Anand Panyarachun

Anand Panyarachun

Infobox Prime Minister
name = Anand Panyarachun
อานันท์ ปันยารชุน

nationality = Thai
order = 18th Prime Minister of Thailand
monarch = Bhumibol Adulyadej
term_start = March 2 1991
term_end = March 23 1992
June 10 1992 - September 22 1992
predecessor = Chatichai Choonhavan (1991)
Suchinda Kraprayoon (1992)
successor = Suchinda Kraprayoon (1992)
Chuan Leekpai (1992)
birth_date = Birth date and age|1932|8|9|mf=y
birth_place = Bangkok, Thailand
death_date =
death_place =
spouse = Sodsri Panyarachun

Anand Panyarachun (born August 9, 1932) was Thailand's Prime Minister twice, between 1991-1992 and once again in 1992. He was effective in initiating economic and political reforms, one of which was the drafting of Thailand's "Peoples' Constitution", which was promulgated in 1997 and abrogated in 2006. Anand received a Ramon Magsaysay Award for Government Service in 1997.

Education and career in civil service and business

Anand was the youngest child of twelve children [ [ Biography of Anand Panyarachun] ] of a rich family of Mon heritage from his father's side and Thai-Chinese (Hokkien [cite book|title=A History of Thailand|author=Chris Baker, Pasuk Phongpaichit|publisher=Cambridge University Press|pages=154 and 280|isbn=0521816157] ) from his mother's. [ [ PAVING THE WAY] ] [ [ PROUD TO BE MON SAYS FORMER THAI PM] ] According to Anand himself, Anand inherited his Chinese heritage from his maternal grandmother, whose surname was Lau ( _zh. 刘). [cite book|title=泰国华侨华人研究|author= [泰国] 洪林, 黎道纲主编|publisher=香港社会科学出版社有限公司|month=April |year=2006|pages=185|isbn=962-620-127-4] He attended Dulwich College and later read law at Trinity College, Cambridge, graduating with honours in 1955.

Anand spent 23 years in the foreign service, serving at times as the Ambassador of Thailand to the United Nations, Canada, the United States, and West Germany. In January 1976 he was appointed Permanent Secretary of the foreign ministry, and played a leading role in ensuring the US military withdrawal from Thailand. Following that year's October coup Anand was branded a communist by the military during the subsequent political witch hunts. [cite book|title=Angels and Devils|author=David Murray|publisher=White Orchid Press (1996)] Although the civil service panel set up to investigate the allegations cleared him of any wrongdoing, Anand was put aside into relatively unimportant posts and in 1979 left the public sector for the private sector. [Far Eastern Economic Review, December 19, 1991] He became the Vice-Chairman of the Saha-Union Group in 1979 and the Chairman of the Board of Directors in 1991. He has been a Director of Siam Commercial Bank since 1984. [cite web |url= |title= |accessdate= |format= |work=]

1st Administration

On February 23, 1991, a military coup led by Generals Sunthorn Kongsompong, Supreme Commander of the armed forces, and General Suchinda Kraprayoon, the commander-in-chief of the army, imprisoned the leader of the democratically elected administration of Chatichai Choonhavan. As in previous Thai coups, the military formed a National Peace Keeping Council to run the country. To shore up its image and gain the trust of King Bhumibol, the NPKC appointed Anand as interim Prime Minister. [cite book|title=The King Never Smiles|author=Paul M. Handley|publisher=Yale University Press (2006)] It was probably the most sensible act the NPKC ever took.Murray]

Anand, closely linked to the palace and held in respect by both the bureaucracy and the business community, proved acceptable to the people and the international community. He was regarded as being astute and disciplined, and had never been associated with any financial scandal.

Upon accepting the position of prime minister Anand was quick to declare that he did not agree with everything the junta had done and that he intended to follow an independent course. He further angered the NPKC by suggesting that the imprisoned Chatichai be released immediately upon a cabinet being appointed. [Bangkok Post, March 3, 1991]

Administration formation

The interim constitution that was promulgated on March 1 reconfirmed the intention of the NKPC to retain substantial control. [The Nation, March 11, 1991] However, Anand was allowed relative freedom to select his own cabinet members. However, for the entire period of his premiership Anand faced constant pressure from the junta leaders, who tried to influence government decisions in order to gain financial benefits.Handley]

Anand filled his cabinet with well-known academics, technocrats and ex-bureaucrats with proven records. Various commentators, ranging from the president of the prestigious Thailand Development Research Institute to the mass-circulation newspaper Thai Rath, described the cabinet as the most impressive Thailand had ever had. [Bangkok Post, March 7, 1991] [The Nation, March 7, 1991] The strong guiding hand of privy councillor Prem Tinsulanonda could be seen. Amongst those selected by Anand were Prem's previous finance minister and economic advisor. A senior diplomat during the years Prem served as prime minister became foreign minister. The technocratic orientation of the cabinet substantially diminished the fears of foreign investors. [cite book|title=Thailand's Struggle for Democracy|author=David van Praagh|publisher=Holmes & Meier (1996)]


Anand's administration proved a more hard-working one that those of his predecessors. The administration worked on its task of implementing a long list of much-needed reforms. Its emphasis on education, public health, exports, agriculture, industry, environment and improvement in living conditions, met with widespread approval. In a Bangkok poll in late July, 1991, 61 percent of respondents felt that the Anand government was more honest than previous administrations. [Bangkok Post Weekly Review, August 2, 1991]

Arguably the most significant of the reforms was a restructuring of the taxation system, which saw the introduction of a value added tax (VAT) and a reduction in corporate and income taxation. Several measures were taken to free up the flow of funds into and out of the country. Thai nationals were allowed to invest abroad without the approval of the Bank of Thailand. Regulations were altered for foreign banks to open branches and the ceiling on bank interest rates was lifted. [The Nation, April 16, 1992] In addition, the process for obtaining official operating licences for factories was greatly simplified, while the method of allocating textile and tapioca quotas was made more apparent. In the energy sector, price control barriers were dismantled.

The government was also able to successfully conclude agreements for a number of large-scale infrastructure projects initiated by the Chatichai administration. A regulatory board to oversee the privatisation and private investment in infrastructure projects was established. The projects themselves were also to be independently approved and monitored by agencies outside the government in order to minimise the opportunities for corruption.

In an attempt to spread the benefits of the country's economic growth, civil servants were given a 23 percent raise in wages, state employers a 20 percent wage rise, and the minimum wage was raised by 15 percent. In addition to this, the Anand government allocated 6 billion Baht in the 1992 fiscal budget to be distributed to villages for their own discretionary spending.

Key accomplishments of Anand's government include:
*The establishment of the ASEAN Free Trade Area (AFTA)
*A highly effective anti-AIDS/HIV policy. [AVERT, [ HIV and AIDS in Thailand] ]
*Electricity market reform, including the introduction of Independent Power Producers (IPPs) and the initiation of a 10 year liberalisation and privatisation plan for EGAT. Many have noted that Saha-Union Group, which Anand chaired, won a major bid to build a large coal fired power plant while Anand was in power. []
*Award of a multi-billion baht concession to Telecom Asia (today known as True) to build and operate two million telephone lines in Bangkok. [ [ นายอานันท์ ปันยารชุน ] ] It was noted by many that General Suchinda, the coup-leader who installed Anand as Prime Minister, was appointed Chairman of Telecom Asia after he was toppled from power. [ [] ]
*Suspension of the Hopewell rail-train airport link project. [ [ Bangkok's Independent Newspaper ] ]

Foreign policy

On the international front Anand performed well. Despite international concern over the coup, foreign administrations had sufficient confidence to resume relations quickly. Anand made visits to China in September 1991 and Japan in December 1991, and went on to meetings with President George H. W. Bush in the United States. He was able to shake of the stigma of being a junta-installed prime minister, instead successfully presenting the image of an administration determined to deregulate, cut red tape, and create an environment conductive to free enterprise.

The Anand government's policies to its neighbours followed the lead of his predecessor Chatichai. Relationships with Laos improved significantly, with Thailand allocating one-half of its 200 million Baht aid budget to the nation. [Bangkok Post, February 20, 1992] Thailand under Anand became deeply involved in the Cambodian peace process, while relations with Vietnam went through a period of fence-mending and confidence-building.

The only foreign relations area where there were serious reasons for criticising Anand's administration was Thailand's soft stance towards the repressive military junta of Burma.

Conflicts with the NPKC

A conflict between the administration and the military arose over defence spending. When the armed forces sought supplemental funding for a massive defence spending list that would have totalled 53 billion Baht, Anand denounced the NPKC's request. The military was upset, with the powerful junta member Air Chief Marshal Kaset Rojananil criticising the government for being too "inefficient" and calling for it to resign. [Bangkok Post, October 2, 1991] On the other hand, Suchinda attempted to justify the military's request by stating that there were still communist fighters in the Indochina region. At the meetings of the World Bank and the International Monetary Fund, which were held in Bangkok, Anand was widely praised for his calling for a reduction in arms spending. In November and December Anand publicly repeated his views that the country's security did not lie in its military might, but in its economic and political development, on one occasion stating "Military might is no longer a guarantee of national security. No nation can feel secure as long as its citizens are deprived of freedom of political expression and of the opportunities for a better and more meaningful life." [The Nation, November 5, 1991]

During the World Bank and IMF meetings General Suchinda, in his capacity as head of the Bangkok Peacekeeping Forces, threatened to ban rallies in the vicinity of the Queen Sirikit National Convention Centre. [Bangkok Post, October 1, 1991] The press immediately reacted by defending the rights of the people to conduct non-violent protests. Further protests came from politicians and students groups, who claimed that to deny such a right was far more damaging to Thailand's image than were the demonstrations themselves. The administration aligned itself with the public, and two days later Suchinda backed off. [Bangkok Post, October 3, 1991]

Despite Anand's intention to follow his own independent agenda and steer clear of the questionable activities of the NPKC, there was one matter he could not avoid: the drafting of the new constitution. Theoretically the NPKC was at arms length from the drafting process, but by the time the draft had reached the Assembly in late August it was apparent that the supposedly independent Constitutional Drafting Committee had been influenced by the junta. Worse, a Constitution Scrutinising Committee hand-picked by General Sunthorn was set up and proceeded to change various clauses in the draft.

On November 16, Anand abandoned his stance of refusing to comment. He spoke out against the proposal for a senate planned to have 360 members with almost the same powers as elected members in the lower house and a clause allowing permanent public officials to hold political posts. The following day Anand suggested that the senate be reduced in size. The military-dominated Assembly refused to make changes and voted unanimously to pass the draft. Anand's response was simple: "I'm disappointed". [The Nation, November 22, 1991]

Human rights

Anand's refusal to interfere with the junta's actions meant that his administration failed to come to grips with human rights issues. He had a comprehensive Environment Bill passed, but it was ignored by the military, which continued to conduct its corrupt activities. Not long after it had taken power the NPKC announced a huge rural development project that would help solve the problems of rural landlessness and encroachment on protected forests, issues that had for decades occupied the King's attention. The military had promised to resettle more than 1.2 million people to permanent farmlands, but instead callously evicted villagers from forest reserves, where they had lived in some cases for generations, and transferred the lands over to corporate plantations. [Occasional Paper No. 21, Indian Ocean Centre for Peace Studies, University of Western Australia] In almost all cases the army failed to provide new homes and food supplies. When a green activist monk led villagers to protest, he and his followers were attacked and arrested.

In mid-June the outspoken president of the Labour Congress of Thailand, Thanong Phoarn, mysteriously disappeared. The deputy defence minister, a military man, casually brushed the matter aside, claiming that Thanong had probably fled his wife. [Bangkok Post Weekly Review, July 12, 1991] He has not been seen ever since.

With respect to the freedom of information, the Anand administration also disappointed many. With the NPKC in full control of the media, blatant censorship was practised of any issue that was critical of the military. Thus, rallies and demonstrations on a wide range of issues of public concern were kept from the television-watching and radio-listening public. The transparency of the denials of censorship by the military-dominated Interior Ministry must have been apparent to Anand, but he chose to do nothing about them.

Anand was succeeded by General Suchinda, who was appointed by Parliament after general elections.

2nd Government

Suchinda resigned on May 24, 1992, following an intervention by the King that ended the violent military crackdown on massive popular protests against his government. The five-coalition parties that made up his administration still attempted to cling to power, however, despite calls for its resignation by the opposition and the press, and nominated Air Chief Marshal Somboon Rahong, leader of the Chart Thai Party, for the premiership.van Praagh] At the time it looked as if House Speaker Arthit Urairat was all set to submit Somboon's name to the King. Arthit however held back the nomination of Somboon following a meeting with privy councillor Prem, who was interpreted to have been exerting pressure on behalf of the King. The House Speaker instead announced that no decision would be made until the constitutional amendments were passed on June 10, adding that the next prime minister would be a civilian.

On June 10, Arthit surprised the country by recommending Anand's name instead of Somboon's to the King. The announcement was greeted with almost universal approval and even relief. Only the coalition parties of the previous government were dismayed, turning at first on Arthit, who they saw as having betrayed them.

Four days later Anand announced the formation of his cabinet, which included twenty respected technocrats who had held ministerial portfolios during his previous tenure as prime minister. Top of the lists of tasks for Anand's government was the rehabilitation of the economy, the organisation of free and fair elections, and the removal of top armed forces commanders from their posts.

The Internal Peacekeeping Law which allowed for the use of military force against demonstrators was promptly abolished on June 29, and on August 1, he removed Air Chief Marshal Kaset, General Issarapong, and General Chainarong, the First Regional Army Commander, from their posts.

Anand was succeeded by democratically-elected Chuan Leekpai later in 1992.

Post-political career

Anand rejoined the Saha-Union Group as Chairman after the general elections of 1992. He resigned from Saha-Union Group in 2002.

Constitution Drafting Assembly

In 1996, Anand was elected as a member of the Constitution Drafting Assembly and was appointed Chairman of the Drafting Committee. He oversaw the drafting of what became known as the "Peoples' Constitution" of 1997. This much lauded constitution was abrogated in 2006 after a military coup. The People's Constitution instituted several important reforms, [cite web |url= |title= |accessdate= |format= |work=] [cite web |url= |title= |accessdate= |format= |work=] [cite web |url= |title= |accessdate= |format= |work=] including:
*Decentralisation of government, including the establishment of elected Tambol Administrative Organisations (TAOs) and Provincial Administrative Organisations (PAOs). School administration was also decentralised, although opposition from teachers has delayed implementation of this reform (see Thaksin Shinawatra#Education policies)
*Establishment of several independent government agencies, including the Election Commission, the Office of the Auditor-General, and the National Human Rights Commission
*Stipulating that candidates for parliament must have at least a Bachelor's degree
*Mechanisms to increase political stability by favouring large parties over small ones, and hence singular governments over coalition governments

National Reconciliation Commission

From March 2005, Anand served as chairman of the National Reconciliation Commission, tasked with overseeing that peace is brought back to the troubled south. A fierce critic of the Thaksin-government, Anand frequently criticised the handling of the southern unrest, and in particular the State of Emergency Decree. He has been quoted to have said, "The authorities have worked inefficiently. They have arrested innocent people instead of the real culprits, leading to mistrust among locals. So, giving them broader power may lead to increased violence and eventually a real crisis." Unfortunately, the situation to deteriorated from 2005 to 2006, with escalating violence, especially among teachers and civilians. Despite much criticism of the Thaksin-government's policies, Anand refused to submit the NRC's final report, choosing instead to wait for the results of the 2006 legislative election. [cite web |url= |title= |accessdate= |format= |work=]

Anand finally submitted the NRC's recommendations on 5 June 2006. [cite web |url= |title= |accessdate= |format= |work=] Among them were
*Introducing Islamic law
*Making ethnic Pattani-Malay (Yawi) as an official language in the region
*Establishing an unarmed peacekeeping force
*Establishing a Peaceful Strategic Administrative Centre for Southern Border Provinces

The recommendations were paid lip service by the Thaksin administration and were opposed by privy councillor Prem, who stated "We cannot accept that [proposal] as we are Thai. The country is Thai and the language is Thai... We have to be proud to be Thai and have the Thai language as the sole national language". [cite web |url= |title= |accessdate= |format= |work=]

Other positions

Anand is a member of the Trilateral Commission and the International Advisory Board of American International Group (AIG). Anand is a member of the Carlyle Group and sits on the Carlyle Group's advisory board for Asia-Pacific. [The Nation, [ Anand outlines ties to group of giants] , 7 March 2001]

He is a member of the Club of Madrid [] . [en [ The Club of Madrid is an independent organization dedicated to strengthening democracy around the world by drawing on the unique experience and resources of its Members – 66 democratic former heads of state and government.] Anand is also a Member of the Global Leadership Foundation, an organization which works to promote good governance around the world. [ [ Welcome to GLF Global Leadership Foundation ] ]

See also

* List of Prime Ministers of Thailand
* Constitution of Thailand


External links

* [ Anand Panyarachun's website]
* [ Biography of Anand Panyarachun] (United Nations)
* [ Profile of Khun Anand Panyarachun] (Asean News Network)
* [ Official Website of the Global Leadership Foundation]

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