INTRODUCTION
To understand the name Thailand, it must first be broken into its two constituent parts. Whilst
“land” is easy to understand, the “Thai” part takes a little more explains. Not only does it
mean “free”, Tai is also an ethnic group in the country, giving the word Thailand a double
meaning of both “Land of the Free” and “Land of the Thai People”. Thailand being known as
the “Land of the Free” is a huge source of pride for the Thai people; Thailand managed to
retain its independence whilst the Western powers were carving up and stealing land in
Southeast Asia and all around the world, and it’s referenced on the country’s national
anthem.
POLITICAL STRUCTURE
Thailand is a constitutional monarchy ruled by King Maha
Vajiralongkorn, who serves as head of state. Although the
monarchy has limited formal power, the king is highly influential
in Thai politics, and has significant clout over the military.
Thailand's political system is parliamentary in nature, with a democratically elected government.
The key components of the parliamentary system include:
The Monarch: As mentioned, the king serves as the head of state but has limited political power.
The Executive Branch: The executive branch is led by the Prime Minister, who is the head of
government. Srettha Thavisin from the Pheu Thai Party (PTP) is the current prime minister of
Thailand. The Prime Minister is typically the leader of the political party that commands a majority
in the House of Representatives.
The Legislature: The
constitution, which was developed by a committee
appointed by the military’s National Council for Peace and Order
(NCPO), was approved in a tightly controlled 2016 referendum.
Thailand's legislative body consists of a bicameral National Assembly, which comprises two houses:
House of Representatives: This is the lower house of the National Assembly, and its members are
elected by popular vote. It plays a crucial role in lawmaking and policy decisions. It consists of 500
sears
Senate: The Senate is the upper house of the National Assembly. Senators are partially appointed
and partially elected, and they serve in an advisory and oversight capacity. It consists of 250 seats.
According to the charter, the prime minister is selected by a
majority vote of the combined 500-seat elected House of
Representatives and the 250-seat Senate.
Thailand has a multi-party system with various political parties. Major political parties include the
Phalang Pracharat Party (associated with the military government), Pheu Thai Party (linked to former
Prime Minister Thaksin Shinawatra), and several others. The political landscape has been marked by
shifting alliances and coalitions.
Thailand has an independent judiciary responsible for interpreting and applying the law. The
Constitutional Court is responsible for matters related to the country's constitution.
Political Stability
The political situation in Thailand can be complex and has experienced periods of unrest and military
intervention.
Thailand has experienced periodic political protests, demonstrations, and conflicts, often arising from
a variety of issues, including political polarization, demands for democratic reforms, and concerns
about the influence of the military in politics.
The promilitary Palang Pracharat Party (PPP), which won only 115
lower-house seats in the 2019 elections, nominated incumbent
prime minister Prayuth Chan-ocha to again serve in that position.
Prayuth retained his post in 2019 through the support of a
promilitary bloc in the lower house and votes from 249 appointed
senators.
However, recently in 2023
leads Thailand's new 11-party coalition government, which
includes military-aligned parties, the PTP's former rivals.
Thailand has witnessed frequent changes in government, with transitions occurring through elections,
military coups, and legal or constitutional maneuvers. These changes have contributed to political
instability.
New Leadership
Srettha Thavisin from the former opposition Pheu Thai Party (PTP) leads Thailand's new 11-party
coalition government, which includes military-aligned parties, the PTP's former rivals. This new
political alliance, where old rivals co-operate, came together with the objective of blocking the
election's top winner, the reformist Move Forward Party, from taking power. Fractious coalition politics
will challenge political stability and government effectiveness. The new government will pursue a
limited political reform through constitutional amendment to reduce the military's role in politics, but
will not amend the lese majeste law. Thailand's economic growth will accelerate more strongly in 2024
after an estimated 2.8% growth in 2023, as private consumption will benefit from a more populist set
of policies from the new government, as well as a strengthening recovery in the tourism sector. The
Thai baht will appreciate slightly and the Bank of Thailand (the central bank) will switch to a neutral
monetary policy in 2024.
Foreign Relations:
Thailand is a prominent member of the Association of Southeast Asian Nations (ASEAN) and has
played an active role in regional diplomacy. It has hosted numerous ASEAN meetings and summits
and seeks to promote cooperation and stability in Southeast Asia.
The latest Global Peace Index puts Thailand 103rd out of 163 countries with good marks for having
limited access to weapons and a low homicide rate, middling marks for personal safety, and poor
marks for having a high incarceration rate.
Thailand maintains diplomatic relations with a wide range of countries across the globe. Key partners
include the United States, China, Japan, European Union member states, and neighboring countries
such as Cambodia, Laos, and Myanmar. The country has also been strengthening its ties with
countries in the Middle East and Africa.
Thailand is known for its trade-friendly policies and has established economic partnerships and free
trade agreements with various countries and regions. It is a member of the Asia-Pacific Economic
Cooperation (APEC) and participates in the Regional Comprehensive Economic Partnership (RCEP),
which is one of the world's largest trade agreements.
Thailand is a member of several international organizations, including the United Nations and its
specialized agencies. It plays an active role in regional forums and is involved in issues related to
environment, public health, and development.
Thailand is a major player in the global economy and is engaged in trade and investment with a
diverse range of countries. It has been a popular destination for foreign investment and is known for
its export-oriented industries, particularly in the agricultural and manufacturing sectors.
Economic structure
Impact of COVID 19
The consequences of the COVID pandemic were not insignificant in Thailand 2020. Overall, gross
domestic product in 2020 fell from 543.98 billion US dollars to 500.46 billion US dollars. With a
drop of 8.0 percent, the economy in Thailand suffered more significant losses than other countries.
The tourism sector alone slumped by around 76 percent. The unemployment rate rose from 0.7 to
1.1 percent. The country's gross debt increased by 19.6 percent. The inflation rate fell from 0.7
percent previously to -0.8 percent by the end of 2020.
In 2021, there was already a recovery and the gross domestic product increased to 505.57 billion
US dollars (=92.9% of 2019).
Economic indicators
The essential economic performance of a country is reflected by the gross domestic product, the
total of all goods and services sold. Worldwide gross domestic product in 2022 was at about 12,607
USD per capita. GDP in Thailand, on the other hand, reached USD 6,909 per capita, or 495.34 billion
USD for the whole country. Thailand is therefore currently ranked 29 of the major economies.
As per the current year, Thailand’s GDP growth rate is 2.7. The GDP is 512.19 and GDP per capita is
7.3 thousand.
The average monthly income in Thailand is 603 US Dollar per capita.
Inflation in Thailand in 2022 was around 6.08%. Within the EU, the average in the same year was
8.83 percent. In the United States, it was most recently 8.00%. Which has dropped to 1.5% in the
current year.
The index for perceived corruption in the public sector is 36, which is below average by global
standards.
The unemployment rate as of 2022 is 0.86% which has declined from the past 2 years from 1.1% in
2020 and 0.99% in 2021.
In the Global Innovation Index, Thailand ranked 43rd in 2022 with 34.9 points. The index is calculated
annually by the World Intellectual Property Organization (WIPO) and most recently included 132
countries. Out of the 2,000 largest listed companies in the world, 14 originate from Thailand.
Major industries:
1. Manufacturing: The country’s manufacturing sector plays an important role,
contributing 27 percent of GDP in 2021. Over the last fifty years, Thailand has built
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up a robust manufacturing sector. It is now keen to attract investments for mid/hightech manufacturing.
Electric Vehicles: The Thai government wants Thailand to evolve into a base for
electric vehicle (EV) production. EV manufacturers are attracted by Thailand’s welldeveloped automotive supply chains, which have garnered its nickname ‘Detroit of
Asia’. Before the pandemic, Thailand had the largest automotive industry in
Southeast Asia and the 10th largest in the world. Additionally, Thailand plans to
attract 400 billion baht (US$12.08 billion) in investments over the coming years and
support the production of 1.2 million EVs and 690 charging stations by 2036.
Electrical & Electronics: The exports of electrical and electronics (E&E) products
amounted to over US$42 billion in 2021, leading other major export groups, such as
automotive, machinery, and food. Before the pandemic, Thailand’s electronics
manufacturing sector was the 13th largest hub in the world, with most large-sized
manufacturers focusing on the production of integrated circuits, hard disk drives,
semiconductors, diodes, and capacitors.
Medical devices: Thailand’s healthcare industry is a priority sector for investment as
part of the government’s Thailand 4.0 policy. The government wants to position the
country as a medical hub in the region, in particular for medical tourism and exports
of medical devices. In 2021, the value of Thailand’s medical devices industry was
approximately US$6 billion, and over 80 percent of local production was exported.
Most medical devices produced in Thailand are those that do not require complex
technology or are single-use devices, such as rubber gloves and syringes.
Agriculture: A country endowed with fertile soil and favorable weather cycles,
Thailand possesses the right attributes to be a global agricultural powerhouse. At
present, agriculture accounts for six percent of Thailand’s GDP but employs one-third
of the country’s total workforce. Thailand is a leading global exporter of canned
pineapples, frozen shrimp, tapioca products, canned tuna, and rubber. The
agriculture, hunting, and forestry sector contributed approximately 1.38 trillion baht
(US$37.9 billion) to the GDP in 2021. Thailand is eager to transform its agriculture
sector through the use of new technology, which presents opportunities in areas such
as smart farming to ease industrial operations and increase production yields.
Precision agriculture can help increase crop yields in different ways.
Tourism: The economic impact of COVID-19 continues to be felt in Thailand’s tourism
industry despite the country reopening its doors to international tourists and facing a
tough rebuild. The industry accounted for 18-20 percent of the country’s GDP in
2019, when nearly 40 million international tourists visited the kingdom and generated
approximately $US64 billion in revenue. As such, the government hopes to attract up
to 10 million foreign tourists for the remainder of 2022.
The top exports of Thailand are Office Machine Parts , Integrated Circuits ,
Cars , Delivery Trucks, and Motor vehicles; parts and accessories,
exporting mostly to United States ($45.3B), China ($37.7B), Japan
($25.1B), Vietnam ($12.5B), and Australia ($12.1B).In 2021, Thailand was
the world's biggest exporter of Rubber ($5.62B), Other Fruits ($4.48B),
Other Prepared Meat ($2.55B), Starches ($1.67B), and Cassava ($1.29B).
Thailand also exports to Singapore, Indonesia, India, etc.
The top imports of Thailand are Crude Petroleum ($20.1B), Integrated
Circuits ($11.3B), Gold ($8.05B), Petroleum Gas ($6.65B), and Motor
vehicles; parts and accessories (8701 to 8705) ($6.49B), importing mostly
from China ($69.6B), Japan ($31.2B), Malaysia ($12.7B), United States
($12.2B), and United Arab Emirates ($9.1B).