Abstract

Between 1987 and 1997, Thailand experienced a bubble economy. When the bubble economy exploded in 1997, the country suddenly experienced an economic crisis: it was in heavy debt and became financially controlled by the International Monetary Fund (IMF). The problem was caused by the country’s desire to rapidly change itself from an agricultural country to an industrial one, without considering its own comparative advantage in that its climate and resources are more suitable for agriculture. Thailand also wanted to become a newly industrialized country and a inancial hub of Southeast Asia without considering its readiness. These ideas came to a halt after the bubble economy explosion. However, just after Thailand managed to solve its debt problem with the IMF, thegovernment once again declared its desire to turn the country into the ‘Detroit of Asia’, to develop the capital, Bangkok, into the region’s fashion hub and to launch a substantial number of mega-projects, albeit with the existence of a widening economic gap between the rural and urban areas. This economic trend became known as “Thaksinomics” with reference to the name of the Prime Minister at that time, Thaksin Shinawatra. On the other hand, there has been a great deal of criticism of such a trend, which has been seen as a capitalist move promoting the consumerist behaviour of Thai people. There is, therefore, a call for Thai society to review itself, especially in its social and economic development aspects, and a change to a new kind of development with an emphasis on self-reliance andmoderation. This call is based on a Buddhist belief which is reflected in the old Thai way of life. This kind of economy is called “Self-Sufficiency Economy” as opposed to a capitalist-consumerist economy. It is believed that this new direction will help lay a strong foundation for the Thai economy and provide it with a high level of immunity for progress towards a more stable and sustainable economy.