Since its entry into the international economic arena more than a century ago, Thailand has relied heavily on its rice surplus to pay for its imports, to maintain its financial system in sound order, and more recently to subsidize the growth of its non-agricultural economy and urban population. Due to its good fortune in having consistently had abundant harvests, the country has managed to pursue these three aims with substantially less difficulty than most of her Asian neighbors. It would be difficult to conceive of Thailand's foreign trade position (and, consequently, of her ability to continue to import needed capital goods, attract foreign investment, and implement a sound economic and social development effort) in the absence of the rice-surplus component. And yet, this situation, disastrous as it seems, is the one toward which the country is irresistibly drifting. To come to an appreciation of the significance of this ominous tendency it is necessary to realize that the economics of Thailand's rice sector are unusually complex because of the industry's critical position. Either directly or indirectly, the industry reaches into every household in the nation to play a central role in determining economic well-being. Rice is, first, the industry employing a plurality of the nation's labor force; rice cultivators, alone, account for an estimated 85% of the agricultural population or some 18.5 million individuals. Second, although labor productivity in the rice sector is substantially below Thailand's average (largely because a preponderance of the industry's labor force are peasant households using traditional techniques and containing seasonally under-employed working members) it contributes a considerable share of the gross domestic product. In 1964, for instance, domestic rice consumption, rice exports, and rice taxes' accounted for some 22% of the national income. Third, rice forms the basic consumption item of the people's diet, accounting for roughly a third of all food expenditures and two-thirds of food weight, so that its marketing structure forms a complex nationwide network of millers, truckers, wholesalers, and retailers.2 Fourth, the importance of rice as a consumption item makes its
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