Under the trying circumstances of restoring democracy, any slightest move in Thailand is prone to arouse suspicion under the intense glare of the international community.

Public Health Minister Mongkol na Songkhla should have anticipated the international reaction before he decided to impose compulsory licensing for two generic drugs - a popular anti-Aids medication and a top-selling heart drug.

Without a doubt, Mongkol had the best interests of Thai citizens at heart when he made up his mind. His track record as a public health veteran is beyond reproach but he has inadvertently put the country at the centre of a fiery debate on intellectual property.

In addition to attracting the wrath of the pharmaceutical industry, which was predictable, the country has abruptly turned into a giant puzzle among key players in the financial and capital markets around the world.

This happens to compound the confusion of foreign investors in the wake of the power seizure.

Many are questioning whether Thailand is about to make an economic U-turn in light of its adoption of the sufficiency economy as a guide to national development.

Mongkol's controversial decision has exacerbated international jitters as to where the country is heading in regard to its economic and political direction.

Out of the blue, the Public Health Ministry put out an announcement on compulsory licensing on January 26, two days after it had enacted the new rules.

The ministry justified its action as acceptable under the international trade protocols sanctioned by the World Trade Organisation. It cited budgetary constraints and unfair pricing by the pharmaceutical industry as two main reasons for compulsory licensing.

The ministerial announcement stated that some 10,000 people living with Aids would benefit from the cheaper drug Kaletra, a prescription for overcoming resistance to HIV medication.

While the patent suspension for Kaletra would last five years, Thai authorities did not limit the production timetable for Plavix, a medication for blood clots.

They also reminded the pharmaceutical industry to brace for more compulsory licensing of other generic drugs. Thailand has won international kudos for securing a greater access to HIV medicines since 2002 and its compulsory licensing of Kaletra is hardly a surprise.

Investors and foreign governments are puzzled, however, about the country's stand on the patents of other generic drugs. A pressing question is whether Thailand is becoming a rogue state poised to embrace drug piracy.

Mongkol's high-handed approach in trying to force pharmaceutical giants to the negotiating table to reset drug prices has fuelled speculation that the country is drifting away from the force of globalisation. Foreign friends are worried that Thailand under the junta's rule will do something rash and harmful

to the norms of international trade.

Industry lobbyists and foreign representatives have tried to voice their concerns via official and unofficial channels.

Thai embassies in major capitals, along with the Commerce Ministry and the Foreign Ministry have experienced a deluge of questions about Mongkol's true intentions and a possible shift on trade policy.

To counter international concerns over the consequences of compulsory licensing, Mongkol and his subordinates have tried to publicise the positive reactions from non-government organisations both at home and abroad.

It is no secret that health-related non-government organisations are no friends of the powerful drug industry, and while the Public Health Ministry is obliged to serve the public it should not allow itself to become a proxy in fighting a battle that is not in the national interest.

It is one thing to work out a mutual solution on drug pricing, but the ministry's focus might be misplaced if it tries to be a darling of the NGOs even at the expense of becoming an outcast in international trade.

Mongkol should reflect on his performance.

Is his attempt to balance the healthcare budget worth putting the country at risk in the eyes of foreign investors?

Avudh Panananda

The Nation