Our discussion will revolve around the critical decisions on policy considerations for economic development and the way forward. 4. Sharing lessons about economic development leads naturally into a discussion about the development experiences of Thailand. Thailand’s rapid growth between the late 1970s and 1997 was the result of the structural transformation. We moved from primary production to industrial production, mostly manufacturing and high-value agricultural products. The combination of (1) processed agricultural products, (2) import substitution industrialization, and (3) export promotion was the principal feature of economic development. 5. Moving up global production chains elevated Thailand’s per capita income of $ in the early 1960s to nearly $ after 1997. More importantly, the process has resulted in the dramatic fall in poverty and improved the living conditions of the Thai people. The rate of poverty had been reduced from 57 per cent in early 1960s to around 24 per cent in 1981 and to 8 percent in recent years. Thailand’s economic development story has thus attracted broad interest from policy makers, multilateral agencies and academics. 6. As in most transformed economies, economic transformation can be associated with rising income inequality and depletion of resources. In 1970s, the average household income in Bangkok was 2.6 times larger than the rural area, then in 1998, increased to 3.4 times. And, during the transformation period, Thailand’s forest cover rapidly depleted by nearly half. Thus, we shouldn’t discard these in our desire to achieve sustainable and equitable growth, since this can lead to the deterioration of social solidarity and ecology.

Prasarn Trairatvorakul: Economic transformation and inclusive growth in frontier economies Welcome and opening remarks by Dr Prasarn Trairatvorakul, Governor of the Bank of Thailand, at the conference on “Economic transformation and inclusive growth in frontier economies”, jointly organized by the International Monetary Fund (IMF) and the Japan International Cooperation Agency (JICA), Bangkok, 28 January 2013. *  *  *  Ministers and Central Bank Governors, Distinguished guests, Ladies and Gentlemen, 1. It gives me great pleasure and honor to welcome each and every one of you to Thailand, and more specifically, to the Conference on “Economic Transformation and Inclusive Growth in Frontier Economies”. This event is the second in a series of conference jointly organized by the International Monetary Fund (IMF) and the Japan International Cooperation Agency (JICA). 2. The topic of the conference is timely and relevant to current developments in the region. Frontier economies are new and becoming large markets. They all have the potential to grow into tomorrow’s emerging economies. In recent years, we witness faster economic growth in frontier economies than larger emerging economies. We have seen frontier economies integrate into the regional and global economy. 3. Frontier economies are full of potential. However, continued efforts on strengthening policy frameworks are still needed. This is to ensure long term economic growth and sustain robust economy. And I believe that today’s conference will contribute to these efforts as we will share and learn the appropriate lessons of others. One can leap jump the process, without repeating the mistakes.