Modern Thailand- A Fascinating Country with Great Potential

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Explore the vibrant fusion of tradition and innovation in modern Thailand. From bustling cityscapes to serene temples, discover the essence of contemporary Thai culture. Immerse yourself in the allure of modern Thailand as it bursts into the 21^st century.

I have gained a greater understanding of Thailand’s history and its people through interaction and observation, collecting as much information as I can without being intrusive. How will Thailand cope with the 21^st Century?  This article is a bird’s eye view of Modern Thailand.

Modern Thailand – First Some Background Information

Thailand, formerly an absolute monarchy, is a constitutional monarchy today; and the head of state is the King. About the size of France, Thailand’s 70 million people live in 76 provinces, and 10 million (plus) live in Bangkok. Half of the Indochinese peninsula to the West and the northern two-thirds of the Malay Peninsula is Thailand. Myanmar borders Thailand to the north-west; with Laos to the north north-east; Cambodia in the East and Malaysia South.

Climate and Population

The climate in Southeast Asia is tropical monsoon, hot and humid but cooler in the northern areas out of monsoon. 75% of Thailand’s population is Thai and 14% Chinese. 95% are Buddhists, and Muslims, who account for around 4%, live in the south bordering predominately Muslim Malaysia.

Languages

Thailand’s main language, Thai, incorporates many regional dialects.  Other languages such as Chinese, Lao, Malay and Khmer are also spoken. While English is prevalent in government and business and is taught as a second language in most schools and universities.

Production Capabilities

Thailand is one of the biggest rice producers in the world and the Country’s main sources of income come from the export of agricultural products and tourism.

No.	Country	Population	Avg. Annual Rice Production
1	China	1.41 billion	208 million metric tons
2	India	1.39 billion	170 million metric tons
3	Indonesia	273 million	57 million metric tons
4	Bangladesh	166 million	35 million metric tons
5	Vietnam	98 million	28 million metric tons
6	Thailand	69 million	20 million metric tons
7	Myanmar	54 million	23 million metric tons
8	Philippines	113 million	12 million metric tons
9	Japan	126 million	7 million metric tons
10	Pakistan	225 million	7 million metric tons

You should verify the figures with the latest data from official sources for the most accurate and up-to-date information.

The Kingdom of Thailand also produces:

• textiles and garments,
• jewellery,
• electrical appliances,
• computers,
• furniture and
• plastics.

Natural resources are:

• tin,
• rubber,
• natural gas,
• tungsten,
• tantalum,
• timber,
• lead,
• gypsum,
• lignite,
• fluorite,
• palm oil, and
• fish.

Employment and Life Expectancy

Unemployment is low at around 1%, and hard physical work is the norm as opposed to brain power. But life expectancy is also low at 69 years for men and 73 for women which surprises me as many people in the rural areas live to a ripe old age; 95 is not unusual. 96% of the population is literate and communications and transport systems are largely efficient.

Poverty

I see no evidence of extreme poverty or lack of life sustaining essentials. It seems Thailand escaped the poverty trap. Food from natural sources is plentiful in the form of wild herbs, fruits, and vegetables. People share easily, but lack of education in the older generations means environmental issues are barely understood and hygiene is generally lacking. Health care is readily available; varying in quality, but ignorance means most people are unaware of basic nutritional needs.

Thailand’s Location

Thailand is strategically located in the heart of Asia. It is the gateway to Southeast Asia and the Greater Mekong sub-region with access to China, India, and the Association of Southeast Asian Nations (ASEAN) – the economic powerhouse of more than 600 million people. Intra-ASEAN trade is worth more than US$1 trillion a year and businesses can leverage Thailand’s position within the ASEAN Free Trade Area (AFTA) and enjoy low customs duties ranging from 0% to 5%. There are enhanced opportunities for numerous industries such as:

• automotive,
• machinery,
• electrical and electronics,
• petrochemicals,
• agro-industry,
• biotechnology,
• fashion,
• renewable energy, and
• high value-added services.

Thailand Infrastructure

The World Economic Forum put Thailand’s basic infrastructure at 46^th place in its 2012-3 Global Competitiveness Report. With;

• state-of-the-art seaports,
• well connected transport systems,
• modern communication,
• IT network and
• industrial estates,

infrastructure is one of Thailand’s key competitive advantages.

The country is well connected both domestically and internationally through an extensive transportation network connecting:

• China,
• Vietnam,
• Singapore,
• Malaysia,
• Myanmar, and
• Laos

Thailand is within a five-hour flight from Asia’s major cities. Thailand’s transport infrastructure has drastically reduced transit times between Bangkok and the industrial zones, while there is provision for convenient and rapid shipping through the deep-sea ports and Suvarnabhumi International airport.

Business environment

Thailand is one of the world’s top locations for ease of doing business. In 2010, the World Bank ranked it 12^th out of 183 countries. The country has long been committed to liberal investment policies and maintaining a business-friendly environment. There are no foreign equity restrictions in the manufacturing sector, and it offers a wide range of investment incentives, support services and comprehensive business-related information to aid foreign business.

The advantage as a location for foreign business is enhanced by the host of Free Trade Agreements (FTA) and Early Harvest Schemes that provide duty-free imports of raw materials and components, as well as duty free access to markets around the world. Thailand has signed agreements with ASEAN, China, India, Japan, New Zealand, and Australia.

Competitive Workforce

Thailand has relatively low labour costs and an exceptionally well-educated workforce. Sixty-one public and private engineering institutes are accredited by the Thailand Council of Engineers. Helped by uncommonly high literacy rates Thailand’s educational institutes produce more than 18,000 engineering graduates and approximately 87,000 general science and technology graduates each year.

A major force behind the long, steady growth of the Thai economy is the country’s vibrant subcontracting industry. Years of invaluable experience held by Thai manufacturers and skilled labour make Thailand arguably the top manufacturing location in Southeast Asia.

Infrastructure upgrade

The Thai Government undertook a £46 billion overhaul of the infrastructure by 2020. One of the flagship economic plans were major upgrades to transport infrastructure to improve connectivity between Thailand and border countries. Thailand was spurred on by the ASEAN Economic Community in 2015. Its vision was to be at the heart of mainland ASEAN and gain from China’s increased physical linkages with the region.

86% of the Government’s planned infrastructure spend, worth around £30 billion, was earmarked for transport improvements, with particular focus on rail development. Whilst investments in the energy and telecoms sectors, along with nationwide airport expansions were also planned. As many industries were already privatised, they were largely sourcing capital from Thailand’s stock market. So, they accounted for little in the planned infrastructure spending package.

Education

93% of the population are literate; meaning those over the age of fifteen can read and write. Education is provided mainly by the Thai government through the Ministry of Education from pre-school to senior high school. The constitution guarantees 12 years of free basic education, and it is mandatory for all children to attend school for 9 years.

Kindergarten pre-primary education is included in the free basic education. And the state recognises Informal education, as independent schools have a significant impact on general education.

Change is slow and in the rural areas and amongst the poorer communities many parents do not adhere to the mandatory nine years laid down by the Ministry. In many instances children are made to work, supporting the family from an early age in the homes and the rice fields. This compounds the lack of sufficient formal education and perpetuates a poorer standard of living in these communities.

It appears the Ministry does not enforce the rules in this regard. Maybe this is because, unlike in western society, Thai culture has historically placed the parents needs or desires above the children’s education.

Employment

Unemployment is generally accepted to be around 1% of the working population which is very low indeed. The reason for this may be because there isn’t any filing for social security benefits for unemployment in Thailand that much. 45% of the working population are engaged in agriculture which is seasonal. They work periodically on farms, and in between they work on building sites, or go to the towns and cities to drive a taxi.

Most Thais who don’t have regular work figure out a way to make some money doing this or that, so their families have enough to eat. Ask any of these people if they are employed and they’ll say yes, even if they sleep all day and drink all night. Saying you’re unemployed is a loss of face, which is taboo. 

Thais are very resourceful. They help each other, don’t need too much to survive and are relatively self-sufficient. This reflects as low unemployment in Thai terms. And there is a freedom in Thailand which allows people to hustle for money with no interference from the government. It generally keeps its nose out of people’s business.

Medical services

Thailand’s medical services have developed well since the 1990’s but more is needed. There is a shortage of general practitioners as most doctors are specialists. This can be problematic as specialists tend to diagnose and treat within the parameters of their speciality.

Patients should be assessed by a general physician prior to seeing a specialist. Unless the patient is competent to self-diagnose, which is rare. The shortage of primary care forces people to have more costly treatment at expensive hospitals than may be necessary.

The British Foreign & Commonwealth Office says many hospitals in Bangkok are up to western standards, but warns they can be expensive.

Dentistry

Many hospitals and clinics provide quality dental services which are affordable, with practices that have skilled dentists and modern, high-tech facilities. Thailand was the first Asian country to achieve the internationally-recognised JCI accreditation. It is an initiative aimed at establishing globalised standards in healthcare quality.

Thai dentists undergo rigorous training, and many do part of it in the USA, UK and Australia. Most dental clinics use the latest technology, including digital panoramic x-ray and 3D CAD/CAM.

Modern Thailand – Post World War II

Thailand has undergone significant changes post-World War II, as the country transitioned between military and democratic governance.

Post-World War II Changes

Following World War II, Thailand’s military government implemented a series of economic and social reforms that helped modernise the country. The government focused on developing the country’s infrastructure – roads, bridges, and airports – to support economic growth. It also encouraged foreign investment, which helped create jobs and increased exports.

In the 1970s, Thailand experienced a period of political instability, which culminated in a military coup in 1976. The military government that took power implemented a series of economic reforms that stabilised the country’s economy and attracted foreign investment.

Fight for Democracy

Thailand has struggled since 1973 to define the political contours of the state and the years have seen a difficult and sometimes bloody transition from military to civilian rule, with several reversals along the way. The populist Thai Rak party, led by Thaksin Shinawatra, came to power in 2001. The urban, suburban, and rural poor loved him for his populist social programmes. But his rule came under attack from the elite who saw danger in his parliamentary dictatorship.

A bloodless coup in September 2006 led to the restoration of a civilian government, under the People’s Power Party, as a successor to Thai Rak.

In 2008 the People’s Alliance for Democracy (PAD) led protests against the government and the Prime Minister, whom they criticised for his ties to former Prime Minister Thaksin. On 26 August 2008, the protesters illegally occupied several government ministries, including the Government House which they ransacked, to force the government to accede to their demands.

The disruption of air and rail travel began on 29 August. In December the Constitutional Court dissolved 3 of the parties that formed the government because of election fraud. After this decision, many previous coalition partners of the government then defected and joined the main opposition Democrat party.

They refused elections to immediately form a new government in favour of the old guard elites. On 3 July 2011, the opposition Pheu Thai Party won a general election in a landslide making Thaksin’s sister Yingluk Shinawatra, Prime Minister.

Post the 2014 Coup

However, the Yingluk Shinawatra period of governance was short-lived due to unrest and continuing protests. Her government were unable to exercise control the occasionally violent protests. So, the military stepped in.

2014

In May of 2014, Thailand experienced another military coup, which led to the establishment of a military government. There were a series of political reforms, including the drafting of a new constitution and the establishment of a National Legislative Assembly.

Despite the changes in government, the monarchy has played an important role in Thailand’s political and social life. After the death of his father, King Bhumibol Adulyadej in 2016, Maha Vajiralongkorn became King. The monarchy is a significant institution, the king is highly respected, and few dare to speak ill of the Royal family for fear of prosecution.

2019

In 2019, Thailand held its first democratic elections since the coup, which resulted in the establishment of a democratic government. The new government focused on economic development, social welfare, and political reform.

COVID-19 – Impact on the Economy and Recovery

Thailand reported its first case of COVID-19 on January 13, 2020, when a Chinese traveler from Wuhan, where the virus was first identified arrived. Thailand, being a popular tourist destination with significant travel connections to China, was a high risk country.

The Thai government acted quickly to control the spread of the virus, screening passengers arriving from affected areas. Those who tested positive were quarantined and borders to non-residents were closed. As the pandemic spread globally, Thailand imposed lockdowns, travel restrictions, and social distancing measures to contain the virus.

Several waves of COVID-19 infections made managing outbreaks difficult. The greatest threat was in crowded areas and migrant worker communities. Testing suspected cases, contact tracing, and healthcare’s capacity to deal with the rising number of cases was handled with efficiency.

Mass vaccination followed and  helped to protect the population and mitigate the impact of the virus on public health and the economy.

The COVID-19 pandemic had a dramatic impact on Thailand’s economy, given its reliance on tourism, exports, and global supply chains. Key areas were negatively affected.

Tourism – The Biggest Sector

In 2019, the year prior to the pandemic, tourism accounted for 18% of Thailand’s GNP. Thailand is a major global tourist destination, and the restrictions on international travel had a severe impact on the tourism sector. The number of tourist arrivals plummeted, leading to a sharp decline in revenue for tourist-related businesses.

They included:

• hospitality,
• transportation,
• entertainment, and
• related services.

The economic repercussions highlighted the vulnerability of an economy when it is overly dependent on a single sector, such as tourism.

Export – Focus

Thailand is an export-oriented economy, and disruptions in global trade and supply chains severely affected exports. The pandemic-induced lockdowns in many countries led to reduced demand for Thai goods which disrupted production. Thus, many industries such as automotive, electronics, and textiles were badly affected.

Domestic Consumption

Lockdowns, social distancing measures, and economic uncertainty led to a decline in domestic consumption. People cut back on spending due to fears of job losses and income reduction. This had a cascading effect on several sectors, such as retail, services, and real estate.

Unemployment and Income Inequality

Job losses and reduced levels of income were prevalent. The pandemic exacerbated existing inequalities, as vulnerable groups, such as informal workers and those in low-wage jobs, were disproportionately affected.

Government Stimulus Measures

The Thai government implemented economic stimulus packages to mitigate the impact of the pandemic. These measures included financial assistance to affected individuals and businesses, tax relief, and infrastructure spending to boost economic activity.

Currency Fluctuations

Influenced by global economic uncertainty, the Thai Baht became unstable. Thereby adversely impacting competitiveness in international markets.

A Positive Outlook

The economic impact was challenging, and the recovery depended on domestic and global factors. The government’s pro-active management of the crisis, vaccination efforts, and the global economic recovery, played crucial roles in determining the speed and extent of Thailand’s economic rebound.

Thailand ranked second best in the world for ongoing COVID-19 recovery

TAT NEWS

New UNICEF survey shows positive news on Thailand’s socio-economic recovery from COVID-19, but poor families continue to face challenges

UNICEF

Protests of 2020–2021

Protests early in 2020 focused on demonstrations against the Prime Minister Prayut Chan-o-cha and the government. Unprecedented demands for reform of the Thai monarchy followed. The dissolution of the Future Forward Party (FFP) in February of 2020 was a key factor.

Prayut was criticised for his 2017 changes to the constitution. And ruling by the Constitutional Court, regarding demands for reform of the Thai monarchy were likened to judicial coup.

Since 2022

The Constitutional Court ruled Prime Minister Prayuth Chan-ocha could stay as Prime Minister, despite opposition insistence that he had exceeded the permitted eight years in office. The Court ruled his term did not start until April 2017, even though he had led the government since the 2014 coup.

The Move Forward Party (MFP) and the Pheu Thai Party, won the May 2023 general election. So, the royalist-military parties lost power. Srettha Thavisin of the Pheu Thai party, became prime minister in August, while Thaksin Shinawatra the party figurehead returned to Thailand many years after his self-imposed exile.

Cultural and Social Aspects

Thailand is a country with a rich cultural and social heritage. And Thai culture is heavily influenced by the cultures and religions of India and Southeast Asia. The history of Thailand is marked by the rise and fall of several empires, each of which left a unique mark on Thai culture and society.

Religion and Traditions

Theravada Buddhism is the dominant religion in Thailand, and it has had a profound impact on the culture and society in general. Buddhism is deeply ingrained in Thai daily life, which is reflected in art, architecture, and festivals.

The most important Buddhist festival in Thailand is Songkran, which marks the Thai New Year. During this festival, people engage in water fights and visit temples to offer prayers and make merit.

Apart from Buddhism, Thailand also has a rich tradition of animism, which is the belief that all things, including inanimate objects, have a spirit. This belief is reflected in many Thai customs and traditions, such as the use of amulets and the practice of spirit houses.

Thailand’s Influence on Southeast Asia

Thailand’s cultural and social influence extends beyond its borders and has played a significant role in shaping the culture of Southeast Asia.

Thai cuisine, for example, is renowned for a unique blend of flavours, and is popular around the world. And Thai martial arts, such as Muay Thai, have gained international recognition.

As the dominant regional power at points in history, Thailand influenced the architecture of its neighbours. Thai styles, particularly in terms of temple architecture and royal palaces, may have influenced architectural development in Laos and Cambodia.

The Kingdom of Thailand in the 21st Century

Thailand has made significant progress in the 21st century, with a growing economy and stable governance. In this section we discuss the economic progress and contemporary challenges Thailand faces.

Economic Progress

Thailand’s economy has grown rapidly since the turn of the century, with a focus on exports, tourism, and manufacturing. According to the World Bank, Thailand’s GDP grew by an average of 4.3% per year from 2000 to 2019. The country has become a major exporter of electronics, automobiles, and agricultural products.

Thailand’s government has implemented policies to promote economic growth. Tax incentives for foreign investors and investment in infrastructure are part of the strategy. Membership of the Association of Southeast Asian Nations (ASEAN) has also provided opportunities for trade and investment.

Contemporary Challenges

Thailand’s constitutional, coalition government was challenged by pro-democracy activists who fuelled protests against the government. The protests, which began in 2020 called for the resignation of the prime minister, a new constitution, and reforms to the monarchy.

The government responded with crackdowns on protests, leading to arrests and charges against activists. The tense situation saw ongoing protests and a polarised political climate.

Despite the upheaval Thailand’s economy remained resilient. And the government regained some popularity by implementing measures to support businesses and workers affected by the COVID-19 pandemic. The country’s tourism industry was hit hard, but the government introduced measures to promote domestic tourism and attract foreign visitors.

Political stability

With growth in 2012 of more than 5 per cent and increasing foreign investment, Thailand was a relative economic success. However, with eighteen coup attempts in eight decades, Thailand’s political arena was still precarious. Protests in 2010 led to arson attacks, military assaults and more than ninety deaths.

The main cause was the fall of former Prime Minister Thaksin Shinawatra, who was ousted in the 2006 military coup. Thaksin Shinawatra was convicted of abuse of power and sentenced in absentia in 2008. The charges were related to a land deal involving his wife while he was in office.

Thaksin fled Thailand before the verdict was reached and remained in exile until 22 August 2023. He returned voluntarily and was first taken to court and then Bangkok prison to serve an eight-year prison sentence. Shortly afterwards the King reduced his sentence to one year.

His many supporters and opponents have battled for political control through street protests, courts, and Parliament, since 2008. The popular Thaksin and his allies won five consecutive elections. So, the authorities have always known that a peaceful resolution was critical to Thailand’s political stability.

Since the 2014 coup the military government successfully quietened the Thaksin Red Shirt supporters. So there were fewer outbreaks of the violence seen under the previous government.

Final Thoughts

In contemporary Thailand, the political landscape oscillates between democratic processes and military influence, marked by frequent coups and power shifts between civilian governments and military-backed administrations.

Technology’s Influence on Daily Life

The widespread availability of smartphones and the internet has revolutionised communication, commerce, and entertainment. Mobile payment systems, social media platforms, and e-commerce have gained popularity, reshaping how Thais interact, shop, and consume media.

Cultural Aspects of Modern Thailand

Thailand embraces a blend of traditional practices and contemporary trends, reflected in a vibrant culinary scene, thriving arts, and crafts, including dance and music. This cultural dynamism showcases Thailand’s rich heritage amidst modern expressions.

Environmental Sustainability

Thailand acknowledges the significance of environmental sustainability and has implemented initiatives to address challenges. They include promoting renewable energy, biodiversity conservation, and regulations to combat pollution and deforestation. But striking a balance with economic development remains a challenge.

Economic Factors Driving Modern Thailand’s Growth

The economy thrives on diverse sectors such as manufacturing, tourism, agriculture, and technology. Its strategic location, skilled workforce, and infrastructure investments attract foreign investment, positioning Thailand as a regional economic powerhouse. Government policies supporting innovation and entrepreneurship further contribute to the nation’s growth and development.

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