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Thailand's economy in crisis: urgent reforms required!
Thailand is experiencing economic challenges with declining competitiveness and inequality. The need for reform is urgent.
Thailand's economy in crisis: urgent reforms required!
The economic situation in Thailand is not particularly rosy at the moment. Loud Bangkok Biz News The country's competitiveness has deteriorated and is now ranked 30th out of 69 economies in the IMD ranking. This represents a fall of five places compared to last year and raises questions about what the government is doing to turn things around.
A look at the national development planning shows that preparations have been made for the coming years. Over 1 trillion baht annually will be used to find solutions to the country's pressing problems. Dr. Supavuth Saicheua, chairman of the National Economic and Social Development Board, emphasizes Thailand's strong fundamentals, such as its strategic location and rich natural resources. Nevertheless, the path is rocky because various development goals have not been achieved. The average income per capita is USD 7,497.5, although the target for 2030 is USD 9,300.
Challenges in education and healthcare
Another setback is the Human Advancement Index (HAI), which also falls short of expectations at 0.6354. Income inequality is also a problem for those responsible: the ratio of spending between the top 10% and the bottom 40% is 5.22, while the target is below 5 by 2030. Over 50% of the annual budget goes to social welfare, healthcare and education, but without achieving a significant reduction in inequality.
The World Bank is also doing its part. Between 2019 and 2024, it will provide Thailand with around USD 54 million to address everyday challenges. An additional $16 million is planned for 2025. This is done through various platforms, including sustainable finance and urban development, to improve people's quality of life. For example, the World Bank has placed a focus on promoting sustainable finance, which is of great importance for the country's future.
The need for reform
A key problem plaguing Thailand is its deep-rooted structural challenges. Among the most pressing are outdated laws, corruption and a weak rule of law. Public sector efficiency has fallen to 32nd place, marking the largest decline in the last decade. In order to turn things around, Dr. Saicheua implemented comprehensive reforms in many areas—from legislation to anti-corruption.
With all of these challenges, the question arises: What next? Thailand is at a tipping point and must decide urgently whether to persist with its existing shortcomings or change course to realize its full potential. The support of organizations like the World Bank could play a crucial role in finding sustainable solutions.
A look at the initiatives shows that they are working on a variety of topics, from combating income inequality to training financial institutions to deal with climate risks. But whether these measures will be enough to put Thailand on the fast track remains to be seen.