Will military's tighter grip give Thai economy a boost?
Democracy may have suffered from referendum result, but investors may welcome a greater level of clarity
Democracy may be a casualty of Thailand's newly approved constitution, but the referendum's result may boost the country's struggling economy.
Voters accepted the military-backed constitution in Sunday's referendum, with 61.4 per cent in favour with 94 per cent of the votes counted, Reuters reported.
Aim Sinpeng, a lecturer in comparative politics at the University of Sydney, told CNBC's The Rundown that "the very foundation of the political system will be undermined by a number of undemocratic clauses" in the constitution.
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"It's very clear from the beginning that this constitutional draft was to provide the unelected elite, particularly the military, a permanent hold on power on Thailand," Aim said.
But she added, "The investor is actually going to look at this more favourably."
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"Given the mandate that's given to the military, it would at least buy Thailand some time for the government to come up with an actual economic plan for the country," Aim said. "That time would be stable and less challenged compared to the previous two years of military junta, where it started to look really rocky."
