Failed State Syndrome in Thailand ?

As the coup installed government of Thailand stumbles on dealing with the Muslim Insurgency in the Pattani region locals are reduced to forming militias to defend themselves.
It seems the carrot and carrot tactics of the government are not working.

Immediately after the September coup the military-appointed government said tackling the problems of the south would be a priority. With several high-ranking Muslim members in the junta and government— including the top general and the interior minister — analysts were hopeful the violence would subside.
( SNIP )
But the immediate response from the insurgents was far from conciliatory. The day after Surayud issued his apology, 46 violent incidents were recorded, compared with a daily average of 9 the previous month, according to the International Crisis Group, a Brussels-based organization that has been monitoring the situation in southern Thailand.

What has stirred the most anger against the insurgents — and has increased frustration toward the government — is the broadening of the daily killings to include apparently randomly selected civilians, everyone from monks to farmers and schoolchildren.