ECONOMIC DEVELOPMENT DURING THE
LAST 20 YEARS
The Fifth Plan (1982-1986), with problems
spilling over from the Fourth Plan period, emphasized
growth with stability, an area-targeting approach,
restoring financial stability and maintaining
“creditability” in the international financial markets, and
restructuring the economy. At the early stage of the Plan
period, the external economic conditions were depressed
and the global economy did not recover as many had
anticipated it would. In response, the government
implemented strict fiscal austerity measures while
developing measures to smooth out the debt profile
(through refinancing and currency swaps) (Abonyi and
Bunyaraks 1989, 37). The austerity policy resulted in the
delay of a number of capital-intensive projects,
including a number of projects under the Eastern
Seaboard Development Program. However, other less capital-intensive projects, including the Rural Poverty
Alleviation Program, were less affected or not affected
at all.