Thailand's Prime Minister Told to Get Off His High Horse by Phairath Khampha 31 May 2001 ANAND BLAST: Get off your high horse, Mr Thaksin Thailand's former prime minister Anand Panyarachun on May 30, 2001 lashed out at the Thaksin government for having an "unclear" economic agenda, and warned the prime minister that a "white knight" mentality would endanger the nation. "When a country has a leader who considers himself a white knight, who can solve every problem, has an answer to every question and can [single-handedly] make the nation survive, then there must be great caution," Anand said. "In reality, no white knight exists and the Thai nation has to rely on itself." Anand was giving a keynote speech at a seminar convened by the Matichon group entitled How Thailand can survive? His harsh criticisms came a day after the government irregularly dismissed the Bank of Thailand governor MR Chatu Mongol Sonakul for resisting Prime Minister Thaksin Shinawatra's pressure to hike interest rates on deposits. "Leaders must be firm and yet ready to listen to other people's opinions as well as criticism," Anand said. The International Monetary Fund also expressed surprise at Chatu Mongol's dismissal; it said he had been doing a good job. And financial analysts told foreign news agencies the government's stand on interest rates could wipe out any optimism generated by the Thaksin government's commitment to forming the Thai Asset Management Corporation. Anand called on the government to create clearer economic goals, free of contradictions. "In my opinion, this government's economic objectives still lack clarity," he said. "It's good to have a government which thinks [of] something new and does something new. But the government also has to think right and act right, with clear-cut goals." "The government can have many goals at one time, such as [those] on the inflation rate, currency stability, economic growth and economic stimulation - but those goals must not conflict with each other," Anand said. In an interview after the seminar, Anand said he was concerned the change of guard at the Bank of Thailand could affect international confidence. "It's up to the government to judge whether they can work together, but there will be an impact," he said. Anand described Chatu Mongol as a knowledgeable man prepared to stand up for what he believed was right. "He has earned respect from the international financial community, is honest and has integrity," he said. Anand refused to publicly air his personal opinion about interest rates, simply stating that the government had to develop clear-cut objectives and in this case it seemed that there had been the usual Thai reaction to a problem--lash out blindly and hope for positive results, even though the nature of the problem was as of yet not clearly understood. Such ction is perhaps worse than the other classic Thai way of confronting a problem, which is to stick one's head in the sand and hope the problem would fade away on its own. "There will be pros and cons, and thus it depends on the decision makers and their goals, which must be clear-cut," he said. Anand, apparently alluding to Thaksin's tendency to set deadlines for solving major problems, said: "Nobody can claim he will solve a problem within three or six months, because things changes all the time and work needs to be adjusted or reviewed constantly". Noted economist Dr Virabongsa Ramangkura expressed his disappointment about the conflict between the government and the central bank, which eventually led to Chatu Mongol's dismissal. Speaking at the seminar, he said the Prime Minister, Finance Minister and central bank governor should consult each other and find ways of solving the country's problems together. If one worked only towards the particular goals of their organisation, successfully achieving broader goals would become more difficult, he said. And the three main economic managers were critical to the Kingdom's macro-economic fortunes. Virabongsa suggested the government and central bank give priority to the baht's stability and maintaining adequate reserves. Other objectives should be economic growth and spending for social purposes aimed at those severely affected by slowing economy, he said.