The Kingdom of THAILAND
Surface Area (1997)
513,120 km2
Population (1999) millions
61.69 million
Population Growth (1999)
1 % p.a.
Urban Population (1999)
21.3 % of total
Population Density (1997)
119 inh./ km2
GDP (1999) Billions
US$ 123.887
GDP per capita (1999)
US$ 2,008
Monetary Unit
Thai Baht
National Budget (1999)
18.1 % of GDP
Human Development Indicator (1998)
0.745
HDI Rank (out of 174 countries)
76
A. General Information
Geography, Topography and Climate
Thailand is located in the Indochina Peninsula and the Malay Peninsula. The country
borders on Cambodia in the East, Lao P.D.R. (Laos) in the Northeast, Myanmar
(Burma) in the West, and Malaysia in the South. The territorial boundary includes the
Gulf of Thailand (in the South China Sea) and a part of the Andaman Sea. Within
Thailand, several regions are commonly identified: the Central, the East, the North,
the Northeast, the South and the West. Two main rivers, the Mekong and the Chao
Phraya, contribute to various socio-economic activities in the Northeast and the
Central Plain respectively, with numerous tributaries and streamlets benefiting some
other regions. Topographically, Thailand can be characterized by (a) mountainous
areas (particularly in the North and the West), (b) the Central Plain/Chao Phraya
River Basin (in the Central and the southern part of the North), (d) the Korat Plateau
(in the Northeast), and (e) coastal areas and islands (particularly in the West and the
South). In terms of climate, most part of the country belongs to tropical-savanna
zone, while southern region belongs to tropical-monsoon zone (characterized by
longer rainy season). Three seasons can be identified through a year: rainy season
(mid. May-October), dry season (October-mid. February), and hot season or
'summer' (mid. February-mid. May). On average, temperature fluctuates between
about 20°C and 30°C throughout a year. The amount and frequency of rainfalls
varies from season to season, causing both floods and droughts. The Northeast is
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particularly vulnerable to such natural calamities, while it is agriculture-oriented and
the poorest region in the country.
Characteristics and Recent Evolutions of Political System
The Kingdom of Thailand abandoned the rule of absolute monarchy in the 1932
Revolution to adopt a constitutional monarchy. On 11 October 1997, a new
constitution came into force upon the approval of the National Assembly (27
September 1997). Under the new constitution, some changes are being made in the
governance system of Thailand, in which the three powers of executive, legislative
and judicial are separated as follows. The executive branch consists of King as Head
of State, Prime Minister as Head of Government (typically, leader of the largest party
in the ruling coalition), and Cabinet as Council of Ministers (35 members appointed
by PM, reduced from 49). The legislative branch is undertaken by bicameral National
Assembly, consisting of Senate (200 elected members, reduced from 270, formerly
all appointed by the King upon recommendation from the Cabinet) and the House of
Representatives (500 members, increased from 393, elected in combination of a
party list system and a single constituency system). The judicial branch is undertaken
by Supreme Court (with judges appointed by King).
Major political parties include the Democratic Party (with support base in the South
and Bangkok; ruling party in the 1992-1995 and 1997-present coalition
governments), Thai Rak Thai or Thai-Loves-Thai Party (with support base in the
Northeast; established after the 1997 Economic Crisis), Chart Pattana or National
Development Party (with support base in the North and the Northeast; ruling party in
the 1988-1991 coalition government), Chart Thai or Thai Nation Party (with support
base in the Central/West; ruling party in the 1995-1996 coalition government) and
New Aspiration Party (with support base in the Northeast; ruling party in the 19961997 coalition government). Generally speaking, Thai political parties are formed
along with political strategies around elections, rather than ideological/policy
orientation (e.g. conservative, liberal etc.).
With reference to local governance, the following entities are identified: 76 provinces
administered by Provincial Administration Organization (PAO), 745 districts
supervised by PAO, 7 252 sub-districts (tambon) administered by Tambon Authority
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Organization (TAO), and 66 130 villages with elected village heads. Besides this
dominant form, there are special categories of local governance authorities with
semi-autonomy i.e. Bangkok Metropolitan Administration, the City of Pattaya, 147
other municipalities (further divided into cities, towns and communes) and 983
sanitary districts.
Agriculture in Thailand
Thailand's agricultural sector has been constantly declining in economic terms. While
the sector employs about half of the total labor force or over 1/4 of the total
population, it represents 10.2 % of GDP in 1999, dropped from 20.2 % in 1980 and
30.2 % in 1970. Yet, the agriculture sector has been fundamentally contributing to the
development and growth of other sectors, particularly export-oriented food industry
and agribusiness: as of 1993, processed food represented about one third of the total
export of 'industrial' goods. Thailand has long been a net exporter of agricultural
products, and is known as the world's top exporter of rice, cassava products, frozen
shrimp, canned tuna, canned pineapple, and rubber. In addition, it is one of the major
exporters in the world market for frozen chicken, sugar, canned product of other fruits
and vegetables, and fresh fruits. Rubber, pineapples, and seafood are mostly from
the South. Rice is produced mainly in the Central Plain and the Northeast. The
Northeast is also known for its production of livestock and export-oriented cash
crops, particularly cassava. Sugarcane is produced in all regions but the South.
However, the export-oriented agriculture of Thailand failed to feed its population
adequately: about 20% of the total population are undernourished.
Economic Situation
Thailand has been undergoing negative socio-economic impacts of the Economic
Crisis since 1997. Following the capital flight and Baht devaluation induced by the
wide saving-investment gap in private sector, Thailand has experienced (i) massive
insolvency and debt-servicing burden in the financial sector, (ii) decline of export
earnings, (iii) decline of demand for labor, (iv) decline of government revenue,
resulting in (v) low government expenditure, (vi) low wages and (vii) increased
unemployment. One of the most significant social impacts of the Crisis is that
increased unemployment in urban industrial sector had induced the large-scale rural
exodus of jobless migrant workers. In response to the Crisis, a number of
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rehabilitation and impact mitigation measures has been undertaken. An IMF package
of about US$ 17 billion was introduced to support financial and economic adjustment
program with conditionalities over government expenditure on various social
services. The government's immediate response targeted the problems of
unemployment and returned (jobless) workers in home regions, and accordingly
adjusted the 8th National Economic and Social Development Plan (1997-2001) for
increased assistance to the vulnerable and disadvantaged members of the society. In
agricultural sector, US$ 625 million of the Agriculture Sector Program Loan (ASPL)
was initiated in October 1999, contributed by Japan Bank for International
Cooperation (JBIC) and Asia Development Bank (ADB). The ASPL grants the Royal
Thai Government (RTG) for the technical assistance that targets capacity building in
the water sector and restructuring of the Ministry of Agriculture and Cooperatives
(MOAC). Recovery process from the Crisis seems to be on the right track, as far as
macro-level economic performance is concerned. Thai economy registered 4.2% of
GDP growth rate in 1999, far up from -10.2% in 1998, owing largely to export growth
and some fiscal measures to boost domestic demands. One of the key concerns for
enhanced economic recovery is the large share of non-performing loans (NPLs)
across the sectors, including farmers' debts to the Bank for Agriculture and
Agricultural Cooperatives (BAAC).
B. Process of Decentralization in Course
History, Objective and Responsible Agencies
Thailand has held a highly centralized political and administrative system. The roots
can be traced back to the late 19th century, where the conflict of colonial powers in
the Indochina Peninsula necessitated Siam (old name for Thailand) to maintain
independence through centralization of the governance system. It was over half a
century later that local administration was evolved, with the legislation of the Tambon
(sub-district) Council Act in 1957. In 1972, under then military regime, the
Revolutionary Committee Declaration No. 326 was issued to replace the 1957 Act,
which inactivated the Tambon Council by removing the legal status provided by the
previous 1972 Act. The Declaration No. 326 was reversed in 1995 by the Tambon
Council and Tambon Authority Organization Act that aimed at not only recovering the
legal status of Tambon Council, but also further strengthening the local governance
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system as a whole. Since then on, the Royal Thai Government (RTG) has taken a
series of policy actions on decentralization, against the background of continuous
and increasing pressures from various civil society actors. The objectives are to
make decision-making, planning and response mechanisms more accountable,
transparent and participatory, and to solve the exacerbating socio-economic
inequality within the society. Enabled the Decentralization Act in 1999, the RTG has
established the National Decentralization Policy Committee, chaired by Prime
Minister, which oversee the decentralization process as to institutional arrangements
on local administration personnel, financial management of local authorities and
structural improvements amongst local governance units.
Functions, Resource and Autonomy of Decentralized Entities
The entity subject to decentralization is primarily tambon (sub-district). According to
the Tambon Council and Tambon Authority Organization Act (1995), the old system
of Tambon Administration Organization is to be empowered to Tambon Authority
Organization (TAO) composed of TAO-Council Committee (TAO-CC, executive
function) and TAO-Administration Committee (TAO-AC, administrative function) with
numerous responsibilities transferred from line ministries. The TAO-CC is responsible
for maintenance and improvement of social services and infrastructures (e.g.
medical/ health care, education, water distribution, roads, public parks, garbage
disposal and sewage etc.), management of natural disaster and epidemic,
management of natural resources and environment, and prosecution of the work
occasionally assigned by the RTG. The TAO-CC is also capable to undertake
enterprises for the social and agricultural services (e.g. irrigation system, water for
household and agricultural use, etc.) to be provided and maintained within its
jurisdiction. The TAO-AC is responsible for administrative assistance to the execution
of decisions made by the TAO-CC, including preparation of annual and five-year
Tambon Development Plans in line with local problems and national, district- and
province-level development plans, budgeting, prosecution of tasks assigned by the
RTG, management of state properties within the jurisdiction, provision of basic
infrastructures and support for agriculture and cooperative development. The status
of TAO, composed of the TAO-CC and TAO-AC, is scheduled to be granted to all
tambon by Year 2001, on the condition that each tambon is able to collect local tax of
min. Baht 150 000 for three consecutive years. The TAO activities are monitored by
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Provincial Governor and District Chief who play intermediary role between the RTG
and TAO.
C. Decentralization and Rural Development
Decentralization and
Agricultural and Rural Development Policies
In practice, agricultural and rural development policies are not clearly integrated into
the decentralization efforts of the RTG. Agricultural and rural development planning
system is organized in such a way that the planning takes place in combination of
vertical consultation at each conjunction of national, ministerial, provincial, district and
tambon levels, and horizontal consultation between five year plans and annual plans
at each level. On the one hand, as overviewed in the previous paragraph, a number
of responsibilities and capacities in the field of agricultural and rural development are
transferred to Tambon Authority Organization (TAO) from the line ministries.
However, on the other hand, the role and function of TAO in the agricultural and rural
development planning system remains unclear. While TAO is authorized to design
and implement tambon-level annual/five-year development plans in general terms, its
role and function in relation to those of line ministries and other local governance
units within the planning system of the specific issue field are yet to be identified.
Agricultural Support Services and Decentralization
While undergoing the structural reform of itself, the Ministry of Agriculture and
Cooperatives (MOAC) is to facilitate the most localized agricultural planning unit
under the District Agricultural Promotion Office (DAPO), Provincial Agricultural
Promotion Office (PAPO) and the Department of Agricultural Extension (DOAE; the
Ministry of Agriculture and Cooperatives). As local agricultural planning unit,
Tambon-level Center for Agricultural Technology Transfer (TTC) shall formulate
Community Agricultural Development Plan, with expected active participation of
farmers' organizations and other local organizations. The TTCs are also designed to
be a focal point for communication and information transfer on technical knowledge
and experiences on agriculture. After all, the TTCs are kind of government agencies
at local level, imbedded in the vertical administrative system with the MOAC/DOAE at
its apex (i.e. de- concentration type of decentralization program). To the TTCs,
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Tambon Authority Organiztion (TAO) can only 'advise' on agricultural service
provision and project implementation.
Enabling Policies, Constraints and Evaluation of
the Decentralization Process
The needs for policies that enable the process of decentralization such as access to
information on the process, mechanism of evaluation and monitoring (E&M) etc. are
not fully addressed. Besides, there are numerous issues to be reviewed to further the
decentralization process effectively. They include, amongst others, the autonomy of
TAO vis-à-vis local branches of the government authority (e.g. province, district, local
agencies of line ministries) regarding decision-making, personnel and finance, the
coordination between the restructuring process of ministries and that of local
governance system for comprehensive and meaningful decentralization (i.e. from deconcentration to devolution), public awareness and knowledge on the
decentralization process as well as the accompanying participation opportunities,
rights and responsibilities. Underlying constraints through these issues are reluctance
on the part of the ministries, particularly of finance and interior, to decentralize crucial
financial and administrative responsibilities to local governance units that are limited
in knowledge on regulations and legal affairs as well as capacity to mobilize physical
and human resources at local level. In making the decentralization 'process' and its
'consequence' more accountable and transparent for citizens at local level, the roles
of private sector agencies and civil society organizations are crucial, in addition to the
political will of the RTG and its public agencies.
Prospect
The effective execution of a number of progressive principles for various reforms
stipulated in the Constitution, including decentralization, critically depends upon the
subsequent legislation of organic laws and their application. What is critical to the
reform processes in the context of decentralization would be collaboration amongst
various social, political, and economic actors that include those who opposed to the
Constitution in its drafting process, notably bureaucratic forces at national and local
levels.