Premiership
In late 1996, following the Royal Decree of Parliament Closure a general election was held. On November 16, 1996, Chavalit's New Aspiration Party won the most seats. With the support of five coalition parties - Chart Pattana, Social Action, Thai Citizen, Seri Dhamma and Mass Citizen - Chavalit was appointed by royal decree as the 22nd Prime Minister on November 25, 1996. However, he encountered pressure from many political movements, who finally forced him to resign on November 6, 1997, in the midst to the Asian financial crisis.
On 14 May and 15 May 1997, the Thai baht, which was then pegged to the U.S. dollar, was hit by massive speculative attacks. Prime Minister Chavalit announced he would not devalue the baht, but eventually Chavalit's government could not help but had to devalue the currency's value in July 1997. This sparked the Asian financial crisis, since the Thai government failed to defend the baht against the international speculators.
Thailand's booming economy came to a halt amidst massive layoffs in finance, real estate, and construction that resulted in huge numbers of workers returning to their villages in the countryside and 600,000 foreign workers being sent back to their home countries.The baht devalued swiftly and lost more than half of its value. The Thai stock market dropped 75% in 1997. Due to the crisis, in November this year, the premier eventually stepped down.
During the early 1990s, General Chavalit Yongchaiyudh controlled 126 military-run radio stations and two of the country's five television networks. Chavalit agreed to make military stations available for an anti-AIDS campaign. He also agreed to help Meechai Viravaidya spearhead a three-year blitz to halt the spread of the disease.
Read more about this topic: Chavalit Yongchaiyudh