Multi-dimensional Review of Thailand (Volume 2)

In-depth Analysis and Recommendations

image of Multi-dimensional Review of Thailand (Volume 2)

Thailand is a fast emerging country that aspires to become a high-income economy by 2037. Still, Thailand’s growth path has created large disparities that risk obstructing the next stage of development. This report lays out three transitions that Thailand needs to master to build capabilities and sustain faster but also more inclusive economic growth. First, the country should move from a growth path dominated by few and geographically concentrated sources of innovation to one that focuses on unlocking the full potential of all regions. Second, to support a new growth agenda, it should organise multi-level governance and the relationship between the many layers of government more effectively, particularly with regards to financial resources. Last but not least, Thailand should focus on water and environment, moving from a resource-intensive growth path with costly natural disasters to one characterised by sustainable development. In the case of water, this means moving from ad-hoc responses to effective management of water security.



Moving towards effective management of water security

OECD Development Centre

Thailand has an intense and complex relationship with water. Water is key to driving the agricultural sector – the principal user of water – and supporting growth in the manufacturing sector. Both of these sectors create water quality challenges through diffuse run-off or point source discharges. Extreme seasonal and regional variations in terms of precipitation pose significant challenges in terms of water quantity, with floods and droughts a persistent threat. This chapter discusses the challenges faced by the water sector and draws links between multi-level governance and regional development issues. Policy recommendations are presented that intend to improve policy coherence and decision making, explore opportunities to increase the use of economic instruments, and take a long-term, risk-based approach to infrastructure development and water security.



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