Role of external assistance in the economic development and planning of Thailand : torques and tensions in the American aid program

This report explores the following five major aspects of the overall U.S. aid program to Thailand in the context of the uneasy relationship between security and developmental concerns since the 1950"s. (1) Security and economic development. Historically, security considerations have been paramount in the provision of economic aid (e.g., a number of road-building projects were more notable for their security applications). (2) Stabilization of Thai frontiers. A major element in U.S. assistance has been bolstering Thai national unity by improving the GOT"s presence in remote regions, particularly the northeast (through building roads and police stations, training security forces, etc.), to uncertain effect. (3) Helping the rural poor. A.I.D. programs, inasmuch as they have attempted to enhance the power of the GOT, have tended to benefit the bureaucratic elite more than the rural poor. (4) Private sector support. A.I.D. has increased its activities in support of the Thai private sector, but whether this has contributed to Thailand"s rapid economic growth is uncertain. At any rate, common distinctions between "public" and "private" sector entities tend not to apply under Thailand"s "patrimonial" system, which encourages intimate ties between government and industry officials. (5) Institution building, training, and technical assistance. A.I.D. has worked to increase the administrative capacity of the Thai government, which has served to reinforce traditional bureaucratic values. Current U.S. strategy focuses on remediating specific sectoral problems, such as increasing rural employment and the value-added in exports.