Hi everyone! For my final Thailand project, I will be discussing how the nation’s geography affect their economic structure and plan to focus on the agriculture and service industries. During our first week in Thailand, we visited the Bank of Agriculture and Agricultural Cooperatives (BAAC) to learn more about how they work to support the country’s many, many farmers. First, our whole group was very thankful for their hospitality as their Assistant VP, Mr. Suthee Visitwarakorn, was the one who gave us the presentation on the firm’s initiatives and services. Afterwards, our group of hungry college students and faculty got a great selection of Thai fruits, snacks and drinks that we absolutely devoured as pictured below. 

As for my project though, the agriculture is significant to Thailand as it supports the nation more so than any industry. Accounting for about 12% (or 8%) of GDP, agriculture in Thailand is one of the primary sectors of their economy. Being capable of producing a variety of agriculture at a substantial rate is crucial for any nation as it allows them to be more self sufficient and therefore not at the mercy of the price that foreign firms may charge for any type of food. Additionally, being able to produce this much agriculture in bulk is great as it allows Thai agriculture firms to compete internationally if they decide to expand their marketplace. What makes Thai’s agriculture industry most significant however is the impact it has on the domestic labor force. Employing about 32% of works, the agriculture industry supports the nation not just with the products but also with the opportunity for work for millions of people.

While the agriculture industry has traditionally been significant to the Thai economy, many disruptors threaten its existence in this capacity moving forward and the Bank of Agriculture and Agricultural Cooperatives (BAAC) has worked to keep farmers in business. With the growing use of technology in the workplace, many Thai youth may decide to leave the farming industry in the future to pursue work in other industries. Any sort of difficulties, like famine or flooding which are common to various parts of the nation, make this decision that much easier. To help members of the agriculture industry to stay in business, the BAAC was established in 1966 with a focus of uplifting this sector particularly in rural areas. By providing low interest loans valued typically at about 100,000 Thai Bach (around $3,100 USD) to farmers paired with business advice, they have followed through in this mission of both providing the capital and the knowledge to these people. The first Chairman of the BAAC felt that given farmers propensity to work hard because the nature of their job, their work ethic paired with the knowledge of how to function in the industry would be all they needed to succeed. Seeing that just 4% of farmers who receive BAAC loans default, the vast majority of farmers who are supported by the BAAC are able to improve their business and continue to build themselves in the sector. As a product of their location, these farmers are also susceptible to having their crops destroyed due to flooding or drought. Seeing how substantial this sector is to the economy, the BAAC in conjunction with the Thai government established crop insurance and a shared premium that will be covered the first time it is triggered. Particularly as more alluring industries become prevalent, it is imperative that specialized financial institutions like the BAAC and other organizations continue to support farmers as their production accounts for a large portion of the labor force and GDP.