Changes

Before the financial crisis, the Thai economy had years of manufacturing-led economic growth--averaging 9.4% for the decade up to 1996. Relatively abundant and inexpensive labor and natural resources, fiscal conservatism, open foreign investment policies, and encouragement of the private sector underlay the economic success in the years up to 1997. The economy is essentially a free-enterprise system. Certain services--such as power generation, transportation, and communications--are state-owned and operated, but the government is considering privatizing them in the wake of the financial crisis. The timetable for privatization of some state-owned enterprises, however, has slipped due to resistance from labor unions and parts of civil society. Despite the resistance, some firms were successfully privatized, such as Airports of Thailand (renamed from Airport Authority of Thailand), PTT Public Company Limited (renamed from the Petroleum Authority of Thailand), and MCOT (renamed from Mass Communication Authority of Thailand).  

Before the financial crisis, the Thai economy had years of manufacturing-led economic growth--averaging 9.4% for the decade up to 1996. Relatively abundant and inexpensive labor and natural resources, fiscal conservatism, open foreign investment policies, and encouragement of the private sector underlay the economic success in the years up to 1997. The economy is essentially a free-enterprise system. Certain services--such as power generation, transportation, and communications--are state-owned and operated, but the government is considering privatizing them in the wake of the financial crisis. The timetable for privatization of some state-owned enterprises, however, has slipped due to resistance from labor unions and parts of civil society. Despite the resistance, some firms were successfully privatized, such as Airports of Thailand (renamed from Airport Authority of Thailand), PTT Public Company Limited (renamed from the Petroleum Authority of Thailand), and MCOT (renamed from Mass Communication Authority of Thailand).  

 

The Royal Thai Government welcomes foreign investment, and investors who are willing to meet certain requirements can apply for special investment privileges through the Board of Investment. To attract additional foreign investment, the government has modified its investment regulations. In a reaction to former Prime Minister Thaksin's sale of his telecommunications company to foreign investors, the interim Thai government introduced amendments to its Foreign Business Act during 2007 which would apply greater restrictions on the ability of non-Thais to own or control businesses operating in the Thai services sector.  

The Royal Thai Government welcomes foreign investment, and investors who are willing to meet certain requirements can apply for special investment privileges through the Board of Investment. To attract additional foreign investment, the government has modified its investment regulations. In a reaction to former Prime Minister Thaksin's sale of his telecommunications company to foreign investors, the interim Thai government introduced amendments to its Foreign Business Act during 2007 which would apply greater restrictions on the ability of non-Thais to own or control businesses operating in the Thai services sector.  

Bangkok and its environs are the most prosperous part of Thailand, and the barren northeast is the poorest. An overriding concern of successive Thai Governments, and a particularly strong focus of the Thaksin government, has been to reduce these regional income differentials, which have been exacerbated by rapid economic growth in and around Bangkok and the financial crisis. The government has tried to stimulate provincial economic growth with programs such as the Eastern Seaboard project and the development of an alternate deep-sea port on Thailand's southern peninsula. It also is conducting discussions with Malaysia to focus on economic development along the Thai-Malaysian border.  

Bangkok and its environs are the most prosperous part of Thailand, and the barren northeast is the poorest. An overriding concern of successive Thai Governments, and a particularly strong focus of the Thaksin government, has been to reduce these regional income differentials, which have been exacerbated by rapid economic growth in and around Bangkok and the financial crisis. The government has tried to stimulate provincial economic growth with programs such as the Eastern Seaboard project and the development of an alternate deep-sea port on Thailand's southern peninsula. It also is conducting discussions with Malaysia to focus on economic development along the Thai-Malaysian border.  

Although the economy has demonstrated moderate positive growth since 1999, future performance depends on continued reform of the financial sector, corporate debt restructuring, attracting foreign investment, and increasing exports. Telecommunications, transportation networks, and electricity generation showed increasing strain during the period of sustained economic growth and may pose a future challenge. Thailand's growing shortage of engineers and skilled technical personnel may limit its future technological creativity and productivity.  

Although the economy has demonstrated moderate positive growth since 1999, future performance depends on continued reform of the financial sector, corporate debt restructuring, attracting foreign investment, and increasing exports. Telecommunications, transportation networks, and electricity generation showed increasing strain during the period of sustained economic growth and may pose a future challenge. Thailand's growing shortage of engineers and skilled technical personnel may limit its future technological creativity and productivity.

==History==

==History==