Dr Hanns H Schumacher, German ambassador to Thailand, recently talked to The Nation about his country's relations with the Kingdom. Excerpts:
Political developments have boiled over in Thailand and now seem at a stalemate. What are your views?
Thailand has long been seen as an anchor of stability in the region. The continuous unrest since the military coup in 2006, the ensuing frequent change of governments, and the internal tensions since the Abhisit government came to power put this reputation at risk, no doubt. The world is looking at Thailand to see whether a lasting reconciliation can be achieved between the different political camps. This takes two to tango, and the onus of proof to deliver is on both sides, the government of the day and the opposition. On the other hand, regarding the development of the economy, one could get the impression that politics and business are separated by a kind of "firewall". Thailand's first-quarter export figures are at a record level, the growth forecast for 2010 is quite positive, the baht gets stronger and stronger. The government's measures to strengthen the economy are clearly successful. Thailand is suffering from a phenomenon that seems to be the negative side of the globalisation coin. The uneven distribution of wealth and the widening gap between rich and poor could be reduced if all the population is able to take advantage of this positive development, and not only a privileged few.
How do German companies view Thailand now, particularly in terms of investment?
The Asia Pacific Conference APK - the largest gathering of German business representatives in Southeast Asia - took place in May in Singapore, and provided a good yardstick: Thailand remains a hub for German investments in the area. Business people look for fundamentals. If you look at these, then even during the political crisis, the Thai economy grew by 12 percent, the highest GDP increment in 15 years. Fundamentals in infrastructure, banking, industrial networks, combined with reasonable costs and a disciplined and qualified workforce, continue to look good. Thailand got good credits at the APK. One should never take foreign business interests for granted - your neighbours, for example Vietnam, are becoming strong competitors for German investment and technology transfer.
We are very interested in widening the scope of alternative energies in Thailand. A serious point is the suspension of pending investments at Map Tha Put, which affects, for example, one of Thailand's biggest German investors, Bayer Thai - a company with an impeccable record when it comes to environmental protection. Thailand's outstanding international competitiveness in the past has always been based on the predictability of administrative proceedings and the ease of doing business due to quick bureaucratic procedures.
A recent educational development was that a majority of schoolteachers in Thailand could not pass the exams their students were expected to pass. Could Germany help improve the level of Thai teachers?
The speed of technological development is bypassing a large number of adults, and in no country, including Germany, will it be possible for everybody, including teachers, to always keep on top of developments. This is particularly true in a country like Thailand where industrial and technological development is growing from a lower base than in some European countries. Even Europe might easily be left behind in the future if we don't pay attention. Only ten years ago, less than four per cent of the Thai population were Internet users, today this has risen to 25 per cent. Having said that, we believe Germany can help in many ways with education in Thailand. Education is one of our export products, and working together with government and industry in broadening ICT education and widening its usage is underway.
What is the next step in Thai-German diplomatic relations?
High level political dialogue will be fostered with the forthcoming visit of Foreign Minister Kasit to Germany. His German counterpart, Minister Westerwelle, might wish to refer to the last visit of a Thai foreign minister to Germany, Noppadon Pattama, in 2008. A then envisaged "Joint Plan of Action" was never realised due to the resignation of the Thai minister. Thailand is an emerging industrialised country, not a developing country anymore. However, we might enlarge our technological cooperation into a "third country assistance" project, with Thailand as partner, aiming at reducing the development gap amongst Asean nations. This still needs to be defined.
What are your views on the development of the Asean common market in 2015 and perhaps the development of a single currency for the region?
This is an important target date. The free movement of goods within Asean will definitely boost the region's development. Surin Pitsuwan deserves a lot of credit for pushing member states towards this direction. Still, when you look around in the world, Asean is a regional body with a rather low degree of integration. One doesn't need to compare it with the EU to come to this conclusion. Asean is still a long way from a single currency, starting with the strict adherence to the principal of non-interference in internal affairs, which would make it extremely difficult to transfer financial responsibilities to an Asean Central Bank. The creation of the euro - which I believe to be one of Europe's greatest achievements - took almost 30 years from idea to implementation. It still suffers from a lack of harmonisation of national fiscal and budget policies - something, Asean member states, under their present framework, would not even be willing to consider. I don't see myself paying with an Asean currency in the foreseeable future.