Financial Crisis
ThailandSoon after coming into office, Prime Minister Chavalit was confronted by the Asian Financial Crisis in 1997. After coming under strong criticism for his handling of the crisis, Chavilit resigned in November 1997 and Chuan returned to power. Chuan came to an agreement with the International Monetary Fund which stabilised the currency and allowed IMF intervention on the Thai economic recovery. In contrast to the country's previous history, the crisis was resolved by civilian rulers under democratic procedures.
During the 2001 election Chuan's agreement with the IMF and use of injection funds to boost the economy were a cause for great debate, whilst Thaksin's policies appealed to the mass electorate. Thaksin campaigned effectively against the old politics, corruption, organized crime, and drugs. In January 2001 he had a sweeping victory at the polls, winning a larger popular mandate (40%) than any Thai prime minister has ever had in a freely elected National Assembly.