Thai junta extends rule to 2017 as policy risks rise

Significance

The military-led National Council for Peace and Order (NCPO) has already postponed elections three times, from 2015 to early 2016 and, most recently, to late 2016, with a new administration to be inaugurated in early 2017. A potential further delay would signal the junta's weakness in the face of mounting policy challenges.

Impacts

• Suthep's reappearance could jeopardise the political stability the junta has maintained since May 2014.
• The NCPO will continue to suppress the political machine of deposed former Prime Minister Thaksin Shinawatra.
• Government forecast of 3% growth this year may prove optimistic.
• Post-elections, China and the West are likely to be given at least equal diplomatic attention.