Thai Baht Banknotes As Baht Pares Gains For The Week

Death of a Monarch or an Oligarch?

At the end of a king’s long reign, it won’t just be a game of thrones that plays out in Thailand – it will be a game of gold.

The Associated Press recently published an article on the “Thai monarchy’s billions.” This makes for an important, if brief, reminder that there is more than just the power of quasi-governmental position or the power of ideology to the elite role that the late monarch held within the Thai polity.

Because the King could also readily command a power of mobilisation and could have, at least theoretically, commanded a certain power of coercion if the Thai nation were to ever actually slip into a prolonged, violent emergency, he also commanded a remarkable degree of power in terms of raw material wealth.

An extreme concentration of material wealth has political consequences. Thailand, in this regard, is no different than any other polity across the globe. What is unique about Thailand is that its wealthiest citizen also happened be the focal point of so many other bases of elite power. The late monarch was both an elite and an oligarch. And as he was arguably the top elite amidst a network of various elites, he was also the top oligarch.

Thus, as objectively and level-headed as one can be about such things, we should do well to review the state of Thailand’s oligarchy at this juncture of the late monarch’s—the late top oligarch’s—death.

As a side note on motivation for this piece, it should also be plainly stated that one does not mull over economic inequality simply for the sake of getting a pat on the back by our overly-represented, Left-leaning colleagues in academia. Nor does one do this in order to conjure up even rarer arguments for the late monarch’s well-recorded and, at times, patently undemocratic tendencies. Rather, one ought to review the late King’s material wealth as social power simply because in Thailand it is an empirical fact that money matters quite a great deal on the political stage, both locally and nationally.

With the King’s passing, what has changed about oligarchy in Thailand? What has stayed the same? Beginning with the latter, the overall structure of oligarchy has not changed within Thailand since Thursday, 13 October 2016.

There are still incredibly… [click here to continue to read full text]

*Originally published in New Mandala by T. F. Rhoden; any original credit for image/photo at the top of this post via Bloomberg. Unless otherwise stated, all posts on this website are under Creative Commons licence. 

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Serge Pun

Myanmar’s Stock Exchange: Open For Business And Soon To Foreign Investors

…Still, Myanmar had no market infrastructure to speak with, so Daiwa brought in the Japan Exchange Group as a partner, while the Japanese Ministry of Finance helped the Myanmar government draft up a new law to set up the creation of the bourse. According to Masutomo, JPX’s interest in Myanmar was due partly to the fact the Korean Stock Exchange, which had helped set up the Lao and Cambodian exchanges, was so ahead of them in the region.

Today, however, the Lao and Cambodian bourses are seen as a cautionary tale of what the Burmese exchange could become. Skeptics argue that YSX will likely mimic the fate of its neighbors, which both failed to take off after debuting to much acclaim. Each now holds less than 5 stocks.

For T. F. Rhoden, an independent researcher and doctoral candidate at Northern Illinois University, the comparison is misguided, as Myanmar’s population of 54 million people gives it a potential depth of domestic investors that’s much more comparable to Vietnam than Laos or Cambodia. In addition, Myanmar’s $64 billion economy is over three times the size of its smaller neighbors.

The more important lesson from the Lao and Cambodian exchanges is that their failure to enforce strong disclosure procedures and regulation destroyed their credibility. For emerging markets — whether in Asia or elsewhere — the need for international standards of accounting and disclosure is more than ever crucial.

The Yangon Stock Exchange has tried to push for higher standards by asking applicants to appoint compliance officers and set up systems to prevent insider trading, but without stringent regulation of the capital market, it likely won’t be enough.

“The two companies that have listed so far are… [click here to continue to read full text]

*Originally published in Forbes by Fanny Potkin; photo image credit via WTOP. Unless otherwise stated, all posts on this website are under Creative Commons licence.

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