Economic Development

Rice and other agricultural crops were long the mainstays of the Thai economy, and farming is still regarded with great respect by Thais. From the mid-1980s, however, a concerted export drive, backed by an attractive climate for foreign investment, triggered and unprecedented economic boom. For several years Thailand enjoyed double-digit growth, and, while the pace slowed in the 1990s, the economy continues to grow at around eight percent annually as Thailand consolidates its position as one of Asia's new "tiger" economies. Raw materials top the country's list of imports, while the leading exports include garments, electrical goods, mechanical equipment, seafood products, gems and jewellery.
Tourism is now the single largest foreign exchange earner in Thailand. The country annually hosts more than six million visitors, but the tourist infrastructure has developed unevenly. Bangkok, Chiang Mai and the beach resorts attract the vast majority of visitors, and have deluxe hotels ranking among the world's best. Other regions, such as the Khorat Plateau, see relatively few visitors and have limited tourist facilities.

Economic success has, unfortunately, been achieved at a price. Transport infrastructure in particular has lagged behind economic growth, resulting in Bangkok's notorious traffic chaos. Commerce and communications are concentrated in Bangkok, putting increasing strain on a capital with a population of some seven million and rising, while the rest of the country largely remains rural.

The new wealth remains concentrated in the hands of a few, and if the rampant poverty associated with some Asian countries is generally absent, there is nevertheless a widening gulf between the haves and have-nots. Education is also failing to keep pace with development. Though Thailand boasts one of the highest literacy rates in Asia, schools and colleges now face the challenge of producting a generation with the skills needed to maintain economic growth in the 21st century.

The environment has taken many blows in the last 50 years, during which forest cover has declined from 70 per cent of the land area to less than 20 per cent. Many animal species have lost their habitats and been hunted almost to extinction. On the positive side, conservation awareness is increasing, and measures are being