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EVENT: The Thai authorities are seeking to upgrade the country's infrastructure to keep pace with rapid economic growth.
SIGNIFICANCE: The government is relying on both the state and private sectors to tackle the country's infrastructure problems.
ANALYSIS: Earlier this month, the Thai central bank raised its projection of 1990 GDP growth from an original 8.5%, to 10.4%. With figures for growth in 1988 and 1989 raised to more than 13% and 12% respectively, Thailand is heading for a third consecutive year of double-digit growth.
Continuing rapid expansion is bringing both benefits and problems to a once largely agrarian economy. It underlines the dynamism of industry, investment and trade, but at the same time carries with it the risk of over-heating and higher inflation. These concerns are, however, overshadowed by the strains being placed on roads, ports, the power system and communications networks.
Although infrastructure spending has increased over recent years, public investment has grown at a slower pace than private investment. Moreover, efforts to upgrade the country's infrastructure have been hampered by shortages of material and skilled labour, bureaucratic delays reflecting an often lengthy and cumbersome decision-making process, and political rivalries within the ruling coalition. The net result has been that infrastructure development has failed to keep pace with the demands placed upon it by rapid industrialisation.
The problems are particularly evident in Bangkok. Much of the investment...