Executive Summary

1. Background

1.1 1945-1960s: Post-War Reconstruction and Import-Substituting Industrialization After the end of World War II, Thailand's economy was severely damaged with significant impacts on infrastructure and agricultural production. The government initiated efforts to revive the economy, focusing particularly on restoring agricultural output and rebuilding infrastructure (Figure 1.1). In the 1950s, Thailand adopted policies of Import-Substituting Industrialization (ISI) to reduce reliance on imported goods by developing domestic industries. These policies included tariff protections, subsidies and support for state-owned enterprises to spur industrial growth. Figure 1.1: Thailand Agriculture GVA Source: Refinitiv, World Bank, Tradingkey.com 1.2 1970-1980s: Export-Oriented Economic Growth In the 1970s, the Thai government shifted its economic policy towards an export-oriented growth model, promoting economic transformation by encouraging foreign investment and developing labour-intensive industries such as textiles, electronics and food processing. Entering the 1980s, Thailand's economy experienced a period of rapid growth, with an average annual...