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Asia and Oceania
Thailand |
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Country information
Area: 513,115 sq km (196,512 sq miles)
Population: 65,068,149 (2007 estimate)
Capital city: Bangkok (9.4 million)
People (main ethnicity): Thai, Chinese, and Malay
Languages: Thai, Yawi (far South)
Religion(s): Buddhist (94%), Muslim (5%), Other (inc. Christian, and Hindu 1%)
Currency: Baht
Major political parties: Democrat Party, Puea Thai
Government: Constitutional Monarchy
Head of State: King Bhumibol Adulyadej
Prime Minister/Premier: Abahisit Vejjajiva
Foreign Minister: Kasit Piromya
Membership of international groupings/organisations: United Nations (UN), Asia Pacific Economic Co-operation (APEC), Association of Southeast Asian Nations (ASEAN), Asia-Europe Meeting (ASEM), Group of 77 at the United Nations (G77), Non Aligned Movement (NAM), World Trade Organisation (WTO), BIMSTEC, Organisation of the Islamic Conference (OIC) (observer), Organisation for Co-operation and Security in Europe (OSCE) (observer).
ECONOMY
Basic economic facts
GDP: US$245.8bn(2007)
GDP per capita (PPP): US$9,200 (2006)
Annual growth: 4.8% (2007)
Inflation: 2.3
% (2007)
Major industries: services including tourism, manufacturing including computers & parts, vehicles and parts and electronics.
Major trading partners (ranked by value): US, Japan, China, Singapore, Hong Kong, Malaysia, Indonesia and UK.
Exchange rate: £1=Bt50 (1st Q 2009).
In the 25 years before the South East Asian downturn in 1997, Thailand's economy was transformed from being primarily agri-based to one of the most diverse in the region. Active promotion of Foreign Direct Investment resulted in the rapid development of an export-orientated industrial capability driven by a quality labour-intensive manufacturing sector producing products such as computer accessories and automotive parts. The latter helped Thailand to manufacture over one million vehicles in 2005 and become the seventh largest global exporter of motor vehicles.
Thailand's economy has made a good recovery since the Asian financial crisis in 1997 with average annual growth of 5.6% from 2002-2006. But the sharp rise in world oil prices coupled with domestic political turmoil affecting the local economy brought growth down to 5.0% in 2006. Low growth was followed by a military coup in September 2006, at a time when new low-cost regional competitors were on the increase (ie China, India, Vietnam). The Bank of Thailand responded with a series of interest rate cuts in 2007 to counter slowing growth as well as to keep an appreciating currency at bay. Growth for 2007 was 4.8% underpinned by strong exports. There were hopes that the elections in December 2007 would herald increased economic growth, but continued political uncertainty meant growth in the first quarter of 2008 was 5.7%.
Recent History
The Kingdom of Thailand has been ruled since 1782 by the Chakri dynasty based in Bangkok. Formerly called Siam, the country was officially renamed Thailand in 1939 (although the old name was briefly reinstated from 1945-49). 'Thai' refers to the ethnicity of most of the population, as well as having connotations of freedom. Thailand is the only South-East Asian country to have avoided colonisation. In 1932 a bloodless coup stripped the King of his absolute powers, transforming the country into a constitutional monarchy and handing power to a mixed military-civilian government. The military faction soon gained the upper hand and retained it for most of the next 60 years, intervening frequently to end brief periods of civilian rule. While stifling democracy, the military sided with business and bureaucrats in promoting economic development, partly to limit the spread of communism. The resulting expansion of the middle class contributed to growing pressure for civilian rule and a series of confrontations between the military and pro-democracy activists. A confrontation, in May 1992, led to the resignation of the military leadership and civilian rule until 19 September 2006, when there was a coup and a return to military rule.
Elections in December 2007 brought a return to democracy, but political turmoil and polarisation continued and a state of emergency was declared in Bangkok in September 2008. This was lifted a few weeks later, and a new government headed by Prime Minister Somchai, took office. In November 2008 anti-government protestors occupied and forced the closure of Bangkok’s two main airports. In December 2008 the Thai Constitutional Court found the main three ruling parties of the coalition government guilty of election fraud. A new government was formed and headed by Democrat Leader Prime Minister Abhisit Vejjajiva.
INTERNATIONAL RELATIONS
Thailand's relations with neighbours
Foreign policy has focused primarily on enhancing ties with ASEAN (Association of South East Asian Nations) neighbours, China and India. Thailand is a founder member of ASEAN, and takes a leading role in the region. Thailand assumed the Chair of ASEAN in 2008. The Secretary-General of ASEAN, Dr Surin Pitsuwan, is Thai.Thailand's biggest foreign policy challenge has been Burma. The long, fluid border between the two countries sees large numbers of refugees, illegal immigrants and drugs pass from Burma into Thailand. There have been occasional cross border skirmishes between their respective armed forces and terrorist incidents, with several dozen deaths. The Thai/Burmese border was closed between May and October 2002 after one such incident. In December 2003 Thailand initiated the 'Bangkok Process' with Burma and other 'Like Minded Countries' to take forward the process of National Reconciliation in Burma, but this made no progress and is now dormant.
Relations with Cambodia deteriorated sharply in January 2003 when anti-Thai riots erupted in Phnom Penh leading to the burning down of the Thai Embassy and the premises of a number of Thai businesses. Tensions flared again in July 2008 with a territorial row over the Preah Vihear temple, which is in Cambodia but is surrounded by disputed territory.
Thailand's relations with the international community
Thailand was a close ally of the West during the cold war and is a long-term member of the United Nations. It is increasingly active in the international arena and looks to maintain a balance between key partners: US, Australia, China, Japan, EU and ASEAN. Thai armed forces have undertaken peacekeeping duties in Kosovo, Sierra Leone, East Timor, Afghanistan, Indonesia, Iraq and Burundi. Thailand was granted partner status in the Organisation for Security and Co-operation in Europe (OSCE) in November 2000 and held a seat on the UN Commission on Human Rights from 2001-2003. The US granted Thailand the status of Major Non-NATO Ally in January 2004.
Thailand's relations with the UK
The Bowring Treaty of 1855 agreed to establish a British Consular presence in Siam. The first resident British envoy to Siam arrived in 1875. We have had constant diplomatic relations with first Siam and later Thailand ever since.
The UK/Thailand bilateral relationship is close. The UK is, perhaps, the best known of all the European countries. There is a sense of shared traditional values between the two nations, which manifests itself in close educational and cultural contacts.
UK development assistance
Small scale technical assistance is provided through the British Embassy Bangkok from Foreign and Commonwealth Office programme budgets. Recent support has covered a wide range of areas, including combating the commercial sexual exploitation of children, promoting HIV/AIDS awareness, protecting Thailand's unique biodiversity, supporting Burmese refugees in Thailand, and providing peacekeeping and Rules of Engagement training for the Royal Thai Armed Forces and professional rights-based training for the Royal Thai Police.
The Department for International Development (DFID) does not have a bilateral aid programme for Thailand, although they provide support for Burmese refugee camps in Thailand along the Thai-Burmese border (see below). Thailand has also benefited from regional DFID programmes on HIV/AIDS and human trafficking. DFID support to anti-trafficking has been channelled through Save the Children (SCUK) (£2.5m Apr 2006-Mar 2009) and the International Labour Organisation (£6m May 2003-Oct 2008). These regional programmes include work in Cambodia, China, Laos, Thailand and Vietnam, as well as Burma in the case of SCUK. Both organisations have been undertaking analysis and rights protection work for vulnerable women and children migrants in Thailand. They focus on advocacy for migrants who are wrongfully imprisoned or who are exploited at work as well as trying to integrate legal migrants into communities in Thailand – for example working on securing access to primary education and health. The programmes include work with sex workers (including children where identified) but the majority of programming focuses on protection of the far larger numbers of vulnerable migrants in other sectors (for example agriculture and fisheries, and services). Thailand is primarily a destination area for trafficking, although both ILO and Save the Children have also looked at how trafficking routes transit and in a few cases (particularly amongst hill communities in the North) have origins in Thailand.
UK support to Burmese refugees on the Thai side of Thailand-Burma border
DFID is providing support through a grant of £1.8m over three years to the Thai Burma Border Consortium (TBBC) working among displaced Burmese (mainly Karen) people in the refugee camps. DFID’s contribution to TBBC helps to ensure access to adequate and appropriate basic livelihoods through provision of food, shelter, cooking fuel and non-food items for 166,000 refugees.
Diplomatic representation
The British Embassy in Bangkok is staffed by 35 UK-based diplomats and 123 locally engaged staff, covering political, economic, commercial, consular and visa issues. The British Ambassador to Thailand, Mr Quinton Quayle, is also accredited to Laos. The Royal Thai Embassy in the UK opened in July 1882, when Prince Prisdang was received in audience by Queen Victoria, at which he presented his credentials as Envoy of the King of Siam. The Thai Ambassador to the UK is His Excellency Mr Kitti Wasinondh.UK support to Burmese refugees on the Thai side of Thailand-Burma border
DFID is providing support through a grant of £1.8m over three years to the Thai Burma Border Consortium (TBBC) working among displaced Burmese (mainly Karen) people in the refugee camps. DFID’s contribution to TBBC helps to ensure access to adequate and appropriate basic livelihoods through provision of food, shelter, cooking fuel and non-food items for 166,000 refugees.
Recent high-level visits
We enjoy regular dialogue with the Thais at Royal, Ministerial and official level. HM The Queen and the Duke of Edinburgh paid a highly successful state visit to Thailand in 1996. Tony Blair met the then Thai Prime Minister, Chuan Leekpai in 1998 in the margins of ASEM II in London. HRH The Duke of York visited Thailand in December 1999 to participate in the King's auspicious 72nd birthday celebrations, in 2005 following the tsunami and in June 2006 representing Her Majesty Queen Elizabeth II at HRH The King's 60th Anniversary of accession to the throne celebrations, and in December 2007 to celebrate HRH The King’s 80th birthday.
GEOGRAPHY
Area: 513,155 sq km, divided into four administrative regions and 76 administrative provinces (plus Bangkok).
Cities: Bangkok (pop. 9.4m), Nakorn Ratchasima (430,000), Chiang Mai (257,000)
Terrain: Central plain; plateau in Northeast; mountain ranges in North and West; Gulf of Thailand; islands and isthmus joining Malaysia in South
Climate: Tropical; three seasons – monsoon (June to October), cool (November to February), hot (March to May)
Neighbouring countries: Burma, Laos, Cambodia and Malaysia
TRADE AND INVESTMENT
Trade
The EU is Thailand's third largest trading partner and UK exports to Thailand have averaged around £600 million for each of the last five years. 2008 got off to an encouraging start with Rolls Royce securing two aero-engine orders from Bangkok Airways and Thai International worth US$550 million. This has since been followed by another even larger (US$500 million) order from Thai International. In tandem, the UK continues to be an increasingly important market for Thailand, and two-way trade not only exceeded £2.6 billion for the first time in 2007 but last year may see this breaking through the £3 billion barrier. The overall trade position remaining strongly in Thailand’s favour (3.5:1) and the latest trade figures continue to reflect this trend:
UK trade in goods with Thailand 2003-2008 (£ million)
| 2003 | 2004 |
2005 |
2006 |
2007 |
2008 Jan/Nov |
% change |
|
| Exports | 573 | 639 |
642 |
568 |
598 | 655 |
+18.6% |
| Imports | 1687 | 1802 |
1750 |
1964 |
2017 |
2.113 |
+13.6% |
| Total | 2260 | 2441 |
2392 |
2532 |
2615 |
2.768 |
UK - Thailand trade statistics 2008 (Jan/May) (£ million)
|
UK Top 6 exports to Thailand |
|
|
Office machines and ADP equipment |
25 |
| Power generating equipment/machinery |
21 |
| Ores and metal scrap |
20 |
| Electrical machinery, appliance and electrical parts thereof |
17 |
| Beverages |
14 |
| Medical and Pharmaceutical products |
14 |
|
UK Top 6 Imports from Thailand |
|
| Meat and meat preparations |
260 |
| Road vehicles |
254 |
| Miscellaneous manufactured articles |
217 |
| Electrical machinery, apparatus and appliances and electrical parts thereof |
174 |
| Office machines and ADP equipment |
159 |
| Articles of apparel & clothing accessories |
146 |
(Source: DBERR Statistical & Analysis Directorate, Strategy Unit)
Investment
Outward
From 2002-2008, the UK has consolidated its position as the leading EU investor in Thailand with 157 projects submitted (ie one every two weeks), of which 133 (85%) were approved. Most are SME manufacturers such as Triumph Motorcycles, whose UK operation has remained in place but whose Thai manufacturing presence (two plants have opened in the last 5 years and a third shortly to come on line) has facilitated increased global sales/market share.
Other British investors include Boots and Tesco, who have invested £400 million and £1.5 billion respectively over the past ten years establishing their largest operations outside the UK; Standard Chartered, which owns a local bank; and BG, which is the biggest UK investor in the Energy Sector. These are just a few of the members of the 679-strong British Chamber of Commerce Thailand (BCCT), which is the fastest-growing (80% increase in membership over the past 10 years), most active (110+ events per annum) and oldest foreign chamber.
British investment projects submitted to BOI 2003-2008 (Million Baht)
|
|
2003 |
2004 |
2005 |
2006 |
2007 |
2008 |
|
No. of projects |
19 |
23 |
26 |
31 |
24 |
34 |
|
Total Investment |
20308 |
219 |
5336 |
7546 |
6812 |
4568 |
|
No. of projects Approved |
14 |
17 |
26 |
23 |
22 |
31 |
|
Total Investment |
20513 |
2491 |
4703 |
1740 |
2305 |
9004 |
(Source: International Affairs Division, Board of Investment (BOI))
Inward
Thai outward investment - which has never been large and has historically focussed on both the ASEAN region and China (most of the 100 or so wealthy Thai families who dominate the local business environment have Chinese roots) - has been limited to no more than 20-30 companies (i.e. CP Group, Landmark, Thai Beverages etc). The most recent high-profile investments include the purchase of Manchester City FC and the Park International Hotel by the former Prime Minister Thaksin Shinawatra and the TCC Group respectively, although Thaksin has now sold Manchester City to a Middle East consortium.
POLITICS
Recent political developments
From May 1992 to September 2006, Thailand enjoyed uninterrupted democratic governments and significant political reform, including the adoption of a new progressively worded Constitution in 1997. Implementation of the new provisions did not always live up to expectations, but the overall impact on Thailand's political landscape was significant. Former Prime Minister Thaksin Shinawatra's Thai Rak Thai ('Thais Love Thais') Party had held power from January 2001. Mr Thaksin, a former police officer who made his fortune in the mobile phone business before entering politics in his early 40s, dominated the domestic political landscape. However despite being re-elected with an increased parliamentary majority in February 2005, opposition to his government in Bangkok led to the dissolution of Parliament in February 2006. New elections were held on 2 April 2006, but were boycotted by the main opposition parties. In early May 2006 the Constitutional Court ruled the elections unconstitutional and ordered a new round of elections to take place. These were scheduled to take place in October, but on 19 September 2006 Thaksin was deposed by the military in a coup led by the Commander in Chief of the Army, General Sonthi Boonyarathklin.
Following the coup, the 1997 Constitution was suspended and martial law was declared. The coup leaders formed a governing council called the Council for National Security (CNS). The CNS appointed a Privy Counsellor, retired General Surayud Chulanond, as Prime Minister, tasked with heading an interim administration to draft a new constitution and hold elections by the end of 2007. The draft constitution was approved in a national referendum in August 2007 and democratic elections were held on 23 December 2007. The pro-Thaksin People’s Power Party (PPP) won with a slight majority and formed a coalition government, with Samak Sundaravej, a former TV chef and former Mayor of Bangkok, elected as Prime Minister.
Political uncertainty continued, however, and in May 2008 the anti-government People’s Alliance for Democracy (PAD) started demonstrating against the government. In August 2008 these demonstrations grew and violent clashes took place between pro and anti government groups. These led to Prime Minister Samak declaring a State of Emergency in Bangkok on 2 September 2008. On 9 September the Constitutional Court ruled that Samak had violated the constitution due to a conflict of interest. He was removed from office. The State of Emergency was then lifted, and a new government, headed by Prime Minister Somchai, took office in mid-September.
Protests by anti-government groups continued and culminated in the forced closure of Bangkok’s two main airports in November 2008. In December, the Thai Constitutional Court ruled that the three main parties of the coalition government were guilty of election fraud. The parties were dissolved and their executives banned from politics for 5 years. A new government was formed and headed by the Leader of the Democrat Party Abhisit Vejjajiva.
HUMAN RIGHTS
Thailand has a generally good human rights record. Prior to the coup, it was one of the liveliest democracies in the region. The media is relatively free by regional standards, although government interference, issues surrounding freedom of expression and self-censorship have increased in recent years. Public demonstrations are common and usually peaceful. Several regional human rights NGOs are based in Bangkok and Thailand is a popular venue for international human rights meetings. Despite this some recent events have damaged Thailand's reputation on human rights.
The Thai Government's 'War against Drugs' in 2003 attracted adverse international attention. Although official figures record the deaths of over 2,600 people, the Thai authorities claimed that only a small number of these individuals were killed by the police, who were acting in self-defence, and that the remainder were killed by rival drug gangs or their own gang-leaders. Few if any of these deaths have been satisfactorily investigated. In August 2007 the interim government established a Commission to investigate the deaths but the findings were never made public.
Since January 2004, violence in the predominantly Muslim far south of Thailand has killed over 3,000 people. On 28 April 2004 there were attacks on security forces at 10 locations in the far southern provinces of Pattani, Yala, Narathiwat and Songkhla. Over 100 militants were killed, as well as 5 members of the security forces. 32 people were killed in the Krue Se mosque in Pattani. An independent commission set up to investigate the mosque incident reported that Thai security forces had used disproportionate force, but cited certain mitigating factors.
Following a demonstration in Tak Bai, Narathiwat, on 25 October 2004 seven demonstrators were shot by members of the security forces and a further 78 people died while being transported by truck to an army camp. The official report into the Tak Bai demonstration named several officials as responsible for mishandling crowd control and the anti-riot operation. Three Army commanders were transferred but no further disciplinary action was taken.
The Thai Government has a good history of offering safe haven to Burmese – and other -refugees (currently over 160,000 Burmese live in Thailand), though the UNHCR has expressed concern about Thailand’s handling of recent groups of Hmong migrants arriving from Laos and the Rohingya people arriving from Burma.
The Thai Government has used the death penalty as part of its fight against drugs. In 2002, there were 11 executions, mostly for drugs related offences. There were four executions in 2003 for murder and drugs related offences. In October 2003 lethal injection replaced shooting as Thailand's method of execution. There have been no executions since December 2003.
Of the six core UN human rights treaties, Thailand has ratified all except the UN Convention against Torture. Thailand has not signed up to the International Criminal Court.
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