During the Third Plan period (1971-1976) the average growth of industrial production was about 8.6 percent per year (Warr and Bhanupong 1996, 72). A few problems may be pointed out, however. First, industry was concentrated in greater Bangkok and the Central region; these areas accounted for about 80 percent of the total industrial output. Second, the industries were generally large scale, and capital intensive, but did not have a sufficient effect on employment generation. Third, the rapid growth of many industries, particularly the import-substitution industries, led to greater dependence on the import of rax materials and equipment. The government’s promotional privileges led to this situation, which in turn caused balance of payment problems. Fourth, the structure of export incentives was not appropriate as the increase in export was due mainly to the favorable global market, as was evident in the case of the textile boom in 1973 and in the case of sugar in 1974. Finally, it was widely thought that the benefits of rapid industrial growth did not reach the majority of the population, and it resulted in rapid deterioration of the country’s natural resources (Warr and Bhanupong 1996, 72).