Recently, I had an opportunity to deliver a lecture on “Thailand’s Economic Strategy towards a High-Income Economy” to new investors. I assume readers who are interested in national development issue may probably have some interest in my lecture’s content as well. Therefore, I have selected some parts of the lecture to share with readers in this article.
Due to Asia’s rapid and constant economic expansion at present, a question arises as to whether Asia will be able to maintain its growth rate in the future, or whether it will fall into the middle income trap similar to what has happened in Latin America in the past.
The middle income trap is a concept which explains that the change from a low-income country to a middle-income country is easier than the change from a middle-income country to a high-income country. This is because a low-income country will benefit from low wages which attracts investments from labor-intensive industries to establish production bases for export. As a result, the employment rate and the population’s income increase.