The Policies and Politics of Industrial Upgrading in Thailand during the Thaksin Era (2001–2006)

Abstract

What happens when developing countries can no longer grow by simply exploiting their existing comparative advantages in natural resources or cheap labor? When entering the 21st century Thailand was confronted with that question, but in comparison with other East Asian countries it was also a laggard in relation to industrial technology development. Prime Minister Thaksin Shinawatra placed industrial upgrading high on the policy agenda. This article combines a policy cycle analysis with a political analysis. It examines the ability and willingness of the Thaksin government to design and implement an adequate and coherent set of industrial upgrading policies with a particular emphasis on implementation issues. It is argued that although many initiatives were taken during the Thaksin era, they did not add up to an adequate and coherent set of industrial upgrading policies. This was partly due to institutional legacies in the bureaucratic system but mainly a result of the logic of politics, including the nature of political coalition‐building.