growth rate became negative for the

growth rate became negative for the first time in 1997
with a GDP growth rate of –1.4 percent; it reached –10.5
percent in 1998. The economy began to recover in 1999
with real GDP growth of about 4.1 percent, led by the
manufacturing sector and increased domestic demand
boosted by several government stimulus packages.
Private consumption grew moderately, resulting in part
from rising consumer confidence and modestly
expanding farm income. Government stimulus measures,
which included reducing the value-added tax rate from
10 to 7 percent and cutting taxes on petroleum products,
also helped to boost private consumption. Tourism
increased by 10 percent from 1998, partly as a result of
the lower exchange rate, with the number of tourists
reaching 8.5 million in 1999. The private investment
index declined moderately in 1999, compared with its
steep decline in 1998.
The Ninth Plan (2002-2006) was formulated
based somewhat on the nightmare of the 1997 crisis. The
Plan has adopted the philosophy of a sufficiency
economy, a remarkable teaching of the King, which
stresses the middle path, moderation, and due
consideration, in all manner of conduct, as the guiding
framework for national development. The Plan has also
been built on the Eighth Plan’s advocacy of holistic
people-centered development (NESDB 2003, 51).
CONCLUSION
During the past 20 years, Thailand has undergone
remarkable changes. At the beginning of that period, it
seemed that Thailand could be characterized by
remarkably uneven patterns of development, an unusual,
non-colonial mode of incorporation into the global
economy, and generally limited appeal to transnational
corporations and foreign investors. The economic and
political uncertainty that characterized Thailand during
the early 1980s resulted in limited success in formal
structural adjustments; imbalanced sectoral employment,
particularly in the agricultural sector; low levels of
urbanization; concentration of the population and
modern activities in the Bangkok Metropolitan area;
rural-urban development and income gaps; and
underdevelopment of education and training.
Nevertheless, during the late 1980s, Thailand
began to experience a period of growth and structural
change, and became a regional investment ‘hot spot,’
particularly for labor-intensive manufacturing activities
decanting from Japan and the Asian NIEs in search of
lower-cost locations. In fact, over the last 30 years
Thailand has experienced high and consistent rates of
growth. Despite the various political and economic
issues that remain, the Kingdom has shown great
resilience in the face of both internal and external
disruptions.
Yet, during the early 1990s signs began to
emerge that, behind Thailand’s remarkable growth, a