Thaksin's Thai Rak Thai Party came to power through a general election in 2001, where it won a near-majority in the House of Representatives. As prime minister, Thaksin launched a platform of policies, popularly dubbed "Thaksinomics", which focused on promoting domestic consumption and providing capital especially to the rural populace. By delivering on electoral promises, including populist policies such as the One Tambon One Product project and the 30-baht universal healthcare scheme, his government enjoyed high approval, especially as the economy recovered from the effects of the 1997 Asian financial crisis. Thaksin became the first democratically elected prime minister to complete a four-year term in office, and Thai Rak Thai won a landslide victory in the 2005 general election.^[77]

However, Thaksin's rule was also marked by controversy. He had adopted an authoritarian "CEO-style" approach in governing, centralising power and increasing intervention in the bureaucracy's operations. While the 1997 constitution had provided for greater government stability, Thaksin also used his influence to neutralise the independent bodies designed to serve as checks and balances against the government. He threatened critics and manipulated the media into carrying only positive commentary. Human rights in general deteriorated, with a "war on drugs" resulting in over 2,000 extrajudicial killings. Thaksin responded to the South Thailand insurgency with a highly confrontational approach, resulting in marked increases in violence.^[78]

Public opposition to Thaksin's government gained much momentum in January 2006, sparked by the sale of Thaksin's family's holdings in Shin Corporation to Temasek Holdings. A group known as the People's Alliance for Democracy (PAD), led by media tycoon Sondhi Limthongkul, began holding regular mass rallies, accusing Thaksin of corruption. As the country slid into a state of political crisis, Thaksin dissolved the House of Representatives, and a general election was held in April. However, opposition parties, led by the Democrat Party, boycotted the election. The PAD continued its protests, and although Thai Rak Thai won the election, the results were nullified by the Constitutional Court due to a change in arrangement of voting booths. A new election was scheduled for October, and Thaksin continued to serve as head of the caretaker government as the country celebrated King Bhumibol's diamond jubilee on 9 June 2006.^[79]