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The royal Thai government also specially implemented pro-investment and liberalization policies to encourage economic growth, which includes attracting ‘foreign direct…
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Assignment: Privatization: Country Analysis
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Download file to see previous pages atization is often carried out under pressure from lending institutions such as the Asian Development Bank, World Bank, and International Monetary Fund, and linked to their financial assistance. It is the same situation with Thailand though it claims to have expedited the process of privatization to recover from the Asian financial crises of the late 1990s. The publicly promoted rationale for privatization in Thailand is therefore the same as in many industrialized economies; it is believed that assets are utilized more efficiently than could the public sector, and this has long-term benefits for consumers and supports the growth of the economy.
The government devised a privatization master plan in the summer of 1998 (Paul, 2008: 568) assisted by the World Bank. Privatization plans were actually conceived as early as the 1960s but little privatization had ensued. The precise aims of the new master plan were to increase competition, lay foundations for sustainable growth, reduce government involvement, increase private participation in the economy, free some public resources, promote productivity, reduce public debt, increase private expenditure, and prepare the country for more globalized trade (ibid). The original plans had four parts (Dempsey, 2000):
The promoters of privatization point out the structural benefits, its ability to attract direction investment including investment from foreign sources, and thus the generation of funds and greater scope for profits. Achievement of the original objective of stimulating growth was demonstrated during 2002 to 2004 especially, when Thailand exhibited high rates of GDP. However, this was by no means unprecedented because Thailand was doing well economically in the 1960s and 1970s as well when the private sector was not as strong. Moreover, after a decade of intensive privatization, Thailand is once again in economic woes although this has mainly been a knock on effect due to declining demand for Thailand’s exports ...Download file to see next pagesRead More
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