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Anand Panyarachun

From Alfawiki
Anand Panyarachun
Born (1932-08-09) August 9, 1932 (age 94)
Thailand
Occupation(s)Statesman, diplomat
Years active1955–present
Known forPrime Minister of Thailand (1991–1992, 1992), economic and political reforms, People's Constitution of 1997

Anand Panyarachun (, , ; born 9 August 1932) is a former Thai statesman who held the office of Prime Minister of Thailand during two separate periods: 1991–1992 and briefly towards the end of 1992. He was instrumental in driving significant economic and political reforms, especially playing a major part in crafting Thailand's "People's Constitution," which was enacted in 1997 and later repealed in 2006. In recognition of his government service, Anand received the Ramon Magsaysay Award in 1997.

Civil service, education, and business background

Anand was the youngest among twelve siblings in a prosperous family, with Mon ancestry on his father's side and Thai Chinese (Hokkien) roots maternally. His father, Sern, descended from a senior Mon official who earned a royal scholarship to study in England, subsequently managing royal educational institutions and becoming a successful entrepreneur during the 1930s. Anand’s paternal grandfather established an ethnic Mon temple in Ratchaburi known as Wat Khao Chon Phran. On his mother’s side, Anand traces his Chinese lineage back to ancestors who migrated to Thailand in the mid-18th century and became part of one of the nation’s most influential Chinese clans. Through this heritage, he shares distant kinship with Korn Chatikavanij. Anand completed his education at Dulwich College and graduated with honours in law from Trinity College, Cambridge in 1955.

He devoted 23 years to diplomatic service, representing Thailand as Ambassador to the United Nations, Canada, the United States, and West Germany. In January 1976, he was appointed Permanent Secretary of the Ministry of Foreign Affairs and played a crucial role in negotiating the withdrawal of US military forces from Thailand. Following the coup d’état in 1976, military authorities accused him of communist sympathies due to his efforts to normalize relations with the People’s Republic of China. Although a civil service inquiry cleared him of these allegations, he was marginalized and eventually exited public service in 1979 to enter the private sector. Anand took on the role of Vice-Chairman at Saha-Union Group in 1979 and became its Chairman in 1991. Since 1984, he has also served as a Director at Siam Commercial Bank.

First term as Prime Minister

On 23 February 1991, a military coup orchestrated by General Sunthorn Kongsompong and General Suchinda Kraprayoon removed the democratically elected Prime Minister Chatichai Choonhavan. The military junta established the National Peace Keeping Council (NPKC) to administer governance and appointed Anand as interim prime minister to secure both royal endorsement and public confidence.

Regarded highly by the monarchy, civil servants, and business leaders alike, Anand was known for his sharp intellect and integrity without any financial impropriety. He pursued an independent policy line which displeased NPKC members when he called for Chatichai’s immediate release.

Government formation

Although the provisional constitution issued on 1 March 1991 preserved significant control for the NPKC, Anand enjoyed considerable latitude in selecting his cabinet. Throughout his administration, he encountered ongoing pressure from junta figures aiming to exert financial influence.

He assembled a cabinet composed of distinguished academics, technocrats, and former senior bureaucrats with established reputations. Analysts hailed it as one of Thailand’s most competent cabinets to date, reflecting the sway of privy councillor Prem Tinsulanonda. This technocratic approach helped reassure foreign investors concerned about political stability.

Reforms

Under Anand’s leadership, comprehensive reforms were enacted focusing on education, healthcare, export promotion, agriculture, industrial development, environmental protection, and overall living conditions, earning broad public support. A survey conducted in July 1991 indicated that 61% of respondents considered his administration more honest than previous governments.

Among the principal reforms was a tax system overhaul that introduced a value added tax (VAT) while lowering both corporate and personal income taxes. Financial deregulation permitted Thai citizens to invest abroad without restrictions; foreign banking regulations were relaxed; and caps on bank interest rates were removed. Factory licensing procedures were streamlined, quotas on textiles and tapioca became transparent, and controls on energy prices were eliminated.

The administration completed major infrastructure initiatives started during Chatichai’s tenure. It also created a regulatory authority tasked with supervising privatization and private sector investment in infrastructure projects, incorporating independent approval processes to minimize corruption.

To ensure economic gains were shared broadly, wages for civil servants increased by 23%, state employees received a 20% raise, and minimum wages went up by 15%. The budget for fiscal year 1992 designated six billion baht for discretionary spending at the village level.

Key achievements encompassed:

  • Formation of the ASEAN Free Trade Area (AFTA)
  • Successful implementation of policies combating AIDS/HIV
  • Electricity sector reforms involving Independent Power Producers (IPPs) and a decade-long liberalization strategy for EGAT. Notably, Anand’s Saha-Union Group secured a contract to build a large coal-fired power plant during this period.
  • Granting Telecom Asia (currently True) a lucrative multi-billion baht license to install two million telephone lines in Bangkok. General Suchinda, who led the coup that appointed Anand, later assumed chairmanship of Telecom Asia.
  • Halting the Hopewell airport rail-link project.

Foreign policy

On the international stage, Anand demonstrated considerable diplomatic skill. Despite initial apprehensions following the coup, foreign nations quickly restored diplomatic ties. Anand visited China in September 1991 and Japan in December 1991, and held discussions with U.S. President George H. W. Bush. He overcame the negative perception of being a prime minister installed by a junta by advocating deregulation, streamlining government bureaucracy, and encouraging business-friendly policies.

Continuing the approach of his predecessor Chatichai, Anand strengthened ties with neighboring countries. Thailand allocated half of its 200 million baht aid budget to Laos, intensified participation in the Cambodian peace process, and pursued confidence-building measures with Vietnam. The primary critique of Anand’s foreign policy was Thailand’s tolerant attitude toward the military regime in Burma.

Disagreements with the NPKC

Anand resisted the military junta’s proposal to raise the defense budget by rejecting an additional funding request amounting to 53 billion baht. Air Chief Marshal Kaset Rojananil, a junta member, condemned the government for inefficiency and demanded its resignation. Suchinda defended the expanded military expenditure by citing persistent communist insurgencies in Indochina. Anand publicly asserted that true national security depended more on economic progress and political stability than on military power, declaring that "Military might is no longer a guarantee of national security."

He also opposed elements of the junta’s draft constitution. Although initially silent during revisions conducted by the Constitution Scrutinising Committee chaired by Sunthorn, Anand later voiced objections to provisions granting an appointed Senate of 360 members equal authority with the elected House and permitting career officials and military personnel to hold political offices. He suggested downsizing the Senate; however, the military-controlled assembly dismissed his proposals and approved the draft unanimously. Anand expressed his dissatisfaction with this result.

Human rights

During Anand's tenure, human rights concerns were largely neglected due to his policy of non-intervention with the military junta. Although a comprehensive environmental law was enacted, the armed forces disregarded it and continued engaging in corrupt activities. Soon after taking control, the NPKC initiated an extensive rural development program targeting issues such as rural landlessness and forest encroachment—matters that had long been priorities for the monarchy. The military pledged to relocate more than 1.2 million individuals onto permanent agricultural land; however, instead of fulfilling this commitment, they forcibly removed villagers from forest reserves and allocated these areas to corporate plantations without providing sufficient housing or sustenance. Protests by activists were met with arrests and violent repression.

In June 1991, Thanong Phoarn, who led the Labour Congress of Thailand, vanished under dubious circumstances, with military authorities dismissing public concerns. Information freedom was also curtailed as military-controlled media censored dissenting voices and suppressed reports on public demonstrations, while Anand refrained from contesting these restrictions.

Following Anand's administration, General Suchinda was appointed prime minister by parliament after elections.

Second government

On 24 May 1992, Suchinda stepped down after royal intervention brought an end to a brutal military suppression of mass protests. Despite demands for his resignation, his coalition nominated Air Chief Marshal Somboon Rahong from the Chart Thai Party for prime minister. Yet, House Speaker Arthit Urairat postponed presenting Somboon's nomination after consultations with privy councillor Prem, who reportedly acted on behalf of the king's interests. Arthit subsequently declared that no appointment would occur until constitutional amendments were approved on 10 June 1992, emphasizing that the next prime minister would be a civilian.

Unexpectedly on 10 June, Arthit proposed Anand’s name to the king instead of Somboon's—a decision that was broadly welcomed except by the former coalition parties, who initially perceived it as a betrayal.

Four days later, Anand assembled a cabinet composed of twenty esteemed technocrats from his previous administration. His government focused on economic recovery, conducting transparent elections, and dismissing senior military officials.

The Internal Peacekeeping Law—which authorized military action against protesters—was repealed on 29 June. On 1 August, Anand removed Air Chief Marshal Kaset, General Issarapong, and General Chainarong from their positions.

Later in 1992, Anand was succeeded by democratically elected Chuan Leekpai.

Post-political career

After the general elections in 1992, Anand returned to lead the Saha-Union Group as chairman; notably, his administration had granted Saha-Union a significant Independent Power Producer contract. He stepped down from this role in 2002.

Constitution Drafting Assembly

In 1996, Anand was elected to serve on the Constitution Drafting Assembly and was appointed Chairman of its Drafting Committee. He guided the formulation of the 1997 "Peoples' Constitution," which introduced major reforms such as:

  • Government decentralization through the establishment of elected Tambon Administrative Organisations (TAOs) and Provincial Administrative Organisations (PAOs), alongside decentralized management of schools.
  • Formation of autonomous bodies including the Election Commission, Office of the Auditor-General, and National Human Rights Commission.
  • A mandate that parliamentary candidates possess at least a bachelor's degree.
  • Political stability provisions designed to favor larger parties and encourage single-party governments rather than coalitions.

This constitution was annulled in 2006 following a military coup against Thaksin Shinawatra, an event supported by Anand.

National Reconciliation Commission

Beginning in March 2005, Anand took on the role of chair for the National Reconciliation Commission (NRC), directing initiatives aimed at achieving peace in southern Thailand. He was an outspoken critic of Thaksin's approach to the unrest in the region, denouncing the ineffective law enforcement and wrongful detentions under the State of Emergency Decree. Anand cautioned that granting broader powers risked intensifying the conflict. Although the situation deteriorated through 2006, he postponed delivering the NRC’s conclusive report until after the legislative elections that year.

On 5 June 2006, Anand presented a series of recommendations, which included:

  • Implementation of Islamic law
  • Official recognition of the ethnic Pattani-Malay (Yawi) as a regional language
  • Creation of an unarmed peacekeeping unit
  • Development of a Peaceful Strategic Administrative Centre dedicated to the southern border provinces

These suggestions were dismissed by Privy Council President Prem, who insisted on retaining Thai as the exclusive national language and underscored the importance of national unity.

Other roles

Anand holds membership in the Trilateral Commission and serves on the International Advisory Board for American International Group (AIG). Additionally, he is part of the advisory board for Asia-Pacific at the Carlyle Group.

Since 1996, Anand has acted as UNICEF Ambassador for Thailand. From November 2003 until December 2004, he led the United Nations High-Level Panel on Threats, Challenges and Change, appointed by then Secretary-General Kofi Annan. This panel, composed of former heads of state and academics, was charged with proposing reforms for the UN.

Endorsement of the 2006 military coup

Anand endorsed the 2006 military coup that deposed Thaksin Shinawatra’s government and nullified the People's Constitution. As a long-term critic of Thaksin, Anand attributed responsibility for the coup to Thaksin’s governance and voiced apprehension about possible failure by the junta or a resurgence of Thaksin. He asserted that public sentiment favored the coup and expected that restrictions imposed on opposition groups by the military would be short-lived. Anand also remarked with surprise at international disapproval directed at the coup.

Remarks on Crown Prince Vajiralongkorn

In a confidential discussion with US Ambassador Ralph Boyce, later revealed through WikiLeaks, Anand expressed criticism of Crown Prince Vajiralongkorn, suggesting that Thailand might be better served if he did not ascend to King Bhumibol’s throne, while acknowledging that succession was unlikely to be altered. He warned that the Prince’s involvement in politics and contentious financial matters could complicate his succession prospects, highlighting widespread public doubts regarding his conduct.

Anand refrained from confirming or denying these statements. Comparable critiques were made by Privy Counsellor Prem Tinsulanonda and Siddhi Savetsila in separate conversations with US officials, also disclosed via WikiLeaks. It is important to note that criticism of the royal family is prohibited under Thai law.

Royal decorations

Anand has been honored with multiple royal awards within Thailand’s Honours System:

International Honors

Volunteer Defense Corps Rank

See also

Further reading

External links

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