ABSTRACT
Thailand has achieved impressive growth rates, averaging over 7 percent per annum from I960 to 1980 and soaring to over 12 percent. The country is referred to as the leader of the next wave of the newly industrialized countries. The pace of economic development was achieved in spite of several major shocks in the world economy and significant trade and account deficits that threatened the stability of the Thai economy. The ability of the Thai economy to respond to the adverse external environment in the 1980s was undermined by serious weaknesses in domestic policies and structural imbalances. By the late 1970s, Thailand was suffering from declining land availability, exhaustion of the domestic market, domestic price distortions, and excessive liquidity creation. Since 1986, the economy has experienced unprecedented growth driven by exports of manufactured goods. The rapid change in economic conditions has had considerable impacts on income distribution and the overall welfare of the Thai people.
