Table of Contents

Thailand

Importance of Tourism:

tourism accounts for 6.5% of Thailand's GDP

Politics 2008:

• anti-government People's Alliance for Democracy (PAD):  They claim to be saving the monarchy from Thaksin Shinawatra, the prime minister deposed in the 2006 military coup, whose supporters won last December's election.  Sondhi Limthongkul, a businessman and former pal of Mr Thaksin's, fell out with him and founded the PAD. The conflict has ebbed and flowed but this week took a turn for the worse. It had hitherto essentially been contained in a few blocks in Bangkok's old town. But the PAD has begun blocking airports and calling for nationwide strikes by transport and public-utility workers.  The PAD's excessive tactics, and its calls for the replacement of democracy with a mostly unelected parliament, have lost it much support among the urban middle-classes. Its support base may only be tens of thousands in a country of 64m people—but, unchecked, that is enough to wreak havoc. Some believe they have the palace's tacit backing.
• The PPP became the vehicle for Mr Thaksin's allies after the courts dissolved his original party last year. The PPP won by far the most seats in the election, since when it has governed in a six-party coalition.
• To the government camp it looks like another sign that Bangkok's traditional, royalist elite is frustrating the people's will, to protect its privileges.

Shipping:

Last night, I was reading an article from the Economist magazine about shipping in SE Asia, and was looking at the corresponding map (see below).  What struck me about the article were the troubles that all nations had with shipping (and trying to control the waters) through the narrow straights of Malacca (between Singapore, Malaysia, and Indonesia). 

The trouble with this small stretch of water is that (a) it’s the only viable route from the Pacific Ocean, through the South China Sea, and out to the Indian Ocean…so, shipping goods from China to India (or on to Europe) is heavily dependent upon this route. 

But, this brings us to the second problem....piracy.  Because of the unique nature of the area, there is a long and violent history with sea piracy that lives on to today.  Many ships are hijacked, and many millions of dollars are spent each year trying to protect ships full of goodies passing though this perilous straight. 

Potential solution:  As I looked at the map, I had an idea:  why not create a canal through Thailand?  My thought is that Panama-like canal could be achieved through Thailand, offering sea vessels an alternative route with a higher degree of security from bandits.  Greater security, and lesser chance of piracy…and logistics companies from China and Hong Kong may choose this route, and elect to avoid the dangerous (and costly) Malacca Straights.  If you add up the cost of all of the lost shipments, in addition to the time / energy of retrieving vessels, and the additional insurance that is spent to insure against this loss…and you can see that ship operators may elect for the faster, and safer route through Thailand.

From Thailand’s perspective, they would benefit.  Both Panama and Singapore have proven that close proximity to vital shipping routes can be a boom for business.  Both areas have a vibrant banking sector, bustling ports and a fast growing economy.

So, as I was looking at the map, I realized that a canal in Thailand would indeed make good sense from a long-term development perspective.  Now, what exactly the economics of such a decision (and the practical engineering issues) remains to be unseen.  Further research is needed.  Please feel free to add your comments here…

Links to KookyPlan pages 

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