generals have come out fighting.
For investors, the risks are rising. The last time the military grabbed a dominant role in politics, following a coup in 2006, the stock market collapsed following disastrous use of capital controls that took months to unwind.
There is also no guarantee that another bid by the military to reassert a dominant role would be as bloodless as in 2006.
Fighting on the border with Cambodia has killed at least 14 people since last Friday. Both sides blame each other. Thailand has rebuffed international mediation and withdrawn from defence ministerial talks, adding fuel to the crisis.
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