Chuan: "The rich people can fend for themselves"
As angry rural residents staged a protest outside bangkok's Government House, Prime Minister Chuan Leekpai met inside with Time correspondents Tim Larimer and Terry McCarthy. Excerpts from the interview:
TIME: Do you believe that the worst of the economic crisis is over for Thailand?
Chuan: The lowest point has passed, but the impact is still being felt-the loss of liquidity and the effect that this has on businesses, the problem of increased layoffs, of unemployment. Such impacts have not yet seen their full force.
TIME: Some analysts say unemployment could grow to 2 million. How will you alleviate this problem?
Chuan: We are implementing preventive measures to deal with the problem of liquidity, so that businesses do not have to fold up, do not have to lay off workers. In the business culture of Thailand, it is still possible to negotiate a reduction of wages, and most of the workers would agree to this so long as they are not laid off. However, if businesses go bankrupt, then we have remedial measures-finding new jobs, training for laid-off workers, finding employment for them abroad, absorbing workers back into the agriculture sector. I'm confident that no Thai will go hungry.
TIME: There is a perception that the rich caused the crisis and the poor are having to pay for it.
Chuan: I agree. The real problem did not originate from the poor or working classes. But we cannot avoid the impact on all sectors of society. The government has therefore strenuously avoided cutting social welfare among those people-in education, in health care, even in milk for schoolchildren. The rich people, they can fend for themselves.
TIME: What are you doing to make government more transparent and less corrupt?
Chuan: This government was formed as the result of a political accident, a crisis. I have told each of my ministers, because of how we came into office, to be honest. They cannot engage in corrupt practices.
TIME: Has the current economic situation basically put to rest the notion of "Asian values"?
Chuan: Actually, those were self-serving values. We did not agree with them. They were not our values. If politicians come into power through buying votes, then they will be part of a corrupt government.
TIME: Do you feel hurt that the U.S. was so slow to come forward with help for Thailand?
Chuan: I don't think we can consider it a fault of the U.S., because the crisis occurred in Thailand first and few people thought it would spread. Nevertheless, when the crisis spread to Indonesia and South Korea, there was a differentiation in the level of U.S. support and assistance. This created a feeling among the Thai people that perhaps the U.S. was not ready to demonstrate an adequate level of support and friendship for us. President Clinton told me in Vancouver at the apec meeting that he regretted he was unable to help us because at the time he was under a congressional restriction, and he did not have a free hand in disbursing funds.
TIME: There has been a campaign of Thais helping Thais, and King Bhumibol Adulyadej has spoken of self-reliance. Yet the country also needs foreign capital. How do you satisfy those two conflicting desires?
Chuan:: The meaning of self-help is we have to build up ourselves by ourselves. Not on the basis of borrowed money, not on the basis of loans from abroad. Confidence will return only if we have our own reserves, not the reserves of the IMF. But in the midst of a crisis, certainly we will have to depend on the assistance and cooperation of foreign countries and international institutions.
TIME: Thailand has so far avoided upheaval. Is there something about the character or culture of Thais that makes them better able to handle such a crisis?
Chuan: There is no racial conflict, religious conflict or other differences within the country. Although we have had democratic institutions only within the past 60 years, one can say that we have always had a democratic culture and way of life. We have an extended family system that does not neglect those who are in need. These conditions are not all positive at all times, but our cultural traditions come in very handy when we face a crisis. The system can act as a cushion.
TIME: Thailand lacks qualified engineers. How serious are you about improving Thailand's education system?
Chuan: This will be a priority. In the past, we have had too many social scientists, while lacking technicians and the real scientists. A country cannot hope to prosper, to develop if it cannot count upon its own scientific base.
TIME: Amidst a crisis in Thailand, you had a peaceful transition from one government to another. Is that a boost for democracy in Asia?
Chuan: It was a positive symbol of democratic change, the utility of a democratic process that gives people the right to choose a government they believe can solve their problems.
TIME: Will you call a new election to give the people a chance to choose, as you say, the government they want?
Chuan: I told the people when my government came into office that we would undertake to do the mandate they gave us, to lay a firm foundation for stabilization and resolution of the economic problems, as well as to provide the framework and machinery for a free election. Therefore, some time is needed.
TIME: How much time?
Chuan: I will not set a deadline because it only creates problems, as occurred in the last government. I myself do not believe that we will be in office for our full term.
TIME: During your first term [1992-1995] you were nicknamed "Chuan the Slow Mover." Have you changed?
Chuan: My first tenure as Prime Minister was with a coalition of several political parties. Responsibilities for various ministries were divided among them. What others were not able to do in a fixed time frame I had to bear responsibility for-specifically the traffic problem in Bangkok. In any case, as a politician in a democratic position, I listen to criticism. Whenever it's reasonable, when it's right, I'll implement decisions more speedily.
TIME: What nickname would you like people to use now?
Chuan: I have no desires in that regard.
Photograph for Time by PETER CHARLESWORTH-Saba
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