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THAILAND

Kingdom of Thailand

Prathet Thai

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• GENERAL
• GOVERNMENT
• ECONOMY
• ECONOMIC COOPERATION
• BILATERAL RELATIONS

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GENERAL

Area:

514,000 km2.

Population:

59,100,000 (Dec. 1994).

Capital:

Bangkok.

Ethnic composition:

Primarily Thai, together with Chinese, Malay, and hill tribes.

Major languages:

Thai.

Major religions:

Buddhism (95%).

History:

The Thai people migrated southward from southwest China. The roots of the Kingdom of Thailand reach back to the Sukhothai dynasty of the 13th century. It was followed by the Ayutthaya dynasty (14th to 18th centuries) and the Thonburi dynasty (1767-82). The present Chakri dynasty dates from 1782. Thailand's constitutional monarchy was established through a bloodless revolution in 1932.

GOVERNMENT

Type:

Constitutional monarchy.

Head of state:

King Bhumibol Adulyadej (King Rama IX).

Legislature:

The bicameral National Assembly encompasses an appointed Senate with 270 members and an elected House of Representatives with 391 members.

Executive:

The prime minister is Banharn Silpa-archa; M. R. Kasem S. Kasemsri is the foreign minister.

Domestic politics:

The government of Prime Minister Chuan Leekpai was installed in September 1992 in the aftermath of a bloody crackdown on street demonstrations in May. The Chuan administration sought to strengthen the democratic system and narrow income disparities, and it made progress on such fronts as constitutional revision, financial liberalization, and promotion of investment in outlying areas. Squabbling among the coalition's partners over constitutional amendments and other issues resulted in a number of crises exacerbated by defections from the coalition, but the administration managed to weather these storms and also defeated three votes of no confidence.

Eventually a controversy involving corruption in the implementation of land reform brought the government down, however. In November 1994 allegations of graft in connection with land reform were leveled at the deputy agriculture minister, and he and the agriculture minister resigned. Then on May 19, 1995, following two days of deliberation on a no-confidence vote, the Palang Dharma Party broke from the ruling coalition. Chuan thereupon dissolved the House of Representatives in advance of the vote, and an election was held on July 2.

After recruiting a number of defectors from other parties, the Chart Thai Party, which had been the leading force in the opposition, came out of the election with the most seats (92). Its leader, Banharn Silpa-archa, put together a seven-party coalition in which his main partners are the New Aspiration Party and the Palang Dharma Party. Banharn was designated prime minister on July 13, and his government took office on July 18.

Foreign policy:

Thailand works closely with its ASEAN partners and with Japan and the United States. It is strengthening its ties with the nations of Indochina and seeking to serve as a bridge in the cooperative relations between Indochina and ASEAN.

Military:

Defense budget, 85.6 billion bahts (fiscal 1994). Regular armed forces (conscripted for two years) consist of 150,000 members of the army, 62,000 members of the navy, and 43,000 members of the air force on active duty. In addition, 200,000 members are in reserve. (The Military Balance 1994-95).

ECONOMY

Major industries:

Agriculture:

rice, rubber, tapioca, corn, fruits, sugar;
manufacturing:

textiles, semiconductors, gems and jewelry, electric machinery.
Agriculture remains the foremost industry and employs over half of the work force, but the weight of secondary industries has been growing rapidly.

GNP:

$123.2 billion (1993).

Per capita GNP:

$2,300 (1994).

Real growth rate:

8.4% (1994).

Inflation:

5.0% (1994).

Unemployment:

2.6% (1994).

Trade:

Exports:

$43,840 million; imports:

$53,400 million (1994).

Principal items traded:

Exports:

apparel, machinery, semiconductors, electronic products, shrimp, gems, rubber, rice; imports:

machinery, industrial products, chemical products, mineral fuels and lubricants (1994).

Principal trading partners:

Exports:

United States, Japan, Singapore, Hong Kong, Germany, Britain;
imports:

Japan, United States, Singapore, Germany, Chinese Taipei, Malaysia (1994).

Currency:

Baht. US$1=24.5 bahts (approximate), 1 baht= 4 yen (approximate).

Economic conditions:

A process of high-tempo economic growth beginning in the second half of the 1980s accelerated Thailand's industrialization, and growth rates in the 7%-8% range have been registered in recent years. Installation of new infrastructure has not managed to keep pace, however, and more human resources and supporting industries need to be fostered. Disparities in income levels and environmental destruction must also be addressed.

ECONOMIC COOPERATION

Japan's aid:

During fiscal 1994 loans amounting to 82,334 million yen, grants amounting to 99 million yen, and technical cooperation amounting to 8,102 million yen were extended.

Principal donors:

Japan, Austria, France, Australia, Germany (1993).

BILATERAL RELATIONS

Political:

Japan and Thailand have traditionally enjoyed friendly relations. On the occasion of the centennial of their joint declaration on amity and commerce in 1987, they pledged to further strengthen these ties. Reciprocal visits by members of Japan's imperial family and Thailand's royal family are frequent. In recent years the two countries have been engaged in dialogue and cooperation involving the broader Southeast Asian region.

Economic:

To cope with the strong yen, Japanese companies have been busily moving production facilities into Thailand since the late 1980s, and they are contributing to Thailand's high-tempo economic growth through job creation and export expansion. The economic ties between the two countries are becoming more interdependent, and the expanding bilateral trade is promoting horizontal specialization.

Trade:

Exports to Japan: $8.2 billion, featuring fish and shellfish, office equipment, textile products, rubber, meats; imports from Japan: $14.7 billion, featuring steel, automobiles, electronic products, motors, plastics, metal products (1994, customs-clearance basis).

Investment:

Cumulative Japanese direct investment in Thailand in the fiscal 1951-94 period came to $7,184 million.

Cultural:

Cultural exchange in various fields has long been active between Japan and Thailand; the activities include visits by youth groups and literati and performances of traditional music and dance.

Japanese residing in Thailand:

20,804 (Oct. 1994).

Thai residing in Japan:

13,997 (Dec. 1994).

Visits by eminent persons:

Japan to Thailand: Prince Takamado (1992), Prince Akishino (1992), Prince and Princess Akishino (1992), Prime Minister Kiichi Miyazawa (1993), Deputy Prime Minister and Foreign Minister Tsutomu Hata (1993), Deputy Prime Minister and Foreign Minister Yohei Kono (1994, 1995), Princess Sayako (1994), Prince and Princess Akishino (1995);
Thailand to Japan: Princess Chulabhorn (1992, 1995, twice), Queen Sirikit (1993), Princess Galyani Vadhana (1993), Prime Minister Chuan Leekpai (1994), Princess Maha Chakri Sirindhorn (1994), Foreign Minister Krasae Chanawongse (1995).

Treaties and agreements:

Agreement Between Japan and Thailand for Air Services (1953), Cultural Agreement Between Japan and Thailand (1955), Trade Arrangement Between Japan and Thailand (1958), Convention Between Japan and Thailand for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income (1990).

(September 1995)

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