DESTINATION THAILAND

There is more visible historical evidence of past eras in Thailand than in any other South-East Asian country, making it a fascinating country is characterized both by a rich history and expansive, metropolitan modernity. Thailand is a wonderful place to visit, exhibiting efficient transportation, cheap accommodation and a delicious national cuisine. The Thais are renowned for their friendliness and hospitality to strangers. Although they're often depicted as fun-loving, happy-go-lucky folk (which they often are), they are also very strong-minded and have struggled for centuries to preserve their spirit of independence.

Facts at a Glance:
Full country name: Kingdom of Thailand
Area: 517,000sq km
Population: 65.44 million
Capital city: Bangkok (pop 6 million)
People: 75% Thai, 14% Chinese, 11% other
Language: Thai, English as a second language among upper class
Religion: 94.6% Buddhism, 4.6% Muslim, 0.7% Christian
Government: Democratic constitutional monarchy
Prime Minister: Thaksin Chinnawat since February 2001
Head of state: King Phumiphon Adunyadet

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History:
The earliest civilization in Thailand is believed to have been that of the Mons in central Thailand, who brought a Buddhist culture from the Indian subcontinent. In the 12th century, this met a Khmer culture moving from the east, the Sumatran-based Srivijaya culture moving north, and citizens of the Thai state of Nan Chao, in what is now southern China, migrating south. Thai princes created the first Siamese capital in Sukhothai, later centres in Chiang Mai and, notably, Ayuthaya.

The Burmese invaded Siam in both the 16th and 18th centuries, capturing Chiang Mai and destroying Ayuthaya. The Thais expelled the Burmese and moved their capital to Thonburi. In 1782, the current Chakri dynasty was founded by King Rama I and the capital was moved across the river to Bangkok.

In the 19th century, Siam remained independent by deftly playing off one European power against another. In 1932, a peaceful coup converted the country into a constitutional monarchy, and in 1939 Siam became Thailand. During WW II, the Thai government allowed Japanese troops to occupy Thailand. After the war, Thailand was dominated by the military and experienced more than twenty coups and countercoups interspersed with short-lived experiments with democracy. Democratic elections in 1979 were followed by a long period of stability and prosperity as power shifted from the military to the business elite.

In February 1991 a military coup ousted the Chatichai government, but bloody demonstrations in May 1992 led to the reinstatement of a civilian government with Chuan Leekpai at the helm. This coalition government collapsed in May 1995 over a land-reform scandal but replacement Prime Minister Banharn Silpa-archa was no better. Dubbed a 'walking ATM' by the Thai press, he was forced to relinquish the prime ministership just over a year later after a spate of corruption scandals. Ex-general and former deputy PM Chavalit Yongchaiyudh headed a dubious coalition until late 1997, when veteran pragmatist Chuan Leekpai retook the reins.

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In 2000, Thaksin Shinawatra and his 'Thai Loves Thai' party had a landslide victory in national elections. Thailand's new leader is popular, but is embroiled in a scandal involving allegedly false declarations of assets that could cost him the premiership. The controversy is grist for Thai cynics who will tell you that, despite all the leader-swapping, things never change. Widespread vote-buying and entrenched corruption make a joke of democracy, and until this is rectified Thailand's claims to democratic status and political stability will remain as shaky as ever.

In 1997 the Thai baht pretty much collapsed, dragging the economy (and many other South-East Asian economies) down in a screaming heap. In August the International Monetary Fund stepped in with a bailout package of austerity measures, which - although it slowed Thailand's growth dramatically and hit the poor hardest - seemed to have turned things around by early 1998. By the turn of the new century, Thailand's economy had stopped going into free fall, but rebuilding had only just begun. Genuine attempts to weed out corruption seem underway, but the poverty-stricken members of Thailand are still wary of promises and agitating for more reforms.

Over recent months, the relatively new Thai Rak Thai Party (Thais Love Thais), led by Thaksin Shinawatra, emerged as a force in Thai politics and saw many sitting MPs defect to its ranks. In parliamentary elections (January 2001), Thai Rak Thai trounced Prime Minister Chuan Leekpai's democrats and will form a new coalition government in Thailands first election under a new constitution designed to reduce electoral fraud. Nonetheless, allegations of corruption caused the Electoral Commission to run revotes in sixty-two constituencies.

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Social Statistics:

Annual growth: .87% (2005 est.)
Infant mortality rate: 20.48 deaths/1,000 live births (2005 est.)
Total fertility rate: 1.88 children born/woman (2005 est.)
Life expectancy at birth: 71.57 years (2005 est.)
HIV/AIDS- Adult prevalence rate: 1.5% (2003 est.)
People living with HIV/AIDS: 570,000
Population below poverty line: 75% (2004 est.)
Unemployment rate: 7.5% (2003 est)
Literacy: 92.6% (age 15+ that can read and write)

Culture:
Monarchy and religion are the two sacred cows in Thailand. Thais are tolerant of most behaviour, as long as it doesn't insult one of these. Buddhism is thedominant religion, and orange-robed monks and gold, marble and stone Buddhas are common sights. The prevalent form of Buddhism practised is the Theravada school,which emphasises the potential of the individual to attain nirvana without the aid of saints or gurus. Make sure you are suitably dressed when visiting a temple - no shorts.

Thai is a complicated language with its own unique alphabet, but it's fun to try at least a few words. The main complication with Thai is that it is tonal: the same word could be pronounced with a rising, falling, high, low or level tone and could theoretically have five meanings!
Thai art, principally sculpture and architecture, is divided into a number of historical styles beginning with Mon (6th-13thC), Khmer (7th-13th C), Peninsular (until 14th C), Lan Na (13th-14th C), Sukhothai (13th-15th C), Lopburi (10th-13th C), Suphanburi-Sangkhlaburi (13th-15th C), Ayuthaya A (1350-1488), Ayuthaya B (1488-1630), Ayuthaya C (1630-1767) and Ratanakosin (19th C to present). Classical Thai music and theatrical dance are also popular artistic forms.

Thai cuisine is pungent and spicy, seasoned with heaps of garlic and chillies and a characteristic mix of lime juice, lemon grass and fresh coriander. Galanga root, basil, ground peanuts, tamarind juice, ginger and coconut milk are other common additions. Fish sauce or shrimp paste are mainstays of Thai dishes, and of course rice is eaten with most meals. Main dishes include hot and sour fish ragout, green and red curries, various soups and noodle dishes. Thai food is served with a variety of condiments and dipping sauces. Snacks and appetisers include fried peanuts, chicken, chopped ginger, peppers and slices of lime. There is an incredible variety of fruit available, either fresh or juiced. Sugar-cane juice and, for something stronger, rice whisky are favourite local tipples.

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Environment:
Thailand shares borders with Malaysia, Myanmar (Burma), Laos and Cambodia. The country's east coast borders the Gulf of Thailand and the west coast abuts the Andaman Sea. The country is divided into four main zones: the fertile, central plains of the Chao Phraya River; the poorer region of the 300m (985ft) high northeast plateau; the fertile valley and mountains of Northern Thailand; and the rainforested southern peninsula. The highest peak is the 2596m (8512ft) Doi Inthanon in Chiang Mai province.

One-fifth of Thailand is covered by monsoon forest or rainforest, and the country has an incredible array of fruit trees, bamboo and tropical hardwoods. There are 80 national parks and 32 wildlife sanctuaries, covering 13 per cent of the country. They contain more than 850 resident and migratory species of birds and dwindling numbers of tigers, leopards, elephants and Asiatic black bears.

Unfortunately, attempts to stop the logging of rainforests and illegal trafficking in endangered species are fighting an uphill battle against corruption, officials only too happy to make a buck on the side, and tourists packing an exotica or two down their dacks as they walk through customs. The tiger, for instance, is one of the most endangered of Thailand's mammals but the market for tiger organs, particularly in China, is so lucrative that poaching is still a viable career option.

Overdevelopment on Ko Phi Phi is starving the coral reefs of sunlight and smothering the surface in pollutants: the destruction of the reef is a micro-example of the problems occuring on a national scale, with the finger being pointed in the direction of tourism. In May 1999, protestors packed the beach where the filming of 'The Beach' was taking place: environmentalists were concerned that filming would destroy the delicate eco-balance of the beach. Ironically, the film was about the destruction of native cultures and environments by hordes of dropped-out, alternative life-seeking backpackers (curiously, the filmmakers were silent on the issue of hordes of filmmakers destroying delicate eco-balances). One of the main culprits according to the Alex Garland, author of the best selling novel, is Lonely Planet.

Thailand's climate is ruled by monsoons that produce three seaons in northern, northeastern and central Thailand and two in southern Thailand. Generally the 'dry and wet monsoon climate' arrives sometime between May and July and lasts into November. It is followed by a dry season from November to May in which temperatures are relatively lower until February and then begin to soar from March to May.

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Economic Statistics:

GDP: US$524.8 billion (2004 est.)
Annual growth rate: 6.1% (2004 est.)
GDP per capita: $8,100 (2004 est.)
Inflation: 2.8% (2004 est.)
Work force: Just under 50% of the population engages in some form of agriculture, often at the subsistence level outside the monetized economy. Salaried work force breakdown: agriculture - 49%; industry- 15%; services - 37% (2000 est.)
Major industries: tourism, clothing, beverages, tobacco, cement, jewelry, agricultural processing
Agricultural products: rice, cassava for tapioca, rubber, corn, sugarcane, coconuts, soybeans
Major trading partners: Japan, USA,Malaysia, Singapore, China, Taiwan
Imports:
$80.84 billion
Exports:
$87.91 billion (2004 est.)

Economy:
The recent history of Thailand’s economy is defined by more than a decade of sustained and rapid economic growth beginning in 1985, followed by a severe recession that started in late 1997. During the boom years, economic growth averaged more than 7 percent annually, one of the highest rates in the world. The crisis of 1997 and 1998 wiped out some of the gains of the boom and forced major adjustments in Thai industry and economic policy.

Many different factors contributed to the rapid growth of Thailand’s economy. Low wages, policy reforms that opened the economy more to trade, and careful economic management resulted in low inflation and a stable exchange rate. These factors encouraged domestic savings and investment and made the Thai economy an ideal host for foreign investment. Foreign and domestic investment caused manufacturing to grow rapidly, especially in labor-intensive, export-oriented industries, such as those producing clothing, footwear, electronics, and consumer appliances. These industries also benefited from a tremendous expansion in world trade during the 1980s. As industry expanded, many Thai people who previously had worked in agriculture began to work in manufacturing, slowing growth in the agriculture sector. Meanwhile, manufacturing growth spurred the expansion of service sector activities.

By 2001 Thailand’s per capita income reached $1,940, making it an upper-middle income developing economy. Although Thailand was technically still a poor country, spectacular income gains enjoyed by the urban middle class made the country one of the world’s large markets for luxury cars and other expensive consumer goods. However, by Asian standards the gains of growth were not distributed equally among the Thai population: between 1981 and 1994 the incomes of the richest 20 percent of the population grew significantly in comparison to those of the poorest 20 percent. Nevertheless, nearly all Thai benefited in some fashion from growth. The percentage of the population living in poverty fell from 23 percent in 1981 to less than 10 percent in 1994.

In the early 1990s a series of economic policy reforms introduced by the Thai government made it easy and attractive for foreign banks to offer loans to Thai banks. The Thai banks used the capital to lend money to domestic finance companies, property developers, and other investors, stimulating an investment boom. In an atmosphere of great optimism about continued rapid growth, the resulting investment boom created a “bubble economy” based on speculation in urban property and stocks. The bubble burst in 1996 and 1997, when stock and property prices declined steeply. As speculators in these sectors failed to repay loans, many Thai banks became unable to service their foreign debt, causing investor confidence to fall sharply. The consequent outflow of capital caused the Thai banking system to crash in mid-1997. The resulting credit shortage drove many companies into bankruptcy and created a large pool of unemployed workers. Thailand’s economy remained deep in recession through 1998, with gross domestic product (GDP) shrinking an estimated 8.5 percent that year. The economy began to pick up again in early 1999, with GDP growth forecast at 1.5 percent for the year.

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Labor:
The Thai labor force totaled 37.2 million workers in 2001. Although agriculture’s share in national income is now very small, official statistics indicate that 49 percent of the labor force is still employed in that sector, with 18 percent in industry and 33 percent in services. These statistics are likely to overstate agriculture’s true share of the labor force, as many rural Thai engage in seasonal migration, working in cities for part of the year and returning to the countryside during peak demand periods in agriculture, such as the rice harvest. Within industry, most employment is with small firms (those with less than 50 employees). Less than 10 percent of the labor force is unionized, although that figure rises to more than 20 percent in larger firms of 50 or more employees.

The economic boom of 1985 to 1996 caused massive growth in total employment, especially of unskilled and semiskilled workers. From 1990 to 1996, real wages (adjusted for inflation) rose by about 10 percent per year. The employment boom drew many Thai from rural areas to urban centers and resulted in a large influx of illegal immigrants from poorer neighboring countries, such as Laos and Myanmar.

Following the 1997 collapse of Thailand’s economy, unemployment and underemployment became serious problems, with the former peaking at nearly 3 million jobless in mid-1998. Some of the unemployed returned to rural areas, but many more remained in the cities in the hope that jobs would become available again once the economy recovered.

A longer-term issue for the Thai economy is the prevailing low educational attainment of Thai workers, as compared to their counterparts in other middle-income developing economies. Although the literacy rate is high, official figures show that only 56 percent of children of high school age are enrolled in high school.

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Chiang Mai:
Thailand's second-largest city and the gateway to the country's north was founded in 1296. You can still see the moat that encircled the original city, and there are 300 wats, including Wat Chiang Man (home of the 1800-year-old 10-cm-high Crystal Buddha), Wat Phra Singh (built in the classic northern-Thai style) and Wat Chedi Luang (partially ruined by earthquake, cannon fire and recent restoration efforts). Doi Suthep, topped by one of Thailand's holiest wats, rises 1676m to the west of the city providing a dramatic backdrop and, should you venture up, fine views of the city.

Modern Chiang Mai is easily managed and very traveller-friendly. It's well known for its restaurants and also has heaps of good guesthouses (although the hotel 'safes' are notoriously not). Compared to Bangkok, Chiang Mai's evenings are cool and conducive to moseying around the central Night Bazaar. To get value for money, bargain patiently but mercilessly; no less is expected of you. When you're sick of honing your free-market warrior attitude, Chiang Mai is a good base for mountain treks. Just about every guesthouse advertises treks to visit the hill tribes who live in the surrounding area. You may want to think twice about joining such an excursion if you have qualms about interrupting the traditional patterns of life in hill-tribe areas. This part of Thailand is considerably overtrekked and some hill-tribe villages have been turned into little more than human zoos.

Information adapted from the Lonely Planet website, Microsoft® Encarta® Online Encyclopedia 2002 & the 2001 CIA world factbook. (updated 8/05)

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