Economic systems and institutions in Thailand

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Economic systems and institutions in Thailand

Introduction

Thailand is a newly industrialized country. The country’s economy is highly reliant on exports which account to over two thirds of the countries, gross domestic product. The country has a gross domestic product of around three hundred and fifty billion US dollars. Its economy is estimated to have experienced a growth of up to 6.5 per cent. The country’s industrial base has developed and the service sector as well. The Thai economy is one of the most rapid growing economies in the world. It has in the recent past managed to diversify its economy. The country has a population of 65 million people. A whole thirteen percent of the total population is below the poverty line. The unemployment rate stands at 0.7 per cent while the inflation rate by the end of last year was 2.09 per cent. The economy is dominated by the automobile industry, tourism and financial services. The economy is also slightly agronomic as agriculture is one of the predominant activities.

(2) Discuss how the country’s economic performance has been shaped by its economic system. Some variables to consider are inflation, unemployment, growth, income distribution and balance of payments

The country has been experiencing a steady economic growth for quite some time now. It has even been recognized by the World Bank as one of the great development success stories in. Inflation, which can be termed as a steady rise in the prices of goods and services in the economy over a period of time, has reduced by great levels from 65 to 13 percent in the last twenty years. The rate of unemployment has also significantly dropped compared to the past years. The country happens to have the least unemployment in the country has experienced an expansion in the gross domestic product up to 6.5 percent. The income is fairly distributed due to the equitable distribution of resources.

(3) Analyze the economic problems faced by the country and suggest strategies for accelerating growth, attaining sustainable development, reducing poverty and income inequality and decreasing external imbalances.

Thailand like any other country in the world is facing a number of economic problems and challenges. The Thai’s economy has had a steady growth in the last decade and has managed to reach the limits of a developed nation. Economic superiority to a great extent is traceable to the effects of the past and hence there are more futures of turbulence in the future. The political problems that have been faced by the country have to an extent tainted its image to the international and local investors. The problem of rising inflation has also been a major threat to the economic growth in the country. The rising prices of consumer goods in the state have also hampered the economic growth efforts in the country.

However, these problems can be solved by employing a number of measures. One of the major cures of the ailing Thai economy is restoring peace and stability within the political divide in the country. Establishment of an authoritative and well respected government would mean easier economic planning. Further development of the industries would increase the rate of employment. A promotion of self-employment among the citizens would increase economic competition and hence growth. Measures should be put in place to ensure that equitable and sustainable economic growth is achieved.

Works cited

World Trade Organization HYPERLINK "http://www.wto.org/" http://www.wto.org/ &quote; http://www.ssrn.com/ link/development.html" http://www.ssrn.com/link/development.html)

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