It is worth noting that a transformation in Thailand’s economy and society was
prevalent in the post war period. A prominent feature of macroeconomic performance of the
Thai economy is its steady and stable growth into post-war period. The evidence suggests
that the GDP growth rate neither became negative after 1960 nor fell drastically even in the
world-wide recession of the early 1980s. Further, the country has embarked on high and
sustained growth without severe inflation except during the oil shocks of the 1970s which
caused deterioration in its balance of payments and resulted in increased external
indebtedness and domestic inflation. Compared to other LDCs, Thailand has not only ranked
very high in terms of the pace of economic development over the three last decades, but also
performed very well during the downturn of the world economy (see Oshima, 1993; Ranis
and Mahmood, 1992). Its real GDP growth at an average of 4 per cent in the 1950s, 8.2 per
cent in the 1960s, 7.2 percent in the 1970s and more or less 6 per cent in the 1980s. In fact,
over the past few decades, Thai economic growth has been quite good, with rates more
satisfactory than any targeted variables