MR BIGS REMAIN UNTOUCHABLE

Black Economy Takes B200-400bn A Year

Illegal lotteries, brothels, gambling and methamphetamine dealers in
Thailand rake in 200-400 billion baht annually, but cannot be easily
stopped because rich and powerful figures are involved, according to
prominent researchers.

Assoc Prof Pasuk Pongpaichit, Asst Prof Sungsit Piriyarungsan and Asst Prof
Nuannoi Trirat, of the Economics Faculty of Chulalongkorn University, will
publish their latest conclusions on the black economy in the form of
pocketbooks to be launched on Wednesday.

Their research concludes that illegal business accounts for 8-13% of
Thailand's annual gross domestic product.

Top money earner is gambling-which includes gambling dens, the illegal
lottery and football gambling. The researchers conclude that illegal
bookmakers offering odds on football are targeting students, to the great
detriment of the nation's youth.

They cite one student who lost about 50,000 baht on a football bet and had
to quit school and work as a waiter to raise money to pay.

The illegal lottery, the researchers report, covers millions of operators
nationwide and generates an estimated 110 billion baht annually, at the least.

It is a major income source of leading millionaires and politicians, who
are above the police and profit from their corrupt roles as protectors.

Organised prostitution in its various forms yields an estimated combined
profit of about 100 billion baht annually, but pays only 3,000-6,000 baht a
month to poorly educated prostitutes and 50,000-80,000 baht a month to the
"quality" girls who work member clubs, nightclubs and karaoke places.

The industry involves businessmen, politicians and state officials, the
researchers say.

Methamphetamine dealing has expanded to family members, and pushers are
active in at least 420 schools in Bangkok alone. High profits allow
traffickers to bribe the authorities and continue their unlawful operations.

Ineffective law enforcement is the main reason the illicit operations are
so profitable. The business also attracts foreign criminals, who set up
their own businesses in Thailand, the research concludes.

These illegal businesses impact directly and adversely on political reform,
because the well-to-do operators can buy their way into local and national
administrations.

"Twenty to 30 former and current MPs play important roles in illicit
businesses. They take part in, protect and even give direct support to the
operations," the report says.

"Many operators, including illegal lottery hosts, oil and goods smugglers,
drug traffickers and traders in illegal weapons and timber ran in the
general elections."There are neither quick nor effective solutions to the
problems, because they have become firmly entrenched, the researchers note.

They are rooted in the networks of the police, politicians and local
influential people.

Above all, Thailand has never launched a serious and effective policy to
tackle the illicit economy, the report concludes.