THAILAND AT THE TURN OF CENTURY

1. Thailand, for one, as a pillar of the fast-growing Asian region, has made sure and
steady strides over the years to ensure its place in the global community
2. A country often compared with the Philippines for a score of reasons, Thailand,
like the Philippines, is a nation of 60 million. It has an area 513,115 sq. kms. And
enjoys a climate typical of countries in the tropics; thus, its’ traditional proclivity
for agrarian-based economic activity
3. Not with standing a shift from agriculture to manufacturing, Thailand continues
to edge out its neighbors in terms of national resources, what with the bounty of
its land and sea which has made it the world’s foremost exporter of tapioca and
rice. In addition, it is also a leader in the production of maize, frozen shrimp,
canned pineapple, natural rubber and sugar
4. However, in the late 80’s and 90’s, Thailand restructured its economy to adapt to
the demands of an urbanizing international community
5. As a result, the share of the agricultural sector in Thailand’s national income has
declined from a high of 40 percent in 1960 to 17 percent during early 90’s
6. Concomitantly, the manufacturing sector experienced strong growth , expanding
rapidly in its share of the national income from 13 percent in 1960 to over
30 percent in the 90’s. With the implementation of the first industrial
Promotion Act in 1960 and various promotional programs undertaken
by the Board of Investment, the way was paved for the remarkable
growth of the manufacturing sector
7. Initially, industrial activity focused on food processing and import substitution.
However, in the 90’s, Thailand has developed heavily into export promotion,
notably textiles and garments, which accounted for 34.5 per cent of principal
exports in 1994 against the 12.7 percent output of canned food in the same year.
On the whole, the industrial sector’s creditable performance became a plus factor
for Thailand because policy-makers knew exactly where there was a need to put
on weight to achieve an ideal balance among the various diversified industries
that the changing economy helped to bring about
8. It is equally worth noting that at the highest point of Thailand’s growth at the
close of the last decade, the highest income generator and largest foreign
exchange contributor for Thailand was its tourism sector. With the full backing of
the Royal Thai Government extended to the Tourism Authority of Thailand, the
sector grew by a hefty 16 percent per annum.
9. In addition to glowing figures posted by Thailand in the area of manufacturing,
tourism and foreign investment, much of its success can also be attributed
to the growing independence of countries in the Association of Southeast
Asian Nations (ASEAN) and in the burgeoning Asian-Pacific region
10. Thailand rides high in this era of growth and is well on its way to an age of
prosperity at the turn of the century
11. From 1988-1991, Thailand’s growth rate averaged 12.5 percent, the highest in the
world. Since 1993 when its economy rebounded from a worldwide recession in
the early 90’s, the Thai economy has experienced steady gains reminiscent of the
growth patterns of developed countries in the West.