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The Eurasia Center/EBC 4927 Massachusetts Ave NW Washington, DC 20016 www.eurasiacenter.org Email: [email protected] The Kingdom of Thailand: Country Report The Kingdom of Thailand is a constitutional monarchy with a stable, steadily growing free market economy. Thailand is notable for being the only South East Asian country to never be occupied by a European imperial power and also for being the only land access to Malaysia and Singapore from mainland Asia. Political stability has been a critical issue for Thailand following a military coup in 2006. In addition, an ongoing insurgency has been causing havoc from the Muslim Malay community in the southern Thailand since its inception in January 20041. Thailand has also become a large transit point for human sex and labor trafficking. In August,2016, there was a bomb attack in the Thai resort town of Hua Hin, Surat Thani, Phuket and Trang.. Currently, Vajiralongkorn becomes Thailand's new King, the economics of the country is growing stably, it is projected to be 3.1% in 2016 and 3.2% in 20172. Population, 2016 Population Growth Rate, 2016 Total Area Bordered By 1 68,175,121 0.22% 513,120 sq. km Burma/Myanmar, Laos, Cambodia, Malaysia CIA, “World Factbook- Thailand”, accessed June 14, 2013. https://www.cia.gov/library/publications/the-worldfactbook/geos/th.html. 2 World bank Table Source: CIA3 Governmental and Politics Thailand is a constitutional monarchy run by a military interim government, with its capitol set in Bangkok. The chief of state is the king, currently Phumiphon (also Bhumipol) Adunyadet. The line of succession for the king is hereditary. The head of government is the prime minister, currently General Prayut Chan-ocha. The executive leaders are advised by the Council of Ministers and Privy Council. The king has little actual power to control the state, and instead serves to inspire national pride and unity. It is important to note that the king can be female if the line of succession passes to a princess4. The legislative branch is in transition after the military coup. It now consists of 220 members of a National Legislative Assembly. The first elections for this new system are planned to occur in mid-2017. The judicial branch is structured in a manner similar to many western systems, with a Constitutional Court at the top of a hierarchy of lower courts. Members of the Constitutional Court are appointed by the king after being selected through a process involving Judicial selection committee. From 1992 to 2005, Thailand was a functioning democracy. However, in 2006 a military coup overthrew Prime Minister Thaksin Chinnawat5. Street protests caused rampant instability from 2008 to 2010. These protests turned violent in 2010, leading to nearly 100 deaths and extensive property losses. The government itself was plagued by corruption and fraud scandals, short-lived governments and protests. Thaksin Chinnawat’s younger sister Yinglak secured an electoral victory for the Puea Thai Party in 2011, restoring a semblance of stability to the government. Despite this, Prime Minister Chinnawat faced widespread dissatisfaction after widespread flooding overwhelmed much of the country. Subsequent pressure from the opposition Democrat Party further damaged the government. In 2014, a military coup ousted the government and set up an interim government to 3 CIA MSU, “Thailand: Government”, accessed June 14, 2013. http://globaledge.msu.edu/countries/thailand/government. 5 CIA 4 control the country. Arguably the most serious issue facing the governments hold on power is the bloody insurgency in southern Thailand. Economy Thailand possesses a free market economy that has made notable progress towards liberalization, more so than its regional competitors6. Economic reforms have made entrepreneurship simple and relatively free of bureaucratic engagement. Capital is available and fluid. These positive factors have helped to secure Thailand’s spot as a country with one of the lowest unemployment rates in the world at less than 1%. The government does however maintain monetary controls and has restrictions on foreign trade and ownership. The most pressing barrier to economic advancement is political instability that deters investment. Rule of law, a basic necessity for a successful capitalist economy, is lacking in its enforcement. The judicial system is vulnerable to political influence, and does not properly protect intellectual property rights. Production in the country benefits from a strong high-tech manufacturing sector, especially electronic equipment such as integrated circuits and computer parts. In addition, Thailand is the world’s 2nd largest producer of tungsten, and 3rd in tin production. Thailand’s trading partners are diverse, with no single country receiving a large majority of the market. Thailand’s exports the most to China at 11%, as well as imports at 16.9% closely followed by Japan at 15.6%. Exports to the US are at 10.5%, while imports are at 6.4%. Economic Indicators Total GDP, PPP (2015) GDP Per Capita, PPP (2015) GDP Growth Rate (2015) GDP Growth Rate Projected 2016/20177 Unemployment Rate (2015) Inflation (CPI) (2015) FDI Net Inflow Current Account Balance (2015) GDP from Agriculture (2015) 6 7 $1.108 trillion $16,100 2.8% 2.0% | 2.3% 1% -0.9% $9.6 billion $34.82 billion 10.4% Heritage Foundation, “Thailand”, accessed June 14, 2013, http://www.heritage.org/index/country/thailand. Economist Intelligence Unit, “Thailand”, accessed June 15, 2013. GDP from Industry (2015) GDP from Services (2015) Industrial Production Growth Rate (2015) 37.7% 51.9% 4% Table Source: CIA8, unless otherwise noted Security Concerns Since January 2004, an insurgency has been raging in the Muslim-majority southern region of Thailand, near the Malaysia border. The provinces of Narathiwat, Pattani, Yala, and Songkhla are 90% Malay Muslim, while the rest of Thailand is primarily Theravada Buddhist9. The conflict, at least currently, is primarily ethno-nationalist in nature. The insurgents are fighting to secure greater autonomy and to prevent the continued flow of Buddhists into traditional Muslim territory. There have been several efforts by international jihadist groups such as Al-Qaeda to incorporate the Thai insurgency, but so far they have been rebuffed. The insurgency is composed of groups such as the Barisan Revolusi Nasional (BRN), the Pattani United Liberation Organization (PULO) and the Pattani Islamic Mujahedeen Movement (GMIP)10. The groups have been carrying out attacks on military and security forces, but also have used terror tactics against civilians as well. Teachers and government officials are often targeted with bombings and assassinations. Over 5,000 people have been killed since the beginning of the insurgency, and it has been estimated by Amnesty International that 2/3 of that figure are civilians11. Thailand also has an ongoing border dispute with Cambodia over the area around the Preah Vihear temple, erupting into military conflict in April 2011. Refugees and militants from the Karen people of Burma are also an ongoing. The Karen rebels spilled over into Thailand, creating a security issue. Additionally, Thailand faces a large-scale human trafficking issue. This is largely prevalent in the sex trade, which Thailand has not taken minimum standards to combat. Aside from trafficking of locals, Thailand is used as a 8 CIA Independent, “The Secret War in Thailand’s Deep South,” accessed June 15, 2013, http://www.independent.co.uk/news/world/asia/the-secret-war-in-thailands-deep-south-8550581.html. 10 Gulf-Times, “Thailand Insurgents Claim Peace Could be Years Away,” accessed June 15, 2013, http://www.gulftimes.com/asean-philippines/188/details/356298/thailand-insurgents-claim-peace-could-be-years-away. 11 Independent, Secret War 9 transit point of trafficking from other countries. Thailand is also used as a tranit point for drug trafficking, specifically heroin and opium. Environmental Concerns Thailand’s environment suffers from vehicle emissions, industrial water pollution, deforestation and erosion, as well as poaching. The country is a signatory to many international environmental agreements including the Kyoto Protocol. The construction of dams by China is also a significant concern, especially with the Salween River. Actions by China can have a negative effect on the availability and contamination of water in Thailand. Total Renewable Water (2011) Annual Freshwater Use CO2 Emissions from Energy Use (2012) 438.6 cu km 57.31 cu km/yr 290.7 million Mt Table Source: CIA12 Acknowledgements: Research and Data Development provided by Grant Stanford, Research Associate and Krystal Tang, Research Assistant, under the supervision and coordination of Dr. Gerard Janco, President, The Eurasia Center/EBC. 12 CIA