Transformations of Thailand - Research Paper Example

? Transformations of Thailand Table of Contents The Background Report 4 Social 4 Cultural 5 Political 5 Economic 6 Historiography 7 Personalities 8 Regional 9 Global trends 10 2. The Case Study Analytical Report 12 Introduction 12 Context 13 Aspects/Functions of the Transformation 15 Lessons 15 Reference 17 Bibliography 19 1. The Background Report Social The civil society in Thailand has undergone rapid change. For a long time the traditional and bureaucratic structure was predominant while the democracy took a backseat. The demands of the civil society remained unmet for a long time. However, this has undergone change. The civil society gas grown and this has developed a participatory political structure in Thailand. This environment has triggered greater abiding of the rule of law and has implemented a system which is more balanced and effective (Thailand Country Report, p.14). The urban elite society has evolved which remains well connected with the senior bureaucrats, international donors and politicians. The loosely cohering and fragmented party system in Thailand has been restructured. The Democratic Party has become highly institutionalized. The number of parties has increased from 1.65 in 2005 to 6 in 2007 and party fragmentation has also increased. The party system was characterized by multi-member system of district election. The civil society has been evolving and is getting more connected to the business associations, bureaucrats and political parties. The workers’ union has been given greater say and responsibility. The NGOs have grown in importance. They have also formed alliance with the top bureaucrats and political leaders. The conditions of female workers and children have improved over the years. In the rural areas, the responsibility of self-organisations has increased. The village community has become more cohesive and their actions have become more collective in nature (Thailand Country Report, p.13). Cultural The rise of disturbances in Thailand was primarily between the Muslims in Malaysia and Buddhist Thailand. This was primarily due to distinct characteristics of the two countries. There was also the emergence of armed insurgencies. Both cultures have a very diverse and distinct linguistic and cultural identity. The Government has implemented policies to allow more cultural space for the Thai-Malays. These efforts were primarily made in favor of preserving the cultural identity of both nations and reducing the impact of the armed insurgency. Thailand has witnessed an increase in the number of programs for creating equal right and opportunities among people (The Asia Foundation, “Resolving Conflict in the South”). The makers of policy have increased their focus on the development of system capabilities to bring about changes in the educational system in Thailand. This has primary aroused out of the response of the global response to the increasing gap between traditional educational capabilities and the demands of the information system (Hallinger & Kantamara, “Introduction”). The Thai schools have introduced lessons on cross cultural studies. The country has become more competent in its ability to adapt to changes. Efforts are being made to build the nation’s abilities to adapt such capabilities. Political Thailand has been undergoing dramatic political transformation. The changes have been incorporated to strengthen the democratic institutions and also as a conflict resolving measure that has been occurring in the Muslim dominated provinces in the southern provinces. The provinces of Yala, Pattani and Narathiwat happen to be predominantly occupied by Muslims. The states lying between Buddhist Thailand and Muslim Malaysia are diverse in terms of culture, linguistics identity from the two countries. The development of government policies in Thailand is ethno-centric which has alienated the Muslim community and aroused armed militancy. Transformation programs have evolved for creating and maintaining equal rights and opportunities in favor of the Muslims (The Asia Foundation, “Resolving Conflict in the South”). The foundation has went into partnerships with the educational institutes in the Southern Province in order bring about reforms in the secular curriculum of the secondary Islamic schools so that the students would have better opportunities of making social and economic advancements. The Asia cooperation also partnered with the World Bank and developed a “a unique participatory training program called Civic Participation in Local Governance (CPLG)” (The Asia Foundation, “Enabling Civic Participation”) for providing the necessary tools, skills and initiative required for the citizens to make them participate in the local governance. Moreover the foundation has worked towards the reestablishment of the responsive institutions of the democratic governance (The Asia Foundation, “Supporting political Development”). Economic Prior to the occurrence of the economic recession, Thailand was one of those nations which had been experiencing very fast economic growth. Between the years, 1967 and 1995, the annual growth of GDP was between 5 and 10 percent. However, the nation has been implementing rapid structural transformations in the economy. The non-agricultural sector has grown faster than the agricultural sector. Employment in the non-agricultural sector has also increased while the former has witnessed shrinkage. In Thailand the contribution of agriculture towards GDP fell from 33 to 11 percent in 1995 (Asian Development Bank, p.9). The changes that have occurred can be attributed to the low income elasticity of demand for food as well as the other products produced by the agricultural sector. A number of economic functions performed by the households have been transferred to the specialist producers. The agricultural sector has contributed towards the process of structural transformation in a number of ways. With the rise in agricultural incomes, the demand for goods and services produced in the non agricultural sector has increased. The productivity revolution in agriculture brought about rise in its efficiency and output. Through the savings and taxes, huge amount of capital flowed from the agricultural sector to provide finance to the non-agricultural sector. There was also rapid emergence of the urban industries and industrialization (Asian Development Bank, p.9). Among other changes Thailand has established a number of market-based financial institutions and financial policies. Historiography From the ancient times Thailand was characterized by a monarchy rule. One of the major transformations was change of absolute monarchy to constitutional monarchy (Hewison, p.60). The most important historical transformation in Thailand was its end of monarchy in 1932. “Thailand has experienced 18 coups, 18 constitutions, and five transitions to various forms of civilian democracy” (Bertelsmann Transformation Index, “History and Characteristics of Transformation”). “A vicious cycle of coups” (Bertelsmann Transformation Index, “History and Characteristics of Transformation”), the emergence of new constitutions and renewed coups has been successful in overshadowing the contemporary history of Thailand. Consequently, the political parties have evolved gradually but they have been weakly cohering. Along with this political unrest, the civil society has also emerged. This includes the development of flourishing non-organizational organisations. There has also been a rise in societal involvement in terms of academics and role of the press has increased. The country has also witnessed annual economic growth rate in double digits since 1986 till 1996. This was coupled by export oriented industrialization and cheap cost of labor. A number of laws attractive for portfolio investment helped in the acceleration of the country’s economic growth. However, since 1997, the country was hit by the financial crisis which plunged the economy into a severe economic morass. The economy is yet to recover from the shock (Bertelsmann Transformation Index, “History and Characteristics of Transformation”). Personalities In the recent years, the western visitors have been showing increasing interest in Buddhism which is the national religion in Thailand. There has been increasing focus on the Buddhist culture, the life of Buddha and his teachings. Thailand has witnessed a spread of Buddhism across the world which has become a representative of the country’s culture, traditions and conventions (Mahidol University, “Introduction”). The country’s competitive position in the world market has improved significantly. The nation’s tourism industry has been promoted. It has become one of the favorite tourist destinations of the world. Thailand has been able to depict am extremely positive image in front of the world (Tat News, “Marketing ‘amazing Thailand’ to the world: Thailand branding”). According to recent study conducted by the “FutureBrand, a leading brand consultancy” (Tat News, “Marketing ‘amazing Thailand’ to the world: Thailand branding”), Thailand was given the fifth rank in terms of authenticity. This is because of its uniqueness and a distinct, genuine and unique culture. Through its tourism image, the nation has been able to build up a brand image for itself in the world. In most of the lifestyle surveys and travel magazines, Thailand has occupied one of the top ten positions for its tourism, entertainment, product value, shopping and recreational facilities. Moreover the country has also become a favorite place for doing business. (Tat News, “Marketing ‘amazing Thailand’ to the world: Thailand branding”). Regional Thailand has absorbed a large number of workers coming from foreign countries during its phase of economic transition. Te emerging labor movements has had major implications for the nation’s process of industrial restructuring and its relationship with countries exporting labor (Tsay, p.3). Thailand has witnessed large amount regional disparities across the nation. The poverty incidence trends have is reflected through the following figure. Figure 1: Trends of Poverty Incidence by Region (Source: APEC, “Trends of Poverty Incidence by Region”) Along with economic development, the country’s regional disparities have also increased. The recent developments in Thailand show that the country needs immediate addressing of the issue. The World Bank along with the “Office of National Economic and Social Development Board (NESDB)” has tried to spread public awareness about the increasing disparity in the country’s population and the consequent result on the social, political and economic situations of the country (The World Bank, “Addressing Regional Disparity: Thailand Experience and International Lessons”). The country has taken steps to mitigate such differences and attain a balanced growth through the development of rural development policies, land reform policies, health and other services. Global trends Thailand has been greatly driven by the advancement of information technology across the world. Along with this, the country has also been influenced by globalisation. The result has been an absolute integration of the economy with the global market. The country’s advancement in terms of information technology has been immense and has been effective in changing the lives of many people. It has contributed towards the economic development of the nation. There has also been the standardization of information technology. Thailand has developed her own standards of information and technology. It has also witnessed the growth and spread of e-Commerce, information security which has facilitated its trade and commerce activities (Koanantakool, p.1). The following table demonstrates Thailand’s short, medium and long term transformations and their effects. Issues Short Term Medium Term Long Term Social Emergence of the civil society (the urban elite society and their association with political leaders and beaureocrats) Rise of the Democratic Party (party fragmentation) Greater participation of the civil society in the government functions and enhancement of long term relationship between the two Cultural Combat cultural diversity to combat armed insurgency Inject more cultural space for both Malayans and Thais, and provision of equal rights and opportunities among the people. Educational system tries to promote cultural awareness Equip people to adapt to cultural changes reduce the gap between educational capabilities and global demands Political Addressing the immediate grievances between the Thai-Malay population Establishing Institutions of democratic governance Social and Economic Advancement of Muslims Economic Growth in the non-agricultural sector through, and increased productivity of the agricultural sector Implementation of financial policies for financial stability Long term economic growth Historiography  The end of monarchy rule which brought about absolute change in the contemporary history of China  Newly formed constitutions and the rise of civil democracy, greater involvement of the society and role of the press  Growth of exports, industrialization accelerating the country's economic growth Personality  Spread of the Buddhist culture, values and traditions  Rise of tourism and emerging into a favorite tourist place  Attainment of global competitive edge and favorable position in the world market Regional  Large labor movements and result in the changes in industrialization, economic growth giving rise to regional disparities  Policy implementation and consequent spread of public awareness  Reduction in regional disparities, and balanced economic growth Global trends  Advancement of IT infrastructure  Creating Thailand's own IT standards and globalisation Facilitation of trade and commerce, e-Commerce and integration with the global market 2. The Case Study Analytical Report Introduction The changes incorporated in Thailand have primarily been economic, social and political and also historical. The most significant of them all has been the end of monarchy and the rise of civilian democracy. The emergence of the civil society and their involvement in the government has been significant over the years. Initially the party system has been loose and without any cohesion within them. This has undergone rapid transformation with the party system becoming institutionalized. The nation has also witnessed rapid transformation of the education system which has become increasingly focused towards meeting the requirements of the global information system. The nation has also demonstrated dynamic changes in its political filed. There was increasing political unrest and conflicts arising out of the differences between the Thais and the Malaysia dominated by the Muslims. At this time the Government intervened and implemented policies for the promotion of equal opportunities and rights for all. There were also changes in the secular curriculum in the secondary schools located in the Southern province. This was primarily done to bring about economic and social advancement and enhance their participation in local governance. Thailand's economic growth was also consistent till 1995. However, after the onset of the global recession the economy was confronted with a huge shock which slowed down its pace of growth. This was the reason behind the structural transformation in the economy. The Government increased its focus towards industrialization and there was an increase in the emergence of urban industries. The non-agricultural sector was greatly promoted and huge amount of capital was invested in it. Finally Thailand’s international presence was transformed and uplifted significantly. The tourism industry has been especially promoted consequently transforming the place into one of the most popular tourist designations in the world. It is needless to say that the economy has made rapid strides in the field of information technology and has evolved as a favorable place for establishing businesses. Context Initially changes were incorporated arising out of the disturbances in the Southern provinces. The region was dominated by corrupt and incompetent and military officials. Government misadministration had alienated the Muslims to a certain extent. Moreover, the regular lifestyle in the region was plagued by intense lawlessness and banditry. It was difficult for the authorities to distinguish whether the criminal acts were conducted by the Thai terrorists or the Muslim Separatist groups (Global Security “Thailand Islamic Insurgency”). Changes in the party system were primarily due to the fact that it was loose and fragmented. The parties were factionalized, regionally structured, and non ideological. The parties remained focused towards seeking power and this was a means of extracting rent. The constitution in 2007 helped in exacerbating fragmentation and factionalism in the party system by not allowing party merging and allowed parliament members to vote against wishes of the party leader. Resulting from the “Thai Rak Thai party’s populist reforms” (Bertelsmann Transformation Index, p.12), the parties began to experience greater popularity and participation. There has also been a rise of the rise of the civil society in Thailand. The business associations and their connections with the bureaucrats and political leaders have been especially influencing the policies of the government. The Thai citizens have extending their consent and support towards democracy. However, there have always been differences in concepts of democracy as perceived by the urban and the rural people. The urban people are more educated and thus prefer “the rule of law and civil societies”. But the rural people place greater emphasis on popular democracy. The semi-authoritarian rule of “Thaksin Shinawatra” was opposed by many Thais. There were skeptics who believed that democracy was being used as a means of maneuvering into office of the autocrats. The voters from the rural areas were also accused of illegally selling their votes which was allowing the corrupt politicians to gain power and control (Bertelsmann Transformation Index, p.13). The economic transitions can be primarily attributed to the fact that rapid economic growth was increasing regional disparities and imbalances. There were wide differences in the income levels of people across different regions. This was the reason behind the government intervening to bring about equal distribution of growth across the nation. The policies however were faced with a number of hurdles before implementation. The government agencies were linked properly which demonstrates deep rooted weaknesses and fragmentation in the innovation system. Moreover, the politicians lacked clear vision of what they tried to achieve. They also lacked support of institutions like “Schumpeterian entrepreneurship and trust”. Thus, although the policies were implemented for positive causes, the lack of focus caused difficulty in implementation (Lund University, p.17). Aspects/Functions of the Transformation The state has played a major role in transforming the society. During the course of the project it was found that the states’ contribution was considerable for transforming the economy and moving it towards stronger economic growth and development. It was also responsible for combating the political unrest prevailing in the economy. The state’s initiative in designing policies for attaining equal opportunities and rights for all citizens was a major step towards curbing political and social disturbances in the Southern provinces. The state initiated approaches were successful in attaining regional balances and equalities. The state has attained success to a certain extent but it would require greater focus and democratic support. External factors have also continued to boost the progress of transformation in Thailand. Despite the depreciation of currency in terms of dollars, the foreign direct investment continues to grow significantly in the country. “For Thailand and Malaysia, inflows increased as a percentage of GDP in 1997” (Thomsen, p.8). The manufacturing sector was specifically benefitted by the FDIs. This has contributed towards economic development of the nation as well. Lessons What follows is that Thailand has been greatly affected by social, political and economic unrest. The beginning of the transformation phase can be attributed to the time when the monarchy ended. Consequently there was arousal of the civil society. The rise of the Democratic Party was an important turning point in the history of the nation. The lesson that is to be learnt is that the state must take active participation for bringing about transformation in any system. This fact holds true for all developing nations. The state has been a major contributor towards growth of the agricultural and non agricultural sector in Thailand. The manufacturing sector has been benefitted greatly. All that is required for proper implementation of policies is a clear vision and a corrupt-free approach towards its implementation. As evident from the project Thailand attained greater success under democracy. However, the private sector also has major role to play. The hospitality and tourism industry in Thailand has flourished immensely under the private sector which has enhanced the country’s global presence. Reference APEC. Trends of Poverty Incidence by Region. 2003. Dealing with Regional Disparities and Inequality. February 16, 2011. < http://siteresources.worldbank.org/INTCAMBODIA/Resources/Priyanut.pdf>. Asian Development Bank. Structural transformation and the role of agriculture. 2000. Economic transformation and rural financial markets in Asia. February 15, 2011. < http://www.adb.org/Documents/Books/Rural_Asia/Rural_Financial_Markets/03Ch02.pdf>. The Asia Foundation. Resolving Conflict in the South. 2010. Thailand. February 15, 2011. . Bertelsmann Transformation Index. Political and Social Integration. 2010. Thailand Country Report. February 15, 2011. . Global Security. Thailand Islamic Insurgency. 2010. Military. February 16, 2011. < http://www.globalsecurity.org/military/world/war/thailand2.htm>. Hallinger, P. & Kantamara, P. 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