Key Findings
The report introduces the Development Potential Assessment Index, a tool previously applied in India and the European Union, to assess the economic potential of Thailand¡¯s 31 border provinces. The provinces were categorized into four groups based on their performance and potential:
- 12 provinces exhibit high potential but low performance, indicating untapped economic opportunities.
- 11 provinces face both low potential and low performance, highlighting the need for targeted interventions.
- 5 provinces surpass expectations despite having lower potential.
- 3 provinces ¨C primarily in the south ¨C achieve both high potential and high performance.
Challenges Hindering Border Province Growth
The report identifies several key challenges impeding the growth of Thailand¡¯s border regions:
- Aging Population: By 2060, elderly citizens will account for approximately 31% of Thailand¡¯s population, reducing the workforce by an estimated 14.4 million people and straining public services, particularly in the northern and northeastern regions.
- Limited Access to Education and Skills Training: Many border provinces face challenges in accessing higher education and vocational training due to remote locations, inadequate transportation, and under-resourced institutions. Songkhla stands out as an exception, with strong educational institutions and 19.3% of its workforce possessing tertiary education.
- Migrant Labor Dependency: Approximately 2.4 million registered migrant workers contribute up to 6.6% of Thailand¡¯s GDP. While government policies offer healthcare and education access to registered workers, complex and costly registration processes push many into informal labor, increasing their vulnerability.
- Inadequate Infrastructure: Deficiencies in transport, utilities, industrial zones, and logistics limit economic growth. For example, Kanchanaburi¡¯s road density is only 4% of the national average, restricting trade and investment potential.
- Governance Constraints: Provincial governors and Local Administrative Organizations face limitations in authority and funding, making them dependent on central government resources and reducing their ability to address local challenges effectively.
Key Policy Levers for Unlocking Border Growth
To fully harness the potential of Thailand¡¯s border provinces, the report outlines four key policy recommendations:
- Establishing a Border Development Policy Committee: Modeled after the successful Eastern Economic Corridor Policy Committee, this committee, chaired by the Prime Minister, would bring together cabinet members, provincial representatives, and private sector leaders to drive reforms, assess policy impacts, and enhance coordination.
- Enhancing Regional and International Cooperation: Beyond Special Economic Zones (SEZs), Thailand should promote broader regional integration, encourage cross-border collaboration, and adopt flexible policies to attract investment and stimulate economic activity.
- Investing in Physical and Human Capital: Priorities include optimizing existing infrastructure, implementing workforce development policies to address demographic shifts, and ensuring sustained investment in education and healthcare.
- Ensuring Inclusive Development: Efforts must prioritize community participation, equitable resource distribution, and resilience-building for vulnerable populations to foster sustainable and inclusive growth.