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Unformatted text preview: Thaksinomics & the impact of the the global economy on Thailand "We must accept that the global economic landscape in the new millennium is much different than in preceding decades," said former Thai Prime Minister Thaksin Shinawatra. The Thai economy has performed quite well in recent years prior to the current "global financial crisis". Prior to the Asian economic Crisis sparked by the collapse of the Thai Baht in 1997, Southeast Asia looked like it was destined for a period of sustained high growth. Ending the era of the "Asian Miracle", the crisis came as a surprise to many. While growth rates have remained positive prior to the meltdown of the US financial institutions, the region had not been able to sustain pre-crisis growth rates. The 01-02 recession had a measurably negative effect on technology exports along with increasing competition with China for available FDI dollars. The Bali terrorist attacks also had a negative impact due to its impact on tourism. The openness of these economies make them vulnerable to terrorist attacks.In general, Southeast Asian economies are quite open to foreign trade, however this also left the country vulnerable to economic and political shocks emanating from outside the country. A portmanteau of "Thaksin" and "economics", Thaksinomics is a term used to refer to the economic set of policies of Thaksin Shinawatra, Prime Minister of Thailand from 2001-2006 which were notably different than previous economic policies employed in Thailand and represented a great hope to many for a robust economic future, particularly in the aftermath of the Asian financial crisis in the 90's. These policies have made Thaksin Shinawatra popular. After an unprecedented four years as Prime Minister, his populist Thai Rak Thai party won a landslide victory in the February 2005 elections, winning 374 out of 500 seats in Parliament. This was the largest number of parliamentary seats ever gained by a single party in Thailand's history. There has been considerable controversy, however, over the role Thaksinomics has played in Thailand's recovery from the 1997 Asian financial crisis. Among the most prominent advocates of Thaksin's economic policies is Morgan Stanley economist, Daniel Lian, who was later revealed to have close personal ties to the former prime minister. Aimed at Thailand's rural people, Thaksinomics is.... or was, a populist set of economic policies aimed at the relatively poor, uneducated rural majority of this developing nation. Thailand Statistics United Nations: Human Development Index, ranked 74 out of 177 countries Nominal GDP growth rate: ranked 123 of 215 (4.4% growth rate) Nominal GDP: 36 of 181 ($173b USD) A.T. Kearney/Foreign Policy Magazine: Globalization Index 2005, ranked 46 out of 62 countries IMD International: World Competitiveness Scoreboard 2006, ranked x out of 60 economies (countries and regions) The Wall Street Journal: 2006 Index of Economic Freedom, ranked 71 out of 155 countries The Economist: Worldwide Quality-of-life Index, 2005, ranked 42 out of 111 countries...
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- Spring '09