Thailand s economy is on firmer footing than two years ago, and much of the credit goes to Chuan s government. When he came into office in December 1998, the economy was in recession, the baht was dropping, and the banking system near collapse. The economy is now stable, thanks to a rigorous, IMF-prescribed reform program. But the economy is not growing at anywhere near pre-crisis rates. Much of the recovery has yet to filter down to the masses.
Unemployment rates are lower, but many Thais are under-employed.
Some have simply given up looking for work, according to the Far Eastern Economic Review. The number of Thais in extreme poverty has actually increased by 1.5 million about 2.5 percent of the population according to the Funds for Research Office, a Bangkok-based think tank. Thaksin established the Thai Rak Thai Party in 1998, only four years after his initial foray into politics. He was unremarkable as a parliamentarian and as deputy prime minister under then Prime Minister Chavalit Yongchaiyudh. But Thaksin is taking advantage of the current malaise by mounting an aggressive campaign that mixes populist rhetoric with an advertising blitz.