Surayud has also announced that achieving a growth rate in terms of gross domestic product is not a priority for his interim government. He said he prefers to measure success based on a new index, Gross Domestic Happiness, or GDH. This may sound a bit philosophical, but the royal initiatives for sufficiency, a kind of Buddhist economics, are indeed practical for virtually all parts of the economy - from international trade and large companies down to small and micro enterprises and households.

Dr Sumet Tantivejkul, secretary-general of the Chai Pattana Foundation under Royal Patronage, said recently that all Thais should beware of the pitfalls of the mainstream Western development model, which has been pursued by many developing nations around the world, including Thailand, over the past several decades.

He ssaid the country should review its national development pattern and consider adopting an alternative model such as "sufficiency economy".

The alternative model could provide more sustainable economic growth and boost the people's happiness. After all, the goal is to take the "middle path" for maximising economic benefits and utilising the country's full potential.

MR Pridiyathorn Devakula, who is expected to be a deputy premier and finance minister in the Surayud government, has said there is no contradiction between a sufficiency economy and Thailand's liberal economic system, despite what some in the business community have suggested.

Sumet rejected the idea that the sufficiency economy is just for poor or grass-roots people, or that such a development model would take the country backwards or make the poor even poorer. Sumet said that HM the King's concept of the sufficiency economy embodies three key ideas: moderation, rationality and immunity.

"Moderation" suggests that a country should base its development model on its full potential. For instance, a country's government and private sector should not over-invest or over-stretch its economic potential because doing so could lead to greater risks and even bankruptcy.

The 1997 economic crisis is still a powerful reminder of the stakes. Thailand ended up with a huge mountain of debt, worth some Bt3 trillion.

For the Surayud government, moderation would mean a more cautious stance on investment in the mega-infrastructure projects announced by the Thaksin government.

Pridiyathorn has said the new government will still support the rail mass-transit, logistics and farm-irrigation schemes launched by the previous government, though the scale will be smaller. For instance, it may pursue only one or two of the 10 rail lines sought by the previous government.

The second key notion is "rationality". Sumet said that a country is wise if its leaders choose a logical path for national development. For instance, Thai boxing is globally renowned so it would make good sense for the government and private enterprises to capitalise on this national strength.

As for "immunity", Sumet said a country has to manage its national risks systematically. Immunity management is the same as risk management in financial and banking circles. The royal initiatives could fit well with today's global economy.

One example is Siam Cement Plc, one of Thailand's largest corporations. The company was battered by the 1997 crisis due to its massive foreign exchange losses following the currency devaluation. Siam Cement's drastic restructuring over a period of several years has resulted in a leaner, more competitive and profitable enterprise. In the process, it has sold off many non-core and unprofitable units to focus on its core activities. Its business lines are now more rational, while its new investments are not as aggressive as before. The company now has much better risk management.

Sumet said most Thais would appreciate the merits of a sufficiency economy if they had a better understanding of the world and of themselves. Unfortunately, many people and businesses only came to appreciate sufficiency after facing serious financial hardship in the wake of 1997 crisis.

If the royal words of wisdom are turned into action by the Surayud government, Thailand will place a lower priority on GDP growth and focus instead on the quality of growth so that income is more equally distributed among the entire population. The government should come up with a set of "happiness indicators" so the country is managed based on both GDP and GDH. Some elements of GDH have already been used by the government of Bhutan, which could help.

"If we develop the national economy like a good balloon, which means putting in just enough air, then that balloon will last a long time. On the other hand, if we put too much air into the balloon, as we did prior to the 1997 crisis, then it will become a bubble economy and explode," said Sumet.

Nophakhun Limsamarnphun

 nop1122@yahoo.com