In fact, A major problem confronting Thai industrialization lies in the fact that the
employment share of manufacturing industry did not accompany the production share of that
industry. Surprisingly, between the 1950s to the early 1990s manufacturing industry could
contribute 26 per cent of GDP (in 1990), albeit employing only about 10 per cent of the
labour force. It can be concluded that this weak labour absorptive capacity has become a
serious obstacle to progress in agricultural modernization and has resulted in the
accumulation of urban poor who migrate from rural to find jobs in Bangkok. The formal
sector is not easily entered with a low level of skill so that the last resort is always in the
informal sector. Nevertheless, one unintended outcome stemming from this dualistic model
(unbalanced growth strategy) is unquestionably over-urbanization. There can be no doubt
that the boundaries of Bangkok have expanded over time and its ratio of population living in
slum areas remains very high among developing countries. The fact that the urban informal
sector is composed of street vendors, peddlers, repairmen, shop assistants, domestic servants