Thailand's Prime Minister Yingluck Shinawatra gestures to residents during her visit to a flooded area at Don Muang district in Bangkok (Chaiwat Subprasom/Courtesy Reuters).
The flooding in Bangkok shows little sign of getting better, and its impact on Thailand’s economy and the global supply chain of many computer and automotive components has yet to be fully tallied. Japanese companies in particular have made enormous investments in Thailand and have been particularly hard hit by the flooding, but all computer disk drive makers and many car manufacturers have been affected. People are stranded throughout Bangkok, the government’s messages are still confusing and hard to understand, and the divisions in Thai political society have prevented the type of unity in the political system that should be necessary at such a time of crisis. In addition, diseases carried by the fetid water are beginning to be a problem in Bangkok and the outlying suburbs. Many foreign investors will now rethink their decisions to place so much of their supply chain in Thailand.
But even more worrying, these floods, which are the worst in Thailand in fifty years, could be a harbinger of the future.
Read more »