Commentary: A Ray Of Sunlight For Thai Reform

The situation was looking grim for the nation that triggered Asia's economic meltdown. Thaksin Shinawatra, a tycoon and leading candidate for Prime Minister, had proposed a dubious moratorium on paying Thailand's $36 billion in corporate debt. Meanwhile, the politically powerful Senator Prachai Leophairatana was blocking a painful workout of $3.5 billion in debt at his company, Thai Petrochemical Industry. Prachai and TPI had come to symbolize Thailand's inability to clean up in the aftermath of the 1997 crisis.

Then, in late December, came a ray of sunlight. Prachai was removed as managing director and CEO of TPI by a bankruptcy judge and lost control of the company after a series of legal maneuvers failed to fend off persistent creditors. Not long after, a government commission found that candidate Thaksin had understated his wealth in financial-disclosure statements, disqualifying him from holding elected office. Suddenly, it seemed the premiership would slip from his grasp even if his Thais Love Thais party won the Jan. 6 election, as was widely expected.