Pridiyathorn was one of the most capable and honest ministers in this government. However, his performance as deputy prime minister and finance minister was far from smooth. This was in contrast to his outstanding five-year performance as the governor of the Bank of Thailand. As governor, his role was limited to overseeing the stability of the financial system, but as deputy prime minister and finance minister, he had to confront political infighting and vested interests ready to claim pieces of the action.

He secured the top economic post in the Surayud government because of his links to some members of the military leadership. Before the coup, it was understood that Pridiyathorn would take over as economic chief to oversee the country during this period of political transition. Although he was appointed central bank governor during the Thaksin administration, he showed political shrewdness by walking a delicate path to defend the independence of the central bank.

Pridiyathorn's political career hit the wall when he whole-heartedly supported the Bank of Thailand's capital-control measures, introduced in December last year to curb speculation on the baht. The capital controls irreparably hurt his political standing. Investors left Thailand en masse. The stock market crashed.

Then came the amendments to the Foreign Business Act, which also spooked investors. These measures, combined with the politics of disinformation, resulted in Pridiyathorn and the Surayud government being accused of trying to turn Thailand inward as they set out to advocate the sufficiency economy theory. Investors were confused, and there was speculation that the unpopular measures were meant to pull Thailand out of globalisation. Pridiyathorn, including the Surayud government as a whole, lost out in this propaganda war.

Pridiyathorn felt that his enemies were breathing down his neck when Sondhi Limthongkul, head of Manager Media Group, succeeded in making inroads into government-run TV. With help from PM's Office Minister Thirapat Serirangsan, Sondhi was awarded a prime-time spot on Channel 11 for his Yam Fao Paendin talk show. The Manager Group had been fiercely attacking Pridiyathorn since the time he served as the central bank's governor.

Then came the most unexpected appointment of Dr Somkid Jatusripitak as the government's spokesman for the sufficiency economy model. Surayud appeared to give Pridiyathorn all of his support in the beginning and Pridiyathorn showed respect for the prime minister. But with Somkid's appointment, it was clear that the prime minister no longer had any confidence in Pridiyathorn. Virachai Veeramethikul, a former vice minister of the Ministry of Foreign Affairs, and a confidant of Somkid, also made his way to Government House by getting an appointment as deputy secretary to the prime minister.

Those sympathetic to Pridiyathorn called for him to resign because it looked as if Surayud was betting that Somkid would become the next prime minister after the general election. Pridiyathorn could only wait for the right time to walk away from this interim government. He oversaw the plan to invest in five additional lines of the mass transit systems in Bangkok. He also pushed for the government to take over iTV Plc, which owes Bt2.21 billion to the PM's Office for alleged breach of its broadcasting contract and another Bt100 billion in fines and fees.

Without Pridiyathorn, the "Old-Ginger" Cabinet looks even older. His resignation is a result of political competition among various factions, which has given rise to the volatility in Thailand. Looking ahead, the Surayud government will have very little room left to manoeuvre as the infighting will become more intense in the coming months. We expect to see a major Cabinet reshuffle, which could start from the top.