PEST ANALYSIS
•Domestic – content regulation
Political •Export Promotion
•Foreign Investment
•Selective Protection
•Import Bans and restrictions
Economic •First and Second Economic Plan –
Highly Protectionist import substitution
strategy
•Third Economic Plan – Active Phase of
Export Promotion Interventions
•Speculation that Thailand would
became the fifth east Asian tiger
Social
Terrible Social Injustice Persists
• Choking Urban Population
• AIDS epidemic
• ILL-Treatment for impoverished women
•Marcos dictatorship
•Coloni
•Govt. Policy to promote exports of
primary Commodities
•Govt more attuned to the
importance of an industrialization
strategy.
•Large Debt Service burdens
•Expand Exports in Quickest
and easiest way possible
•Failure on poverty,
inequality ,employment and
growth
•Negative annual growth of
-0.5% during 1980s
•Startling inequality, corruption
•Infant Morality, Prenatal Care and
Immunization have to be cut back.
•Child Malnutrition became
rampant.
•Thwarting of land reform
•Devastating rate of deforestation
•Natural resource degradation.
 Introduction

• Comparative discussions on trade strategy of two South East Asian Countries – Thailand and Philippines

• Large Middle Income countries and members of ASEAN

Philippines Thailand
• Population: 76 million 61 million
• GNP: $1,040 $2,010

• Annual per capita GDP growth rate of Thailand – 5% as compared to Philippines – 0.9% during 1965 – 1999.

• Thailand’s debt by the end of 1980s - $13 billion as compared to $23 billion for Philippines.

• Thailand’s debt used for Productive Investment whereas money borrowed by the Philippines was largely wasted.

• Relatively more efficient and less corrupt selection of policies of Thailand as compared to Philippines.
 Recommendations- pls add more
• Need for Increasingly sophisticated manufacturing or service
exports for long term growth ; To make these changes,
manufacturers may need access to capital, technical assistance,
market research and advice, worker training and other resources.
• Government Policy aimed at making large differences for good.
• Use of fiscal policy and monetary policy to influence the level of
demand .
• Cut taxes (direct taxes or indirect taxes taxes)
• Cut interest rates
• Increase the level of government expenditure
• Need for skill and technology up gradation to attain international
levels of competitiveness and to be able to offer contemporary
levels of technology.
• Promote inflow of FDI
• Promote import subsitution