Download THAILAND 1. The Country profile Thailand, officially the Kingdom of

THAILAND
1. The Country profile
Thailand, officially the Kingdom of Thailand, formerly known as Siam, is a country at the
centre of the Indochinese peninsula in Southeast Asia. Located in the continent of Asia, Thailand
covers 510,890 square kilometers of land and 2,230 square kilometers of water, making it the 51st
largest nation in the world with a total area of 513,120 square kilometers. It is the 20th-most-populous
country in the world. The capital, most populous and largest city is Bangkok. Thailand shares land
borders with 4 countries: Burma, Cambodia, Malaysia, Lao People's Democratic Republic.
Thailand is a constitutional monarchy and was a parliamentary democracy until the coup in
May 2014 by National Council for Peace and Order.

Geo location
Thailand is variably divided into different sets of regions, the most notable of which are the sixregion grouping used in geographic studies, and the four-region grouping consistent with the Monthon
administrative regional grouping system formerly used by the Ministry of Interior. These regions are
the largest subdivisions of the country. In contrast to the administrative divisions of the Provinces of
Thailand, the regions no longer have an administrative character, but are used for geographical,
statistical, geological, meteorological or touristic purposes.
The four-region system, used in some administrative and statistical contexts, and also as a loose
cultural grouping. This is also the regional system most commonly used on national television, when
discussing the weather or regional events. It divides the country into the following regions:
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 Northern Thailand
 Northeastern Thailand
 Central Thailand
 Southern Thailand
Four-region
(political)
Provinces
Amnat Charoen, Bueng Kan, Buri Ram, Chaiyaphum, Kalasin, Khon
Kaen, Loei, Maha Sarakham, Mukdahan, Nakhon Phanom, Nakhon
Ratchasima, Nong Bua Lamphu, Nong Khai, Roi Et, Sakon
Nakhon, Si Sa Ket, Surin, Ubon Ratchathani, Udon Thani, Yasothon
Northeast
Chiang Mai, Chiang Rai, Lampang, Lamphun, Mae Hong
Son, Nan, Phayao, Phrae, Uttaradit,Tak,
Sukhothai, Phitsanulok, Phichit, Kamphaeng Phet, Phetchabun,
Nakhon Sawan, Uthai Thani
North
Ang Thong, Chainat, Phra Nakhon Si Ayutthaya, Bangkok, Lop
Buri, Nakhon Pathom, Nonthaburi, Pathum Thani,Samut
Prakan, Samut Sakhon, Samut Songkhram, Saraburi, Sing
Buri, Suphan Buri, Nakhon Nayok, Chachoengsao, Chanthaburi, Chon
Buri, Prachin Buri, Rayong, Sa Kaeo, Trat, Kanchanaburi, Ratchaburi,
Phetchaburi, Prachuap Khiri Khan
Central
Chumphon, Narathiwat, Pattani, Phatthalung, Songkhla, Surat
Thani, Yala. Nakhon Si Thammarat,
South
 Population and population growth
As of 1 January 2016, the population of Thailand was estimated to be 68,098,436 people and
will reach 68,355,167 in the beginning of 2017. This is an increase of 0.38 % (255,767 people)
compared to population of year 2015. Thailand's population is largely rural, concentrated in the ricegrowing areas of the central, northeastern, and northern regions. Thailand had an urban population of
45.7% as of 2010, concentrated mostly in and around the Bangkok Metropolitan Area. As of the
beginning of 2016 according to our estimates Thailand had the following population age distribution:
19.9 %
70.9 %
- percentage of population under 15
- percentage of population between 15 and 64 years old
- percentage of population 65+
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9.2 %
 GDP per capita
The Gross Domestic Product per capita in Thailand is reported by the World Bank and was last
recorded at 5,774.65 US dollars in 2015. The GDP per Capita in Thailand is equivalent to 46 percent
of the world's average.
Thailand GDP Growth Performance
In the 10 years before the global financial crisis, from 1999 to 2008, Thailand’s GDP grew on average
4.7%. In 2009, the economy recorded a contraction of 2.3%, which was the strongest GDP drop in 12
years. Afterward, the economy experienced ups and downs. After having grown an impressive 7.8%
in 2010, mainly due to an increase in export volume, the economy expanded a meager 0.1% in 2011.
The significant slowdown was due to the severe floods which occurred during the 2011 monsoon. The
economy managed to bounce back in 2012 and grew 6.5%. However, political turmoil that emerged in
the country in 2012 caused weaker growth of 2.9% in 2013.
The Thai economy grew by 0.8 percent on a quarter-on-quarter seasonally adjusted basis in the second
quarter of 2016, compared to an upwardly revised 1.0 percent growth in the previous quarter and above
market consensus of a 0.5 percent expansion. A sharp increase in private consumption were unable to
offset a decline in government spending, investment and exports.
Year-on-year, the country's GDP expanded 3.5 percent from a year earlier, as compared to a 3.2
percent expansion in the previous quarter and beating market expectations of a 3.2 percent expansion.
It was the strongest growth since the March quarter of 2013.
Structure of Thailand Gross Domestic Product
Thailand has a growth model that is trade oriented. Exports of goods and services account for about
74% of GDP, which is one of the biggest GDP shares in the region. In addition, imports account for
around 70% of GDP. Thailand’s external position is highly subject to price volatility as the economy
is highly dependent on trade.
Thailand’s economic structure relies mainly on services and manufacturing. The services sector
accounts for around 45% to total GDP. The most important contributors are tourism, retail sales,
transportation, as well as banking and finance. Tourism is one of the biggest contributors to the sector,
while its share alone in total GDP is around 10%. Industry accounts for 42% of Thailand’s total
production and its main component is manufacturing. The country’s top manufacturing products
include automobiles, hard disk drives, natural and synthetic rubber, textiles, etc. A significant share of
these products is exported. Agriculture contributes the remaining share of total GDP.
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2. The poverty situation
In Thailand, 10.9% of the population lives below the national poverty line (as of 2014).
Thailand became an upper-middle income economy in 2011. Over the last four decades,
Thailand has made remarkable progress in social and economic development, moving from a lowincome country to an upper-income country in less than a generation. As such, Thailand has been one
of the widely cited development success stories, with sustained strong growth and impressive poverty
reduction, particularly in the 1980s.
Thailand’s economy grew at an average annual rate of 7.5 percent in the late 1980s and early
1990s, creating millions of jobs that helped pull millions of people out of poverty. Gains along multiple
dimensions of welfare have been impressive: more children are now getting more years of education,
and virtually everyone is now covered by health insurance while other forms of social security have
expanded.
Poverty has declined substantially over the last 30 years from 67% in 1986 to 11% in 2014 as
incomes have risen. However, poverty and inequality continue to pose significant challenges, with
vulnerabilities as a result of faltering economic growth, falling agricultural prices, and ongoing
droughts. Poverty in Thailand is primarily a rural phenomenon. As of 2013, over 80 percent of the
country's 7.3 million poor live in rural areas. Moreover, an additional 6.7 million were living within
20 percent above the national poverty line and remained vulnerable to falling back into poverty.
Although inequality has declined over the past 30 years, the distribution in Thailand remains unequal
compared with many countries in East Asia. Significant and growing disparities in household income
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and consumption can be seen across and within regions of Thailand. With a recent NESDB report
noted that pockets of poverty remaining in the Northeast, North, and Deep South. About 44.5 % of the
country’s destitute reside in the Northeastern region, 24% are in the North, and the rest live in the Deep
South. Almost half of these impoverished households are engaged in the agricultural sector. The rest
of the poor are part of Thailand’s so-called “informal workforce”, comprising part-time employees,
self-employed householders, informal small- and medium-sized enterprises (SMEs) and landless
laborers.
Poverty in Thailand can be attributed to several factors. First is the concentration of economic
activities in Bangkok and a number of other urban areas. Investment, goods and services, government
programs, and well-paying jobs are still largely concentrated in the capital and nearby urban areas
despite government efforts to decentralize economic development. The concentration of resources and
investment in Bangkok is evidenced by the fact that it contributes over 50 percent of the country's GDP
despite hosting only about 10 percent of the population. In contrast, other regions, especially rural
areas, suffer from inadequate investment and employment opportunities.
Second reason stems from the failure of the Thai government to provide social safety nets amid
the country's rapid growth and industrialization. The government over-prioritized the implementation
of financial and industrial reforms and neglected to formulate and implement a comprehensive social
service program to protect the most unprepared sectors from the ill effects of rapid industrialization.
A third problem is the weak educational system in the country. Inferior and inadequate
education is the root of the growing income gap between city dwellers and villagers. As poverty in the
rural areas worsened, many rural folk could not afford to send their children beyond the 6 years of
compulsory schooling, making them unqualified for the higher paying jobs in the manufacturing and
service sectors. As a consequence, these families were trapped in the vicious cycle of poverty where
living conditions of the succeeding generations do not improve due to lack of education.
Forth problem is the failure of the government to implement agricultural land reform policies.
This failure has resulted in insecure land ownership and increasing tenancy, or production on rented
land. As a result of having no security of ownership over the land of rural workers or farmers, this
leads to low productivity from the land.
Another problem is the increase in the number of farm tenants who till other peoples' land
because they either have no land of their own or because they had to sell their own land to pay off
accumulated debts.
In additional, in rural area, residents may suffer from a “cycle of deprivation”, a theory that
suggests that the key ingredients of poverty, such as bad housing and a lack of focus on or access to
better educational and employment opportunities, are transmitted through generations will remain in
poverty.
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 The major challenges faced in rural development and poverty reduction
Poverty in Thailand is primarily a rural phenomenon, with 80% of the country's 7.3 million
poor living in rural areas (as of 2013). Some regions—particularly the North and Northeast—and some
ethnic groups lag greatly behind others, and the benefits of economic success have not been shared
equally, especially between Bangkok, Thailand’s largest urban area, and the rest of the country.
Income inequality and lack of equal opportunities have persisted. Income inequality, as measured by
the Gini coefficient is 39.4.
Persistent development challenges remain an institutional challenge in policy and in practice,
from formulating national strategies to implementing social legislations. While Thailand has
eliminated gender disparity in primary and secondary education, gender equality continues to be a
challenge. Women still have limited representation in electoral politics. In 2014, only 6.1 per cent of
seats in the national parliament were held by women. Corruption also remains a key challenge, and
access to justice is much limited for the poor and vulnerable. Transparency International’s 2015
Corruption Perception Index (CPI) ranked Thailand 76 among 167 countries with a score of 38 out of
100. Thailand's CPI ranking has deteriorated since 2010, when the ranking was 78 with a score of 35.
Inequality is also a challenge. Vulnerable groups, such as migrants, informal workers, and
displaced persons, are not equally benefiting from Thailand’s economic successes. Women and
children are still at risk of sexual and domestic violence. New human security threats are emerging as
a result of changes both within Thailand and in the world as a whole.
Climate change remains a threat. Thailand emitted 4.6 tonnes of carbon dioxide into the
atmosphere per person per year in 2011. The effects of climate change have elevated risk of natural
and man-made disasters, droughts, extreme weather patterns and sea level rise, threatening economic
development and community livelihoods. At the same time, there are concerns about environmental
sustainability.
Therefore, despite Thailand’s remarkable progress in joining the ranks of the upper-middle
income economics in a brief space of time, the income and opportunity gaps between the rich and poor
persist. Therefore a task of bridging the urban-rural gulf through decentralization and others
approaches remain one of the country’s chronic challenges as it pursues a path towards further
development.
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3. Governmental policies and institutions and programs for the poverty reduction and
village development
 Governmental organizational structure(vertical and horizontal) for rural development and
poverty reduction
The Thai economy faces headwinds, and growth has been modest, at 2.8 percent in 2015 after
0.9 percent in 2014, partly on the basis of government consumption and investment, and partly on
declining imports. The outlook for 2016 is 2.5 percent. The rate of economic recovery and reigniting
growth, will depend on how fast Thailand can overcome factors constraining growth and promote a
more inclusive growth model. There are opportunities in the horizon, including expanding trade
through enhanced integration with the global economy, bolstering growth by implementing
transformative public investments to crowd-in private capital, stimulate domestic consumption, and
improving quality of public services across the entire country. This will support a resumption of higher,
more balanced, growth path that eliminates extreme poverty and boosts shared prosperity for all
citizens.
 Governmental financial investment for poverty reduction and rural development;
Governmental Financial Support Programs in the past.
Since September 2015, government has been pushing forward several economic measures in
line with the government’s strategy. Six important measures aimed to stimulate the economy from the
end of 2015 through 2016. Some of those measures that are related to poverty reduction and rural
development are:
1. Measures to improve the livelihood of the low-income group and measures to increase small public
investment projects: The Cabinet approved this measure on September 1, 2015 with a budget of 138
billion baht. The objectives are to disperse investment, employment, economic activity and
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development into provincial areas to stimulate spending and mitigate the effects of the stalled economy
on low-income people, as well as to accelerate public investment. The package consists of 3 submeasures.
1.1 Village-level measure: the government will provide 0% interest loans via village funds for 2
years. The total credit available is 60 billion baht.
1.2 Sub-district-level measure: Each sub-district (Tambon) administration will receive a budget of
5 million baht (totaling 37 billion baht nationwide) to invest in 3 types of projects: maintenance
of public property, community development based on the principles of the sufficiency economy,
and economic and social development projects.
1.3 Small public investment projects: government agencies will be allocated a maximum of 1
million baht per organization to invest in projects satisfying the requirements. The total budget for
this plan is 40 billion baht.
2. Measures to support farmers and rice price stability were approved at the Cabinet Meeting on
October 27, 2015, which include:
2.1 Reduced borrowing rates for the 2015/16 crops. For farmers indebted to the Bank for
Agriculture and Agricultural Cooperation (BAAC) or agricultural institutions as of April 1, 2015,
borrowing rates are reduced to 3% per annum for six months. This applies to a maximum principal
of 80,000 baht.
2.2 Loan incentives to compile and increase value-added of the 2015/16 crops: The government
will contribute the 3% interest payments and farmers’ institutions will cover any additional interest
payments for 12 months. Totaling 12.5 billion baht, the incentives aim to support crops gathering,
selling, and rice milling processes.
3.3 Loan schemes to hold rice supply from the 2015/16 crops: The BAAC will provide loans for
farmers and agricultural cooperatives to store their rice supply. The program covers a nationwide
total of 2 million tons of jasmine and glutinous rice harvests for use as collateral. Each farmer or
agricultural cooperative may borrow up to 300,000 baht.
4. Major programs implemented and achievements
Poverty-reduction has been a part of National Plan in Thailand all along. Anti-poverty policies
were first clearly stated in the Fifth National Economic and Social Development Plan (1982- 1986).
Since then, poverty-reduction policy has become one of the major targets of the Plans. Policies
implemented during the current plan, 11th Plan (2012-2016) to combat poverty include measures to
reduce living expenses, 300-Baht nationwide minimum-wage, rice-pledging scheme, debt-suspension
program for the low-income farmers, set up several activity-specific funds (e.g. education loan fund,
SML development fund), expand coverage and amount of elderly allowance.
Provision of Comprehensive Assistance.
The government has provided comprehensive assistance for all people at the grassroots level
inclusively. The assistance is meant to support people in expense reduction, income generation, and
opportunity provision. Generally the assistance or major programs implemented by Thai government
in the past includes the followings:
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• His Majesty the King’sSufficiency Economy Philosophy, focusing on human resources
development for stability in life
• Community Development Master Plan: process and programs
• Community and Village Fund (One Million)
• One Tambon One Product (OTOP)
The One Tambon (Village) One Product (OTOP) policy to generate incomes of the villagers
and empowering people in the local communities to be more self-reliant, consequently,
improve their standard of living. So far, OTOP project is successful not only in terms of
generating more incomes but also in the area of self-development. Success reaps in a long –
term period as the local economy become sustainable and ties within communities and
neighboring networks are strengthened. The government takes great pride in “building” the
locals by providing knowledge not just “feeding” them with fund. Today, 40,694 OTOP
producers benefit from the project. Total export value of OTOP during the past 5 year reached
US$ 2.48 billion (as of 2012). Yet the success of OTOP went far beyond the figure. Upscale
department stores such as Harrods, Selfridges, Takashimaya, just to name a few, have been
showcasing OTOP products for many years. Handicrafts form local villagers become proud
representatives of Thais in major cities around the world. As for the future development of our
One Tambon (Village) One Product project, the role of the government will be gradually
declined while the role of private sectors and communities will be increased. The villagers
themselves will be then strengthened and more self-reliant as we believe that the Thai economy
will not be competitive if our grassroots foundation, the bottom of the pyramid, remains weak.
• Establishment of special economic zones. The policy would promote connectivity and regional
economic development on a sustainable basis. There are currently 10 special economic zones (SEZs)
in Thailand, with trade and investment valued at almost 800 billion baht a year. In 2014, the
government launched a pilot project to set up six special economic zones in five provinces: Tak,
Mukdahan, Sa Kaeo, Songkhla, and Trat. In the second phase, which is expected to begin in 2016,
seven special economic zones will be established in another five provinces: Chiang Rai, Kanchanaburi,
Nong Khai, Nakhon Phanom, and Narathiwat.
• Setting the Sustainable Development Goals: Since the 1990s the government in Thailand has
embraced the SDGs. It has adopted more aggressive methods in confronting the root problems of
poverty and income gaps. In addition, programs to utilize rural workers have been developed. As the
Sustainable Development Goals and the Post-2015 development agenda near, and will eventually
replace and advance the progress of the SDGs, Thailand and other countries will have the opportunity
for renewed efforts to combat poverty and inequality.
• Poverty Alleviation Project
• Land Reform
• Savings Group for Production
• Health for All (30 Baht for all)
• People Debt Management, etc.
• Assets Capitalization
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 Achievements achieved by implementing abovementioned programs.
Overall poverty rate continuously declined over the past 10 years. Share of population under
poverty line, or poverty rate, fell from 32.4 percent in 2003 to 21.9 percent in 2006 and 13.2 percent
in 2011. In 2013, the rate stood at 10.9 percent, with number of poor at approximately 7.3 million
persons.
5. Major experiences and lessons to be shared
a) Engagement of the community in developing and revising the work plans greatly enhanced the
effectiveness, efficiency and impact of the intervention. Activities were proposed and evaluated
by local communities, increasing the potential for their success.
b) Sufficiency economy is central to alleviating poverty and reducing the economic vulnerability
of the poor.
c) Sufficiency economy principles are clearly visible in agriculture. The king’s approach to selfreliant agriculture crystalized in New Theory Agriculture, a land and water management system
that aims to provide small farmers with at least enough rice to feed themselves for a whole
year, via community cooperation and effective, small-scale irrigation techniques.
d) Creating job for rural people creates much greater effect on reducing poverty than giving a
village fund. This because one entrepreneur can help at least 2-3 more people in the area to be
able to reach the financial sufficiency and sustainability. For example, OTOP project creates
jobs in localities so people can stay and work in their home provinces, earning substantial
incomes and being self-reliance. Consequently, poverty (of both under-paid blue collar workers
in the cities and farmers in rural areas) will be gradually diminished.
e) For a developing country like Thailand, the emphasis on empowering the poor first with better
education and training to increase their productivity and hence income is more vital. It is an
important factor for the poor to move up the social ladder as it provides access to better paying
jobs.
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