Philip Heijmans and Chris Anstey
Amid all the buzz over friend-shoring and reworking global supply chains, India, Vietnam and Mexico get a lot of attention these days. One nation that doesn’t is Thailand. But it wasn’t always that way.Four decades ago, Thailand was leaping ahead at a time when China was just starting to emerge from economic ruin. Global automakers were pouring in so much money that the Southeast Asian nation was dubbed the Detroit of Asia.
Thailand stood out for its political stability in a region still working through the ravages of war. A relatively stable exchange rate and attractive tax regime were further pluses. By 1990, it was racking up double-digit growth as a column in the New York Times proclaimed it the next “tiger” economy. There was, it said, “excitement of an emerging economic and political power in Bangkok.”
That exciting time seems long gone. More than 30 years and three military coups later, Thailand seems incapable of breaking out of its status as a middle-income country. Once way ahead of China in per-capita wealth, today it’s notably behind. The reversal of fortunes illustrates how trajectories can change thanks to self-made errors.
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To be sure, Thailand continues to pursue an export-led strategy. It still draws foreign direct investment (FDI), which relative to GDP hit 50% by 2017.



















