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SUPACHAI PANITCHPAKDI was worried about his collection of
bonsai trees before he left Thailand for his new post in
Geneva. The new director-general of the World Trade
Organization didn’t think they would withstand the harsh Swiss
winters so he left them behind in his native Thailand when
heading for his new job in September. Some observers worry
whether the ex-Buddhist monk can withstand the corrosive
atmosphere at the WTO’s Geneva headquarters. Top of the
anti-globalization movement’s hate list, the WTO was a
difficult organization to run even before the protesters
started besieging its summits.
Supachai, 56, a soft-spoken economist with an interest in
chess, is likely to bring a leadership that comes with a
change of style from that of predecessor, plainspoken New
Zealander Mike Moore. Like all Thai men, Mr. Supachai spent a
brief period as a Buddhist monk and still practices the
meditation techniques he learnt in the monastery. Dapper, he
exudes quiet confidence, with a softly spoken voice and
deliberate manner. His idea of relaxation is to write books on
globalization and play chess. However managing the global
organization is going to require more than Zen-like calm.
Protectionism is on the rise in the U.S., usually the
cheerleader for free markets. Brussels and Washington are
squaring up for what threatens to be the most ferocious trade
war for a generation and the euphoria which lifted the
organization after the successful launch of a new round of
global trade talks last November in Doha has almost
evaporated. The acrimonious farewell to the New Zealand
director-general belies the enormous credit Moore has created
in preparing the next round of world trade negotiations, known
as the Doha round. Now it is Supachai’s task to deliver.
Dealing with staff discontent will be one test of his
mediation skills. His three-year term coincides almost exactly
with the deadlines for the trade negotiations, putting the
respected economist in charge of the organization in perhaps
the most crucial period in its history.
If that wasn’t enough, Supachai also has to contend with
the knowledge that much of the Western world, in particular
the U.S. and the EU (but not Australia), vehemently opposed
his selection. Details revealed by Surin Pitsuwan, Thailand’s
former foreign minister and the man who led the relentless and
ultimately successful campaign for Supachai’s appointment,
explains the extent of that opposition. After months of bitter
debate, the deal that saw Supachai’s appointment came in an
extraordinary telephone conversation between Surin and former
U.S. Secretary of State Madeleine Albright in June 1999. She
was phoning from a plane over Europe, as she tried to
negotiate an end to the Kosovo crisis. She suggested that
Supachai could be given a specially created post — clearly a
“B-team” option — if he withdrew from the race in favor of
Moore. It was either that, she suggested, or both would lose
and a third candidate be imposed. According to Surin, the
Western opposition to Supachai was precisely what he believed
was the Thai candidate’s most important asset: He was from the
developing world, with what were then seen as unacceptable
opinions about the need to separate trade deals from
environmental and labor concerns. But, in consultation with
Fischer, Surin and his prime minister, Chuan Leekpai,
determined they would never give up on their man. Instead,
Surin suggested a compromise: Extend the term from four to six
years, with the two men sharing it in consecutive three-year
terms. Now, Supachai’s advocates, including Fischer, believe
the world will reap the benefits of their determination. At
the time of Supachai’s appointment, there was no real sign of
a trade round. But the aftermath of September 11 set in train
a new willingness for negotiation, and with it a willingness
to listen to the developing world. “I think the world is ready
and he is ready,” says Surin, who describes his friend as
“humble and sincere.” Jane Drake-Brockman, a visiting fellow
at the ANU and the convener of the Australian Services Round
Table, agrees. “His weakness (the lack of initial support from
the West) is also his strength,” she says. “(As is) his Asian
personality, his ability to quietly and privately gain the
confidence of those least confident in the process.” He still
has his critics. Some accuse him of inappropriately bursting
into public on sensitive issues — most recently he had a spat
with the EU over their position on U.S. steel tariffs —— but
others say such outspokenness is an asset. Says Fischer: “He
showed enormous courage by holding on when everyone urged him
to get out of the race. “He is a skilful diplomat, he is not a
marshmallow but is a man with the capability of velvet and
steel,” he says. “And steel encased in velvet is exactly the
correct recipe for the Doha round.”
On Sunday the leadership of the World Trade Organization
(WTO) passed to a new director-general, for the first time
from a developing country: former Thai deputy prime minister
Dr. Supachai Panitchpakdi. His arrival is one sign of change
at the WTO. Although the vast majority of its 145 members are
developing countries, the former Thai deputy prime minister
will be its first leader from the developing world. It’s also
the first time one of the big three global financial
institutions - the other two are the International Monetary
Fund and the World Bank - has been run by someone from the
third world.
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