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الأربعاء، 13 أبريل 2011

Turkey Analysis

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                 Political Stability: (4)***(3) Probably the most unpredictable facet of Turkey at this time. It remains to be seen if the instability will level out and stabilize. A recent election has brought a new president to power Suleyman Demirel. Consequently, the next few months are likely to prove beneficial for political critics in Ankara as well as elsewhere but perhaps less so for those who have been waiting patiently for a strong and decisive government to tackle Turkey's many pending problems. The country of Turkey has a population where more than One-Half of the people are under the age of 35, the consensus is too bring a leader with new ideals and sense of urgency. Public Policy: (2)***(2) Turkey will continue to be conscience of how they are perceived by NATO and the EU. Turkey has gone through a series of events to make foreign direct investment more opportunistic. Since the 1980`s policy makers have looked to the Middle East for regional integration. It seems that Turkey wants to become more active in the international market and that the hindrances to do so are more on the external side of the equation. Turkey has entered NATO, which was a big help; they are trying to enter the European Union. That will be decided in the next few months. Many European countries frown upon the soaring inflation rates and high unemployment. Direct foreign investment averaged only US $70 million from 1980 to 1985, as foreign investors hesitated to put money into the country. Turkey had received debt relief during the early 1980s, but after 1984 most long-term capital came in the form of project credits or adjustment loans arranged by the World Bank. Views of Political leaders on Foreign Direct investment: ( Since 1963, Turkey has been pursuing the aim of developing its relations with the European Union, then the "European Economic Community. Prime Minister Turgut Ozal was working hard to improve Foreign direct investment, during his second stint in office in 1983. The current leaders are not doing as well of a job as they could be. The elections in April may be the better avenue to pursue foreign direct investment. Major strides have been taken to revamp conditions for entry, operations and exit for both national and international business by completely dismantling bureaucratic barriers and streamlining procedures based on a thorough deregulation effort. Turkey offers many advantages to foreign investors, its large domestic market of 57 million people desiring high quality products, a qualified manual and technical labor force with low labor costs and high productivity, developed utility and transportation facilities along with a geographic and economic location close to nearby major markets of the world are only some of the many advantages. , Turkey has been a leader in pursuing trade and economic cooperation with the largest of the New Independent States, the Russian Federation. It has initiated a number of programs of education and training in the Caucasus and Central Asia, aimed at encouraging and assisting those countries in the development of the kind of secular democratic system that has served Turkey so well for most of this century. Major Political Events: (5)***(4) Turks can only hope that things will stabilize, A new leader has been elected recently. Yilmaz came to power in a three-party coalition in July 1997, after the collapse of the previous WP-TPP coalition that had brought Turkey to the brink of a military coup. For most of the year following his surprise elevation to the job of Prime Minister, Yilmaz and the MP had repeatedly claimed that the government would stay in office until 2000. On November 25, the Turkish Grand National Assembly (GNA) voted 314 to 214 in favor of a motion of no confidence against the government over corruption allegations, prompting Prime Minister Mesut Yilmaz, the leader of the Motherland Party (MP), to resign. In a separate vote, the GNA voted 315 to 214 for the dismissal of Minister of State Gunes Taner. It is far from clear how the current political crisis will be resolved. Degree of democracy: (4)***(4) The country must look at it`s Criminal justice system first as to what role it encompasses. Turkeys domestic and foreign policies have not improved its image to its neighbors. The Turkish Criminal justice system appears to be very harsh to say the least. In a Recent article in The (New York Times Dec.5, 1999), 33 individuals where sentenced to death for their part in a major criminal case. Many Authors and writers are serving lengthy sentences for writings that deter from the secular form of government. Writers of these publications are subject to a minimum 5-year sentence. A lawyer for one of the prisoners was quoted in the English News Wire with the following statement, ⌠Turkey for the good and freedom of her citizens should reform the whole judicial and political structure or the prisons will soon be flooded with thousands who simply dare express their opinions." Tensions with the U.S.: (2)***(2) Look for the U.S. to be a groundbreaker in the technology aspect of future Turkey. The Truman Doctrine of 1947 marked the beginning of a new era in Turkish-American relations. Close working ties were developed between Turkey and the US in the political, military, economic, technical, social, and cultural fields since that time. A new chapter in Turkish-American relations opened in the 1980s and cooperation increased significantly. In 1991, Turkey and US elevated their cooperation to the status of Enhanced Partnership. Since then, bilateral relations have continued to prosper and diversify. Post-Cold War developments have clearly shown that Turkey and the US continue to share a set of common strategic, security and economic concerns and interests. In this connection, Turkish-US cooperation in the field of energy and on regional issues have recently gained special importance. Both countries have worked well together; the U.S. has and is playing a large role for rebuilding the devastated cities after the earthquakes this past year. Support for Government: (4)***(3) New leadership is promising but previous instability dictates a subtle change. The general consensus of Turkish people seem to be that they know that the Government will never be fully embraced, and that they must accept stability over a seemingly impossible ideal system. Turkey, not alone among nations, seems to have a political corruption problem. Politicians often see the dispensing of patronage (with its associated deficits and inflation) to be more important than securing the welfare of citizens. And if April`s elections are any evidence, Turks understand this quite well. The MHP and DSP did well because their leaders seem like reliable guys who don`t steal, says Emre Oral, a member of The Media Group`s executive board. That`s the only qualification you need in Turkish politics right now. Even if their coalition does not succeed, I know the country is going well. (The Wall Street Journal June, 16,1999). Anti Business forces: (3)***(3) Turks will work with people that can contribute to capital. Bureaucratic red tape, high interest rates, high inflation, and frequently changing policies hinder private sector business activity. Tax evasion is rampant. The government admits that around one-quarter of total taxes go uncollected, and this figure is probably conservative. Turkey's tax revenues equal about 22% of GNP, well below the OECD average of 39%. Overhaul of the tax system is a top priority of the current administration and the IMF. The World Bank is preparing a multiyear project to assist in the effort. Turkey is a member of the World Trade Organization and signed a free trade agreement with the European Free Trade Association (EFTA) in 1991. Turkey signed a trade agreement with Israel in March 1996 and is negotiating free trade agreements with several Central European countries. Threats of War Internal: (6)***(5) This is a crapshoot it will be up to the newly found leaders to calm this internal conflict. In 15 years of fighting in Turkey nearly 40,000 lives have been lost. These wars involve the Kurds. The country of Turkey has a powerful military and spends 7 Billion dollars a year fighting these wars. Turkey has intensified its persecution of the Kurds living in the country. One could think of this war as almost a civil one, the Kurds make up 15% of the entire country. The war in Turkey represents the largest use of U.S. weapons anywhere in the world by non-U.S. forces. Economic Growth: (4)***(3) Large amounts of F.D.I. will aid in building the economy. Turkey has an economy that is a complex mix of modern industry and commerce along with traditional village agriculture and crafts. It has a strong and rapidly growing private sector, yet the state still plays a major role in basic industry, banking, transport, and communication. Its most important industry≈and largest exporter≈is textiles and clothing, which is almost entirely in private hands. The economic situation in recent years has been marked by rapid growth coupled with partial success in implementing structural reform measures. Turkey's economy is a chronic under performer, but growth could accelerate to 8 per cent a year in a stable environment, fostering social stability by creating more jobs, raising living standards and reducing the widening gap between rich and poor. Turkey's government is faced with a long-standing problem of controlling high deficit spending and high inflation, which has limited the growth of the economy. Deficit spending through August 1996 amounted to some $9 billion. Given low savings rates in the country, government spending for debt service and social benefits programs has commanded a major share of the budget, restricting available investment funds for badly needed infrastructure improvements. GDP≈real growth rate: 2.8% (1998 est.) Economic growth will remain about the same in 1999; inflation should decline further, according to where this information came from. (The Government Fact book Publication, 1998). Inflation: (6)***(5) Figures have been erratic through the 90`s. Based on various reports inflation has been an inherent problem all throughout the 1990`s 1n 1991 it was at 70 % and in 1992, 66%. Turkey has battled with chronically high inflation caused by previous governments' emphasis on growth. The situation in recent years has been marked by rapid growth coupled with partial success in implementing structural reform measures. Inflation declined to 70% in 1998, down from 99% in 1997. Although inflation came down 29% the numbers are still staggering. The government somewhat unsuccessfully has been utilizing monetary measures instead of fiscal to reduce inflation. Lowering inflation would make the treasury's debts more manageable and bring down interest rates, so that companies would invest more. Deregulation and privatization would further cut government deficits, boosting productivity and growth as well. Unemployment: (4)***(3) New opportunities regarding technology will help. Unemployment is estimated at 6.4 percent. Unfortunately, rates are expected to be higher by the end of next year. Due to some political uncertainty in the earlier 1990`s many factories shut down. An excess labor supply relative to industrial work is responsible for a 10-12 percent rate in those areas. In more rural areas rates as high as 25 percent can be noted. Similar to Canada in that the rate is much higher in such rural zones. Inversely, Rates are much lower in the free-trade zones where industries are found at a much denser rate. Government Incentives: (2)***(2) Turkey has worked hard to provide incentives for F.D.I. will continue the same path. Turkey offers many advantages to foreign investors: its large domestic market of 57 million people desiring high quality products; a qualified manual and technical labor force with low labor costs and high productivity. Since the 1980s, the Turkish government has followed liberalized out-ward-oriented economic polices. There were rapid changes in the economic and social structure of Turkey. Deregulation of interest rates, the establishment of organized markets for money, foreign exchange, stocks and securities, the liberalization of capital movements, and reforms in the banking sector, were just some of the changes. The most significant provisions foreign investors are subject to are:  Approval obligation  Foreign participation is permitted up to 100%  Forms of business entities can be limited liability or corporation  Employment of expatriate staff is permitted  Equal treatment is the basis for foreign and domestic investors. The Government of Turkey annually issues a list of investment incentives. In order to take advantage of such incentives, a special "Incentive Certificate" has to be obtained together with the investment approval from UT. According to the current incentive regime, a minimum investment of 6 billion TL is necessary for priority regions and 12 billion TL for other regions. Incentives for 1996 are as follows:  Tax Allowances (30-100% according to location)  Refund of VAT+10% for locally purchased machinery  Customs exemption on imported machinery  Customs expenditure on raw materials (in accordance with the specifications mentioned in the regime).  VAT Deferral on Imported Machinery and Equipment.  Allocation of land  Discounts on electricity charges Fiscal policies: (4)***(3) Government looks promising to make this a focus of reform. Turkey`s enforced commitment by the IMF to tight fiscal policy next year is the key condition for Turkey to secure a stand- by accord with the International Monetary Fund. But some bankers believe the Fund may support Turkey with a stand-by loan even if Ankara fails to draw up a fully satisfactory budget for 2000 in view of the enormous damage caused by August's earthquake. Turkey has had difficulty putting together a 2000 budget and the talks with International Monetary fund are being delayed. The task of computing the costs of the earthquake is going to dictate when decisions will be made regarding loans from the IMF. The IMF pledged financial resources in July if Turkey makes reform progress. The government has moved quickly on structural reforms, pushing banking, pension, and international arbitration laws through parliament. But government sources say Turkey`s lack of commitment to a tight fiscal policy for 2000 have raised concerns about the fate of the talks. (WASHINGTON, Sept 09,Reuters) Foreign Debt: (4)***(4) Funds will continue to be needed. Tansu Ciller swept into the Prime Minister's office in Ankara. She was confident and full of ideas, epitomizing a new generation of politicians whom, many hoped, would transform Turkey into a key player in Europe and Asia. Ciller's policies were intended to restore faith in Turkey`s public finances, but continued government borrowing and her inattention to the $66 billion foreign debt undermined lenders' confidence. Both Moody's and Standard & Poor's, the influential U.S. rating agencies, downgraded Turkey`s credit standing, which further scared off potential private investment. Ciller inherited an economy overheated by inflation and a government structure groaning under the weight of Red tape and beurocrocy. Infrastructure: (5)***(4) The slow process begins to make Turkey a fluid country again. The government is giving special priority to major infrastructure projects, especially in the transport sector. Although most state investments were put on hold in 1994, the government has resumed planning and construction of many airport, port, and highway ventures, in large part through project finance with private capital. As of 1987, Turkey had 106 usable airports, 62 of which had paved runways. Turkish Airlines (Turk Hava Yollari--THY), plagued by a poor safety record in the 1970s, fought its way back to profitability during the 1980s and was considered a candidate for privatization Some 20 undertakings involving project finance, worth about $14 billion, have been proposed or are under development. The government planned to build 3,000 kilometers of highways by the year 2000 and to upgrade existing roads. The Ozal administration began a major highway project that, when completed, would give Turkey highways that traversed the country, making it possible to handle increased levels of freight between Europe and the Middle East. This project, along with the second bridge across the Bosporus, would form 3,600 kilometers of a Trans-European motorway, a 10,000-kilometer route from Gdansk on the Baltic Sea to cities on the Caspian Sea and the Persian Gulf. The recent earthquakes have destroyed many entities of travel; it will be a long recovery period before the Country rebuilds from the disastrous 1999. Remittance of Earnings: (2)***(2.5) must remain stable in order to remain an incentive for F.D.I. Turkey has created a Foreign Investment Directorate (FID) has passed legislation to promote and encourage foreign much needed investment, especially in technological and know-how sectors, job creation, export promotion, tourism and capital investment. If investors go through the procedures of starting a venture, a good experience is likely. Turkey has no set rules for reinvesting capital unless it is stipulated in the venture. The planning stage is of crucial importance, in that you should clarify and obtain all the necessary documentation. Otherwise, subsequent rectification is not possible and an investment without permission will create problems for taxation and the repatriation of capital. The legislation, which regulates the investment establishes the ground rules for the remittance of foreign capital and simplifies this process to further Turkey`s open-door policy with the world markets. Per capita income: (4)***(3) Better jobs will be available in the future partially due to F.D.I. The year ending 1998 yielded a per capita income of, $6,600 U.S. dollars. This number and chart come from the (CIA fact book 1999.) GDP≈composition by sector: agriculture: 14.4% industry: 28.7% services: 56.9% (1998) Competitive forces: (3)***(3) They continue to lack in many areas, other than basic industries. There is little competition in many areas of technology, however there is heavy competition in agriculture, mining and other already situated and figured out operations. Turkey welcomes investment that will bring them to the 21st century. Education: (3)***(2) While education is reasonably funded and supported, much like Mexico a Technology boom or avenue must be created to train future candidates for jobs that will assist F.D.I. There are general, vocational and technical education institutions which provide a three-year education for primary school graduates and which supply students with general knowledge and prepare them for either higher education or a profession. High Schools are not generalized like they are in the U.S., a High school serves a particular function. It is much more difficult to find out what you like. Once a student becomes 15, they are expected to go into a form of schooling geared to a career that they wish to pursue. A sort of mission statement for the education in Turkey looks like this. Being one where all individuals of the state are gathered together as an inseparable whole, united in national consciousness and thinking, trained to think along scientific lines with intellectually broadened views on world affairs, and to be productive happy individuals, who through their skills contribute to the prosperity of society and are instrumental in making the Turkish nation a creative and distinguished member of the modern world. (Turkish Education Embassy, 1998) Although the above statement gives us that warm fuzzy feeling we learn to convey in marketing class, the sad truth is that education is somewhat near the bottom of priority in areas of funding. It could be said that a student`s true calling could easily be lost in the shuffle of severely tunnel-vision type (subject wise) schooling. Crime: (4)***(3) Viewed political crime must be separated from real crime. As discussed earlier in the Democracy section, Turkey has more than 10,000 political prisoners. They are trade unionists, human rights activists, democrats, artists, writers, revolutionaries, Kurdish patriots, socialists, etc. The number of inmates has doubled from 1984 to 1991. This rise is primarily due to the above mentioned prisoners. Their life in prison is a permanent struggle for minimal human rights. Very often they have to face brutal attacks by the fascist forces of the Turkish State. There are many reports of torture and inhumane activities amongst prisons. There is much discussion on the horrific conditions of jails and detention centers. Once again this is insufficiently funded area of Turkey. Human rights organizations for years have alleged that Turkish security forces abuse detainees with electric shocks, beatings, death threats and other forms of abuse. ABCNEWS, John Cochran asked Turkish President Suleyman Demirel, about allegations of human rights abuses at a news conference with President Clinton. ⌠It is impossible to say that there is no torture in Turkey; there is torture. But torture is not state policy, Demirel said. ⌠ (ABC NEWS DEC11 1999). However, this discussion is two-fold, while procedures of the Criminal justice system are harsh to say the least, the crime rate is lower than most other Middle Eastern, and some Western European countries. Labor force: (3)***(3) A somewhat strong suit in Turkeys regime, Which if nurtured could be a key to future success upon entering the EU. 22.7 million (April 1998) note: about 1.5 million Turks work abroad (1994) Labor force≈by occupation: agriculture 42.5%, services 34.5%, and industry 23% (1996). The human resource is fairly abundant in Turkey and with a younger population the potential is available to investors that wish to enter a business that needs people. Many people feel that their jobs are dead end, while some accept it as a way of life, others are seeking jobs more enlightening. Ethnic Conflict: (6)***(5) An inherent problem for a long time will see. As stated earlier this is a huge problem with the Turks. The Kurds and Turks have been battling for years. The tremendous Armies on both sides lead to a very unstable cohesion among all people living Turkey. Although there are signs that this relationship may actually be improving. In 1991 turkey lifted a ban on which Kurdish music, language, dress, associations. This occurred following the gulf war. The Kurdish language still may not be taught in schools or used by merchants on storefronts or in advertising. In fact is illegal in Turkey for parents to give their children a Kurdish name. (Atlantic Economic Journal, Dec.11, 1999). Riots Terrorism: (6)***(4) I predict it will diminish however strikes fear in many Turk`s, once again new leadership shows promise. Turkey is one of the several democratic countries who face severe terrorism problems. Terrorism started to make the public restless while disorder in political area increases. Istanbul is the new target of terrorists in causing chaos. People stopped shopping from markets and hypermarkets, interest in collective activities like football matches and concerts dropped. Anxiety about terrorism is a threat for tourism and entertainment sectors. Many involve either the outlawed Kurdistan Workers' Party (PKK), which intensified its campaign for an independent state in the southeastern part of Turkey or ultra-Islamist groups that are based mainly in Germany and Iran. Ethnic Conflict: (4)***(3) New leadership will curb war with the Kurds. The Turks are a highly composite ethnic mixture, mostly speak Turkish; there is a sizable Kurdish minority. The country is almost entirely Muslim, with small groups of Orthodox Christians and other religions. At 25 million, the Kurds are the largest ethnic group in the world without their own state. With a similar language, religion, and culture, the Kurds have lived for thousands of years in an area that is now part of Turkey, Iraq, Iran, Syria, and the former Soviet Union. Today, the 15 million Kurds who live in Turkey constitute about 25 percent of that country's population. Until 1991, the Turkish government banned Kurdish music, language, dress, associations, and newspapers. The Kurdish language still may not be taught in schools or used by merchants on storefronts or in advertising. It is illegal in Turkey for parents to give their child a Kurdish name. Death squads have killed more than a dozen Kurdish journalists, as well as numerous politicians and activists. Despite 15 years of fighting, Turkey today has no POWs; most rebels, according to the government, have been "captured dead." But there are large numbers of civilian Kurds in Turkish prisons where, according to organizations like Amnesty International, the use of torture is routine. In the last decade the Turkish army has leveled, burned, or forcibly evacuated more than 3,000 Kurdish villages. Social cohesion: (2.5)***(3.0) As technology, increases social classes will diversify. In general amongst the Turks, the people get along well. According to a news article on (CNN) date unknown, The Turks gathered together during the earthquakes and worked together in an unselfish giving manner. The emphasis of care was being placed on woman and children. In fact hundreds of thousands of people came from unaffected areas of Turkey to offer help in any way needed. Quality of life: (4.0)***(4.0) difficult slow rebuilding process. Turkey has been devastated by earthquakes, which have crushed the hopes and dreams of many. Life in turkey for many is a rebuilding process that may go on for over a decade to just make life once again stable. Turks for the most part enjoy a simple life, The Country as a whole sees itself as a large part of a future economic boom, but the Turks rely on tradition and tight families as a positive indicator for quality of life. Family stability: (4)***(3) Although some bizarre acts, overall stable environments. New politicians are eradicating some informal mechanisms that humiliate women. Turkey practices a way of life similar to other European countries. The divorce rate amongst couples ranges from 20% - 35%. A man can get a divorce very easily, however a woman must go through a long procedure, in which she must prove a valid case that allows her to proceed through the tight restrictions of divorce. Women as a whole are not given the same rights as seen in other countries. In a bizarre report, (The Dallas Morning News, 01-11-1998), Women can be subjected to a virginity test where if they fail, are shunned from society and face many family problems. In rural areas and urban neighborhoods populated by migrants from the countryside, parents and future husbands often take young women to be tested before their marriage, and sometimes if they are suspected of having had premarital relations. Turkish law makes no reference to the practice of virginity tests, but many parents consider them a reasonable way to control their daughters. There is pressure on all family members to not bring dishonor to the family name at any cost. Bribery: (4)***(3) F.D.I. will not except bribery as a form of business. As in every other aspect of Turkish political life, the issue of corruption occupies a central role in the struggle between secularism and political Islam in Turkey. Bribery is more of problem than thought, In the wake of the August 17 earthquake and the revelation of the shoddy construction that contributed to the loss of lives and the official negligence that permitted it. Bribery in the business environment is similar to that of Russia in some areas like the trade zones where bribes are masked as tariffs or consulting fees.

Thailand

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                     Thailand, formerly Siam, officially Kingdom of Thailand, kingdom in Southeast Asia, bounded by Myanmar (formerly known as Burma) on the north and west, by Laos on the northeast, by Cambodia and the Gulf of Thailand (Siam) on the southeast, by Malaysia on the south, and by the Andaman Sea and Myanmar on the southwest. The total area of Thailand is 513,115 sq km (198,115 sq mi). Bangkok is the capital and largest city. IILAND AND RESOURCES Thailand lies within the Indochinese Peninsula (see Indochina), except for the southern extremity, which occupies a portion of the Malay Peninsula. The country's extreme dimensions are about 1770 km (about 1100 mi) from north to south and about 800 km (about 500 mi) from east to west. The physiography is highly diversified, but the mountain systems are the predominant feature of the terrain. A series of parallel ranges, with a north-south trend, occupy the northern and western portions of the country. Extreme elevations occur in the westernmost ranges, which extend along the Myanmar frontier and rise to 2595 m (8514 ft) atop Doi Inthanon, the highest point in Thailand. The peninsular area, which is bordered by narrow coastal plains, reaches a high point of 1790 m (5860 ft) atop Khao Luang. Another mountain system projects, in a northern and southern direction, through central Thailand. At its southern extremity, the system assumes an east-west trend and extends to the eastern frontier. Doi Pia Fai (1270 m/4167 ft) is its highest peak. The region to the north and east of this system consists largely of a low, barren plateau, called the Khorat Plateau. Making up about one-third of the country, the plateau is bordered by the Mekong River valley. Between the central and western mountains is a vast alluvial plain traversed by the Chao Phraya, the chief river of Thailand. This central plain, together with the fertile delta formed by the Chao Phraya near Bangkok, is the richest agricultural and most densely populated section of the kingdom. AClimate Thailand has a moist, tropical climate, influenced chiefly by monsoon winds that vary in direction according to the season. From April to October the winds are mainly from the southwest and are moisture laden; during the rest of the year they blow from the northeast. Temperatures are higher, ranging from about 26° to 37° C (about 78° to 98° F), while the country is under the influence of the southwestern winds. During the remainder of the year the range is from about 13° to 33° C (about 56° to 92° F). Temperatures are somewhat higher inland than they are along the coast, except at points of great elevation. Annual rainfall is about 1520 mm (about 60 in) in the northern, western, and central regions, about 2540 mm (about 100 in) or more on the Thai portion of the Malay Peninsula, and about 1270 mm (about 50 in) or less on the Khorat Plateau. Most rain falls in summer (June through October). BNatural Resources. Thailand is rich in natural resources. Among the known mineral deposits are coal, gold, lead, tin, tungsten, manganese, zinc, and precious stones. The rich alluvial soil along the Chao Phraya and other rivers constitutes another important resource. Natural gas deposits were discovered offshore in the 1970s, reducing Thailand's reliance on imported petroleum. CPlants and Animals Jungles and swamps, scattered through the coastal areas of Thailand, have extensive tracts of tropical trees, including mangrove, rattan, ironwood, sappanwood, ebony, and rosewood. The upland areas are also heavily wooded, the most valuable species being teak, agalloch, and oak. In addition, a wide variety of tropical plants and fruit trees, including orchid, gardenia, hibiscus, banana, mango, and coconut, occur in Thailand. Many species of animal inhabit the jungles and forests. Elephants, widely used as beasts of burden, are abundant. Other large animals include the rhinoceros, tiger, leopard, gaur, water buffalo, and gibbon. The Siamese cat is, as its name implies, indigenous to Thailand. Thailand has more than 50 species of snakes, including several poisonous varieties. Crocodiles are numerous, as are various species of fishes and birds. IIIPOPULATION About 75 percent of the inhabitants of Thailand are Thai. The largest minority group consists of the Chinese, who make up about 14 percent of the total population, and most are Thai nationals. Other minority groups include the Malay-speaking Muslims in the south, the hill tribes in the north, and Cambodian (Khmer) and Vietnamese refugees in the east. The population of Thailand is 80 percent rural. APopulation Characteristics The population of Thailand is about 59,450,818 (1997 estimate), yielding an overall population density of 116 persons per sq km (300 per sq mi). The population is unevenly distributed, however, with the greatest concentration of people in the central region. BPolitical Divisions Thailand is divided into 76 provinces ( changwats). The provinces are further subdivided into districts (amphurs), subdistricts (king amphurs), communes (tambons), villages ( moobans), municipalities (tesabans), and sanitation districts (sukhaphibans). CPrincipal Cities Bangkok is the capital, chief seaport, and largest city (population, 1992 estimate, Bangkok Metropolis, 5,562,141). Other important towns include Chiang Mai (170,269), the largest in northern Thailand; Songkhla (80,881), on the Malay Peninsula; and Nakhon Si Thammarat (79,447), also on the Malay Peninsula. DReligion Buddhism is the prevailing religion of Thailand. About 95 percent of all Thai are Buddhist, and the country has approximately 18,000 Buddhist temples and 140,000 Buddhist priests. Nearly all Buddhist men in Thailand enter a wat (monastery) for at least a few days or months. Muslims, the majority of whom live in the area just north of Malaysia, constitute approximately 4 percent of the population, and the country also has some small Christian and Hindu communities. ELanguage Thai, a member of the Tai language family, is the chief language. Four regional dialects are in use. Lao, Chinese, Malay, and Mon-Khmer are also spoken in Thailand. English is taught in secondary schools and colleges and is also used in commerce and government. FEducation Education in Thailand is free and compulsory for all children between the ages of 6 and 12, and 87 percent of the children are enrolled in either public primary schools or those operated by Buddhist monasteries. Only 55 percent of all eligible children attend secondary schools. Children are officially required to receive six years of education, and the government has announced its intention to increase that number to nine years. The literacy rate is 94 percent, higher than that of most other countries of Southeast Asia. F1Elementary and Secondary Schools In the 1995-1996 school year 6.0 million students received primary education. Some 3.8 million students attended either lower- or upper-level secondary schools. F2Universities and Colleges In the early 1990s there were more than 600,000 students enrolled in institutions of higher education in Thailand, including more than 300,000 students enrolled at two open universities. Thailand has 17 universities, the largest of which include Chulalongkorn University (1917) in Bangkok and Chiang Mai University (1964) in the north. In addition, the Asian Institute of Technology (1959), in Bangkok, offers graduate degrees. In the early 1990s about 38,500 students attended 36 teacher-training colleges, which also offer four-year degree programs. GCulture Thailand is unique in Southeast Asia in that the country has never been a dependency of another nation. Another notable difference is that Thai women, unlike women of some other East Asian countries, are active in business affairs, the professions, and the arts. No single culture has ever dominated the entire area. The first time a national identity is thought to have been developed was during the Sukhothai kingdom. Formed in the first half of the 13th century when several Thai municipalities united, the kingdom survived until the late 14th to early 15th century, when it was absorbed by the Ayutthaya kings. During its short existence, however, the Sukhothai kingdom established a new Thai alphabet, which became the basis for modern Thai, and codified the Thai form of Theravada Buddhism. HLibraries and Museums The largest library in Thailand is the National Library in Bangkok. In addition, important technical collections are maintained in Bangkok at the United Nations Economic and Social Commission for Asia and the Pacific, the Asian Institute of Technology Library, and the Thai National Documentation Center. Thailand has a National Museum in Bangkok, which houses a large collection of ancient artifacts illustrating the development of Thai culture. Another important collection of Thai art was assembled by Jim Thompson, an American businessman who lived in Bangkok from the late 1940s to the 1960s. His reconstructed Thai house, filled with art, furniture, and ceramics, is now a museum. ILiterature Classic Thai literature is based on tradition and history. The Ramakien, the Thai version of the Hindu epic Ramayana, is the leading classic on which Thai art and music are based. The main theme remains the same in the Thai version, although the Ramakien is about 25 percent longer than the original Hindu version. Modern writing is more Western in style. Thailand has many women among its authors of popular writing. Kukrit Pramoj is one of Thailand's most famous novelists. In addition to his career as a writer, he was Thailand's prime minister in 1975. JArt Among the most celebrated works of architecture in Thailand are the wats in Bangkok. Thai sculpture, dating from the 14th century, is a mixture of Chinese, Myanmar, Hindu, and Khmer influences and is best seen in the temples and representations of Buddha. Thai religious paintings have been less well preserved; paintings are rarely older than 150 years. Thailand is known for producing beautiful silk textiles. KMusic and Dance Thai music is very intricate and is a usual accompaniment of Thai drama. The instruments, primarily woodwind and percussion, are usually grouped in five- or ten-piece ensembles. Musicians sit on the floor to play, and generally play by ear. The dance in Thailand is equally intricate, following or deriving from Indian dancing and involving a series of gestures and swaying that interpret a story. Even the smallest movements reflect important story threads, carefully woven by performers dressed in elaborate costumes and headgear. IVECONOMY The cultivation, processing, and export of agricultural products, especially rice, was traditionally the mainstay of the Thai economy. Although Thailand has long been among the most prosperous of the Asian nations, its dependence on a single crop rendered it exceedingly vulnerable to fluctuations in the world price of rice and to variations in the harvest. The government has diminished this vulnerability by instituting a number of development programs aimed at diversifying the economy and by promoting scientific methods of farming, particularly controlled flooding of the rice fields, so that the rice harvest might remain stable even in years of scant rainfall. Spurred largely by Japanese investment, Thailand industrialized rapidly during the 1980s and early 1990s; however, the economy experienced a downturn in the mid-1990s that worried both investors and the Thai people. The estimated national budget in 1995 included revenue of $31.3 billion and expenditure of $26.6 billion. In 1997 Thailand suffered an economic crisis when it became clear that a number of the country's financial institutions were near bankruptcy. Many had acquired bad debts during the economic boom years of the 1980s and early 1990s. Investors lost confidence in the value of the baht (the Thai currency), which began to fall sharply against the United States dollar. As the crisis developed, many businesses failed, unemployment rose, and the currencies and stock markets of other Southeast Asian nations were affected. The International Monetary Fund (IMF) provided an aid package of loans to help Thailand weather the crisis. To obtain the loans, Thailand agreed to take steps to stabilize its economy, including making budget cuts, raising taxes, and closing unstable financial institutions. AAgriculture Thailand is one of the world's leading producers of rice, despite the fact that the yield per hectare is low. In 1997 Thailand produced 21.8 million metric tons of rice, up from about 11.3 million metric tons per year in the 1960s. The second most important crop in value is rubber, which is raised mainly on plantations on the Malay Peninsula. Thailand produced 2.3 million metric tons of natural rubber in 1997. Other important crops included cassava (17.2 million metric tons), sugarcane (60.0 million), maize (4.4 million), and fruits such as pineapples and coconuts (6.9 million). Thailand is also a significant producer of kenaf, a fiber used in making canvas. Livestock totaled 8.0 million cattle, 4.8 million buffalo, 4.0 million pigs, and 131 million poultry. BForestry and Fishing Forests cover 23 percent of Thailand's total land area. The most valuable forest product is hardwood. The timber harvest in 1995 totaled 39.3 million cu m (1.4 billion cu ft), nearly all of which was burned for fuel. Thailand was a major exporter of teak until a ban on uncontrolled logging was instituted in 1989, following severe flooding as a result of deforestation. Fishing is rapidly growing in importance to the Thai economy. In 1995 the annual catch included 3.3 million metric tons of prawns, fish, and shellfish. In the early 1990s exports of ocean products, particularly prawns, accounted for about 10 percent of export earnings. CMining The development of extensive natural gas reserves has decreased Thailand's dependence on energy imports. Production in 1996 was 13.2 billion cu m (468 billion cu ft), 5 percent of the proven reserves. Gemstones, particularly diamonds, are the principal mineral export of Thailand, producing 3.3 percent of export revenues. The country's chief mineral products included (with annual output in the early 1990s) lignite (14.5 million metric tons), zinc ore (496,000), lead concentrates (65,500), tin (14,200), gypsum (7.2 million) and iron ore (240,100). DManufacturing Thailand's increasingly diversified manufacturing sector is a central component of the nation's economic expansion, growing by 9.4 percent annually during the 1980s and early 1990s. Industry, which includes manufacturing, construction, and mining, employs 14 percent of the labor force. Food-processing industries, especially rice milling and sugar refining; textile and clothing manufacture; and the electronics industry predominate. Other important manufactured goods included cement (18 million metric tons), motor vehicles (318,000 units), cigarettes (38.3 billion units), and various chemicals and petroleum products. EEnergy In 1996 Thailand produced 82 billion kilowatt-hours of electricity, up from about 3 billion kilowatt-hours in 1968. Generating plants fueled by hydrocarbons produced 91 of the electricity. FCurrency and Banking The basic unit of currency of Thailand is the baht, which is divided into 100 satang. In 1996 25.34 baht equaled U.S.$1 . After the onset of the 1997 economic crisis, the baht fell against the dollar by as much as 25 percent before making a partial recovery in the first quarter of 1998. The Bank of Thailand, established in 1942, issues all currency. Thailand also has many commercial bank branches, as well as several foreign banks. GForeign Trade and Tourism In 1995 Thai exports were valued at $56.4 billion, and imports were valued at $73.7 billion. Principal exports were agricultural products, electronics, clothing and footwear, and rubber. Thailand's primary trading partners were Japan, the United States, Singapore, Germany, Hong Kong, and South Korea. Tourism is Thailand's chief source of foreign capital. HTransportation The Thai railroad system, which totals 3870 km (2405 mi) of track, is owned and operated by the state. Consisting of a network of lines radiating from Bangkok, the system extends as far north as Chiang Mai, southward to the frontier of Malaysia, eastward to Ubon Ratchathani, and northeastward through Udon Thani to Nong Khai near the Laos border. Another line extends northwestward to the Myanmar frontier. The Chao Phraya, navigable for about 80 km (about 50 mi) from its mouth, is an important inland waterway. The highway system was improved in the 1970s and now includes 64,600 km (40,100 mi) of roads. Thai Airways operates both domestic and international services. Don Muang International Airport in northern metropolitan Bangkok is the largest airport. In addition, there are more than 20 smaller airports located throughout the country. Thailand is also planning a second international airport for the Bangkok area; it is expected to be completed around 2000. The port of Bangkok, one of the most modern in Southeast Asia, also serves neighboring landlocked Laos. ICommunications In 1995 Thailand had 189 radio receivers and 189 television sets for every 1000 residents. Bangkok has 19 daily newspapers, including 2 in English and 5 in Chinese, which have a combined circulation of more than 2.9 million. Periodicals are published in Thai, English, and Chinese, and several weekly papers serve the provinces. A press censorship law was repealed in Thailand in 1991. JLabor In 1996 the labor force totaled 34.7 million. Agriculture engaged 64 percent of the workers. Organized labor is represented by more than 530 unions with a combined total of nearly 300,000 members. VGOVERNMENT A revolution in 1932 transformed Thailand into a constitutional monarchy after centuries of rule by absolute monarchs, but until recently the country was largely controlled by the military. Although King Phumiphon Adunyadet has little direct power, he exercises considerable influence on political leaders. The nation's 16th constitution took effect in 1997. It is the first of Thailand's constitutions to be drafted by a process involving public debate, and the first to include a bill of rights guaranteeing equality to all citizens. AExecutive Under the constitution the king is Thailand's head of state and commander in chief of the armed forces. A cabinet is headed by a prime minister, who is the country's chief executive official. BLegislature Legislative power in Thailand is vested in the bicameral National Assembly, which consists of a 500-member House of Representatives and a 245-member Senate. Representatives are directly elected to four-year terms. Prior to the 1997 constitution, senators were appointed by the military; however, under the new constitution they too will be directly elected to four-year terms. CJudiciary Thai citizens are guaranteed due process and equal justice under the law. The highest court is the Sarn Dika (Supreme Court), sitting in Bangkok, which is the court of final appeal in all civil, criminal, and bankruptcy cases. A single court of appeals (Sarn Uthorn) has appellate jurisdiction in all cases. Courts of first instance include magistrates' courts with limited civil and criminal jurisdiction, provincial courts with unlimited jurisdiction, and civil and criminal courts with exclusive jurisdiction in Bangkok proper and Thon Buri. Thailand's constitution recognizes the independence of the judiciary. DLocal Government Each of Thailand's 76 provinces, called changwats, are under the control of a governor appointed by the Ministry of Interior, except Bangkok Metropolis, where the governor is elected by popular vote. District (amphur) officials are also appointed. Larger towns are governed by elected and appointed officials, and elected heads hold power at local levels. EHealth and Welfare The Ministry of Public Health is charged with disaster relief, child welfare, protection of the disabled and destitute, and development programs for northern hill tribes. Special programs were initiated in the 1980s to assist refugees from Vietnam and Cambodia in the east. The spread of Human Immunodeficiency Virus (HIV), which causes acquired immune deficiency syndrome (AIDS), is a serious public health problem in Thailand. According to the Thai Ministry of Public Health, the number of estimated HIV-infected people in Thailand was about 600,000 in 1994. Thailand's anti-AIDS campaign, launched in 1991, was among the first in Southeast Asia. The campaign includes AIDS awareness programs, encouraging Thai to avoid brothels and use condoms. Clinics offer anonymous testing for HIV infection. Thailand has one physician for every 4288 residents and one hospital bed for every 586 people. FDefense Military service is compulsory for two years for all able-bodied men between the ages of 21 and 30. In 1997 the armed forces included an army of 150,000 members, an air force of 43,000, and a navy of 73,000. VIHISTORY Present-day Thai are believed to be the descendants of Tai-speaking people who lived in the Black River (Sông Dà) valley of northern Vietnam, the extreme northeastern section of Laos, and neighboring sections of China around the 5th to 8th century AD. These Tai people may have spread into Thailand between the 7th to 13th century. By the end of the 13th century the Tai had formed a political entity and emerged as a nation afterward known as the Thai. In 1350 a unified Thai kingdom was established by a ruler known posthumously as Rama Tibodi. He founded the kingdom of Ayutthaya and made the city of Ayutthaya his capital. Despite intermittent warfare with the Cambodians and the Burmans, the Ayutthaya kingdom flourished during the next four centuries, conquering Cambodia and the surviving states in the north. Meanwhile, the Thai had come into contact that was not always friendly with various European and Asian nations, including Portugal, the Netherlands, the United Kingdom, and China. ASovereignty Embattled In 1767, following a two-year siege, Myanmar troops captured and destroyed Ayutthaya. The rule of Myanmar overlords in Thailand was shortly terminated when General Pya Taksin proclaimed himself king. When Taksin was executed by his ministers, the crown passed to General Pya Chakri, founder of the present dynasty of Thai kings, who ruled from 1782 to 1809 as Rama I. The British and Thai governments concluded a commercial treaty in 1826. Because of the rights and privileges obtained by this agreement, British influence increased in Thailand throughout the remainder of the 19th century. Owing to the statesmanship of two rulers, however, Thailand was spared the fate of colonization that befell its neighbors. Interested in Western science and civilization, King Mongkut (Rama IV), who reigned from 1851 to 1868, invited many European advisers to assist him in modernizing the country. His son, King Chulalongkorn (Rama V), who reigned during the height of the onslaught of European colonization, continued the vigorous modernization efforts of his father and managed to maintain the country's independence, albeit at considerable cost in territorial concessions. For example, in 1893 Thailand became embroiled in a boundary dispute with France, then the dominant power in Cochin China, Annam, Tonkin, and Cambodia. The French dispatched warships to Bangkok and forced the Thai to yield Cambodia and all of Laos east of the Mekong River. Additional Thai territory, situated west of the Mekong, was acquired by France in 1904 and 1907. Thailand gave up control over four states in the Malay Peninsula to the United Kingdom in 1909. In exchange, the British relinquished most of their extraterritorial rights in the rest of the kingdom. The Thai government entered World War I (1914-1918) on the side of the Allies in July 1917. Thailand subsequently became a founding member of the League of Nations. In June 1932, during the reign of King Prajadhipok, a small group of Thai military and political leaders organized a successful revolt against the government, until then an absolute monarchy. The insurgents, led by Pridi Phanomyong and Colonel Phibun Songgram, proclaimed a constitutional monarchy on June 27. Royalist opposition was finally overcome in October 1933. King Prajadhipok, increasingly unhappy with the new government and in ill health, abdicated in March 1935 in favor of his nephew, Prince Ananda Mahidol. Thailand invalidated all of its treaties with foreign nations in November 1936. Under the provisions of new treaties negotiated in the following year, the government obtained complete autonomy over its internal and external affairs. BWorld War II With Japanese encouragement and support, Phibun's government made demands on France, beginning in 1940, for the return of the territory ceded in and after 1893. The dispute was settled, with Japanese mediation, in May 1941. By the terms of the settlement, Thailand received about 54,000 sq km (about 21,000 sq mi) of territory, including part of western Cambodia and all of Laos west of the Mekong River. The relations between Japan and Thailand became increasingly friendly thereafter. On December 8, 1941, a few hours after the Japanese attack on Pearl Harbor, the Thai government granted Japan the right to move troops across the country to the Malayan frontier. Thailand declared war on the United States and the United Kingdom on January 25, 1942. Phibun's pro-Japanese government, however, was overthrown in July 1944; Pridi took over, and under his leadership considerable sympathy for the Allied cause developed among the Thai people. Thailand concluded a treaty with the United Kingdom and India in January 1946, renouncing, among other things, its claims to Malayan territory obtained during the war. Diplomatic relations with the United States were resumed in the same month. In November 1946 Thailand reached an agreement with France providing for the return to France of the territory obtained in 1941. Thailand was admitted to the United Nations (UN) on December 15, 1946, becoming the 55th member. Meanwhile, on June 9, 1946, King Ananda Mahidol had died under mysterious circumstances. A regency was appointed to rule during the minority of his brother and successor, King Rama IX. CDomestic Instability On November 9, 1947, a military junta led by Phibun seized control of the government. Except for a brief interlude early in 1948, Phibun thereafter retained control of the government until 1957. His regime, essentially a dictatorship, based its foreign policy on maintaining close relations with the United States and the United Kingdom. King Rama IX assumed the throne on May 5, 1950. After the outbreak of the Korean War in June 1950, Thailand assigned approximately 4000 men to the UN forces. On November 29, 1951, a group of army officers seized control of the government in a bloodless coup d'état and reestablished the authoritarian constitution of 1932, with some changes. Phibun was retained as premier. Meanwhile, a Free Thai movement, supported by the Chinese Communists and nominally headed by Pridi, had been formed in China. Thai representatives took part in the Geneva Conference of April 1954, which temporarily ended the war in Indochina. In September 1954, Thailand was a founding member and Bangkok became the headquarters of the Southeast Asia Treaty Organization (SEATO). In September 1957, Phibun's government was overthrown by a military coup d'état led by Marshall Sarit Thanarat, commander in chief of the Thai armed forces. A coalition government was formed in January 1958 under the premiership of Lieutenant General Thanom Kittikachorn. Another coup in October 1958, again headed by Sarit, overthrew the Thanom government. The constitution was suspended, a state of martial law was proclaimed, and all political parties were banned. In the early 1960s the government showed increasing concern over a rapidly growing Communist guerrilla movement in the north. The increase in terrorist attacks was one of the major problems faced by Thanom, who became prime minister again on Sarit's death in December 1963. The new government was also concerned about the deteriorating position of the pro-Western government in neighboring Laos and about the Vietnam War (1959-1975). DStruggle for Democracy On the political front, the government took gradual steps toward the restoration of political rights suspended in 1958. Elections to municipal councils were held for the first time in a decade in December 1967. A permanent constitution was promulgated in June 1968. Parliamentary elections were held in February 1969, in which the United Thai People's Party won a plurality of 75 seats in the house of representatives. The largest opposition group, the Democratic Party, won 56 seats. Beginning about 1969, the United States changed its role in Southeast Asia by gradually withdrawing its forces from Vietnam and by seeking friendly relations with China. These developments caused Thailand to establish a more flexible foreign policy, especially toward China and North Vietnam. At the same time, Thailand continued to face guerrilla activities in the north and along the border with Malaysia. The U.S. withdrawal from Southeast Asia had an adverse effect on the Thai economy. The declining economy and guerrilla activities were given as reasons for the establishment of a military government in November 1971. The military, led by General Thanom, abolished the constitution and dissolved parliament. In December 1972 a new constitution was proclaimed. In 1973 a series of student-led demonstrations against the military government resulted in Thanom's resignation in October and the appointment of a civilian cabinet. In late 1974 a new constitution was approved, and a freely elected government was formed in early 1975. Stability, however, remained elusive, and new elections in April 1976 made little difference. In September of that year the return of former Prime Minister Thanom from exile in Singapore led to bloody battles in Bangkok between leftist students and his right-wing supporters. In early October, as disorder was spreading, a military group led by Admiral Sa-ngad Chaloryu seized control of the country and installed a conservative government. A year later, however, that government also was brought down by Sa-ngad and his group. Sa-ngad instructed a new cabinet to try to bridge the divisions of Thai society and improve relations with the neighboring Communist regimes. Yet another constitution was promulgated in December 1978, and in April 1979 elections were held for a new House of Representatives. The military-installed government, however, remained in power until March 1980, when it was replaced by a new cabinet, headed by General Prem Tinsulanonda. Elections in 1983 left General Prem as head of a new coalition government. He dissolved the National Assembly in 1986 and called new elections. His party won, without a majority, and he again formed a coalition government. After elections in July 1988, Chatichai Choonhavan became prime minister. A military junta ousted him in February 1991 and installed an interim civilian government. After pro-military parties won the elections of March 1992, demonstrations in Bangkok calling for democratic reforms were violently suppressed. New elections in September resulted in another coalition government, with a veteran politician, Chuan Leekpai, as prime minister. In February 1995 the government passed a sweeping package that amended almost all the articles of the 1991 constitution. The prodemocracy changes included lowering the voting age from 20 to 18 years and changing the number of representatives from a fixed number to one based on population. In addition, Thai citizens were guaranteed due process and equal justice under the law. In May 1995 the Chuan Leekpai government collapsed amid accusations of wrongdoing in a government land reform project. In July 1995, after new elections, the leader of Chart Thai (Thai Nation Party), Banharn Silpa-archa, became prime minister. Less than a year into Silpa-archa's government, accusations emerged of corruption among his appointees, prompting investigation into bribes, abuse of authority, and questionable bank loans. In 1996, after a no confidence debate in parliament, Silpa-archa resigned as prime minister. New elections secured a slim victory for the New Aspiration Party (NAP); its leader Chavalit Yongchaiyudh became the next Thai prime minister. In 1997 Thailand's economy experienced a significant setback as the baht fell sharply against the dollar, many financial institutions and other businesses failed, and unemployment rose. The crisis then spread, affecting the economies of other Southeast Asian nations. To prevent the crisis from spreading further, the International Monetary Fund (IMF) agreed to provide an aid package of loans to Thailand. In return, Thailand agreed to adopt a series of measures intended to stabilize its economy. In October 1997 Thailand adopted a new constitution, with provisions aimed at controlling political corruption and expanding civil liberties. Facing criticism for his handling of the economy, Yongchaiyudh resigned as prime minister in November, and Chuan Leekpai was appointed to the post a second time. IINTRODUCTION Thailand, formerly Siam, officially Kingdom of Thailand, kingdom in Southeast Asia, bounded by Myanmar (formerly known as Burma) on the north and west, by Laos on the northeast, by Cambodia and the Gulf of Thailand (Siam) on the southeast, by Malaysia on the south, and by the Andaman Sea and Myanmar on the southwest. The total area of Thailand is 513,115 sq km (198,115 sq mi). Bangkok is the capital and largest city. IILAND AND RESOURCES Thailand lies within the Indochinese Peninsula (see Indochina), except for the southern extremity, which occupies a portion of the Malay Peninsula. The country's extreme dimensions are about 1770 km (about 1100 mi) from north to south and about 800 km (about 500 mi) from east to west. The physiography is highly diversified, but the mountain systems are the predominant feature of the terrain. A series of parallel ranges, with a north-south trend, occupy the northern and western portions of the country. Extreme elevations occur in the westernmost ranges, which extend along the Myanmar frontier and rise to 2595 m (8514 ft) atop Doi Inthanon, the highest point in Thailand. The peninsular area, which is bordered by narrow coastal plains, reaches a high point of 1790 m (5860 ft) atop Khao Luang. Another mountain system projects, in a northern and southern direction, through central Thailand. At its southern extremity, the system assumes an east-west trend and extends to the eastern frontier. Doi Pia Fai (1270 m/4167 ft) is its highest peak. The region to the north and east of this system consists largely of a low, barren plateau, called the Khorat Plateau. Making up about one-third of the country, the plateau is bordered by the Mekong River valley. Between the central and western mountains is a vast alluvial plain traversed by the Chao Phraya, the chief river of Thailand. This central plain, together with the fertile delta formed by the Chao Phraya near Bangkok, is the richest agricultural and most densely populated section of the kingdom. AClimate Thailand has a moist, tropical climate, influenced chiefly by monsoon winds that vary in direction according to the season. From April to October the winds are mainly from the southwest and are moisture laden; during the rest of the year they blow from the northeast. Temperatures are higher, ranging from about 26° to 37° C (about 78° to 98° F), while the country is under the influence of the southwestern winds. During the remainder of the year the range is from about 13° to 33° C (about 56° to 92° F). Temperatures are somewhat higher inland than they are along the coast, except at points of great elevation. Annual rainfall is about 1520 mm (about 60 in) in the northern, western, and central regions, about 2540 mm (about 100 in) or more on the Thai portion of the Malay Peninsula, and about 1270 mm (about 50 in) or less on the Khorat Plateau. Most rain falls in summer (June through October). BNatural Resources. Thailand is rich in natural resources. Among the known mineral deposits are coal, gold, lead, tin, tungsten, manganese, zinc, and precious stones. The rich alluvial soil along the Chao Phraya and other rivers constitutes another important resource. Natural gas deposits were discovered offshore in the 1970s, reducing Thailand's reliance on imported petroleum. CPlants and Animals Jungles and swamps, scattered through the coastal areas of Thailand, have extensive tracts of tropical trees, including mangrove, rattan, ironwood, sappanwood, ebony, and rosewood. The upland areas are also heavily wooded, the most valuable species being teak, agalloch, and oak. In addition, a wide variety of tropical plants and fruit trees, including orchid, gardenia, hibiscus, banana, mango, and coconut, occur in Thailand. Many species of animal inhabit the jungles and forests. Elephants, widely used as beasts of burden, are abundant. Other large animals include the rhinoceros, tiger, leopard, gaur, water buffalo, and gibbon. The Siamese cat is, as its name implies, indigenous to Thailand. Thailand has more than 50 species of snakes, including several poisonous varieties. Crocodiles are numerous, as are various species of fishes and birds. IIIPOPULATION About 75 percent of the inhabitants of Thailand are Thai. The largest minority group consists of the Chinese, who make up about 14 percent of the total population, and most are Thai nationals. Other minority groups include the Malay-speaking Muslims in the south, the hill tribes in the north, and Cambodian (Khmer) and Vietnamese refugees in the east. The population of Thailand is 80 percent rural. APopulation Characteristics The population of Thailand is about 59,450,818 (1997 estimate), yielding an overall population density of 116 persons per sq km (300 per sq mi). The population is unevenly distributed, however, with the greatest concentration of people in the central region. BPolitical Divisions Thailand is divided into 76 provinces ( changwats). The provinces are further subdivided into districts (amphurs), subdistricts (king amphurs), communes (tambons), villages ( moobans), municipalities (tesabans), and sanitation districts (sukhaphibans). CPrincipal Cities Bangkok is the capital, chief seaport, and largest city (population, 1992 estimate, Bangkok Metropolis, 5,562,141). Other important towns include Chiang Mai (170,269), the largest in northern Thailand; Songkhla (80,881), on the Malay Peninsula; and Nakhon Si Thammarat (79,447), also on the Malay Peninsula. DReligion Buddhism is the prevailing religion of Thailand. About 95 percent of all Thai are Buddhist, and the country has approximately 18,000 Buddhist temples and 140,000 Buddhist priests. Nearly all Buddhist men in Thailand enter a wat (monastery) for at least a few days or months. Muslims, the majority of whom live in the area just north of Malaysia, constitute approximately 4 percent of the population, and the country also has some small Christian and Hindu communities. ELanguage Thai, a member of the Tai language family, is the chief language. Four regional dialects are in use. Lao, Chinese, Malay, and Mon-Khmer are also spoken in Thailand. English is taught in secondary schools and colleges and is also used in commerce and government. FEducation Education in Thailand is free and compulsory for all children between the ages of 6 and 12, and 87 percent of the children are enrolled in either public primary schools or those operated by Buddhist monasteries. Only 55 percent of all eligible children attend secondary schools. Children are officially required to receive six years of education, and the government has announced its intention to increase that number to nine years. The literacy rate is 94 percent, higher than that of most other countries of Southeast Asia. F1Elementary and Secondary Schools In the 1995-1996 school year 6.0 million students received primary education. Some 3.8 million students attended either lower- or upper-level secondary schools. F2Universities and Colleges In the early 1990s there were more than 600,000 students enrolled in institutions of higher education in Thailand, including more than 300,000 students enrolled at two open universities. Thailand has 17 universities, the largest of which include Chulalongkorn University (1917) in Bangkok and Chiang Mai University (1964) in the north. In addition, the Asian Institute of Technology (1959), in Bangkok, offers graduate degrees. In the early 1990s about 38,500 students attended 36 teacher-training colleges, which also offer four-year degree programs. GCulture Thailand is unique in Southeast Asia in that the country has never been a dependency of another nation. Another notable difference is that Thai women, unlike women of some other East Asian countries, are active in business affairs, the professions, and the arts. No single culture has ever dominated the entire area. The first time a national identity is thought to have been developed was during the Sukhothai kingdom. Formed in the first half of the 13th century when several Thai municipalities united, the kingdom survived until the late 14th to early 15th century, when it was absorbed by the Ayutthaya kings. During its short existence, however, the Sukhothai kingdom established a new Thai alphabet, which became the basis for modern Thai, and codified the Thai form of Theravada Buddhism. HLibraries and Museums The largest library in Thailand is the National Library in Bangkok. In addition, important technical collections are maintained in Bangkok at the United Nations Economic and Social Commission for Asia and the Pacific, the Asian Institute of Technology Library, and the Thai National Documentation Center. Thailand has a National Museum in Bangkok, which houses a large collection of ancient artifacts illustrating the development of Thai culture. Another important collection of Thai art was assembled by Jim Thompson, an American businessman who lived in Bangkok from the late 1940s to the 1960s. His reconstructed Thai house, filled with art, furniture, and ceramics, is now a museum. ILiterature Classic Thai literature is based on tradition and history. The Ramakien, the Thai version of the Hindu epic Ramayana, is the leading classic on which Thai art and music are based. The main theme remains the same in the Thai version, although the Ramakien is about 25 percent longer than the original Hindu version. Modern writing is more Western in style. Thailand has many women among its authors of popular writing. Kukrit Pramoj is one of Thailand's most famous novelists. In addition to his career as a writer, he was Thailand's prime minister in 1975. JArt Among the most celebrated works of architecture in Thailand are the wats in Bangkok. Thai sculpture, dating from the 14th century, is a mixture of Chinese, Myanmar, Hindu, and Khmer influences and is best seen in the temples and representations of Buddha. Thai religious paintings have been less well preserved; paintings are rarely older than 150 years. Thailand is known for producing beautiful silk textiles. KMusic and Dance Thai music is very intricate and is a usual accompaniment of Thai drama. The instruments, primarily woodwind and percussion, are usually grouped in five- or ten-piece ensembles. Musicians sit on the floor to play, and generally play by ear. The dance in Thailand is equally intricate, following or deriving from Indian dancing and involving a series of gestures and swaying that interpret a story. Even the smallest movements reflect important story threads, carefully woven by performers dressed in elaborate costumes and headgear. IVECONOMY The cultivation, processing, and export of agricultural products, especially rice, was traditionally the mainstay of the Thai economy. Although Thailand has long been among the most prosperous of the Asian nations, its dependence on a single crop rendered it exceedingly vulnerable to fluctuations in the world price of rice and to variations in the harvest. The government has diminished this vulnerability by instituting a number of development programs aimed at diversifying the economy and by promoting scientific methods of farming, particularly controlled flooding of the rice fields, so that the rice harvest might remain stable even in years of scant rainfall. Spurred largely by Japanese investment, Thailand industrialized rapidly during the 1980s and early 1990s; however, the economy experienced a downturn in the mid-1990s that worried both investors and the Thai people. The estimated national budget in 1995 included revenue of $31.3 billion and expenditure of $26.6 billion. In 1997 Thailand suffered an economic crisis when it became clear that a number of the country's financial institutions were near bankruptcy. Many had acquired bad debts during the economic boom years of the 1980s and early 1990s. Investors lost confidence in the value of the baht (the Thai currency), which began to fall sharply against the United States dollar. As the crisis developed, many businesses failed, unemployment rose, and the currencies and stock markets of other Southeast Asian nations were affected. The International Monetary Fund (IMF) provided an aid package of loans to help Thailand weather the crisis. To obtain the loans, Thailand agreed to take steps to stabilize its economy, including making budget cuts, raising taxes, and closing unstable financial institutions. AAgriculture Thailand is one of the world's leading producers of rice, despite the fact that the yield per hectare is low. In 1997 Thailand produced 21.8 million metric tons of rice, up from about 11.3 million metric tons per year in the 1960s. The second most important crop in value is rubber, which is raised mainly on plantations on the Malay Peninsula. Thailand produced 2.3 million metric tons of natural rubber in 1997. Other important crops included cassava (17.2 million metric tons), sugarcane (60.0 million), maize (4.4 million), and fruits such as pineapples and coconuts (6.9 million). Thailand is also a significant producer of kenaf, a fiber used in making canvas. Livestock totaled 8.0 million cattle, 4.8 million buffalo, 4.0 million pigs, and 131 million poultry. BForestry and Fishing Forests cover 23 percent of Thailand's total land area. The most valuable forest product is hardwood. The timber harvest in 1995 totaled 39.3 million cu m (1.4 billion cu ft), nearly all of which was burned for fuel. Thailand was a major exporter of teak until a ban on uncontrolled logging was instituted in 1989, following severe flooding as a result of deforestation. Fishing is rapidly growing in importance to the Thai economy. In 1995 the annual catch included 3.3 million metric tons of prawns, fish, and shellfish. In the early 1990s exports of ocean products, particularly prawns, accounted for about 10 percent of export earnings. CMining The development of extensive natural gas reserves has decreased Thailand's dependence on energy imports. Production in 1996 was 13.2 billion cu m (468 billion cu ft), 5 percent of the proven reserves. Gemstones, particularly diamonds, are the principal mineral export of Thailand, producing 3.3 percent of export revenues. The country's chief mineral products included (with annual output in the early 1990s) lignite (14.5 million metric tons), zinc ore (496,000), lead concentrates (65,500), tin (14,200), gypsum (7.2 million) and iron ore (240,100). DManufacturing Thailand's increasingly diversified manufacturing sector is a central component of the nation's economic expansion, growing by 9.4 percent annually during the 1980s and early 1990s. Industry, which includes manufacturing, construction, and mining, employs 14 percent of the labor force. Food-processing industries, especially rice milling and sugar refining; textile and clothing manufacture; and the electronics industry predominate. Other important manufactured goods included cement (18 million metric tons), motor vehicles (318,000 units), cigarettes (38.3 billion units), and various chemicals and petroleum products. EEnergy In 1996 Thailand produced 82 billion kilowatt-hours of electricity, up from about 3 billion kilowatt-hours in 1968. Generating plants fueled by hydrocarbons produced 91 of the electricity. FCurrency and Banking The basic unit of currency of Thailand is the baht, which is divided into 100 satang. In 1996 25.34 baht equaled U.S.$1 . After the onset of the 1997 economic crisis, the baht fell against the dollar by as much as 25 percent before making a partial recovery in the first quarter of 1998. The Bank of Thailand, established in 1942, issues all currency. Thailand also has many commercial bank branches, as well as several foreign banks. GForeign Trade and Tourism In 1995 Thai exports were valued at $56.4 billion, and imports were valued at $73.7 billion. Principal exports were agricultural products, electronics, clothing and footwear, and rubber. Thailand's primary trading partners were Japan, the United States, Singapore, Germany, Hong Kong, and South Korea. Tourism is Thailand's chief source of foreign capital. HTransportation The Thai railroad system, which totals 3870 km (2405 mi) of track, is owned and operated by the state. Consisting of a network of lines radiating from Bangkok, the system extends as far north as Chiang Mai, southward to the frontier of Malaysia, eastward to Ubon Ratchathani, and northeastward through Udon Thani to Nong Khai near the Laos border. Another line extends northwestward to the Myanmar frontier. The Chao Phraya, navigable for about 80 km (about 50 mi) from its mouth, is an important inland waterway. The highway system was improved in the 1970s and now includes 64,600 km (40,100 mi) of roads. Thai Airways operates both domestic and international services. Don Muang International Airport in northern metropolitan Bangkok is the largest airport. In addition, there are more than 20 smaller airports located throughout the country. Thailand is also planning a second international airport for the Bangkok area; it is expected to be completed around 2000. The port of Bangkok, one of the most modern in Southeast Asia, also serves neighboring landlocked Laos. ICommunications In 1995 Thailand had 189 radio receivers and 189 television sets for every 1000 residents. Bangkok has 19 daily newspapers, including 2 in English and 5 in Chinese, which have a combined circulation of more than 2.9 million. Periodicals are published in Thai, English, and Chinese, and several weekly papers serve the provinces. A press censorship law was repealed in Thailand in 1991. JLabor In 1996 the labor force totaled 34.7 million. Agriculture engaged 64 percent of the workers. Organized labor is represented by more than 530 unions with a combined total of nearly 300,000 members. VGOVERNMENT A revolution in 1932 transformed Thailand into a constitutional monarchy after centuries of rule by absolute monarchs, but until recently the country was largely controlled by the military. Although King Phumiphon Adunyadet has little direct power, he exercises considerable influence on political leaders. The nation's 16th constitution took effect in 1997. It is the first of Thailand's constitutions to be drafted by a process involving public debate, and the first to include a bill of rights guaranteeing equality to all citizens. AExecutive Under the constitution the king is Thailand's head of state and commander in chief of the armed forces. A cabinet is headed by a prime minister, who is the country's chief executive official. BLegislature Legislative power in Thailand is vested in the bicameral National Assembly, which consists of a 500-member House of Representatives and a 245-member Senate. Representatives are directly elected to four-year terms. Prior to the 1997 constitution, senators were appointed by the military; however, under the new constitution they too will be directly elected to four-year terms. CJudiciary Thai citizens are guaranteed due process and equal justice under the law. The highest court is the Sarn Dika (Supreme Court), sitting in Bangkok, which is the court of final appeal in all civil, criminal, and bankruptcy cases. A single court of appeals (Sarn Uthorn) has appellate jurisdiction in all cases. Courts of first instance include magistrates' courts with limited civil and criminal jurisdiction, provincial courts with unlimited jurisdiction, and civil and criminal courts with exclusive jurisdiction in Bangkok proper and Thon Buri. Thailand's constitution recognizes the independence of the judiciary. DLocal Government Each of Thailand's 76 provinces, called changwats, are under the control of a governor appointed by the Ministry of Interior, except Bangkok Metropolis, where the governor is elected by popular vote. District (amphur) officials are also appointed. Larger towns are governed by elected and appointed officials, and elected heads hold power at local levels. EHealth and Welfare The Ministry of Public Health is charged with disaster relief, child welfare, protection of the disabled and destitute, and development programs for northern hill tribes. Special programs were initiated in the 1980s to assist refugees from Vietnam and Cambodia in the east. The spread of Human Immunodeficiency Virus (HIV), which causes acquired immune deficiency syndrome (AIDS), is a serious public health problem in Thailand. According to the Thai Ministry of Public Health, the number of estimated HIV-infected people in Thailand was about 600,000 in 1994. Thailand's anti-AIDS campaign, launched in 1991, was among the first in Southeast Asia. The campaign includes AIDS awareness programs, encouraging Thai to avoid brothels and use condoms. Clinics offer anonymous testing for HIV infection. Thailand has one physician for every 4288 residents and one hospital bed for every 586 people. FDefense Military service is compulsory for two years for all able-bodied men between the ages of 21 and 30. In 1997 the armed forces included an army of 150,000 members, an air force of 43,000, and a navy of 73,000. VIHISTORY Present-day Thai are believed to be the descendants of Tai-speaking people who lived in the Black River (Sông Dà) valley of northern Vietnam, the extreme northeastern section of Laos, and neighboring sections of China around the 5th to 8th century AD. These Tai people may have spread into Thailand between the 7th to 13th century. By the end of the 13th century the Tai had formed a political entity and emerged as a nation afterward known as the Thai. In 1350 a unified Thai kingdom was established by a ruler known posthumously as Rama Tibodi. He founded the kingdom of Ayutthaya and made the city of Ayutthaya his capital. Despite intermittent warfare with the Cambodians and the Burmans, the Ayutthaya kingdom flourished during the next four centuries, conquering Cambodia and the surviving states in the north. Meanwhile, the Thai had come into contact that was not always friendly with various European and Asian nations, including Portugal, the Netherlands, the United Kingdom, and China. ASovereignty Embattled In 1767, following a two-year siege, Myanmar troops captured and destroyed Ayutthaya. The rule of Myanmar overlords in Thailand was shortly terminated when General Pya Taksin proclaimed himself king. When Taksin was executed by his ministers, the crown passed to General Pya Chakri, founder of the present dynasty of Thai kings, who ruled from 1782 to 1809 as Rama I. The British and Thai governments concluded a commercial treaty in 1826. Because of the rights and privileges obtained by this agreement, British influence increased in Thailand throughout the remainder of the 19th century. Owing to the statesmanship of two rulers, however, Thailand was spared the fate of colonization that befell its neighbors. Interested in Western science and civilization, King Mongkut (Rama IV), who reigned from 1851 to 1868, invited many European advisers to assist him in modernizing the country. His son, King Chulalongkorn (Rama V), who reigned during the height of the onslaught of European colonization, continued the vigorous modernization efforts of his father and managed to maintain the country's independence, albeit at considerable cost in territorial concessions. For example, in 1893 Thailand became embroiled in a boundary dispute with France, then the dominant power in Cochin China, Annam, Tonkin, and Cambodia. The French dispatched warships to Bangkok and forced the Thai to yield Cambodia and all of Laos east of the Mekong River. Additional Thai territory, situated west of the Mekong, was acquired by France in 1904 and 1907. Thailand gave up control over four states in the Malay Peninsula to the United Kingdom in 1909. In exchange, the British relinquished most of their extraterritorial rights in the rest of the kingdom. The Thai government entered World War I (1914-1918) on the side of the Allies in July 1917. Thailand subsequently became a founding member of the League of Nations. In June 1932, during the reign of King Prajadhipok, a small group of Thai military and political leaders organized a successful revolt against the government, until then an absolute monarchy. The insurgents, led by Pridi Phanomyong and Colonel Phibun Songgram, proclaimed a constitutional monarchy on June 27. Royalist opposition was finally overcome in October 1933. King Prajadhipok, increasingly unhappy with the new government and in ill health, abdicated in March 1935 in favor of his nephew, Prince Ananda Mahidol. Thailand invalidated all of its treaties with foreign nations in November 1936. Under the provisions of new treaties negotiated in the following year, the government obtained complete autonomy over its internal and external affairs. BWorld War II With Japanese encouragement and support, Phibun's government made demands on France, beginning in 1940, for the return of the territory ceded in and after 1893. The dispute was settled, with Japanese mediation, in May 1941. By the terms of the settlement, Thailand received about 54,000 sq km (about 21,000 sq mi) of territory, including part of western Cambodia and all of Laos west of the Mekong River. The relations between Japan and Thailand became increasingly friendly thereafter. On December 8, 1941, a few hours after the Japanese attack on Pearl Harbor, the Thai government granted Japan the right to move troops across the country to the Malayan frontier. Thailand declared war on the United States and the United Kingdom on January 25, 1942. Phibun's pro-Japanese government, however, was overthrown in July 1944; Pridi took over, and under his leadership considerable sympathy for the Allied cause developed among the Thai people. Thailand concluded a treaty with the United Kingdom and India in January 1946, renouncing, among other things, its claims to Malayan territory obtained during the war. Diplomatic relations with the United States were resumed in the same month. In November 1946 Thailand reached an agreement with France providing for the return to France of the territory obtained in 1941. Thailand was admitted to the United Nations (UN) on December 15, 1946, becoming the 55th member. Meanwhile, on June 9, 1946, King Ananda Mahidol had died under mysterious circumstances. A regency was appointed to rule during the minority of his brother and successor, King Rama IX. CDomestic Instability On November 9, 1947, a military junta led by Phibun seized control of the government. Except for a brief interlude early in 1948, Phibun thereafter retained control of the government until 1957. His regime, essentially a dictatorship, based its foreign policy on maintaining close relations with the United States and the United Kingdom. King Rama IX assumed the throne on May 5, 1950. After the outbreak of the Korean War in June 1950, Thailand assigned approximately 4000 men to the UN forces. On November 29, 1951, a group of army officers seized control of the government in a bloodless coup d'état and reestablished the authoritarian constitution of 1932, with some changes. Phibun was retained as premier. Meanwhile, a Free Thai movement, supported by the Chinese Communists and nominally headed by Pridi, had been formed in China. Thai representatives took part in the Geneva Conference of April 1954, which temporarily ended the war in Indochina. In September 1954, Thailand was a founding member and Bangkok became the headquarters of the Southeast Asia Treaty Organization (SEATO). In September 1957, Phibun's government was overthrown by a military coup d'état led by Marshall Sarit Thanarat, commander in chief of the Thai armed forces. A coalition government was formed in January 1958 under the premiership of Lieutenant General Thanom Kittikachorn. Another coup in October 1958, again headed by Sarit, overthrew the Thanom government. The constitution was suspended, a state of martial law was proclaimed, and all political parties were banned. In the early 1960s the government showed increasing concern over a rapidly growing Communist guerrilla movement in the north. The increase in terrorist attacks was one of the major problems faced by Thanom, who became prime minister again on Sarit's death in December 1963. The new government was also concerned about the deteriorating position of the pro-Western government in neighboring Laos and about the Vietnam War (1959-1975). DStruggle for Democracy On the political front, the government took gradual steps toward the restoration of political rights suspended in 1958. Elections to municipal councils were held for the first time in a decade in December 1967. A permanent constitution was promulgated in June 1968. Parliamentary elections were held in February 1969, in which the United Thai People's Party won a plurality of 75 seats in the house of representatives. The largest opposition group, the Democratic Party, won 56 seats. Beginning about 1969, the United States changed its role in Southeast Asia by gradually withdrawing its forces from Vietnam and by seeking friendly relations with China. These developments caused Thailand to establish a more flexible foreign policy, especially toward China and North Vietnam. At the same time, Thailand continued to face guerrilla activities in the north and along the border with Malaysia. The U.S. withdrawal from Southeast Asia had an adverse effect on the Thai economy. The declining economy and guerrilla activities were given as reasons for the establishment of a military government in November 1971. The military, led by General Thanom, abolished the constitution and dissolved parliament. In December 1972 a new constitution was proclaimed. In 1973 a series of student-led demonstrations against the military government resulted in Thanom's resignation in October and the appointment of a civilian cabinet. In late 1974 a new constitution was approved, and a freely elected government was formed in early 1975. Stability, however, remained elusive, and new elections in April 1976 made little difference. In September of that year the return of former Prime Minister Thanom from exile in Singapore led to bloody battles in Bangkok between leftist students and his right-wing supporters. In early October, as disorder was spreading, a military group led by Admiral Sa-ngad Chaloryu seized control of the country and installed a conservative government. A year later, however, that government also was brought down by Sa-ngad and his group. Sa-ngad instructed a new cabinet to try to bridge the divisions of Thai society and improve relations with the neighboring Communist regimes. Yet another constitution was promulgated in December 1978, and in April 1979 elections were held for a new House of Representatives. The military-installed government, however, remained in power until March 1980, when it was replaced by a new cabinet, headed by General Prem Tinsulanonda. Elections in 1983 left General Prem as head of a new coalition government. He dissolved the National Assembly in 1986 and called new elections. His party won, without a majority, and he again formed a coalition government. After elections in July 1988, Chatichai Choonhavan became prime minister. A military junta ousted him in February 1991 and installed an interim civilian government. After pro-military parties won the elections of March 1992, demonstrations in Bangkok calling for democratic reforms were violently suppressed. New elections in September resulted in another coalition government, with a veteran politician, Chuan Leekpai, as prime minister. In February 1995 the government passed a sweeping package that amended almost all the articles of the 1991 constitution. The prodemocracy changes included lowering the voting age from 20 to 18 years and changing the number of representatives from a fixed number to one based on population. In addition, Thai citizens were guaranteed due process and equal justice under the law. In May 1995 the Chuan Leekpai government collapsed amid accusations of wrongdoing in a government land reform project. In July 1995, after new elections, the leader of Chart Thai (Thai Nation Party), Banharn Silpa-archa, became prime minister. Less than a year into Silpa-archa's government, accusations emerged of corruption among his appointees, prompting investigation into bribes, abuse of authority, and questionable bank loans. In 1996, after a no confidence debate in parliament, Silpa-archa resigned as prime minister. New elections secured a slim victory for the New Aspiration Party (NAP); its leader Chavalit Yongchaiyudh became the next Thai prime minister. In 1997 Thailand's economy experienced a significant setback as the baht fell sharply against the dollar, many financial institutions and other businesses failed, and unemployment rose. The crisis then spread, affecting the economies of other Southeast Asian nations. To prevent the crisis from spreading further, the International Monetary Fund (IMF) agreed to provide an aid package of loans to Thailand. In return, Thailand agreed to adopt a series of measures intended to stabilize its economy. In October 1997 Thailand adopted a new constitution, with provisions aimed at controlling political corruption and expanding civil liberties. Facing criticism for his handling of the economy, Yongchaiyudh resigned as prime minister in November, and Chuan Leekpai was appointed to the post a second time.

Norway

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              The official country name in conventional long form is the Kingdom of Norway. Norge is the local short form. The capital of Norway is Oslo. Norway is situated far to the north in the western corner of Europe bordering the North Sea and the North Atlantic Ocean. Norway shares borders with Sweden, Finland and Russia. The Kingdom of Norway, in addition to the mainland, includes the Svalbard archipelago and Jan Mayen. Norway also has territories in the Antarctic region. These are Bouvet Island and Peter I Island. The size of Norway is slightly larger that New Mexico. The geographical conditions do not favor internal communication in Norway. The terrain is two-thirds mountains and there are nearly 50,000 islands off its coastline. High mountains, glaciers with high plateaus deep fjords, and arctic tundra in the north make communication difficult (www.odci.gov.) Norway’s natural resources include petroleum, copper, natural gas, pyrites, nickel, iron ore, zinc, lead, fish, timber, and hydropower. Current environmental issues include: water pollution; acid rain damaging forests and adversely affecting lakes, threatening fish stocks; air pollution from vehicle emissions (www.odci.gov.) People Norway has a population of 4,438,537 with a growth rate of .4% recorded in July 1999 (www.ssb.no.) The life expectancy at birth of the total population is 78.36 years. This statistic is broken down by gender and the life expectancy at birth for females is 81.35 years and 75.55 years for male, est. in 1999. The estimated total fertility rate in 1999 is 1.77 children born per woman. The infant mortality rate is 4.96 deaths per 1,000 live births (1999 est.) (www.adin.dep.no.) Ethnic groups include: Germanic (Nordic, Alpine, Baltic), Lapps (Sami) (www.odci.gov.) The major religions are Evangelical Lutheran 87.8% (state church), other Protestant and Roman Catholic 3.8%, none 3.2%, unknown 5.2% (1980) (Ostbye, 1992.) The official language is Norwegian and there are small Lapp and Finnish-speaking minorities. Literacy rates are defined in the population of age 15 and over that can read and write. The total population is 99% literate (www.ssb.no.) Economy Norway is one of the richest countries in the world calculated by GNP per capita or purchasing parity which is $24,700 (www.odci.gov.) Norway thrives on welfare capitalism. The economy consists of a combination of free market activity and government intervention. The government controls key areas, such as the petroleum sector (through large-scale state enterprises), and extensively subsidizes agriculture, fishing, and areas with sparse resources. Norway maintains an extensive welfare system that helps increase public sector expenditures to more than 50% of GDP and results in one of the highest average tax levels in the world. The unemployment rate in the year-end of 1997 was 2.6%. The inflation rate was low at 2.3% is 1998 (www.ssb.no.) Norway is a major shipping nation, with a high dependence on international trade and exporter of raw materials and semi-processed goods. The country is richly endowed with natural resources and is highly dependent on its oil production and international oil prices. Only Saudi Arabia exports more oil than Norway. Oslo opted to stay out of the EU during a referendum in November 1994. Economic growth in 1999 should drop to about 1%. Despite their high per capita income and generous welfare benefits, Norwegians worry about that time in the 21st century when the oil and gas run out (www.odin.dep.no.) Government Norway is a constitutional monarchy which means that the constitution decrees that the country shall be ruled by a monarch. The king and his family have no real political power but are an important symbol and mean a great deal to the people. Harald V came to the throne after the death of his father Olav V in 1991. King Harald is married to Queen Sonja and they have two children, Crown Prince Haakon and Princess Martha Louise. The Storting is Norway's national assembly and consists of 165 representatives from 19 counties. General elections are held every 4 years. The Storting passes laws and decides how the national income should be spent. The Prime Minister is the head of the government and has 18 ministers to assist in the running of the country. Although the Storting is the most powerful body in the country, each of the 19 counties and the 435 municipalities has its own local government which is responsible for the building and running of schools, hospitals, kindergartens, and roads (www.odin.dep.no.). Every Norwegian has the right to vote from the age of 18. Norway was one of the first countries in the world to allow women to vote, which occurred in 1913. Since this period, Norway has come a long way in ensuring equal rights for men and women (www.odin.dep.no). Language During the union with Denmark from 1400 to 1815, Oslo became the cultural, political, and commercial center. Nationalist opposition against the union with Sweden (1815-1905) got most of its strength from the periphery (Ostergaard, 1992.) One of the lasting outcomes of the protest is two official languages: bokmal (literary Norwegian) based on the dialect of the upper class in Oslo and influenced by the Danish and nynorsk (new Norwegian) which is based on countryside dialects from the western parts of Norway (Ostybe, 1993.) Ninety-five percent of the population speaks Norwegian as their native language. Everyone who speaks Norwegian, whether it is a local dialect or one of the two standard official languages, can be understood by other Norwegians since there are no real language barriers. The two languages have equal status; therefore, they are both used in public administration, in schools, churches, and on radio and television. In addition, books, magazines, and newspapers are published in both languages (www.odin.dep.no.) Media System Overview The media landscape in Norway has been transformed over the past two decades. Norwegians still top the list of the world’s most avid newspaper readers. The time spent on the electronic media is increasing year by year. Norway was a latecomer in the field of television, which was introduced officially in 1960 (Ostergaard, 1992) The state retained a monopoly of both radio and television until the early 1980s. The Norwegian parliament then opened the field to private enterprise, though both radio and television stations had to be licensed by the authorities. This breaking down of the state monopoly opened up for a large number of both local and nationwide radio and television companies that started to compete with the Norwegian Broadcasting Corporation (NRK). At the same time the compact disc was introduced to the market, personal computers and the Internet entered the market (Ostybe, 1993.) This rapid development in the field of electronics meant tougher competition for the traditional printed media. They already faced competition from radio and television in the fields of both news and entertainment. The media landscape underwent a radical change, but the new media did not replace the old, they supplemented them. Newspapers There has been governmental regulation of newspapers in Norway for quite some time. Norwegian papers are linked to political parties and some are even owned by a party as a result of monopolization (Ostergaard, 1992.) During the German occupation in Norway from 1940-1945, more than 60% of the newspapers were stopped and only five of the 44 Labor Party papers continued during the war (Ostybe, 1993.) All Labor Party papers re-established after the war but never regained their strength. Organizations in the paper industry turned to government for subsidies. There was no evidence of state influence over the content of the newspapers which is why the subsidy system has widened the range of newspapers in Norway (Ostybe, 1993.) The national organization of the Labor Party controlled the leading Labor newspaper, Abeiderblader. There was strong technical, economical, editorial cooperation between Labor Papers and they were seen as a newspaper chain. All papers remained independent until 1990 when all the Labor papers merged into one company (Ostergaard, 1992.) Currently, there are one or two newspapers in each town, except for larger cities. The largest newspaper is the Oslo-bases tabloid, Verdens Gang, which is read by 1,384,000 people (www.odin.dep.no.) The other nation-wide popular newspaper is the Dagbladet. These two tabloids contain news background, comments, and debate on both political and cultural affairs. There is no value-added tax or VAT, on newspapers in Norway (www.ssb.no.) Most of the large newspapers are Conservative or Liberal (www.odin.dep.no.) Newspapers and television are the most widely used media in Norway. Television Norwegians had their first real taste of television through the spillover effect of Swedish TV and Danish TV. There are two Norwegian channels that cover the entire country. One is 30 year-old NRK (Norwegian Broadcasting Channel) which is a network of TV, radio, news, sports, culture, drama, and entertainment (www.odci.gov.) The NRK used to be state-owned but in 1988 it was transformed into a public trust. This may have given the institution more independence but regardless, important decisions about the economy and organizational structure were taken by the Parliament. NRK was financed by television license fees and special tax on radio and TV equipment which was also set by Parliament (Ostybe, 1993.) NRK is not a local channel; therefore, anyone who has a television set must pay the NRK license. The laws in Norway make it impossible for TV stations to interrupt shows with commercials (Ostybe, 1993.) Advertising in the media was localized in 1991 but contained restrictions (www.odin.dep.no) Ads promoting alcohol, tobacco are prohibited and the Act also does not permit advertisements directed at children. The age group of 67 and older is by far the largest age group that watches TV. The group of 9-15 year-olds watches half as much TV as the elderly (www.odin.de.no) Recently, NRK became a joint stock company and the state has become the sole owner. The Board is disappointed by the government but is not responsible for the editorial contents. These contents are the responsibility of the Director General (www.odin.dep.no.) Norway’s second channel, TV2 opened five years ago and is owned by three media corporations: Schibstel, Egmont, and A-pressen (Ostergaard, 1992.) The purpose of TV2 was to contribute to the preservation of Norwegian language, culture, and identity. TV2 was required to have at least one newscast per day and a given percentage of the programs were produced in Norway. TV2 is very popular today and is a major competitor to NRK (www.odin.dep.no.) Radio The most important position radio ever had in Norway was during WWII when it was used as to transmit news from the British Isles (Ostybe, 1993) The NRK used to be a state monopoly and was financed by public license fees. Only one channel existed until 1981 when a second was introduced followed by the third channel in 1993. The topography of Norway makes it difficult in distributing main programming to the entire population, which is the goal of the NRK. The transmitter system enables the NRK to divide the country into 17 regional units to manage the transmission of their programs (Ostergaard, 1992.) The Sami population has their own radio programs. The government has posed regulations on the industry for decades. In 1987 the Broadcasting Act made local radio permanent and accepted advertising in local radio (Weymouth & Lamizet, 1996) The drawback was that a tax was introduced on the revenues from broadcasting advertisements. This income would be used to subsidize local radio stations in areas where economic foundations were too weak to support a station. The Act treated local TV in the same way that local radio was treated, with the exception of the commercials (Ostybe, 1993.) In 1993, the first private radio company, P4, was established. The Mass Media Authority licenses this station and all private radio stations. Mainstream music and news dominate programming at P4. This station targets young adults and covers 93% of the population (Weymouth & Lamizet, 1996.) After advertising was allowed in the media in 1991, P4 rapidly gained a substantial share of radio advertising. The radio today is not as popular as before. There are approximately 3.3 million radios in Norway. This includes zero short-wave radio stations, 350 radio stations that are private and 143 radio stations owned by the Government. In 1991, 87% of Norwegians had access to the radio. In 1996, 90% of the population had access. The average person listens to the radio for 161 minutes per day which is regarded as moderate radio listening compared to other countries. As with television viewing, young people listen less than older generation (www.odci.gov.) By the end of 1996, another reform reduced the number of licensed stations to 308, which had to share 220 transmitter systems. In turn, stations had to split airtime. Approximately 100 stations were run by religious organizations, five by political parties, five by schools and the rest by other organizations (www.odin.dep.no.) Weekly Magazines The total circulation of weekly magazines is approximately 2.7 million (www.ssb.no) Weekly magazines must pay a value-added tax. Orkle is the co-owner along with Egmont of Denmark, of a group of 21 magazines that have a total circulation of 1.3 million (www.odci.gov.) The Danish publishing house, Aller, has a Norwegian subsidiary. This subsidiary owns nine magazines, including the largest of them all, Serg og Hor (Look and Listen.) (www.ssb.no.) This publication specializes in news about celebrities and entertainment (Ostergaard, 1992.) One out of fine Norwegians read a weekly magazine on an average day. The reading has not changed a great deal over the last few years (www.ssb.no.) Internet Norway is fourth place on the list of Internet connection per capita. Fifteen percent of the population uses it weekly. Nearly seven percent use the Internet daily (www.ssb.no.) In the past years, Internet has spread and more people are learning English as their first foreign language. Conclusion National media politics have always been important in Norway. During most of the 1980’s, the Parliament and the Government played an important role in the formation if the Norwegian Mass Media System. Although advancements in the system have been made such as TV2 and legalizing advertising, there is still evidence of a strong constitutional monarchy. In 1980, there was only one broadcasting institution, NRK, who owned one radio channel and one television channel. Few European countries had so few radio and TV channels. Many changes occurred in 1980 which have brought Norway in line with the rest of Europe. There have been changes in the local and regional levels. Local radio stations and local TV have been a success. At the regional level, newspapers have fared well. Nationally, the NRK has increased the number of channels from one to three and the two national tabloids, the VG and Dagbladet, have increased circulation. Currently, NRK faces competition from local television and radio stations. The media structure is less rigid than before. It is apparent at the international level that Norway is still a receiving country. This is in part due to government restrictions. Norway is influenced by other cultures such as the United States and the United Kingdom. Structural changes have been very easy to see yet all forms of media, will continue to change. Personal Comment Before I started any research on Norway, I did not know an extensive amount of information on the country. Norway is not a country that one hears too much about in school. I knew where it was located and the type of government but I did not know any specifics about the media system. I was in Europe last semester and one of my closest friends was from Denmark. All Nordic countries have similar rules and laws and I was able to learn more about these countries from my friend. I think that I have come away from my research and this paper with a great understanding of how the country runs and the political effects on the media. I have found the most popular forms of media in Norway such as newspapers, television, and radio to still have some regulation by the government. I also was able to draw some comparisons with Norway and the United States on issues such as subsidies, advertising and regulation.