It is indeed a great pleasure and honour for me to be invited to address the inaugural lecture for the Saranrom Institute of Foreign Affairs, and more particularly to be among the gathering of such distinguished audience. Let me be the first to congratulate the Ministry of Foreign Affairs for its initiative in establishing this policy research institute to focus on the new challenges in an ever increasingly complex world. This institute will play an important role in enhancing the pool of knowledge and expertise between the Foreign Ministry and the academic institutions both domestic and abroad.   It will provide a greater spectrum of ideas for the formulation of foreign policy that would best serve the national interests and international affairs.

Excellencies, 
Ladies and Gentlemen,

When I assumed this office just over two years ago, Thailand was striving to make recovery from its worst economic turmoil. Despite a few signs of improvement, growth was still elusive. Having swallowed the bitter IMF medicine prescribed to them, the Thai people lost confidence in fast recovery. The Thai people were desperate for inspiration and hope. The mandate for this government was clear: to revitalize the Thai economy and put it on a sustainable footing. In the context of globalization, this means Thailand has to do no less than reinvent itself. To progress, we cannot afford to react only when something directly affects us. We must actively transform ourselves into a knowledge-based economy and society, in step with global trends. We must learn from our past successes and mistakes, as well as those of others. We must have the courage to break away from the past if need be, because the future is a whole new ball game.

The policies I have been pursuing are aimed at laying a solid foundation for the future. Bridging the gap between the haves and the have-nots is a duty of all governments. But to build the bridge that successfully spans that gap is a big challenge and a hard-earned prize for any government. It requires resolute determination and the realization that both the haves and the have-nots are the two sides of the same weighing scales. On one side are the haves or the private sector who need to prosper and earn their due rewards with appropriate social responsibility. On the other side lie the deprived grassroots, awaiting government assistance to provide opportunity to lift up their livelihood. Only when the weight on the two sides of the scales is evenly distributed, should equilibrium be struck. Put that into the practical perspective of our economy, such equilibrium cannot be achieved by extremity nor by dependence on any single track or theory. It needs a policy that creates a balance for both sides of the scales. Hence, the government’s dual track policy.

Under the dual track policy, the private sector should be encouraged to prosper efficiently in order to create one part of the country’s wealth. The other part of the wealth must be created at the grassroots through a number of government assisted programmes such as the village fund, micro-credit facilities, the SME incentive schemes, the one village-one product scheme, the housing schemes for the poor, and the better health and better education for all. 

My emphasis on strengthening the grassroots is not some cynical populist ploy to win votes, but an effort to empower our country’s most important asset, its people, so that they can take charge of their own lives. Then, they would be able to make wealth and a better future for themselves, their children and the nation. My emphasis is also on the knowledge for the grassroots because the value-added of tomorrow will rest with intellectual capital. The key to the success of our policy is the outside-in approach and firm adherence and dedication to the people as the centre of all our endeavours. 

So far, the success of two years’ implementation of our dual track people-centred policy is encouraging.  The private sector and the grassroots are growing hand in hand. The indications are that we are heading for the right balance. The 5 percent GDP growth last year was very remarkable since the 1997 economic crisis. Our foreign reserves now stand at around 40 billion U.S. dollars. The stock market last year was more vibrant than ever, especially in comparison with the rest of Asia.  This year we are able to pay back all of our IMF loans, two years ahead of schedule. We are on the right track. If we are to spare no effort, allow no complacency, and let nothing deter our determination, in 6 years’ time, I hope to see Thailand bid farewell to poverty.

Excellencies,
Ladies and Gentlemen,

For economic recovery to be sustainable in the globalized and inter-dependent environment, Thailand requires a progressive foreign policy that firmly supports its domestic counterpart. We need to formulate a foreign policy that looks ahead and forward to the future while mindful of the past. We need a foreign policy that responds effectively to the rapid changes while strengthening the basic foundations. We need a foreign policy that is pro-active and forward-looking. We need a foreign policy that seeks innovative opportunities while safeguarding national interests. We need a foreign policy that strengthens our existing international cooperation while further expanding to encompass new dimensions of cooperation with new partners.  We need a foreign policy that accommodates differences while turning diversity into the new partnership for peace, stability, and prosperity for the nation, the region and the world at large. This is what we call “Forward Engagement” policy.

Excellencies,
Ladies and Gentlemen,

Thailand’s geographical position is so strategic and easily accessible by land, sea and air. Historically, Thailand has always interacted with all countries in the region. Throughout her history, Thailand always opened her doors to foreigners while guarding her independence from western colonialism. This nation has well accommodated the richness of different nationalities, languages, religions and cultures. With such a background, it is natural that Thailand should adopt and adapt her foreign policy that reaches out to foster different levels of partnership, all at the same time. In forward engagement, we shall strengthen existing partnership and explore and expand cooperation with new partners to strike the right balance for the well-being of our people, on the one hand, and peace and prosperity for them with the rest of the world, on the other. 

Let me first turn to our immediate neighbours in the Greater Mekong Sub-region. Mindful of our special bonds in this sub-region, our forward engagement is to seek new opportunities to strengthen our special relationship based on mutual trust. Thailand has made it clear that we will not allow anyone to use our territory to impose threats to any of our neighbours. Such new opportunities must bring about mutual prosperity and both support and complement each of us for further development. Now that Thailand is becoming a non aid-recipient country, we request our former donor countries to turn their assistance to the need of our sub-regional neighbours. On our part, we will endeavour to find ways and means to create more wealth, peace and prosperity in the Greater Mekong Sub-region through closer cooperation with these GMS countries and in partnership with their donor countries.

The East-West Economic Corridor, stretching through India, Myanmar, Thailand, Laos and Vietnam will help integrate the Mekong Sub-region with the Indian Sub-continent. These “roads of opportunities” will be the basis in opening up trade, investment, and stimulating tourism across the region. It is also my initiative to promote Chiang Mai as an aviation hub for this sub-region, linking all GMS countries including countries in the Indian sub-continent. These sub-regional linkages will contribute to the narrowing of the development gap between the old and new members of ASEAN, the latter being Cambodia, Laos, Myanmar, and Vietnam. Thailand is conscious of bridging the development gap within ASEAN. The Mekong Institute in Khon Kaen Province of northeastern Thailand is being elevated to a regional training centre for the new members of ASEAN by providing capacity building in areas such as agriculture and sustainable development.

Excellencies,
Ladies and Gentlemen,

ASEAN is an integral part of Thailand’s foreign policy. Thailand actively supports further integration of ASEAN as well as ASEAN links with other regions. In our pursuit to strengthen trust, confidence and mutual understanding based on respect and non-interference within ASEAN, we recently pioneered the first joint Cabinet meeting between Thailand and Malaysia as well as the Prime Ministers’ Retreat with Singapore. These are arrangements which I will pursue with all our neighbours to underline the significance of special and closer neighbourly relations based on our shared vision of Southeast Asia. I also support ASEAN Foreign Ministers’ Retreats held in Phuket after September 11th to discuss anti-terrorism cooperation and other issues of ASEAN concerns.

AFTA or the ASEAN Free Trade Area, creating a market of 500 million people, must be driven ahead at full speed to intensify ASEAN economic integration in the key areas of investment and trade. We must strengthen also other ASEAN frameworks of cooperation such as the free trade in services, the Initiative for ASEAN Integration and ASEAN Investment Area, as well as cooperation in finance, tourism, transportation, information and communication technology, all of which are essential steps towards an ASEAN Economic Community or AEC. On ASEAN’s linkages with other regions, Thailand is a strong supporter of the ASEAN+3 process, ASEAN-India Summit, ASEAN-China, ASEAN-Japan and ASEAN-India closer economic cooperation and FTAs. I also support the constructive role of ARF or ASEAN Regional Forum to be the forum to discuss the North Korea issue to complement the existing the diplomatic efforts to defuse tension.

Excellencies,
Ladies and Gentlemen, 

Partnership in both bilateral and multilateral free trade is a vital component of our peoples’ well-being. Thailand is committed to negotiating and making progress with comprehensive bilateral free trade agreements with several of our major trading partners, such as China, the US, Japan, Australia, India and Bahrain.  With China, we recently agreed to a bilateral tariff reduction on fruit and vegetable products to 0%, to be implemented by the end of April 2003 under the Early Harvest Programme of the ASEAN-China FTA framework. The Thai–US consultative Joint Council has been established after the signing of Thai-US Trade and Investment Framework Agreement last November to promote cooperation in resolving problematic bilateral trade and investment issues, trade facilitation, capacity building, and liberalization. These are crucial groundwork to achieve Thai-US FTA in the near future. The Thai-Bahrain Framework Agreement on Closer Economic Partnership is expected to bring about 0% tariff reduction by 2010, opening up a gateway linking Thailand to greater economic opportunities in the GCC countries. The Thailand-India Free Trade Framework Agreement is expected to conclude by July this year. 

A free trade regime does not merely create new market opportunities between the partners but can bring about closer cultural ties and understanding between peoples of respective partners through trade exchange.

Excellencies,
Ladies and Gentlemen,

As an Asian country, and following the 1997 crisis, Thailand feels that more confidence building measures are required on a continent-wide basis to strengthen this rich and diversified continent. The Asia Cooperation Dialogue or ACD initiative was launched successfully last year with the full support of 18 Asian countries. The ACD will provide new opportunities, increase multi-tiered dialogues and establish a network of cooperative projects on an Asia-wide basis. The ACD will turn the differences and vast diversity of this continent into a partnership of strength and progress. Since its inaugural meeting, the ACD has become a forum which many countries both within and outside Asia are interested to join. 

The ACD has made progress in both being a dialogue and a cooperation.  It provides a dialogue forum for Foreign Ministers to discuss matters of mutual interests and concerns. The ACD cooperation projects range from issues of poverty alleviation to SMEs, E-commerce to energy security, and tourism to financial cooperation. This ACD strategic partnership is driven by positive thinking. It is an evolving, informal, and non-institutionalized inclusive process.  Cooperation is based on volunteerism and the combining of strengths. The ACD’s strength lies in the fact that it is based on and responding to the diverse requirement of its members.

Thailand is honoured to have been asked to be the host of the Second ACD Ministerial Meeting in Chiang Mai in June. A new Asian financial cooperation is expected to be formulated at this Second ACD Meeting, namely, the development of the Asian Bond market. Asia possesses more than half of the world foreign reserves, which are deposited outside Asia. Through the establishment of the Asian Bond market, some of those reserves can be deposited in Asia and serve as financial resource to facilitate regional trade and investment. Through the Asian Bond market, our foreign reserves will contribute towards our own regional prosperity instead of being deposited and used as capital outside the region. Last month, at the NAM Summit, which I attended in Kuala Lumpur, the NAM Leaders welcomed the ACD initiative to launch the Asian Bond market as an example of economic cooperation among developing countries to enhance financial self-reliance of the developing countries. 

Excellencies,
Ladies and Gentlemen,

Partnership with those outside the region is equally important. ASEM has cemented greater ties between our continent and Europe. Last October, the ASEM leaders in Copenhagen agreed to set up a task force whose roles include studying the development of an Asian Bond market and its relationship with the Eurobond market. We intend to work closely with the European Union on this financial initiative as well as on the initial concept of ASEAN Economic Community. We believe Thailand’s role as partner for cooperation in the Organization for Security and Cooperation in Europe or OSCE illustrates that there is more room for Asia and Europe to cooperate than just in trade and investment. Thailand, as the only ASEAN partner of the OSCE, could work as a linkage between these two organizations.  We attach great importance to the work of the Human Security Network. Thailand and Jordan are the only two Asian members in this Network. In that connection, Thailand is one of the few countries in the world to have set up a Ministry of Human Security. We actively participate in the UN Human Rights Commission and intend to seek the second term of its membership.  Our partnership with Latin America through FEALAC will lead us to more trade opportunities with that region. We look to BIMST-EC, the economic cooperation of Bangladesh, India, Myanmar, Sri Lanka, Thailand and its forthcoming new members, as a further impetus for regional partnership. We also look forward to hosting the first BIMST-EC Summit in Thailand early 2004 to explore more areas of cooperation. This will be complementary to our “look west” approach towards South Asia, the Middle East and Africa. 

As for the APEC 2003 for which Thailand is honoured to be the chair and to host its Summit in October this year, the event provides a timely opportunity for Thailand to synchronize its efforts to bring about greater partnership on different levels. For this APEC 2003, I have chosen the theme “A World of Differences: Partnership for the Future” to underscore the fact that, while the APEC region is diverse, the key to a better future together is not aid, not donor-recipient relationships, but a strategic and mutually beneficial partnership. There are 5 sub-themes: first, Knowledge-Based Economy for All; secondly, Promoting Human Security; thirdly, Financial Architecture for a World of Differences; fourth, New Growth Enterprises: SMEs and Micro-Businesses; and fifth, Act on Development Pledge. These sub-themes are intended to bring benefits of APEC to all the peoples of the region.  In making the transition towards free and open trade and investment, we must make every effort to narrow the gaps in income, knowledge, and social well-being, both within and among the member economies. APEC must be an instrument to create an enabling environment for our peoples, so that they may fully develop their potentials and partake fully in the benefits of globalization, while being cushioned from its adverse impact.

Excellencies,
Ladies and Gentlemen,

While respective governments can do their best to take care of national welfare, international partnership on the global scale can build further capacity for our peoples. Partnership in the UN framework successfully resulted in the peaceful transition to independence of East Timor. Thailand supports partnership under the UN framework and was proud of its participation in East Timor as well as our participation in the reconstruction of Afghanistan. We were also pleased to host the peace negotiations between the Government of Sri Lanka and the LTTE. 

On multilateral partnership, last year, I paid special attention to attending the UN Financing for Development Summit in Monterrey. The FfD provided a significant first step to the intensification of partnership not only between developed and developing countries but also among relevant stakeholders. The aim is to achieve the UN Millennium Development Goals for poverty eradication and sustainable development. I am glad to note that the principle of partnership as enunciated at Monterrey was also echoed at the World Summit on Sustainable Development in Johannesburg and is being implemented.  I wish also to support the UN role in encouraging greater partnership in Africa through the New Economic Partnership for African Development or NEPAD and support the cooperation between ASEAN and NEPAD.

Excellencies,
Ladies and Gentlemen,

For the effectiveness of both the dual track policy and the forward engagement policy, there is a need to revamp the implementing agencies. Domestically during the past two years, the Government has introduced a series of reforms to improve the effectiveness of government agencies, both at central and provincial levels. The introduction of the so-called CEO provincial governors was to ensure that our dual track policy is well comprehended and implemented throughout the country. The outcome so far testifies that close consultations, good coordination and decisive and well-informed management are important for the functioning of any policy.

Likewise, I have asked the Ministry of Foreign Affairs to revamp its organization, implement reforms, and reinvent the role of today’s diplomats. CEO management is already applied in some diplomatic missions abroad and will apply to all by the first of October this year.  Close contacts and consultation between officers of the Foreign Ministry and officers from other ministries abroad are compulsory. The spirit of forward engagement must permeate through the entire system both vertically and horizontally. No-one in this administration can lose sight of others in the process of fostering partnership and all levels of personnel must speed up implementation of partnership and coordination.

Excellencies,
Distinguished Guests, 
Ladies and Gentlemen,

This long talk is only a short account of Forward Engagement. In the past two years, Thailand’s foreign policy of Forward Engagement has planted so many new seeds of partnership while nurturing the old ones.  In the next two years, we will continue this policy strenuously in order to bring more positive changes for the benefits of our peoples.

Two years ago, I decided that the primary mission of my premiership is to bring changes for a better Thailand and for the benefit of the Thai people. These changes include both domestic and foreign dimensions. My mission is to see the Thai people prosperous and Thailand peaceful and secure. The realization of that mission depends on a result of successful domestic policy as much as a consequence of appropriate and properly implemented foreign policy. That is the rationale for adopting both the dual track and the forward engagement policy. When domestic policy and foreign policy share the same goal; when the two policies are conducted effectively in tandem; and when they are in partnership to create wealth and harmony for the nation as well as peace, security and prosperity for the world; real and positive changes will take place to benefit all peoples. 

And as long as I am in charge, nothing will deter me from making changes if those changes are for the benefit of the Thai people and this country.

Thank you.