Besides aid donations, Thailand’s economic dynamism allows it to influence the economic development of its poorer neighbours in other ways as well.
According to the new study, Thailand has extremely low tariff barriers on imports from least developed countries, allowing poorer countries in south-east Asia to sell easily into its booming market.
But its willingness to buy from its neighbours may, in some cases, be a mixed blessing. Burma’s oppressive military junta – which has presided over decades of stagnation and is widely regarded as a major obstacle to its own country’s progress, finances itself partly through its exports of natural gas to Thailand.
According to Burma’s ministry of planning, Burma exported a total of Dollars 574m worth of natural gas last year – which was 23 per cent of its commodity exports.
Bangkok is also fourth largest foreign investor in Burma, accounting for about 6 per cent of the military-ruled country’s total foreign investment. Burma’s inward foreign direct investment rose 34 per cent last year – to Dollars 128m – thanks to investment in oil and gas from China, South Korea and Thailand.
But Thailand’s role in boosting Burma’s FDI is hardly likely to win it kudos from western countries that have endorsed economic sanctions as a tactic to try to choke the regime.