Rebecca Thrun
Thailand
Consequences of Economic Protectionism Following the Crisis of 2008
In repercussion of the Crisis of 2008, Thailand has undergone financial cutbacks to
protect and rebuild what is left of the Thai economy. The crisis has devastated Thailand’s job
market and unemployment rates have sky-rocketed as there is increasingly less demand for Thai
products in over sea markets. Santi Vilassakdanont, Chairman of the Federation of Thai
Industries, has set goals for the expansion of export promotion as well as having the Bank of
Thailand “stabilize foreign exchange rates.”
As approximately 3/4 of Thailand’s GDP (Gross Domestic Product) comes from it’s
exports, Vilassakdanont’s proposal to focus on exports has recently been initiated. Thailand
currently has free trade with Australia, but is willing to set the usual high tariffs on trade aside to
continue building on the global free trade policy, as opposed to individual protectionism.
Make no mistake; Thailand is currently involved in forms of protectionism. For instance,
the government has recently taken money out of long term projects and placed it into the fiscal
funds of shorter term projects in hopes of yielding instant results. The most pivotal of these
projects is the rebuilding of business markets. The government of Thailand is focused on the
restoration of these markets to create employment opportunities and diminish the high
unemployment rates currently facing the nation. The Thai economy is also interested in free
trade agreement to help propel a faster expansion of said markets.
If such a trade agreement is built upon, Thailand would be granted the opportunity to put
it’s economic stability back on to over sea trade, as opposed to suffering under the isolation of
miniscule amounts of trade with protectionism. Thailand is committed to making financial
investments instead of spending in hopes that the continuation and addition to the free trade
agreement will create an abundance of positive investment opportunities.