Prime Minister Surayud Chulanont yesterday defended the September 19 coup to leaders from the Asia-Pacific region, saying the ousting of Thaksin Shinawatra had been "a uniquely Thai response for urgently needed political reform" to end massive corruption and the abuse of power.

In his first major international forum since taking the premiership, Surayud told participants at the Apec CEO Summit that under the previous administration democratic checks and balances had been "weakened to the core".

"Thai society had become polarised as never before. The poor were going deeper into debt. The rule of law was being systematically subverted. Human-rights abuses multiplied. Corruption and cronyism were rampant. The country had reached a constitutional impasse that defied traditional democratic solutions," Surayud said.

He called the next 12 months, the period of time the military-backed government is expected to stay in power, "a breathing space for genuine democratic reform, a chance to strengthen weakened democratic institutions, restore eroded checks and balances and ensure that transparency and good governance are given more than lip service."

Surayud suggested that public annoyance with these problems explained why reaction had been "so peaceful and so positive to the overthrow of the 1997 'People's Constitution', which he described as the "most liberal and progressive basic law ever".

The interim government will over the next 12 months address four major structural challenges: to advance political reform, restore national unity, redress income inequality and strengthen the rule of law, Surayud said, adding that political form would be the top priority and setting a timeline of one year for a new Constitution and fresh elections.

A close second is the restoration of national unity, especially in the restive south, where an ongoing insurgency has claimed more than 1,800 lives.

"The government has already taken initial steps towards reconciliation. I recently apologised to the Thai Muslims in the deep South for previous governments' often harsh repression," said Surayud, adding that charges against Tak Bai protesters had been dropped and the Southern Border Provinces Administrative Centre, dissolved by Thaksin in mid-2001, had been reconstituted.

In spite of having one of the fastest-growing economies, Thailand still faces "a wide gap between rich and poor, not only in terms of income but also of opportunity".

"My government will pursue policies to give the poor greater opportunities for education, health and a better quality of life. We will introduce new policies and continue some initiated under the previous government, provided they prove effective and can be made transparent and sustainable."

Surayud said the government aimed to strengthen the rule of law to address corruption.

"If Thailand is to become a more just, equitable and democratic society, we need to become a country ruled by law, not by money or privilege. We also need to ensure that relevant laws are updated to reflect our democratic aspirations and the realities of the globalised economy," he said.

Besides politics, Surayud put into perspective the growing question about the government's promotion of a "sufficiency economy", saying the policy would not come at the expense of modern capitalism.

"Let me reassure you that our sufficiency-economy approach is based on common-sense principles - moderation, rationality, and self-immunisation from both domestic and external shocks - rather than anything else," Surayud said.

"GDP growth continues to be important, of course, but it should not be at the expense of people or the environment. The quality of growth will become an equally important measure of success," he said.

"If corporate social responsibility, good governance and better-managed risk are compatible with modern capitalism then clearly the sufficiency economy is also," he added.

Surayud said Thailand also prided itself on being one of the world's most attractive investment destinations, pointing to the thriving auto industry.

"This year we will export some 500,000 vehicles to the world, while our agricultural abundance makes us the only net food-exporter in Asia," he said.

"We believe in partnership with the international business community. There will therefore be no change in our investment policy. Foreign investment will continue to enjoy full protection," he said.

Jeerawat Na Thalang

The Nation

HANOI