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Thailand: Turning Battlefields Into Marketplaces
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17861 |
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CURRENT ISSUES
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3 / 1990 |
1,270 Words |
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Eugenia Kagawa
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For years, Thailand has participated in intra-regional trade as a member of the Association of Southeast Asian Nations (ASEAN), but given the recent trends toward regional blocs and the rapidly changing international trade environment, increased trade diversification is considered essential.
In fact, 1989 may well be remembered as the year Thailand economically outperformed the rest of the world. The local economy was estimated to have grown about 11 percent, faster than any other economy. Thailand's economic expansion would eclipse even that of the world's traditional economic Tigers. ASEAN, which is also considered an economic mover, is estimated to have had an average growth of 6.6percent.
As a developing business center, Thailand has become increasingly important. The growth of the Thai economy and the changing political climate in Hong Kong suggests that the local Thai industry will surpass that of the crown colony soon. Various international corporations have started relocating their regional headquarters to Thailand.
The political and social structures of Thailand offer a degree of stability. The monarchy and Buddhism, generally considered as the two main pillars of Thai society, clearly play a crucial role in this stability. In terms of business structure, public and private sector cooperation has increased, and this has enabled businesses and industries to expand their operations and their domestic and foreign markets and to effectively address problems. Meanwhile, the government looks favorably on foreign investors, recognizing their importance as a force for Thailand's economic and technological development.
Thanks to these factors, Thailand has become a strong magnet for foreign investment. This, together with active investment of the Thais themselves, has strongly boosted the local economy. Thailand has a market of 54 million people with a swiftly increasing purchasing power. The gross domestic product per capita increased from around $900 (U.S) in 1987 to over $1000 in 1988. This relatively large and growing domestic demand acts as a springboard for a variety of export activities, as well as a cushion against world economic fluctuation. Because of its strategic location, Thailand can also serve as a gateway for exports to Indochina when peace draws near.
Thailand's geographical location and close cultural links with the three Indochinese states mean this country could serve as a funnel for foreign assistance, a bridge linking the Indochinese countries and the global economy, and a gateway for foreign investors.
Bangkok and the northeastern cities are the most logical stepping-stones for trade and economic relations between various transnational corporations and Indochina. Thailand's infrastructure could also be utilized, and private foreign investors could likewise collaborate with their Thai partners in entering the Indochinese market. The Indochinese states have rich natural resources, and ample supply of cheap labor, and potentially large markets for commodities, especially for Vietnam's 60 million people. With some prospector peace in Indochina, Thailand has been quick to revive its once lucrative trade with these countries.
Prime Minister Chatichai Choonhavan's policy initiative to turn Indochina from a
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