The Thai government is working hard to promote “Thailand 4.0” as a new gimmick and economic model aimed at pulling Thailand out of the middle-income trap, and developing it as a high-income country.
If you don’t know what is “Thailand 4.0”, don’t blame yourself. A survey by the Centre for Economic and Business Forecasting showed that slightly more than half of the businesses knew little about Thailand 4.0.
When asked to rate their understanding on Thailand 4.0, 55% admitted they had little knowledge about it and only 1% responded that they knew it comprehensively.
In between, 27% of the respondents said they somewhat knew what it meant and 17% said they knew it pretty well.
Why Thailand 4.0 ?
In the first model, “Thailand 1.0,” emphasis was placed on the agricultural sector.
The second model, “Thailand 2.0,” focused on light industries, which helped upgrade the country’s economy from the low-income to middle-income status.
In the third model, “Thailand 3.0,” the country is currently emphasising heavy industries for continued economic growth.
During this period, Thailand has become stuck in the middle-income trap and faces disparities and imbalanced development.
What is the middle-income trap ?
The “middle-income trap,” is a situation in which a country’s growth slows after having reached the middle-income levels.
Middle-income countries like Thailand are squeezed between their low-wage competitors that dominate the mature industries on one side. And the rich-country innovators that dominate industries…