Somkid, his return to politics caused a wide range of reactions.

Less than a week after his appointment as a special envoy of the prime minister to create a better understanding with the international community about the sufficiency economic theory, Dr Somkid Jatusripitak, the architect of the Thai Rak Thai's populist policies, decided to call it quits.

Yet damage has been done to the already slipping credibility of the Surayud government, which has suffered a series of flip-flops on key moves, mainly involving economic policies.

Over the past week, Prime Minister Surayud Chulanont has come under political pressure to explain to the public why he opted to recruit Somkid as an official spokesman on sufficiency economic theory. One of the main objectives of the military coup on September 19 was to remove former premier Thaksin Shinawatra from power and to sort out the mess from his many controversial policies, which included "Thaksinomics" and some lavish populist schemes.

But Surayud, uncharacteristically, opened the door to welcome Somkid, Thai Rak Thai's former number two man, to the government and gave him a rather high profile, albeit non-ministerial, role.

By doing so, Surayud risked alienating the middle-class, plus academics and the elite who campaigned vigorously to oust Thaksin then eventually accepted the military coup as a last option. The People's Alliance for Democracy, whose public rallies and long campaign last year provided a catalyst for the military coup, denounced Somkid's surprise appointment. PAD leaders felt the move was a betrayal of trust toward those who supported the coup.

"With the capital controls, the revised Foreign Business Act and the appointment of Somkid, the credibility of this government is finished," said one Western-based diplomat, who is a keen observer of Thai politics.

He said Somkid was the architect of "Thaksinomics", so it seemed unthinkable to recruit him to promote the sufficiency economic theory. The Somkid appointment could have seriously undermined the Surayud government.

By allowing Somkid to step down from his position as special envoy on sufficiency economic theory, the government is trying, once again, to salvage its sagging position in the public eye. So far, it has backtracked on capital controls on capital brought into the country, lotteries, liquor ads, and a plan to re-open Don Muang Airport for international flights.

It has also had a difficult time explaining revisions to the foreign business law to foreign investors. The Somkid saga is the latest flip-flop by a government that appears to be struggling to get its act together and achieve a range of significant goals within a tight time-frame.

Somkid, who served as finance minister, deputy prime minister, and commerce minister in the six-year reign of Thaksin, has never renounced the populist policies of "Thaksinomics". Yesterday, however, he sought to defend himself by saying that his economic thinking or policies were not in tandem with those of the former prime minister, with whom he had run into conflict. He had lost favour with Thaksin. Yet it was not clear which policies he really differed on from his former political master and to what extent he sought to carve out his own role in the Thaksin government.

Somkid was removed as finance minister to serve as deputy prime minister and then commerce minister. Before Thaksin lost power, he appointed Pol Gen Chidchai Vanasatidya as first deputy prime minister, while Somkid's ranking in the hierarchy of the Thai Rak Thai dropped to almost no value because he did not have any political base within.

Somkid said that since the coup he has never talked to Thaksin and that Thaksin had never tried to contact him.

Earlier, the ill-fated arrival of Somkid had been interpreted in different ways:

First, he was brought in so that he could have a launch pad to prepare himself to become the next prime minister after the general election. Somsak Thepsuthin's Matchima Party would like to have Somkid as its head. And some of the generals would like to support Matchima to ensure their survival after Thailand reverts back to democracy after the next election.

Second, he was seen as a "Trojan Horse" for political enemies of the Surayud government. It was feared that, with Somkid slipped into the administration, he could quickly destroy its credibility and accelerate its collapse.

Third, Somkid would like to be his own man, and cast off the burden of his association with the Thaksin regime.

Fourth, Somkid was brought in to counter the propaganda war mounted by Thaksin from overseas that the sufficiency economic theory was the cause of the current fatigue and mismanagement of Thailand. Since Somkid was a former Thai Rak Thai insider, he would be the best person to discredit "Thaksinomics".

Fifth, Somkid's arrival reflected a deep division within the military leadership. Somkid got support from Gen Saprang Kalyanamitr, a key member of the coup, and Sonthi Limthongkul of the Manager Media Group. But his appointment served as a snub to MR Pridiyathorn Devakula, the deputy prime minister and finance minister, who has support from Gen Winai Phathiyakul, the secretary-general of the Council of National Security. Somkid and Pridiyathorn are known to be sworn enemies.

From now on, after a series of mistakes, Surayud can hardly afford to make more errors. There are rumours of a Cabinet reshuffle to counter the dwindling popularity. The Old Ginger Cabinet is looking old indeed.

Political Desk

The Nation