One year into the worst of its financial and economic crises thailand is adjusting steadfastly to the new environment of sluggish activities rising unemployment, and rapid changes in institutional, legal and regulatory refroms that will have a far reaching impact for decades to come. This episode may be viewed as yet another important miletone in Thailand's economic and financial developments. It is an outcome of dynamic interactions between domestic, external and institutional factors that is set to pave the way for the country's resumption of longterm growth and sustainable development.