The votes have been counted and the haggling over who will form Thailand's next government has begun. Optimists believe the fact that elections took place at all gives cause for hope. Pessimists say the country has gone back to square one.

The generals who overthrew Thaksin Shinawatra in September 2006 had hoped for a better legacy. Though armed with the best of intentions, they and their hand-picked legislators never came to grips with modern political realities.

Despite the policy drift and the interim government's failure to achieve some of its more ambitious plans, the country's economy sputtered ahead in 2007. Things could have been worse, given external factors such as high oil prices and the US credit mess.

The fact that many investors maintained their confidence in Thailand speaks well of the country's great potential. But even the most bullish business leaders will want more clarity and reassurance than they've received over the past year or so.

To describe 2007 as a lost year might seem a bit unfair, but a glance around the region suggests that a lack of resolute policymaking can cost a country dearly in a fast-changing world. Thailand clearly has catching up to do.

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