Thailand Economic Development Flashcards
Did the Thai Make a successful transition to EOI, and when
1980s
What was the Thai economy most reliant on, which led to the AFC
Foreign capital
What is the average GDP growth rate of Thailand from 1961 to 2001
6.8%
Did the high frequency of coups significantly impact the Thai economy, and why?
No significant impact, military coups and governments had same commitment to market economy, monarchy helped minimise national conflicts
What was the context of economic growth in the 1910s to 1930s (2)
Growth in rice frontier (led by Chinese) and autonomous bourgeoisie (middle class)
What was the context of economic development from 1930s to 1950s (2)
- 1932 revolution
- state led development
What characterised the state led development from the 1940s to 50s after the 1932 revolution (consider private or public and state led)
- uncoordinated state investments
- state enterprises
- public companies
What was the context behind economic development in the 1950s to 1980s
US pressure and private investment
Who overthrew phibun in a military coup, and in which year
Sarit, 1957
What characterised the development and ISI phase of the economy under Sarit (consider infrastructure)
- systematic state infrastructural role
- investment promotion
- infrastructure development
What characterised economic development from 1986 onwards (2)
- rising oil prices
- fall in agricultural prices
When did Thailand transition into EOI
1985
What was the ideal promoted by phibun after the 1932 revolution
“Thai economy for the Thai people”
What allowed the Chinese business class to be so active in the Thai economy before WW2 (3)
- Absence of western domination
- formation of trade associations
- petitioned government for business rights against western privileges and imports
What did phibun mean (which groups was he targeting) by driving out “foreign” influences in the economy - 2 groups
- Westerners
- Chinese
Outline phibun’s approach to economic development after the 1932 revolution (state vs private, what goods were prioritised)
- State led industries
- focus on export of primary products
What were the primary products for export under phibun, and what percentage of Thai exports did they account for during phibun’s time 9its a range)
Rice, teak, rubber, tin, 50-90%
How many state and public companies were started by 1945
30
What 3 instances outlined the involvement of state enterprises and public companies during phibun’s government
- Ministry of defence set up cotton mill and paper mill
- Ministry of economic affairs established an industrial division and invested into sugar factories
- TRC (Thai rice company) - allowed farmers to sell rice to TRC for export
What time period was phibun’s state led development
1947-57
How was economic nationalism achieved under phibun
- anti-Chinese policies
- 1952 government directive to centralised gold trading, jewellery trading, banking
Did the Chinese still hold a significant influence under sarit’s rule, and why
Yes, semi-governmental monopolies were still mostly joint ventures with Chinese businessmen
What was the cornerstone of sarit’s political legitimacy
Economic development
What role did the government play during sarit’s rule (direct or indirect)
What were the 3 areas that sarit’s government would focus development on
- Infrastructure
- Administration
- Planning machinery
Which people did Sarit appoint to take charge of economic policy
Technocrats (advocates of technology)
What were the 3 focuses of sarit’s rule
- Agriculture (comparative advantage)
- Foreign investment and aid
- State infrastructural role
How much did irrigation land increase from 1947 to 1969 (multiple)
3x
Between 1950 to 1980, by how much did agricultural holdings increase by under Sarit (Percentage)
2x
How much aid and loans did Thailand receive from the US
900 million
In what main way did Thailand benefit from the US
US entry into Vietnam war
- economic, technological, military aid
Did domestic capital maintain dominance in Thailand during sarit’s rule even after foreign investment and aid?
Yes
From 1964 to 72, what percentage of total capital formation was supplied by foreign capital
12%
When was the promotion of investment act established
1960
When was the first Development Plan (hint: 5 years)
1961 - 66
When was the IFCT established, and what role did it serve
Industrial finance corporation of Thailand; 1959
- encourage and provide loans for expansion of private industrial enterprises
When was the national economic and social development board (NESDB) established and what role did it serve
1959, national economic planning (recording national income statistics)
Which national economic and social development plan marked the switch form ISI to EOI, and when was it implemented
4th, 1977-81
What were the positive indicators of sarit’s policies (2)
- increase in foreign investments
- rapid industrial growth during ISI (1960s) - seen in decreasing reliance on agriculture
What is the meaning of Kanphattana, and what was its significance (consider which aspect Sarit tied economic development to when using this ideology
Development, tied economic development with national unity
In what way was crony capitalism evident in Thailand during sarit’s rule
- state over-protectionism, esp in the banking industry
Which bank, during sarit’s rule, represented 1/3 of the entire Thai banking sector, and financed 42% of all exports
Bangkok bank
What were the 3 economic pressures that Thailand faced in the 1970s that led to the formation of the 4th national economic and social development plan (hint: one is from paper 1 and one is to do with the US and Vietnam war, one is to do with one of the 3 goals of economic development)
- Oil prices
- Withdrawal of US from the region
- Widening income gap between urban and rural areas
Which 2 aims (of the 3 aims of economic development) did the 4th national economic and social development plan seek to promote
Economic growth and equity
Which 2 events/trends pressured the Thai government to seek out more loans in the 1980s
- decline in agricultural commodity prices
- second oil crisis
What percentage of GDP was comprised of foreign debt in 1986
38%
What were 3 reforms carried out in the 1980s to encourage exports
- abolition of several export taxes in 1985
- special credit facilities for exporters by bank of Thailand
- overseas firms encouraged to have 100% foreign ownership so long as they exported all or most of output
How much FDI per annum did Thailand attract in 1990-96
2 billion per annum
In support of the new export oriented focus in their switch to EOI, what did the Thai government do with regards to the Thai currency, and why did they do this
- pegged to USD at a fixed, LOW rate
- stability and export competitiveness
When did the USD start appreciating (which time frame/period) that impacted the Thai baht as well
1978-85
What did the Thai government do in 1981 and 1984 as a result of the USD appreciating
1981: devalued the baht
1984: pegged to a basket of major currencies
What 2 considerations should be made when considering the appreciation/depreciation of the Thai baht and its impact on economic growth
- exports
- production costs (labour)
What was the main focus of the 6th economic development plan
Scaling down of the government’s role
When was the 6th economic and social development plan implemented
1987
What was the growth rate of Thai exports in the 1980s
14%
From what percent to what percent did the share of manufacturing contribute to Thai’s GDP from 1952 to 2000
16% to 34%
The Gini coefficient of Thailand rose from what to what from 1965 to 2000
0.40 to 0.5 (approx)
Limitations to government strategies overall (6)
- Income and urban-rural inequality
- Concentration of wealth by large banks and firms
- Growing debt and deficits
- Over protectionism, inefficiency, loss of international competitiveness
- Financial liberalisation without supervisory and regulatory capacities
- Political paralysis
Of the over 70 leading business groups I the early 1980s, how many were non-ethnic Chinese groups
3
When did Thailand export growth rate slow to 0%, and from by how many percent did it fall by
Mid 1990s, fell from 28% from 1986 to 95
What was the effective rate of protection for thai manufacturing in 1985
52%
Which 2 factors contiributed to Thailand’s loss of international competitiveness
- overprotection of domestic producers
- lack of tech upgrading and human resource development
In which 2 ways was monitoring of financial institutions made difficult
- Increasing number of firms needed to be monitored
- Policies which eased inflow of foreign funds (1990s)
When did Thailand accept IMF’s article 8 removing all controls on foreign exchange transactions
1990
What was the BIBF, When was the BIBF created
Bangkok international banking facility, 1993
- conduit for short term foreign lending
How many loan licenses were granted by the BIBF to foreign and domestic commercial banks
42
By how much did Thailand’s debt to foreign banks increase by from 1993 to 1997
2-3x
What percentage of thai foreign debt in the late 1990s was short term
70%
Outline the case study of the BBC
Bangkok bank of commerce:
- dabbled in stock market speculation and takeover deals
- collapsed in 1996
- had to be bailed out by government for 120b baht
Until when was there a weak multiparty coalition
At the time of the AFC, how many parties were part of the coalition government led by who
6 parties, led by PM chavalit
Who was Thanong and why did he resign in October 1997
Finance minister during AFC, resigned due to petrol tax part of IMF austerity measures
When did chavalit resign and why
November 1997, could not balance austerity measures and unpopularity
Who succeeded chavalit
Chuan Leekpai
How many insolvent companies did Chuan leekpai close down, and how many banks were taken over by the government
91, 4 banks
What was the focus of the government post AFC
- industrial upgrading
- identifying new market opportunities
What was one positive of the AFC
Depreciation of the Thai baht strengthened its export competitiveness
What was the GDP growth rate of Thailand in 1999 and 2000
4%, 4.3%
Did money politics discontinue during Chuan Leekpai’s reforms, and why
Continued; businessmen continued collaborating with politicians for protection
Who succeeded Chuan Leekpai, and when, and why
Shinawatra, 2001 elections
- Chuan leekpai’s party accused of big business and foreign interest, neglected well-being of masses
How did the role of the government evolve through phibun to Sarit and onwards
Phibun: semi-governmental monopolies
Sarit: systemic state intervention, infrastructural role, scaled down in 1980s when foreign and private forces came in
- failed its regulatory role in 1980s - 90s
Did the private sector stay resilient, and why/why not
Stayed resilient throughout state intervention and foreign investment, due to independent history of country
What role did the Chinese play (consider the type of relationship)
Private business - patron client relationship
What would be an example of Chinese big business ventures with international capital and overseas Chinese
What percentage of the population were Chinese, and how much control did they have over the economy (percentage)
10% , controlled 80%
