Thailand lies in the heart of southeast Asia. The north, the west border with Burma, and the long Isthmus of Kra, separating the Andaman Sea and the Gulf of Thailand, are mountainous. The central plain is the most fertile and densely populated area, while the low northeastern plateau is the poorest region. Thailand has been an independent kingdom for most of its history and, since 1932, a constitutional monarchy with alternating military and civilian governments. Continuing rapid industrialization is resulting in massive congestion in Bangkok and a serious depletion of natural resources.

There is little ethnic tension in Thailand, and Buddhism is a great binding force. The majority of Thais follow Theravada Buddhism, although the reformist Asoke Santi Buddhist sect, which advocates a new moral austerity, is gaining influence. Its principles have been espoused in particular by the Palang Dharma (PD), which seeks to clean up politics.

The far north and northeast are home to about 600,000 hill tribespeople with their own languages, and to permanently settled refugees from Laos, mostly of the Hmong tribal group.

The large Chinese community is the most assimilated in southeast Asia. Sino-Thais are particularly dominant in agricultural marketing. Most of Thailand's one million Muslim Malays live in southern Thailand, bordering Malaysia. They feel stronger affinity with Muslims in Malaysia than with Thai culture, and this has given rise to a secessionist movement.

Women are important in business, but their involvement in national politics is limited.

Strengths

Success of export-based and import-substituting manufacturing. Rapid economic growth. Natural gas. Tourism. Major world exporter of rice and rubber.

Weaknesses

Concentration of economic activity in congested Bangkok area. Inadequate water storage facilities. Rapid growth of foreign debt. 60% of population in low-profit farming.

Profile

Until the late 1990s, the economy grew at over 9% a year for a decade, driven by a rise in manufacturing and huge overseas investments, especially from Japan. However, as domestic wages rose, Thailand faced stiff competition from China and Vietnam. Thailand also lacked a skilled labor force to develop high-tech production, though it is a big producer of electronics goods.

In 1997 mounting foreign debt and the sharp depreciation of the baht made necessary an IMF-led rescue package. Massive retrenchment and stringent austerity measures followed. By mid-2000 the IMF had ended its direct involvement and was optimistic for future expansion. GDP grew by 4.4% in the following year.

Thailand is a parliamentary democracy. The king is the head of state. Despite his position as a constitutional monarch, he has immense personal prestige. Criticism of the king is not tolerated.

Profile

The Thai political process, dominated by the military for decades until the 1990s, is highly personalized. Parties seldom have strong ideologies. Coalitions are often unstable, while the lack of coordination between coalition partners is a recurring problem. The NAP was the largest party in the parliament elected in 1996, but its leader Chaovalit Yongchaiyuth was prime minister only for a year. His government, blamed for mismanaging an economic crisis, was then ousted in favor of another coalition under Chuan Leekpai of the DP, who succeeded in retaining office for four years despite the volatility of coalition politics. However, in the 2001 elections the new populist TRT triumphed, winning just short of a majority of seats. TRT leader and former deputy prime minister Thaksin Shinawatra formed a three-party government. The NAP and TRT merged in 2002.

Main Political Issues

The military–democratic cycle

Thailand has been ruled by alternating military and civilian governments since 1932. In 1992 promilitary parties chose an unelected army general as prime minister. Violent demonstrations erupted which forced the resignation of the prime minister and precipitated a constitutional amendment obliging future prime ministers to be elected members of the legislature. The military has since maintained a low profile during general elections, and refrained from interfering in government changes.

Congestion in Bangkok

A major issue is the concentration of industry and commerce in the Bangkok area. Uncontrolled development has left it with traffic congestion which not only is among the world's worst but is also a serious hindrance to economic activity. In December 1999 the first stage of a mass transit system – an elevated railroad – was formally opened.

In 1993, the government began offering incentives for relocating industry to the provinces. This is also intended to help distribute wealth more evenly – up to 60% of GDP is generated in the Bangkok area.

Water

The national water shortage, caused by rapid industrialization, is so acute that it is affecting industrial and farm output.

Thailand has minimal crude oil and has rejected the nuclear option in favor of speeding up development of its large natural gas fields. It also has significant lignite deposits for power generation. World demand for Thailand's tin has declined, but recent gold and copper finds offer new potential. Thailand has valuable gemstone deposits. It is also the world's biggest shrimp producer.

High-quality health care is heavily concentrated in Bangkok. Most of the rural population has access to primary health care, and a new scheme to provide care for the poor for just $1 per person was launched in 2001. Trained personnel are aided by village health volunteers, monks, teachers, and traditional healers. In 1993 the decision was taken to improve the skills of primary health workers, as a means to improve rural health care.

However, estimates suggest that only 30% of users can afford to pay. The poor can apply annually for a certificate entitling them to free health care.

High-profile family planning programs are slowing population growth. An effective AIDS prevention campaign has helped reduce the number of new infections, although the government has been in conflict with international drug companies over its right to produce cheaper generic drugs for AIDS sufferers. Prostitutes have benefited from an extensive sex education program.

A poorly developed education system has led to a shortage of skills needed for the expansion of high-tech industries. The Education for All program aims to improve primary school attendance, raise teaching standards, and tackle adult illiteracy.

The government is trying to diffuse to the provinces the people and wealth currently concentrated to a very great extent in Bangkok. The northeast in particular is very poor. The gap between rich and poor is greater in Thailand than in other industrializing southeast Asian states.

Thailand emerged as a kingdom in the 13th century, and by the late 17th century its then capital, Ayutthya, was the largest city in southeast Asia. In 1782, the present Chakri dynasty and a new capital, Bangkok, were founded.

• 1855 King Mongut signs Bowring trade treaty with British – Thailand never colonized by Europeans.
• 1868–1910 King Chulalongkorn westernizes Thailand.
• 1907 Thailand cedes western Khmer (Cambodia) to France.
• 1925 King Prajadhipok begins absolute rule.
• 1932 Bloodless military–civilian coup. Constitutional monarchy.
• 1933 Military takes control.
• 1941 Japanese invade. Government collaborates.
• 1944 Pro-Japanese prime minister and prewar military dictator Phibun voted out of office.
• 1945 Exiled King Ananda returns.
• 1946 Ananda assassinated. King Bhumibol accedes.
• 1947 Military coup. Phibun back.
• 1957 Military coup. Constitution abolished.
• 1965 Thailand allows USA to use Thai bases in Vietnam War.
• 1969 New constitution endorses elected parliament.
• 1971 Army suspends constitution.
• 1973–1976 Student riots lead to interlude of democracy.
• 1976 Military takeover.
• 1980–1988 Gen. Prem Tinsulanond prime minister. Partial democracy.
• 1988 Elections. Gen. Chatichai Choonhaven, right-wing CT leader, named prime minister.
• 1991 Military coup. Civilian Anand Panyarachun caretaker premier.
• 1992 Elections. Gen. Suchinda named premier. Demonstrations. King forces Suchinda to step down and reinstalls Anand. Moderates win new elections.
• 1995 CT wins general election.
• 1996 Early elections; Chaovalit Yongchaiyuth of NAP becomes prime minister.
• 1997 Financial and economic crisis; Chaovalit government falls; DP's Chuan Leekpai prime minister.
• 2001 TRT, led by Thaksin Shinawatra, wins elections.