Rethinking the Role of Agriculture and Agro-Industry

Thailand's economic development has been quite successful in terms of achieving high growth rate and reasonable per capita income. The country's economic performance in terms of the transformation of production and exports are tending toward the normal pattern of increasing share of manufactured products. However, Thailand is still facing major problems like late reduction of its agricultural labor force, inequality that has occurred as a result of the development process, and problems in potential of manufacturing industrial sectors. In addition, structural transformation in Thailand has posed many difficulties for the development of Thai agriculture, which is closely related to the welfare of the poor in the rural areas. To tackle income distribution problems directly requires that farmers be given new opportunities. Agro-industry and high value-added agricultural sectors are proposed as the key sectors to improve inequality problems, smoothen employment transformation, generate high economic growth, and act as a bridge connecting Thai primary agriculture with the modern sectors.