Resource information
Following the East Asian financial
crisis, the Bank's involvement in Thailand intensified,
enabling a multifaceted stabilization, and structural reform
dialogue, which deepened the economic, financial, and sector
knowledge of the country. The study benefits from this
analytical work, and provides an overview on the ongoing
policy dialogue, regarding short- and medium-term reform,
through a number of instruments. To promote longer-term
growth, the country embarked on a twin strategy of
macroeconomic stabilization, and structural reform. Although
its flexible labor market, and support mechanisms diminished
the crisis' impact on unemployment, and poverty,
compared to other countries in the region, this ability to
moderate the impact of the economic crisis, could adversely
impact a prolonged crisis. The study examines steps to
strengthen public sector social programs, and institutional
capacity, envisaging coherent poverty support programs in a
timely manner, while speeding fiscal stimulus effects, and,
monitoring poverty through reliable information, to ensure
cost-effectiveness. The financial sector reform is reviewed,
focusing on restructuring financial institutions, while
upgrading prudential regulations. Practices to improve
private sector development are reviewed, i.e., promote
corporate restructuring, and competition, and, improve
factors of production, while promising a stable growth.
