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 friendly relations with China. However, relations with neighboring Burma have been strained over Burma's alleged support for Thai ethnic guerrillas operating along the Thai–Burmese border. Many Thai logging concerns, often run by the military, have been active in Burma since Thailand's 1988 logging ban at home. Relations with Vietnam are cordial, despite Thailand's opposition to the Vietnamese regime in Cambodia in the 1980s.

Thailand, Indonesia, and Malaysia have liberalized trade to promote development in each country in regions which are distant from their respective capitals.

Thailand maintains close relations with the USA, despite some tension over intellectual property rights and minor trade issues, but no longer has any US military bases on its territory.

The military either ruled Thailand, or played a prominent role in politics, for over half a century from 1932. In 1996, its role in the appointed Senate – hitherto a military stronghold – was reduced. Retired military figures are, however, prominent in the major political parties.

Since 1986, spending has focused on the navy and air force. Naval vessels have been bought from China, Germany, and Spain, and aircraft from the UK, the USA, and Russia.

The main defense concerns are border disputes with Cambodia, Burma, and Laos; the Muslim secessionist movement in the south; and piracy and fishing disputes in the South China Sea.

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.

Deforestation, especially of the watersheds in the north, has led to the increasing severity of both floods and droughts. Particularly serious flooding in the south resulted in a total logging ban in 1988. Illegal logging continues, however. Reafforestation projects, some criticized for using single quick-growing species, will not solve the national water shortage. Intensive prawn farming leaves a legacy of salination. Mass tourism brings pollution problems to resorts, while backpackers lead the way in exposing remoter locations.

Bangkok suffers from huge traffic jams. Its first mass transit system became operational in 1999. As well as the elevated railroad, subway lines are planned. The Chao Phraya river carries most freight. Good US-built roads run to the north and east. A new road corridor through Laos into Vietnam was agreed in 2001.

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.

Political imprisonment is now extremely rare. There is some police involvement in crime, including extrajudicial killings and ill-treatment of prisoners in detention. The king has inspired an opium-substitution crop program. In the south, drug addiction is a major problem and crime is rising. The government has cracked down on music, software, and video piracy.

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.

Tourism is an important contributor to the Thai economy. Tourist numbers fell in the early 1990s as a result of both the worldwide recession and local overdevelopment during the 1980s boom. Although the number of arrivals has since recovered, visitors are tending to seek the less developed resorts. Bangkok's hotel occupancy rates continue to fall as yet more hotels are built. Pattaya beach resort, opposite Phetchaburi has seen such uncontrolled development that sea pollution is now a serious problem, while opposition to the intrusion of large numbers of tourists is growing among northern hill tribes.

Although prostitution is illegal, Bangkok and Pattaya are centers for sex tourism, which thrives despite the state's embarrassment at its effect on Thailand's image. Japanese and German men are among the main clients, while Burmese girls are increasingly recruited as prostitutes. Child prostitution is also a major problem.

There has been a boom in golf tourism, especially among the Japanese. The large number of new golf courses have made Thailand one of the largest golf destinations in Asia. The vast amounts of water needed to maintain the courses is aggravating Thailand's serious water shortage.

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.