By Carl Delfeld of Chartwell ETF and ETFfolio
The Economist refers to Thailand as "ungovernable" and the future of the iShares MSCI Thailand (THD) ETF indeed lies in the realm of politics more than economics.
In the latest twist of the drama between the duly elected prime minister and the opposition, Amy Kazin of the FT reports that Thai Prime Minister Samak Sundaravej was ordered on Tuesday to resign from his post by the Constitutional Court, which ruled he had violated constitutional conflict of interest rules by making guest appearances on a television cooking programme after taking office.
The verdict is the latest twist in a destructive political crisis that has seen a protracted standoff between Mr Samak, a 73-year-old veteran conservative, and thousands of protesters, and influential Thai elites, who believe Mr Samak is acting on behalf of Thaksin Shinawatra, the controversial former prime minister, ousted in a military coup in September 2006.
Mr Samak, the leader of the People’s Power Party – which is packed with Thaksin allies, has been resisting intense pressure to stand down since August 26th , when members of the People’s Alliance for Democracy seized his office. The military has vowed to not intervene and Mr. Samak is without a home or office.
But while Mr Samak refused to yield to the protesters – even declaring a state of emergency in an futile bid to evict them last week, it appears that his post-election star turns on “Tasting and Complaining,” the television cooking and chat show he pioneered in 2000 may prove to be his undoing.