COMPARATIVE INTERNATIONAL POLITICAL ECONOMY (THAILAND : LAO PEOPLE’S DEMOCRATIC REPUBLIC)

Abstract

This paper presents a study of international political economy.  The comparative study between the economic system of The Kingdom of Thailand (Thailand) and of The Lao People's Democratic Republic (Lao) was conducted to investigate the difference in the economic systems of these two countries due to the difference in the regime of the two countries.  The researcher used a documentary research technique in studying related literatures consists of books, theses, related academic documents, and websites. The findings of the study demonstrate that the two countries have different economic systems. Thailand has a mixed economy in which liberal capitalism, combined with intervention and regulation by the government of Thailand.  The private sector can own the production factors and plays a role in various productions.  The private sector focuses on market mechanisms which the government can intervene.  Prices of goods or services correlate with the market mechanisms.  The economic system of Thailand accepts private property right. The private sector can conduct economic transactions.  Competitive practices are fairly free. The state runs businesses in the form of state-owned enterprises such as basic utilities (electricity, water supply). Conversely, Lao has a socialist economic system.   The ownership of land is the collective ownership of the nation.  However, the government may allow people have rights in some parts of the land.  Lao’s economy system planned by the central or the government does not allow the private sector to act without regulation.  At present Lao’s economy system emphasizes the importance of market economy.  The price of goods or services is correlated with market mechanisms.  Management in business increases.  The private sector can lease lands from the government or has land concession contracts.  Currently, the private sector can act more freely (but not entirely).  In addition, Lao’s economy system encourages foreign investment as well as and builds up relationship with countries that are not socialist countries.  The government regulates public utilities related to the everyday life in order that the society has the common benefit.  Lao’s economy system applies advantages of the capitalism to the socialism.