Life and Work of Snoh Unakul Published by the Thailand Development Research Institute English and updated edition: July 2013 ISBN 978-974-235-480-0 Editor (Thai Edition) Poonsin Wongkoltoot English translator Bhanuphol Horayangura Editors (English Edition) Assistant Professor Simon J.P. Wright Bancha Rattanamathuwong Dr. Carina Chotirawe Montira Horayangura Unakul Werapong Prapha Graphic Designer Kornmaipol Sirimongkolrujikul Pornthip Piyarittipong Cover Art Noppakao (Mudmee) Kraitrakul Copyright belongs to the Thailand Development Research Institute 565 Ramkhamhaeng Soi 39 Wangthonglang, Bangkok 10310 Thailand Telephone: (662) 718 5460 Fax: (662) 718 5461-2 Website: http://www.tdri.or.th Email: [email protected] m Introduction The Thailand Development Research Institute or TDRI was officially established on March 23, 1984. On the occasion of its 25th anniversary, in 2009, the staff of TDRI jointly conveyed their best wishes to Dr. Snoh Unakul, who had formerly served as Deputy Prime Minister, Governor of the Bank of Thailand and Secretary General of the National Economic and Social Development Board (NESDB), by organizing activities for him on November 3, 2009. They expressed their gratitude to him as the founder of TDRI, the first Chairman of its Council of Trustees and Executive Board of Directors and the current Chairman of the TDRI Foundation since its inception. He has long been a patron of TDRI until the present day. 4 To mark this auspicious occasion, TDRI requested Dr. Snoh to write a book entitled “Life and Work of Snoh Unakul” to celebrate his personal and professional experiences that may be of benefit to younger generations as a case study detailing the real-life story of a contemporary figure. It is coloured with various shades of love - love for family, love for fellow human beings, love for society and, above all, love for his country. In addition to his life story, the book also recounts his experiences at NESDB and the Bank of Thailand during a pioneering period of economic planning that lasted until the end of the first Anand Panyarachun administration (1991-2) and which has been marked as the golden period of Thai technocrats. Although several of these technocrats have written about economic development and the economic problems during that era, few know the story behind the formulation of the national economic plans, the major economic problems, the issues and the people involved at that time, as well as “the planner” himself. Chapters Five to Eight of this book contain important economic history which cannot be found elsewhere. The essence of Dr. Snoh Unakul is perhaps most eloquently described by some important people who have spoken about him on various occasions or in various capacities as follows: 5 “He is a teacher, He has a pure heart, He is an administrator, He is fair minded, He always gives people a chance”. Mr. Kosit Panpiemras former Deputy Prime Minister, former Deputy Secretary General of the National Economic and Social Development Board, Chairman of the Executive Board of Bangkok Bank Public Company Limited, Chairman of the TDRI Council of Trustees and Board of Directors “Dr. Snoh Unakul is the development specialist who played a major role in Thailand during the 1970s till the 1990s when he assumed key positions as Director of Overall Planning of the then National Economic Development Board (during the Third Plan period), Deputy Permanent Secretary of Commerce, Governor of the Bank of Thailand and Secretary General of the National Economic and Social Development Board and, especially, in his last post as policy coordinator 6 during the Prem and Anand Governments. In addition, Dr. Snoh was instrumental in establishing TDRI. He has even used his own funds to support a number of Thai companies in order to ensure the technological development of the country.” Dr. Ammar Siamwalla former TDRI President and Distinguished Scholar “To put it simply, I feel that he is like Dr. Puey in trying to build up human resources with the emphasis on personnel development, new students and new staff. He pays attention to them, showing great kindness and talking to them without any sense of ego.” Dr. Phisit Lee-atham former Deputy Minister of Finance, former Director of the Governor’s Office at the Bank of Thailand and Dean of the Faculty of Economics, Chiang Mai University 7 ““Dr. Snoh often supplies adages for us to remember things easily. For instance, collaboration is like an electrical circuit which must be complete. That is to say, it is important to think systematically from start to finish while undertaking any work and to involve all concerned agencies. This starts with planning and continues through to implementation and evaluation, fully taking into account various factors in a continuous and detailed manner. Not only should policies and measures be suitable for the national context, but they should also be able to be implemented by those who are fully supportive and who have ownership of these initiatives from the start. Dr. Kanis Saengsupan Director of Research, Fiscal Policy Office “Dr. Snoh is like the father of TDRI – he brought it to life and is still concerned about his child. He has never abandoned us.” Dr. Nipon Poapongsakorn Former President of TDRI 8 During his entire career, Dr. Snoh has contributed significantly, having a major impact on the economic development of the country and the resolution of economic crises concerning various issues. But no one’s working career can be smooth sailing at all times. Dr. Snoh has encountered several crises and hardships. Sometimes one feels that “luck” has helped him get through these crises but those who have faith in karma believe that his deeds have made him sail through. Dr. Snoh is a firm believer in the teachings of Buddhism and this has made him stand up again and again with fortitude. What has been most amazing is his strong will and perseverance in coping with the stroke which affected his right limbs. In fighting to overcome his physical challenges, he has achieved a remarkable recovery. TDRI deems it an honour to publish this book, entitled “Life and Work of Snoh Unakul”. It is our hope that readers will enjoy reading this book both from the vantage point of life’s philosophy as well as as a history of the various aspects of the economic and social development of Thailand. Thailand Development Research Institute 9 Table of Contents Introduction 4 Chapter 1 Beginnings in Chonburi 14 Six houses at the Chinese Bridge 16 Memories of childhood 22 Teacher Payorm 27 Father’s ethics and honesty 32 Chapter 2 Next Steps 44 Moving to Bangkok 46 Son of Thammasat University 50 To the land of the kangaroos 57 Chapter 3 Work, Study and Love 70 Starting work at the Comptroller 72 General’s Department To the land of Uncle Sam 82 In love 92 Chapter 4 Family Life 116 Chapter 5 Pioneering Development Planning 156 Starting work at the National Economic 158 Development Board National development from the First 170 to the Third Plans Chapter 6 The Vicissitudes of Life 190 Deputy Permanent Secretary of Commerce 192 First appointment as Secretary General of the 200 National Economic and Social Development Board Governor of the Bank of Thailand 210 Entering the monkhood 241 Chapter 7 Eight Years with the Prem 266 Administration (1980-1989) Second appointment as Secretary General of the 268 National Economic and Social Development Board Fifth and Sixth National Development Plans 278 New form of economic administration 306 and important achievements Founding of TDRI 397 Chapter 8 The First Anand Administration 416 (1991-1992) Chapter 9 Growing Old Gracefully 446 Post-stroke recovery 448 Siam Cement Group 461 Crown Property Bureau 464 Siam Bioscience 466 Country retreat 468 Charitable work 472 Twilight years 475 Profile 481 Life and Work of Snoh Unakul q Chapter 1 Beginnings in Chonburi Chapter 1 Beginnings in Chonburi Six houses at the Chinese Bridge1 Chonburi was formerly known as Bangplasoi. Its first road was called Vachiraprakarn Road, which ran along the seashore and was therefore also a dyke protecting the inland area. People liked to build houses on bridges perpendicular to the shore and extending into the sea. These bridges were built of wood and were wide enough to accommodate two people walking in opposite directions. The more important bridges would be several hundred metres long. It has 1 Many facts are drawn from Uncle Subin Suebsa-nguan’s essay “The Story of Bangplasoi or Chonburi Town” which was written for the benefit of later generations to learn more about their roots. 16 been roughly estimated that more than 70 percent of the population of Bangplasoi had their houses built above the sea rather than on land. An important reason was that living in these houses on the bridges made for an easy life as the seashore was abundant with fish, crabs, mussels and other shellfish. There were several methods of catching them. The most convenient method, which would yield a bountiful harvest of fish, was to use the yor or dip net. When the dip net was full of fish it was raised and one would have enough fish for cooking and could sell the rest for money. The drawback was that it was harder to get fresh water for drinking and for household use compared with living on land. To manage the fresh water problem, people would own several large earthenware jars for storing rain water for drinking and cooking. Water for bathing, laundry and other things would be acquired from water sources on land. My home was on an important bridge, the Chinese Bridge, which was later renamed the Samranras Bridge and eventually became the Samranras Road. This bridge was historically notable for two reasons.