Economic Background For Investment In Thailand Part 2

The First National Economic Development Plan continually emphasized development in Thailand. The Second National Economic Development Plan continually emphasized the development of infrastructure in such areas as communication and transportation. The Third Plan was named, the National Economic Development Plan, as it combined social economic development along with economic development in efforts to improve the quality of life for all Thais.

The Fourth Economic Development Plan was instituted during the economic recovery period and mans significant Economic and Social Development plan, although there was worldwide economic fluctuation, Thailand concentrated on eradicating rural poverty, increasing domestic productivity and developing the eastern Seaboard area. The Sixth National Economic and Social Development Plan could be lebeled the golden period as the Thai economic growth in every sector was substantially increased. Currently, the Seventh Economic Development and Social Development Plan emphasized equitable income distribution and environmental awareness in order to conserve sacred environmental resources.

Throughout the process of performing the seven National Economic and Social Development Plans, new goals of development to accomplish were growth, stability, employment, income distribution and balance of trade. Each of the seven plans had contributed to outcomes of one or another of those goals. Determining the effectiveness of Thailand: national development is a long process in which the better quality of living and well being of the nation are concerned.

The first plan (1961-1966) : A new era of economic development

The first plan can be divided into two periods, between 1961 to 1963 and between 1964 to 1966: however, these time frames are more for illustrative purposes as no actual National Economic Development Plan had been officially declared. The Plan consisted of a variety of development projects: moreover, statistics and data necessary for economic planning were not available to the planning agencies at that time.

The First Plan succeeded in setting the Thai economy onto a new track. Economic growth increased by 6.1 percent a year. The economy became more balanced by reducing the size of the agricultural sector from 38.3 percent of GDP in 1961 to 33.9 percent in 1966. Although the agricultural sector was a major part of the GDP. This sector become more diversified by producing more new crops.

Thai international Trade traditionally consisted of exporting a small amount of commodities and importing consumer goods. Seventy percent of exports consisted of rice, rubber, tin and teak, but in 1960, these efforts were reduced to 52.6 percent. Imported consumer goods were reduced from 35.0 percent of total imports in 1960 to 25.5 percent in 1966, while the import of capital goods increased from 24.6 percent of total imports in 1960 to 30.8 in 1966.

The Second Plan (1967-1971): The Foundation of the Infrastructure

The Thai economy was now in a new era of development since the initiation of the First Plan. Toward the end of the First Plan.

Thailand had an increase in political conflict. Both internally and externally. These conflicts led to higher government expenditures for bureaucratic administration and for strengthening of internal affairs in order to protect Thailand from external threat. The budget for economic development declined from 30.3 percent of the government expenditure during the First Plan to 17.4 percent in the Second Plan.