Speech by H.E. Dr. Nalinee Taveesin Former Thailand Trade Representative The 2 nd Asian Business Conference 2014 Strengthening Leadership and Governance June 27, 2014 Makati City, Philippines ----------------------------------------- Excellencies, Distinguished Delegates, Ladies and Gentlemen, It is my great pleasure to be invited to this Track Session and deliver a speech entitled Strengthening Leadership and Governance. I also would like to give my special thanks to the Asian Institute of Management, and the Alumni Association of Asian Institute of Management, for organizing this valuable conference. Regarding the objectives of this Track Session, we all are here to share our thoughts among experts, as well as business and public leaders to look at models of leadership and postconflict governance that have paved the way to revitalize industries, rebuild infrastructure, and improve the quality of life of the people. I believe that all of us are well aware of the fact that we live in a constant change and transition world which friction and conflict can be created anytime. Many countries around the world are experiencing the need to prevent countries or area recovering from violent conflicts to fall back into violence. In this situation, the success or failure of the country s effort is closely linked to the existence of a legitimate and coherent government. The main task of governments in post-conflict situations is to restore political and economic governance, and regain the trust of their people. It is generally acknowledged that the significant factor of sustainable recovery, peace and development is a committed leadership aimed at ensuring security, protecting human rights, re-establishing credible and transparent public

2 administration institutions, re-generating an equitable post-conflict economy, and strengthening good governance. Good governance is an important element required for sustained and effective peace and security, economic growth, and human development. It is a concept which has helped the country to overcome many of its challenges. I believe that successful governance must have its core principles that are relevant to the people living in the country. However, governance issues differ from place to place. Different principles will be necessarily applied to different countries. The trouble is, how do we decide what principles to adopt? In order to achieve our objectives, let me highlight some main principles of good governance. The first principle is a clean government. It is widely known that a clean government promotes good governance. It requires effective public financial accountability, transparent decision making, and stakeholders participation. This in turn minimizes systemic corruption, and mitigates fraud, waste, and abuse in the use of public funds. However, if the top leadership of the country is not clean, there cannot be a clean government, and corruption cannot be removed. The second principle is the rule of law. The country s rule of law must be strengthened to ensure effective and efficient enforcement responses and compliance to national legal frameworks. Without this, the country will not be ale to promote awareness or prohibit illegal activities. It is, therefore, a critical aspect of securing peace and preventing future conflict. The third principle is institutional capacity-building. The public sector must improve the quality of performance and availability of information to people. Capable institutions mean that they are guided by the users. So, people should be allowed to participate in decision-making process and to articulate the specific demands of a diverse society. Furthermore, institutional decentralization should be put in place to ensure participation of youth, women, vulnerable groups, and ethnic minorities. The fourth principle is economic governance. Indeed, sustainable growth is driven by an

3 enhanced business climate, and stable macroeconomic policies with effective, transparent, and accountable public financial management. In order to achieve economic growth against the background of conflict, the government needs to stimulate trade and investment, and enable environment for the private sector to generate jobs and income. It must critically eliminate the issues of inequality and achieve fairness and opportunity for all members of its society. The fifth principle is social equity. As you know, we live in the world s market economy which always treats people differently in accordance with their position, education, and ability. In this situation, social equity is important. Harmony would not be possible in the country if the element of social equity is not built into the system. However, five principles of good governance that I have just mentioned are empty words unless country s leadership believes in them. It is widely accepted that a key element in good governance is the quality of leadership as measured by the degree of commitment, vision, transparency, efficiency and accountability. Ladies and Gentlemen, Let me show you some good examples of countries in ASEAN building good governance into their strategy. His Excellency Benigno S. Aquino III, President of the Philippines, has launched The Good Governance and Anti-Corruption Cluster Action Plan 2013 2016 in order to further institutionalize good governance in his administration, and strengthen capacity of government and civil society to make sure that the national budget is used for the benefit of Filipino people. The Cashless Purchase Card System and Open Data Philippines are the latest programs he has implemented under this plan to modernize government procurement and empower the people through publicly available information. Another good example is the case of Singapore. Good governance and strong leadership are critical elements which underpin how Singapore government directs its future forward. Singapore has illustrated that good governance matters a lot in getting sustained development results and having a clean government. Strong vision and leadership has transformed Singapore

4 into one of the most effective and least corrupt countries. Corrupt Practices Investigation Bureau and a solid legal framework are examples playing a vital role to support Singapore to build strong public administration and root out corruption. In Thailand, the government has built good governance into the Eleventh National Economic and Social Development Plan 2012-2016, which is the national guidelines prepared with the involvement of Thai people from all walks of life. Under the vision A happy society with equity, fairness and resilience, one of the missions is to promote a fair society of quality so as to provide social protection and security, to enjoy access to a fair judicial system and its resources, and to participate in the development process under good governance. During this plan period, Thailand s development will emphasize building resilience at the family, community, society, and national levels under the sustainable development concept by reinforcing good governance and harmony in all sectors and at every level. Ladies and Gentlemen, Without strong leadership and good governance, our countries and our region will find it hard to achieve any sustained development results. We all know that the ASEAN path to a region economic community needs to be pursued with broad political, economic, and social aspects. Nonetheless, there are different levels of development among the ASEAN member countries. In order to make ASEAN to be able to achieve the desired outcome of its plans and programs, strengthening leadership and governance is very important. We should promote sharing of experiences and best practices on leadership and good governance concepts among members. Moreover, we should promote partnership among governments, private sectors, and other relevant organizations to enable new idea with a view to enhance transparency, accountability, participatory and effective governance. Lastly, I am confident that with all of you present here at this conference, our

5 discussions today will help us find creative ways to achieve our objectives, and attain sustainable development and social harmony in our countries and our region. I wish the conference success. Thank you very much.