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Economic system in Thailand
The Asian financial crisis impact
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During the second half of the 20th century Thailand underwent a rapid transformation from an agrarian to export-driven industrialized economy while sustaining rapid economic growth. What took Europe almost a century, the East Asian tigers (Hong Kong, Singapore, South Korea, and Taiwan) and the newly industrializing economies (Indonesia, Malaysia, and Thailand) accomplished in a matter of decades, which led many to believe in an East Asian miracle. However, in 1997 Thailand became the first country swept into an economic crisis that spread throughout the region within months. Why did Thailand unexpectedly fall into a rapid economic crisis and how has the crisis shaped the current political economy of the country? Although Thailand sustained high levels of growth for decades, international capital flight triggered an economic crisis that was exacerbated by domestic weaknesses as well as poor reform measures. Furthermore, the Asian Financial Crisis initially became a catalyst for political reform in Thailand, which eventually facilitated the rise of Thaksin Shinawatra.
During the rapid transformation from agrarian to an export driven industrialized economy, Thailand was within the top 20 countries with the highest change in GDP per Capita. The World Bank explained the rapid growth sustained over decades as “fundamentally sound development policy.” The “unusually good” macroeconomic management and stable performance “provided the frame work for private investment.” Combined with progressive education and agriculture as well as “effective but carefully limited government activism,” Thailand experienced a reduction of absolute poverty (from 59 percent in 1962 to 9.8 percent in 1994) and a dramatic improvement of basic social ...
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report of the national commission on the causes of the financial and economic crisis in
Thurow, Lester. (1992). Head to Head: The Coming Economic Battle Among Japan, Europe, and America. New York: William Morrow & Co., Inc.
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With economic growth, there is always a danger present that demand may grow faster than the potential for production. This will lead to inflation, which will affect the country's competitiveness in the export and severely impact the living standards of the people. Viet Nam faced astounding rates of inflation in the years after Doi Moi, 400 percent in 1988...
The Kingdom of Thailand, formerly known as Siam, has been one of the major countries in Southeast Asia that was influenced by Westerners during and after the imperialism period despite the fact that the country itself has never been under European colonial rule. Western technology and education were integrated into Siam’s business and tecnology, leading to a new era of modernization. Due to the increasing demand for foreign goods and workforce of the royal family, Chinese merchants and labors gathered themselves into Siam to serve the palace as well as to seek better job opportunities. This paper aims to argue that throughout the late 19th century to the 20th century, Chinese people had made a significant impact on Siam industrial economy and its technology adaptation from the Western countries.
In addition, Vietnam had and still has a Communist government and a socialist economic model. However, the Vietnamese are trying to move more towards a free market system. Meaning that the Vietnamese want a market economy where the forces of supply and demand are not controlled by the government, nor any other authority. Moreover, every members of the government are elected by Vietnam’s National Assembly. Additionally, Vietnam is one of the fastest growing financial country in the world with, according to bbc.com, a nominal GDP that reached about $170 billions. Also, Vietnam became one of the highest leading agri...
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There is a close relationship between Gross Domestic Product (GDP) and the unemployment rate as it will relate to the decrease or increase of inflation rate. The inflation rate will increase when GDP and unemployment decreases, because it will affect the purchasing power of the people of a particular country.
Harold A. Crouch. 1985. Economic change social structure and political systems in Southeast Asia: Philippine development compared with the other Asian countries. Institute of southeast Asian studies
The 21st Century has witnessed Asia’s rapid ascent to economic prosperity. As economic gravity shifts from the Western world to the Asian region, the “tyranny of distance [between states, will be] … replaced by the prospects of proximity” in transnational economic, scientific, political, technological, and social develop relationships (Australian Government, 1). Japan and China are the region’s key business exchange partners. Therefore these countries are under obligation to steer the region through the Asian Century by committing to these relationships and as a result create business networks, boost economic performance, and consequently necessitate the adjustment of business processes and resources in order to accommodate each country’s
Thailand implements a controlled floating exchange rate system, pricing to market forces on the Thai baht, and the Thai central bank would only intervene in the market when necessary, in order to avoid excessive exchange rate volatility to the expected impact of economic policies. At present, the global economic slowdown, domestic demand is not good in Thailand. In order to keep the country's export competitiveness, the Bank of Thailand is more inclined to let the baht weaken.
Warwick J. McKibbin, and Andrew Stoeckel. “The Global Financial Crisis: Causes and Consequences.” Lowy Institute for International Policy 2.09 (2009): 1. PDF file.
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During the twentieth century, the world began to develop the idea of economic trade. Beginning in the 1960’s, the four Asian Tigers, Hong Kong, Singapore, South Korea and Taiwan, demonstrated that a global economy, which was fueled by an import and export system with other countries, allowed the economy of the home country itself to flourish. Th...