Introduction
Thailand is a country located in south East Asia and is commonly referred to as the kingdom of Thailand and has been popular for having had the most reigns in the entire world.
Economic analysis entails the study of supply and demand especially where natural resources are concerned due to their scarcity that is in most cases surpassed by the human beings demand and chances of overexploitation are high. It can also be termed as the strategic approach that is taken to evaluate the most favorable ways of using the scarce resources for maximum satisfaction and productivity.
It involves looking at the various aspects that affect the economy of a given country and how the different resources are utilized and distributed. Factors such as population and its distribution, the natural resources and their distribution and exploitation, development projects among others are put into consideration when evaluating a specific country’s economic analysis.
This paper gives an in depth discussion on Thailand’s Economic analysis by looking into the different aspects associated with the country’s economy with much emphasis being given to the population, the economic statistics and activities, the minerals and other resources available, the mode of transportation and the infrastructure present, the communication systems that are utilized and the general working conditions that are present in the country.
Population
Thailand is a big country in terms of physical size and it is ranked as the 50th largest country in the world. It has a surface area of approximately 513,000 km2. The population that occupies the area is relatively large amounting to approximately 64 million people.
The population is composed of different ethnic groups for instance 75% of the total population is of Thai origin, 14 % constitutes those of the Chinese origin and 3% is made up of people of Malay origin. The remaining 8% is made up of the minority groups that are in the country for instance the Khmers, the Mons among others. Migration is an aspect of concern in Thailand and it ought to be considered when it comes to population issue in the country.
Thailand’s population also consists of some migrants who are either legally or illegally in the country and constitute to the total number of people at any given time. It is also a country that have attracted numerous expatriates from developed nations mainly due to it richness for instance in terms of the natural resources among other things. The Thais, people of Thailand, use Thai as the national language and most of them are Buddhists by religion with few people being Muslims, Christians, Hindus, Sikhs and Taoists.
The adult age group ranges between 18 and 49 years and contribute approximately 69 percent of the country’s total population. The gender ratio at birth is estimated to be 50.49 percent for the males and 49.51 percent females. This ratio however changes during adult age group where the percentage of the females now surpass that of the male coming to around 49.2 percent for the males and 50.8 percent for the females due to aspects like road toll among other factors.
The population in Thailand is not evenly distributed as 69 percent of the population is located in the rural parts of the country, 15 percent live in Bangkok which is the capital city and the most significant urban area in the country, and 16 percent live in other big cities of the country. The population in the urban areas is estimated to be 31 percent, population under the age of 15 years to be 27 percent and the annual growth rate to be 1.1 percent (United Nations Thailand 1).
Economic Statistics and Activity
Thailand is a country that is well endorsed when it comes to economic development and it is involved with a variety of economic activities which are all responsible for the overall contribution of the country’s economic wealth.
Some of the aspects that contribute to the country’s economic growth include exports of different products and the tourism industry that is well flourished due to the presence of various tourist attraction sites for example Ko Samui, Bangkok, Pattaya, Chiang Mai and Phuket and the sunny beaches in the southern part of the country with all contributing to a certain degree of the country’s economic growth.
Mauy Thai which is a Thailand’s popular sport has also formed part of tourist attraction in the country due to its entertainment aspect and its ability to allow for physical fitness. The nightclubs in the Thailand also attract a majority of tourists. Tourism is one of Thailand’s largest economic activities in terms of its contribution to the economy.
The country has been a very popular vacation destination among the Europeans, Americans as well as the Asians as it has a variety of attractive features and sceneries to offer to a diversity of tourists from different locations. Tourism is deemed to be a very critical economic activity in the country and strategies are developed to ensure that more tourists are attracted to the country and the old ones are still retained.
Exports are the other major contributor of the country’s economy and it helped much in the country’s recovery from the 1997 to 1998 financial crisis in Asia with the main destinations for the exports being the other parts of Asia and the United States of America. The exports products are mostly the automotive and electronic related ones. In the year 2005, Thailand’s trade balance was boosted to a great height by the increases exports rate in the motor industry through the production by various companies involved for instance Toyota.
Thailand is ranked among the top ten automobile exporting nations since it is able to produce more than a million cars each year. There has been decreased trade from 2008 to 2009 due to the recession that occurred in the country. Exports products include rice, computers, among others. Other sectors that contribute to the country’s GDP include agriculture sector, industry sector and the services sector (Economy Watch 3).
Thailand has well developed infrastructure and facilities coupled with favorable pro- investment policies which has given it a competitive advantage in various aspects. For instance it was among the best performers in East Asia from the year 2002 to 2004 contributing about 6 percent of the gross domestic product (GDP) growth annually.
The overall growth of the country’s economy has however fallen to a great extent to approximately 4.9 percent as per the year 2005 to 2007. This has been attributed to the persistence political instability or crisis which affected the infrastructure and facilities based projects and also the damaged country’s international image which in a way contributed negatively to the consumers and foreign investors’ confidence hence cutting down the economy’s gross domestic product growth (Ekachai 2).
This is because investors are usually unwilling to invest in a country where there is instability or conflicts to the uncertainty involved. The country’s economy was also affected negatively by the business sector uncertainty which was affected by the September’s 2006 coup that delayed the government’s imposed capital controls. This has affected the business sector to present despite the improvements that have been imposed.
Another notable aspect that has lead to decline in Thailand’s economic growth is the global economic downturn that was experienced in 2008. The continued political unrest in the country is a very influential aspect in the country’s economic growth due to its impact on the projects that are linked to infrastructure and facilities concepts that are directly linked to the growth and development of the economy of any given country.
According to statistics, Thailand is ranked as the second largest economy in the south East Asia with Indonesia being in the lead. The country is however halfway based on the distribution of riches in Asia. This aspect makes it to be ranked as the fourth richest nation. The wealth distribution in Thailand is unevenly distributed among the people with a very big gap between the rich and the poor making the country to be ranked down as opposed to where the wealth would be evenly distributed.
The farmers are the poorest with most of them being landless and owing very little in terms of income. The top (20 percent) usually enjoy more than half of the gross domestic product while the bottom (20 percent) enjoys only about 4 percent. The gap between the richest and the poorest families is too wide (i.e. compared to Thailand’s neighboring states, it is 13 times higher).
This is a problem that is attributed to the inefficient taxation system in the country since it contributes to the economic disparity by treating the rich the same way as the poor or more so allowing for easy tax evasion among the rich. Some policies should however be developed to ensure that the rich are able to support the poor ones however little through paying of the taxes as a way of reducing the disparity.
People in Thailand are grouped into different income classes which include; Upper Upper Class, Lower Upper Class, Upper Middle Class, lower Middle Class, Upper Lower Class, and Lower Lower Class among others depending on the revenue earned (Ekachai 2).
Minerals and Resources
Thailand is a country that has rich natural resources and minerals. Some of them include rubber, gypsum, natural gas, among others. The minerals in Thailand can be categorized into two groups, the export oriented minerals that are mainly used for export purposes and the consumption oriented that are mainly used locally as raw materials in the industries.
Minerals are very essential and they have played a very substantial role in Thailand’s economy for example the provision of raw materials for manufacturing and engineering industries that are mineral based (Zee 1).
The earnings or income attained from the export of minerals is in the decline since the year 1980 and their contribution to the overall export earnings and the gross national product (GNP) is not substantial. For this reason, most of the minerals are now used locally with very few of them being used for export purposes.
Despite the fact that the countries has very rich deposits of the minerals there does not exist an effective policy to govern the exploitation and utilization of the minerals which has led to poor carrying out of the activities. This has in return contributed to the destruction of the environment due to the indulgence in environmentally unfriendly operations and also the poor mineral conservation.
A strategic national policy to govern the natural resources is therefore necessary if the minerals and natural resources are to maintain their importance in the country. The environment is particularly a vary essential aspect that is affected by the industries especially through the overexploitation and destruction of the natural resources that are usually nonrenewable and hence needs care to ensure that they remain essential for the current population and the generations to come.
The government of Thailand should therefore take the initiative to develop strategies aimed at conserving the environment for instance campaigns that sensitize the people to engage in environment friendly operations due the benefits accrued to it. The industries should also take the initiative by themselves as it for their benefit and that of the society at large (Anonymous 4).
Surface Transportation
Transportation in any country is a very essential element of the economy. There are various transportation modes that could be utilized for transportation purposes each with its benefits and drawbacks in terms of convenience and efficiency. Transport in Thailand is varied with no particular mode that can be pointed out to be the chief mode of transport. Buses are however mostly used in the country especially for long distances in the urban areas although airplanes and trains are also used.
The buses are of different sizes and kinds and they charge different prices depending on their conditions. Motorbikes and tuk-tuk on the other hand are usually utilized for short distances in the rural areas as well as the urban areas. Public motorbikes used as taxis are utilized in many cities of the country especially where people desire to be taken to very specific places where other forms of transport are not appropriate for instance the train.
There is also a rise in the use of private automobiles in the country especially for the rich or upper class people and the tourists which has resulted in a lot of traffic congestion in the country more especially the urban areas. Road transport is the most commonly used form of transport that is used to travel across the country with rail being used at a low rate due to the low speed in which the trains move although plans are underway to improve it in terms of speed and convenience.
Air transport is also present although it is not very popular among the people, the main airport being the Don Muang International Airport that is situated in the northern part of the capital city among others. Water is also another mode of transport although it is limited to areas with navigable waterways.
Other forms of transport used in the country include elephants, tuk-tuk and even vanpool used mostly in the rural areas. Pipelines are used for petroleum and natural gas transportation in the country and have proved to be very effective. All in all, the entire transport system in Thailand is well developed with a network of railway lines that move from the capital city, Bangkok, to other cities that surrounds it.
Roads are also well developed in terms of highways and they total up to about 65,000km including the paved and the unpaved roads the former being the majority. The motorway network is nonetheless relatively small as compared to the road highways and it has proved to be very useful in lessening the traffic congestion in the country and the government is even planning to improve the infrastructure in terms of expansion and quality.
There are various ports in Thailand which are managed by the port authority of Thailand (PAT). The two largest ports are the port of Bangkok and the port of Laem Chabang. Others include Chieng Khong, Chieng Saen, Ranong, barge domestic terminal and the Bangkok coastal terminal. The ports are very essential and they enhance the transportation system in the country (Ingram 272).
Communication Systems
Communication system is another very essential aspect in regard to a country’s economy and its success or failure is directly related to the country’s economic growth and development. Communication system entails aspects of information dissemination within the country and also between the country and other nations. The communication system in Thailand is well developed and has linked the country with many parts of the world.
There is excellent connectivity in most parts of Thailand especially in the major cities, provinces, tourist attraction destinations and towns and their vicinities. There is an effective and high quality telephone system in most urban centers of the country for instance the capital city and other cities like Pattaya. There is fixed lines and wireless services that are provided by both the government and private organizations with the wireless service gaining more popularity as compared to the fixed lines service.
Fax service is also highly utilized. Different firms are involved with the provision of the fixed line services and the mobile services (for instance the TT&T, True and Tot are largely involved with the fixed lines while True Move, AIS and DTAC engage in mobile operation services). The internet is also the other form of communication that is utilized in Thailand although it is not to a great extent.
There are numerous cyber cafes where people can easily get access to various sites in the internet which acts as a very informative source of a diversity of knowledge in all fields. People can also access internet from their laptops even in remote areas. The television and radio broadcast cannot be left out when looking at the communication system in Thailand as they play a very great role in the transmission and dissemination of important information pertaining to the country and also around the world.
There are six television (broadcasting) stations that are free to air in the nation and a variety of radio (broadcast) stations (including FM 334 and AM 204). All this forms of communication help to make the overall communication system in the country valuable and in return help the country to always stay in touch with what is happening around the world, which is a very essential aspect in a country if it is determined grow and develop.
The rates charged by different modes of communication in Thailand are different for instance the telephone use charges when using a prepaid Thailand SIM card are relatively cheap and convenient because the incoming calls are free irrespective of the place of their origin.
Working Conditions
There are usually different working conditions in different countries depending on the particular country’s policies in regard to work and the importance attached to the human resource as a unit in the organizations. Some working conditions are conducive and hence allow for maximum productivity while others are unfavorable making the lives of employees very difficult and hamper their productivity due to lack of job satisfaction that is facilitated by motivation.
The working conditions in Thailand are conducive for instance; the salaries earned in are dependent on the job undertaken and there is no exploitation. The working hours in the nation are set at eight hours per day (with an exception of the physically fatiguing work where the maximum numbers of hours that an individual should work per day is condensed to seven hours) and a total of 42 hours in a week.
There is also a provision of at least one hour break in a working day for every employee. Annual leave and public holidays is also an issue of concern when it comes to the discussion of the working conditions in Thailand. Employees in this country have the privilege to enjoy a minimum of 13 public holidays in a year and all are paid.
In case a public holiday coincides with a weekend, there is compensation where the next working day is made a public holiday. An annual leave of at least six days is given to employees who have worked for a considerable period of time. The pregnant women in the working force are given some benefits in terms of maternity leave of 90 days but they are only paid for 45 days which is still pretty fair as compared to when it could be totally unpaid.
A lot of importance is attached to the human resource in Thailand as they are valued as an element through which the country’s growth can be sustained. The culture in the work places emphasizes respect for all as well as the strength of teamwork. Most companies strive to offer attractive salaries and a favorable working environment for the employees as an effort of maintaining them through job satisfaction.
There is also the effort by most organizations to foster the employees skills and knowledge for instance through scholarship programs and in-house training. The labor laws in the country are designed in such a manner that they protect the workers as well as preserving their rights. This is evident as it can be seen in terms of the minimum salary and benefits standards and also the working hours as discussed above. The labor law also provides favorable working conditions and forbids labor exploitation of any kind.
The terms of employment are good for instance in regard to the termination of an employment where both the employer and the employee are protected to ensure that they all to do not suffer as a result of the procedure. The requirements are fair as it needs just some notifications and the necessary payments are made. The relationships between the employers and the employees in Thailand are built upon respect. Social harmony is also emphasized as a way of avoiding conflict in organizations.
There are various Acts in the labor law in Thailand that govern the working conditions of the employees for instance the labor protection Act, the labor relations Act, and the provident fund Act among others. All this Acts play essential roles in protecting the different categories of employees by touching on the various aspects that are associated with their working conditions to ensure that their rights are maintained under all circumstanced (Gross 1).
Employee participation is also a key area to be considered in the analysis of the country’s economy and particularly in the working conditions in major organizations and companies. Employee participation can be termed as the percentage of people who have attained the active age in regard to what they can contribute to the country’s economy including those who are already employed and those seeking for employment opportunities.
The composition could also include the retired people, the students, home makers and even the disabled among others and their participation in economic growth and development. Thailand has relatively high employee participation as compared to countries like Korea, Brazil, Australia, Mexico, Philippines, South Africa and Germany. The participation of males surpasses that of the females in the country as the case is the same in most countries (Gross 2).
Conclusion
Thailand’s economy is characterized by rapid growth that was experiences in 1985 but was disrupted by a recession towards the end of 1997. There was great economic growth before the recession with an average of 7 percent per year which is way too high.
Some of the aspects attributed to the economic growth in the country include the policy reforms that enhanced trade to a great extent, low wages and more importantly the strategic economic management that lead to low inflation rates and hence a stable exchange rate which is very essential for economic growth and development. Apart from encouraging the domestic savings and investment in the country, the above factors also contributed to foreign investment which in return boosted the economy of the country.
The recession in 1997 to 1998 is associated with the fall of the banking system in the country as a result of excessive lending of cash. The country’s economy is however relatively stable due to the many benefits that are associated with the county for example the tourism sector and the availability of rich minerals which are able to support the country through both local and foreign earnings.
The effective transport and communication infrastructure is also a contributing factor towards the economic growth in the country as they allow for efficiency, effectiveness and productivity in the various economic activities that people are involved in. The labor laws and the improved working conditions also foster the economic growth in the country through hard work that is aimed at bringing about mutual benefits.
Works Cited
Anonymous. “Thailand Economic Analysis”. Oppapers.com, 2011. Web.
Economy Watch. “Thailand Economic Statistics and Indicators.” Economy watch, 2011. Web.
Ekachai, Sanitsuda. “Thailand’s Shocking Inequity Statistics.” Bangkok post, 2009. Web.
Gross, Ames. Human Resource Issues in Thailand. Spring: Pacific Bridge, 1996.
Ingram, James. Economic change in Thailand, 1850-1970. 2nd Ed. California: Stanford University Press, 1971.
United Nations Thailand. “Thailand Info.” United Nations Thailand, 2008. Web.
Zee, Vander Eric. “Thailand – Economic Activity.” Grand Valley State University, 2002. Web.