Thanathorn: Thai Economy Trapped by Two Decades of Political Strife

Former Future Forward leader urges constitutional reform and budget overhaul to free Thailand from a political deadlock stifling economic growth

 

Thanathorn Juangroongruangkit, the prominent leader of the Progressive Movement and former head of the now-dissolved Future Forward Party, has asserted that Thailand's economic woes are inextricably linked to two decades of political instability.

 

He called for urgent constitutional amendments and a sweeping reform of the national budget to address the nation's deep-seated issues.

 

Speaking at the "55 Years NATION: Breaking Thailand's Deadlock" event on Friday in Bangkok, Thanathorn argued that attempting to fix the economy without tackling the underlying political conflicts and power structures that have hampered the country is simply "impossible."

 

He highlighted the absence of societal consensus, a lack of effective checks and balances, and the pervasive use of "legal warfare" as political tools. This environment, he claimed, prevents any government from achieving stable governance.

 


"Old problems like political corruption remain unresolved, and new problems like 'legal warfare' have emerged," Thanathorn stated.


 

He explained that mechanisms designed for oversight in the 1997 Constitution are now being "used as tools for political destruction."

 

He further suggested that "a certain group of people" are actively trying to "stop time" politically to preserve their own social order and economic interests, creating a significant barrier to Thailand's adaptation to global changes.

 

Thanathorn painted a stark picture of Thailand's economic decline, presenting GDP growth figures over three decades:


1990s: Average annual growth of 7%.
2000s: Fell to 5.3% per year.
2010s: Dropped further to 3.2% per year.
Current decade (2020s): A mere 2% average annual growth.




  

"This isn't a crisis that recovered; it's our economy steadily slowing down over the past 30-40 years, clearly showing a continuous decline in Thailand's competitiveness," he warned, stressing that short-term policies, such as injecting money into the system, cannot resolve these deep-rooted structural issues.

 

True solutions, he believes, will take decades and involve genuinely enhancing the country's global competitiveness.

 

 

 

Proposed Solutions: Budget Reform and Constitutional Referendum

Thanathorn outlined two primary areas for economic revitalisation:

National Budget Reform: Drawing on his experience as a former member of the budget committee, Thanathorn criticised the current budget allocation, stating that regardless of the government in power, it remains stagnant and fails to address new global challenges like AI, climate change, or evolving trade regulations.

He proposed a dual-pronged approach to reform:


Ensuring citizen stability: Reallocate unnecessary funds to welfare programmes, empowering people to "take risks," innovate, and become entrepreneurs, which he sees as crucial for driving innovation.
Building national competitiveness: Invest in essential infrastructure and technology vital for future global competition.


 


"Today, there is a lack of unwavering political will from the executive branch to direct the nation's resources in the right direction," he concluded.


 



 



Campaign for Constitutional Amendment via Referendum: Thanathorn believes that amending the constitution is the way out of the current political quagmire.

He found "good news in bad news" with the passing of the Referendum Act by Parliament.

He urged all sectors of society to unite in pushing for a referendum to draft a new constitution alongside the next general election, whether it occurs in 2026 or 2027.

 

"This will reduce the budget and, crucially, foster public debate and exchange, improving the health of Thai democracy," Thanathorn concluded, hoping for a societal awakening reminiscent of the 1997 constitutional campaign, symbolised by "green flags" representing broad participation.

(2025/07/19-00:00)