Violent clashes on the streets of Bangkok earlier this month darken the already dim outlook for political harmony in Thailand, say campus observers.

UC Davis graduate students from Thailand maintain the chaos comes at a time when the global financial meltdown makes the tourist-friendly Southeast Asian country an even more difficult place to visit and invest in.

"People want democracy and the rule of law," doctoral student Navin Yavapolkul said in a phone interview from his home in Bangkok where is he teaching at Kasetsart University. "These are things that most everybody wants."

At least two people were killed and more than 400 injured during Oct. 7 fights between anti-government protesters and police in central Bangkok, according to The Associated Press. As Dateline went to press, the political situation continued to deteriorate amid large rallies and a heavy police presence throughout Bangkok, Thailand's capital city and one of the world's top travel destinations.

Yavapolkul, who is studying agricultural and resource economics, said corruption is endemic in Thailand politics -- "it is an ongoing thing." This is illustrated, he said, in the case of the former prime minister Thaksin Shinawatra, now seeking political asylum in Britain and fighting corruption charges back in Thailand. Some of Thaksin's allies continue to win elections and high hold posts in Thailand -- his brother-in-law recently took over as prime minister after the previous prime minister lost his job due to conflict of interest charges.

The protestors largely hail from the anti-government People's Alliance for Democracy. Critics of the People's Alliance say the protests and riots are aimed at provoking the army to stage another coup in order to stabilize the country.

This would achieve, the critics charge, what the PAD's protests are ultimately aimed at -- the removal from power of the democratically elected administration led by supporters of Thaksin, who was toppled in a 2006 military coup.

Scrutiny of government urged

"Democracy is not just about elections," said Yavapolkul, who says he heard that the police fired tear gas canisters that explode on impact directly at the protestors.

Thai newspapers have published graphic photos of people with their feet or lower legs blown off, according to the Agence France-Presse.

Yavapolkul: "I think what people need the most is a democracy that everyone can trust in a longstanding attempt to fight against corruption and bureaucracy. A democracy that provides ways to monitor and investigate government works so they can be more transparent."

He added, "They want the constitution that is not just a tool for some government officials to have it their way, the constitution that is not biased toward the party that currently in power."

As for his own safety, Yavapolkul does not feel at risk in densely populated, traffic-snarled Bangkok, Thailand's largest city at 15 million people and the economic center of the country.

"The real danger is mostly around the parliament building, not the rest of the city. You're going to see a mob there, but everywhere else is fairly normal, even with the other rallies."

A political crisis in Thailand is not like one in a Western nation, he noted. The Kingdom of Thailand, a strongly Buddhist country known as Siam until 1939, is a constitutional monarchy with His Majesty King Bhumibol Adulyadej as the present king. In culture and traditions, Thais are strongly influenced by seniority, a respect for authority and are known for their friendliness and hospitality (Thailand is nicknamed the Land of Smiles) and not for irreverent, anti-establishment politics.

This social dynamic, as Yavapolkul points out, means that political change is a risky and sometimes dangerous proposition. If things got really unruly, the Thai military might always just move in, as they have done several times in the past, and take control of the country, a scenario that most Thais do not want.

"People here want to believe in democracy," he said. "They do not want might to make right."

Monticha Sompolvorachai, who is also earning a doctorate in agricultural economics, says the government must follow democratic principles or lose the faith of the Thai people.

"The death of the civilian demonstrators is startling and shocking," said Sompolvorachai, who worked for four years in the Thailand Ministry of Commerce before beginning her graduate studies in America. "The government must hold full responsibility for the police's violent reaction."

Some Thailand observers say the real fault line in the political divide is class-based and between Bangkok's urban elite -- mostly older professionals, their children and people in the more developed areas of the country's 75 provinces -- and the rural poor from outside Bangkok, many of whom back Thaksin. The rural Thais are worried the anti-government demonstrators in Bangkok will end Thaksin-era aid programs that helped improve life in the countryside.

Sompolvorachai acknowledges that Thaksin's two most important accomplishments were health care reforms and providing more support to the villages.

"The poor people are grateful for things Thaksin offered them and made them feel important, and they want to vote for him or his allies in return," she said. "They may hope to be offered more of the aid programs if Thaksin and his allies are in power, but one thing they know for sure -- they won't lose what they already have access to regardless of who runs the government."

Checks and balances

Sompolvorachai maintains optimism about her native country, noting that past political upheavals (military coups in 1991 and 2006) -- did not severely damage the Thai economy or create unacceptable social conditions.

One reason for hope is that Thailand has maintained an "open, market-oriented economy and a regulatory framework that encourages foreign direct investment," she said.

Whether that economic openness translates to political openness is a lingering issue, Sompolvorachai said.

"Most Thais seem to think the political conflict can be solved by three institutions -- the monarchy, the military and the government," she said.

She believes that the monarchy remains politically neutral; the military does not want to intervene; and the government is "at the moment, trying to stay above the problem."

Like Yavapolkul, Sompolvorachai says the current regime behaves as if winning an election entitles them to rule in a heavy-handed way.

"The street protests," she said, "are the direct result of corruption and unreliable checks and balances in Thailand's political system. To prevent future political instability, Thailand, like other Southeast Asian countries, needs to create a stable political system with good checks and balances so it can fight corruption."

Investment concerns

The political face-off overshadows some real financial woes in Thailand, said Sompolvorachai, whose dissertation is titled, "Enhanced Land Rights, Access to Credit and Farmers' Behavior: The Case of Thailand."

She said the increasing uncertainty, risks and volatilities in the global financial markets have increasingly complicated and challenged Thailand's economy. "Now, the political conflict is likely to discourage and further damage investor confidence."

Thailand and its economy, she added, cannot afford more violence. "It is no longer the first choice among Southeast Asia countries for investors." Neighboring countries like Cambodia and Vietnam are increasingly favored as places to do global business.

"Thailand has no choice but to find a way out of turmoil in order to regain the investors' confidence," said Sompolvorachai, who plans to stay in the U.S. for family reasons after finishing her degree.

What happens next in Thailand?

Sompolvorachai says it is time to start anew, and that if the government truly desires a fair political solution, Thailand should hold a "fresh election in the next few months."