BANGKOK, Thailand – An unsuccessful strike by anti-government activists gave Thailand's beleaguered prime minister some breathing room Wednesday, but failed to derail the campaign to oust him, fueling worries that political unrest could hurt the economy.
The right-leaning People's Alliance for Democracy insisted it would not end its nine-day-old occupation of the prime ministerial office complex until he quit.
Prime Minister Samak Sundaravej, who vowed neither to resign nor dissolve parliament to call new elections under the threat of mob rule, was expected to make a national radio address Thursday to discuss the situation.
The leader declared a state of emergency in the capital Tuesday, after a bloody clash in the streets between his supporters and opponents killed one person dead and injured more than three dozen injured. He empowered the army to keep order and suspend some civil liberties.
Despite the declaration, about 5,000 anti-Samak protesters remained encamped at the prime minister's office – known as Government House – insisting they would not leave.
“The state of emergency only made us stronger,” Somsak Kosaisuk, one of the top protest leaders, told The Associated Press. “So many people left their homes to come here and people have sent food and water, so it makes us stronger.”
But the alliance suffered a setback when a planned set of actions by allies in the labor movement meant to increase pressure on Samak fell flat.
The Federation of State Enterprises, comprising 43 unions, had said it would lead 200,000 workers in strikes to crimp the supplies of power and water to government offices and disrupt telecommunications and rail, road and air transport. But few, if any, services were affected.
The People's Alliance for Democracy already forced one prime minister from power, staging protests in 2006 that paved the way for the bloodless coup that removed Thaksin Shinawatra. Thaksin, a telecommunications tycoon, recently fled to Britain to avoid corruption charges.
The protesters say Samak is Thaksin's stooge and is running the government for him by proxy.
But the army chief, Gen. Anupong Paochinda, has insisted the military will not stage a new coup, and he is working to head off further violence.
After Samak declared the state of emergency in Bangkok, Anupong made it clear that if soldiers took to the streets, they would be armed only with riot shields and batons and would not use force against protesters – roughly the same position taken by Samak.
Even if peace can be maintained, the government's failure to defuse the political deadlock or even take back its own offices is making the business community skittish.
The Stock Exchange of Thailand is at it lowest level in more than six months. In the second quarter, the economy slowed for the first time in more than a year, and the central bank expects growth to ease further in the second half amid the political crisis.
The Credit Suisse Group warned investors to avoid stocks in Thailand, saying that “the country is at risk of becoming ungovernable.”
But Kongkiat Opatwongkan, head of Asia Plus Securities, said he saw some hope in the latest developments.
“The state of emergency actually allayed some fear of another clash between the two sides,” he said. “Investors are waiting to see what form of negotiation or compromise both sides might engage in but if this drags on, it would have a very negative impact on investment and the economy.”
Political analysts suggested the divisions in Thai society will not heal quickly or cleanly.
Even if officials regain control of Government House and restore order, “I'm sure the protest movement will not go away,” said Andrew Walker of the Research School of Pacific and Asian Studies at the Australian National University.
“What we've seen over the last three or four years is endemic political division. I don't think that will disappear in a hurry,” Walker said.
The protest alliance and its sympathizers – monarchists, the military and the urban elite – contend that Western-style democracy has given too much weight to Thailand's poor rural majority, which they consider unsophisticated and susceptible to vote buying.
The anti-Samak forces are proposing that most members of Parliament's lower house be appointed rather than elected to lessen the power of rural people.
