Assessment Of Economic Progress In Thailand 198595

Assessment Of Economic Progress In Thailand, 1985-95 Essay, Research Paper

ASSESSMENT OF ECONOMIC PROGRESS IN THAILAND, 1985-95

Here is a list of the main measurable indicators of

economic growth and structural

change for Thailand to be observed by World Bank staff

members who are visiting there.

To ensure a successful tour of business meeting

between the World Bank

representatives and the Thai government and their business

executives, I feel that a

thorough understanding of the Southeast Asia’s (although

the main focus will be Thailand’s)

economic growth is necessary. Economic growth is simply a

long-term increase in real

output per capita and measuring it often involves an

unbiased and theoretical assessment of

national performance. The following are the key signs of

economic growth:

1) Agricultural Modernization and Agricultural

Diversification

2) Industrial Transformation

3) Growth of Service Industry

4) Improvement in Quality of Life (including

social, environmental, and economic

variables)

5) Growth of Trade and Foreign Investment

6) Improvement in Technology and Infrastructure

Note that in comparison to other Southeast Asian

countries (except Singapore),

Thailand has a relatively better performance in agriculture

and service industries during

the mid and late 80s. For example, the cultivation,

processing, and export of agricultural

products, especially rice, was traditionally the mainstay

of the Thai economy. Although

Thailand has long been among the most prosperous of the

Asian nations, its dependence on

a single crop made it extremely vulnerable to fluctuations

in the world price of rice and to

variations in the harvest. The government has diminished

this vulnerability by instituting a

number of development programs aimed at diversifying the

economy and by promoting

scientific methods of farming, particularly controlled

flooding of the rice fields, so that the

rice harvest might remain stable even in years of few

rainfalls. In the early 1990s,

Thailand annually produced approximately 18.5 million

metric tons of rice, up from about

11.3 million metric tons per year in the 1960s (Dutt,

1992). Another example of its notable

success was the increase in tourism during the late 1980s

that boosted the economy of

Thailand’s service industry.

There are many ways to explain the economic

development of Thailand and other

Southeast Asian countries. Three things come to mind that

is associated with the rise of

their economic success in the 1980s to mid 1990s. The

first is the increase of foreign

direct investment (FDI). In the mid 1980s, there was an

average $676 million dollars in

FDI and by 1995, FDI flowing into Thailand’s economy had an

average $2,300 million

dollars. Second, the stock market grew in size between

1980 and 1996; Thailand’s market

grew from a mere $1.2 billion dollars to a staggering $99.8

billion dollars (before the

crash in 1997). Third, the people’s incomes in many

Southeast Asian countries rose

dramatically between 1980s and early 1990s. In Thailand,

the gross domestic product per

person rose from $444 in 1980 to $6,900 in 1996. Beginning

in the early 1980s, huge

amounts of investments began pouring into Asian countries,

lured by high returns, stable

governments and currencies pegged to the dollar. The

foreign money paid for factories and

skyscrapers, and a booming export economy created a newly

comfortable middle class that

in turn stimulated more consumption.

Other explanations of economic development in

Thailand include:

1) Removal of Regional Economic Disparities

2) Diversification of the Economy

3) Industrialization

4) General Economic Development are conceived as

the goals of the country

Now I will look at the individual sector of

Thailand’s economy and try to show the

reasons for each sector’s success in its economic

development.

Agriculture accounts for 16% of Thailand’s gross

national product. As mentioned

above, rice is the principal crop and the leading export in

Thailand. The second most

important crop in value is rubber, which is produced mainly

on plantations on the Malay

Peninsula. In the early 1990s approximately 1.4 million

metric tons of rubber were

produced each year. Other important crops included cassava,

sugar-cane, maize,

pineapples, coconuts, and kenaf. Fishing was also

important, but commercial logging was

banned in 1989. Thus, the agricultural diversification in

Thailand is a recent achievement

that is specific

Внимание, отключите Adblock

Вы посетили наш сайт со включенным блокировщиком рекламы!
Ссылка для скачивания станет доступной сразу после отключения Adblock!

Скачать