Thailand

Informal employment, defined through the lack of employment-based social protection, constitutes the bulk of employment in developing countries, and entails a level of vulnerability to poverty and other risks that are borne by all who are dependent on informal work income. Results from the Key Indicators of Informality based on Individuals and their Households database (KIIbIH) show that a disproportionately large number of middle‑class informal economy workers receive remittances. Such results confirm that risk management strategies, such as migration, play a part in minimising the potential risks of informal work for middle‑class informal households who may not be eligible to social assistance. They further suggest that middle‑class informal workers may have a solvent demand for social insurance so that, if informality-robust social insurance schemes were made available to them, remittances could potentially be channelled to finance the extension of social insurance to the informal economy.

Water-related infrastructure could contribute significantly to the development of the Mekong region. At the same time, poor water infrastructure could lead to development challenges for the countries in the region. Innovation for Water Infrastructure Development in the Mekong Region discusses the challenges facing the region as well as the possible innovative policy options, including those used in Emerging Asian countries, and with reference to the experiences of OECD member countries. It provides analysis and recommendations for the region’s policy makers to consider in their efforts to improve water infrastructure. The report first provides an overview of the socio-economic contributions and environmental challenges of the Mekong River. It then presents some potential new financing options for the development of water infrastructure, using digital tools such as Fintech and blockchain. It also examines the potential of using the spillover effect of tax revenues to attract private finance. It then goes on to discuss the importance of strengthening water infrastructure resilience against natural disasters, including the current COVID-19 pandemic, and finally analyses the challenges of water regulations in the Mekong region.

Thailand is a fast emerging country that aspires to become a high-income economy by 2037. Strong growth has enabled the country to join the group of upper-middle-income economies in the early 2010s and to perform well in many areas. At the same time, the benefits of prosperity have not been shared evenly nationwide and the economic development has taken a toll on the environment. Moving forward, Thailand needs to master three transitions to build capabilities and sustain faster but also more inclusive economic growth: enabling further growth by unlocking the full potential of all Thailand’s regions; developing more effective methods of organisation and collaboration between actors and levels of government; managing water security and disaster risk. Based on the previous volume’s in-depth analysis and policy recommendations, this report suggests a set of actions to support these transitions. The actions focus on the North of Thailand, one of the most diverse and yet poorest regions of the country.

Thailand is a fast emerging country that aspires to become a high-income economy by 2037. Still, Thailand’s growth path has created large disparities that risk obstructing the next stage of development. This report lays out three transitions that Thailand needs to master to build capabilities and sustain faster but also more inclusive economic growth. First, the country should move from a growth path dominated by few and geographically concentrated sources of innovation to one that focuses on unlocking the full potential of all regions. Second, to support a new growth agenda, it should organise multi-level governance and the relationship between the many layers of government more effectively, particularly with regards to financial resources. Last but not least, Thailand should focus on water and environment, moving from a resource-intensive growth path with costly natural disasters to one characterised by sustainable development. In the case of water, this means moving from ad-hoc responses to effective management of water security.

The SME Policy Index is a benchmarking tool for emerging economies to monitor and evaluate progress in policies that support small and medium-sized enterprises. The ASEAN SME Policy Index 2018 is a joint effort between the Economic Research Institute for ASEAN and East-Asia (ERIA), the Organisation for Economic Co-operation and Development (OECD) and the ASEAN Coordinating Committee on Micro, Small and Medium Enterprises (ACCMSME). The report is the outcome of work conducted by the ten ASEAN Member States (Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Viet Nam). Divided into eight policy dimensions, it builds on the previous edition of the ASEAN SME Policy Index 2014. The current edition presents an updated methodology which makes this document a powerful tool to assess the strengths and weaknesses that exist in policy design, implementation, and monitoring and evaluation for SMEs, and allows for a benchmarking of the level to which the ASEAN Strategic Action Plan for SME Development (SAP SMED) 2016-2025 has been implemented. Its objective is to enhance the capacity of policy makers to identify policy areas for future reform, as well as implement reforms in accordance with international good practices. The report provides a regional perspective on recent developments in SME-related policies in Southeast Asia as well as in individual ASEAN Member States.  Based on this analysis the report provides a menu of concrete policy options for the region and for the individual countries.

Thailand has made impressive progress over the past several decades, both in economic and social terms. Sustained strong growth and a rapidly modernising economy have turned Thailand into an upper middle-income country with a strong urban centre. Economic success has brought impressive social advancement. Poverty has plummeted, while education and health services have considerably expanded and improved. These achievements have brought Thailand to a new stage and a new set of challenges. Rising prosperity has not been shared equally across the country and economic transformation needs a boost. The share of those in precarious employment still exceeds half of the working population. The creation of new activities replacing low-productivity ones has slowed while rural migrants and urban poor lack the skills required for modern urban jobs. While Bangkok’s success as a metropolis has been key to Thailand’s transformation, thriving secondary cities are needed that can develop new sources of growth. Experience shows that development is not about getting everything right, but about getting right what matters most. The Initial Assessment of this Multi-Dimensional Review endeavors to identify the challenges and key constraints that must be overcome for Thailand to succeed. It offers recommendations related to informality, productivity and the management of natural resources, particularly water. The next volumes will provide further suggestions for action to address these challenges.

The effects of immigration on the Thai economy are considerable, as the number of immigrants has increased rapidly since the turn of the century. Immigrant workers now contribute to all economic sectors, and are important for the workforce in industrial sectors such as construction and manufacturing and in some service sectors including private household services. Immigration is associated with an improvement of labour market outcomes of the native-born population, and in particular appears to increase paid employment opportunities. Immigration is also likely to raise income per capita in Thailand, due to the relatively high share of the immigrant population which is employed and therefore contributes to economic output. Policies aiming to further diversify employment opportunities for immigrant workers could also be beneficial for the economic contribution of immigration.  How Immigrants Contribute to Thailand’s Economy is the result of a project carried out by the OECD Development Centre and the International Labour Organization, with support from the European Union. The project aimed to analyse several economic impacts – on the labour market, economic growth and public finance – of immigration in ten partner countries: Argentina, Costa Rica, Côte d'Ivoire, the Dominican Republic, Ghana, Kyrgyzstan, Nepal, Rwanda, South Africa and Thailand. The empirical evidence stems from a combination of quantitative and qualitative analyses of secondary and in some cases primary data sources.

This edition of the Southeast Asian Economic Outlook examines medium-term growth prospects, recent macroeconomic policy challenges, and structural challenges including human capital, infrastructure and SME development.  It also looks at economic disparities 'between' and 'within' countries in the region.  It provides coverage for Brunei, Cambodia, China, India, Indonesia, Laos, Malaysia, the Philippines, Singapore, Thailand and Viet Nam. While solid growth is forecast to continue until 2017, countries must address structural issues in order to sustain this favourable outlook. Narrowing development gaps presents one of the region’s most important challenges.