ABSTRACT
The World Bank and the International Monetary Fund have hailed Thailand as an excellent example of successful development, relying on a market-based economic system, with minimal government directed industrial policy. From the second half of the 1980s, Thailand's development path has shifted from primary exports and services-led growth to manufactured exports and services-led growth. This chapter looks at Thailand's industrial development and the role of government, particularly with respect to trade, investment and labor. There is no denying that Thailand's development achievement has been private sector-led, with foreign direct investment from Japan and the East Asian newly industrializing countries especially important in the post-Plaza Accord period. The dominant orientation of Thailand's economic policymakers has been growth through trade. Policymakers in Thailand have historically paid special attention to the issue of economic stability because Thailand has long maintained an open economy since the mid-19th century. Thailand has long relied on international trade as an engine of development.
