Anand, closely linked to the palace and held in respect by both the bureaucracy and the business community, proved acceptable to the people and the international community. He was regarded as being astute and disciplined, and had never been associated with any financial scandals.[14]
Upon accepting the position of prime minister, Anand was quick to declare that he did not agree with everything the junta had done and that he intended to follow an independent course. He angered the NPKC by suggesting that Chatichai be released immediately upon a cabinet being appointed.[15]
The interim constitution that was promulgated on 1 March 1991 reconfirmed the intention of the NKPC to retain substantial control.[16] However, Anand was allowed relative freedom to select his own cabinet members. For the entire period of his premiership Anand faced constant pressure from the junta leaders, who tried to influence government decisions in order to gain financial benefits.[17]
Anand filled his cabinet with well-known academics, technocrats, and ex-bureaucrats with proven records. Various commentators, ranging from the president of the Thailand Development Research Institute to the mass-circulation newspaper Thai Rath, described the cabinet as the most impressive Thailand had ever had.[18][19] The strong guiding hand of privy councillor Prem Tinsulanonda could be seen.[14] Amongst those selected by Anand were Prem's previous finance minister and economic advisor. A senior diplomat during the years Prem served as prime minister became foreign minister. The technocratic orientation of the cabinet substantially diminished the fears of foreign investors.[20]
Anand's administration proved harder-working than his predecessors.[14] The administration worked on its task of implementing a long list of much-needed reforms. Its emphasis on education, public health, exports, agriculture, industry, environment, and improvement in living conditions, met with widespread approval. In a Bangkok poll in late-July 1991, 61 percent of respondents felt that the Anand government was more honest than previous administrations.[21]
Arguably the most significant of the reforms was a restructuring of the taxation system, which saw the introduction of a value added tax (VAT) and a reduction in corporate and income taxation. Several measures were taken to free up the flow of funds into and out of the country. Thai nationals were allowed to invest abroad without the approval of the Bank of Thailand. Regulations were altered for foreign banks to open branches and the ceiling on bank interest rates was lifted.[22] In addition, the process for obtaining official operating licences for factories was greatly simplified, while the method of allocating textile and tapioca quotas was made more apparent. In the energy sector, price control barriers were dismantled.
Foreign policy
On the international front Anand performed well. Despite international concern over the coup, foreign administrations had sufficient confidence to resume relations quickly. Anand made visits to China in September 1991 and Japan in December 1991, and went on to meetings with President George H. W. Bush in the United States. He was able to shake off the stigma of being a junta-installed prime minister, instead successfully presenting the image of an administration determined to deregulate, cut red tape, and create an environment conductive to free enterprise.[14]
The Anand government's policies to its neighbours followed the lead of his predecessor Chatichai. Relationships with Laos improved significantly, with Thailand allocating one-half of its 200 million baht aid budget to the nation.[29] Thailand under Anand became deeply involved in the Cambodian peace process, while relations with Vietnam went through a period of fence-mending and confidence-building.
The only foreign relations area where there were serious reasons for criticising Anand's administration was Thailand's soft stance towards the repressive military junta of Burma.[14]
Disagreements with the NPKC
Anand disagreed with the military junta's plans to increase the defence budget. Anand denied the military's request for supplemental funding that would have totalled 53 billion baht.[14] Junta member Air Chief Marshal Kaset Rojananil criticised the government for being too "inefficient" and calling for it to resign.[30] Suchinda justified the military's request by stating that there were still communist fighters in the Indochina region.[14] In November and December Anand publicly repeated his views that the country's security did not lie in military might, but in its economic and political development, on one occasion stating, "Military might is no longer a guarantee of national security. No nation can feel secure as long as its citizens are deprived of freedom of political expression and of the opportunities for a better and more meaningful life."[31]
Anand also voiced disagreement with the junta's draft constitution, although the constitution was ultimately promulgated. At first, he refused to comment as the Constitution Scrutinising Committee, hand-picked by Sunthorn, made changes to what became the final draft constitution.[14]
Human rights
Anand's refusal to interfere with the junta's actions meant that his administration failed to come to grips with human rights issues. He had a comprehensive environmental bill passed, but it was ignored by the military, which continued its corrupt activities. Not long after it had taken power, the NPKC announced a huge rural development project that would help solve the problems of rural landlessness and encroachment on protected forests, issues that had for decades occupied the king's attention.[17] The military had promised to resettle more than 1.2 million people to permanent farmlands, but instead evicted villagers from forest reserves, where they had lived in some cases for generations, and transferred the lands to corporate plantations.[14][17][33] In almost all cases, the army failed to provide new homes and food supplies. When an activist monk led villagers to protest, he and his followers were attacked and arrested.[14][17]
