Business Associations and the New Political Economy of Thailand: From Bureaucratic Polity to Liberal Corporatism by Anek Laothamatas

Author:Anek Laothamatas [Laothamatas, Anek]
Language: eng
Format: epub
Tags: Social Science, Political Science, World, Asian, Regional Studies
ISBN: 9780429722707
Google: oCuNDwAAQBAJ
Goodreads: 44598043
Publisher: Routledge
Published: 2019-03-07T00:00:00+00:00

Transforming Policy

The ability to transform or modify the content of government-initiated policy can be illustrated best by the success of provincial business leaders in eliminating the stipulation on compulsory membership from the FTI Bill. The objective of the bill was to elevate the status of the ATI to FTI, a statutory peak private industry organization. The bill was conceived by the ATI and approved in principle by the central JPPCC in 1983. One year later it was approved and sponsored by the cabinet.24 Finally, in 1987 the government laid it before the House of Representatives.

Until the House passed the bill at its first reading, no associations other than those represented in the central JPPCC seemed to be aware of its consequences. News of the first reading, however, awakened provincial chambers to the setbacks this bill might bring to their organizations. They discovered that this Bangkok business-initiated legislation would compel all existing industry trade associations throughout the kingdom to become members of the FTI.25 Provincial chambers feared that this legal advantage might lead local industrialists and industry associations to leave them, since their membership in chambers was voluntary.

Led by a newly founded coordinating body, the Inter-Provincial Chambers of Commerce of Thailand, provincial business leaders held press conferences and public seminars to disseminate their views. Each chamber also tried to lobby legislators from its own province.26 Their plan was to defeat the bill at its second reading in the House. Provincial pressure was heavily felt throughout the House and parliamentarians who had initially expected the bill to pass easily began to fear that it might be defeated.

To avoid total defeat, ATI leaders asked for the help of the TCC, supposedly the peak organization of the provincial chambers.27 Moreover, personal consultation with prominent leaders of the protest movement was sought.28 The ATI was also believed to have exerted influence through two major ruling parties, the Chat Thai Party and the Social Action Party.

Pressured by both sides, which had equally strong political backing, the House could not but strike a compromise by passing the bill but eradicating the controversial section on compulsory membership. Although the bill was enacted, public policy on peak business organizations was substantially modified. One of the most important and far-reaching proposed pieces of government legislation affecting business associations ever to be introduced—compulsory membership—was deflected. The situation remains the same—no business associations have the advantage of compulsory membership, thanks to the provincial business protest.

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