Adding a new dimension
to the project was the expansion
of objective beyond purely
increasing efficiency of the
modern sector to also address the
needs of Thailand’s dual
economy and the urban and
rural underserved communities.
Different from Singapore
and Hong Kong, Thailand’s
unique economy is characterized
by the coexistence of highly
industrialized and modern urban manufacturing sector with a traditional sector outside
Bangkok, employing the majority of the workforce, which account for a relatively
small portion of the country’s GDP.5
Thailand therefore needs a financial system that
can use market forces to support feasible rural development policies and uplift rural
income.
Following this policy shift, the project’s emphasis was divided into urban and
rural parts. The latter of which entailed cross-country studies of countries with
economic profiles similar to Thailand such as South Africa and Bolivia together with
internal analysis of the role of government-owned specialized financial institutions
(SFIs)6
and the manner with which private commercial banks and/or market forces can
profitably cater their services to the underserved.