Thailand

THE KINGDOM of Thailand has a long history of strong centralized rule and complicity with authoritarian figures which has increased the likelihood of corruption. Many people consider corruption to be not just pervasive but endemic throughout the entire Thai system.

In the summer of 2003, the prime minister of Thailand, Thaksin Shinawatra, following campaigns against drug trafficking and intellectual-property piracy, launched a campaign designed to eradicate “Dark Influence” throughout the country. Regional officials were instructed to draw up lists of suspected figures who would then be investigated and, if found guilty, dealt with harshly. Attention has been focused on unlicensed bus companies and motor cycle taxis, both of which are important sectors in Bangkok in particular, and both of which have reported paying bribes to the police.

The corruption that is endemic in Thai society has its roots in the feudal patronage system known as sakdina, in which a designated regional official was granted wide-ranging powers and discretion to administer an area, and who could reward individuals[Page 803] for their service. The legacy of this method continues to be particularly strong in the rural, agricultural areas in which the majority of Thailand's population of 70 million people live.

Thailand has a highly developed prostitution sector and this has been linked to human trafficking both into and out of the country. High profile declarations of leading massage parlor owners indicate that bribe-taking by police is widespread, while under-reporting of income has attracted the interest of revenue authorities.

Gambling is partly legalized and the underground sector is extremely large, with estimates of its annual value running at 450 billion baht ($11 billion); this includes not just illegal lotteries but also unlicensed casinos located in border regions or river islands. These regions have also witnessed large-scale illegal logging and the manufacture and distribution of illegal drugs, often by ethnic minority people seeking funding for their struggle for independence, as in the case of the Wa in Myanmar (Burma).

The Golden Triangle includes part of northern Thailand and remains a significant producer of opium for distribution internationally. Thailand's drug problems stem from being forced to agree with the United States in 1856 to allow the importation of opium in the name of free trade.

The inability of central authorities to control actions in the regions of the country, combined with the wide-ranging powers given to regional figures, has provided numerous opportunities for graft, vote-buying and collusion between private and public figures. Both army and police officials have been implicated in these kinds of activities. Local politics are routinely run by local “godfather” figures (chao pho) who wield considerable influence and who have seemed able to conduct extravagant, violent lifestyles with impunity. The Thai media have yet fully to emerge from an attitude of deference and respect that hampers serious investigation and, in some cases, news executives have been associated with accepting gifts from officials to ignore potentially damaging stories.

The private sector has been quick to take advantage of shortcomings in the Thai regulatory structure and there are numerous examples of money being siphoned off from works, protection rackets, and illegal sales operations. Firearms and explosives are easily obtainable and the violent resolution of turf disputes has been common. There have also been murders of auditors and other regulators. A great many people rely upon the informal sector of the economy and their work is therefore unregulated, and they are frequently unprotected. Reports of the mistreatment of domestic laborers emerged in the early 2000s, while the extortion of money from those wishing to work overseas has been notable for some years.

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