Thailand vs. Laos

A unified Thai kingdom was established in the mid-14th century. Known as Siam until 1939, Thailand is the only Southeast Asian country never to have been colonized by a European power. A bloodless revolution in 1932 led to the establishment of a constitutional monarchy. After the Japanese invaded Thailand in 1941, the government split into a pro-Japan faction and a pro-Ally faction backed by the King. Following the war, Thailand became a US treaty ally in 1954 after sending troops to Korea and later fighting alongside the US in Vietnam. Thailand since 2005 has experienced several rounds of political turmoil including a military coup in 2006 that ousted then Prime Minister THAKSIN Chinnawat, followed by large-scale street protests by competing political factions in 2008, 2009, and 2010. THAKSIN's youngest sister, YINGLAK Chinnawat, in 2011 led the Puea Thai Party to an electoral win and assumed control of the government.

In early May 2014, after months of large-scale anti-government protests in Bangkok beginning in November 2013, YINGLAK was removed from office by the Constitutional Court and in late May 2014 the Royal Thai Army, led by Royal Thai Army Gen. PRAYUT Chan-ocha, staged a coup against the caretaker government. PRAYUT was appointed prime minister in August 2014. PRAYUT also serves as the head of the National Council for Peace and Order (NCPO), a military-affiliated body that oversees the interim government. This body created several interim institutions to promote reform and draft a new constitution, which was passed in a national referendum in August 2016. In late 2017, PRAYUT announced elections would be held by November 2018; he has subsequently suggested they might occur in February 2019. As of mid-December 2018, a previoulsy held ban on campaigning and political activity has been lifted and per parliamentary laws, an election must be held within 150 days. King PHUMIPHON Adunyadet passed away in October 2016 after 70 years on the throne; his only son, WACHIRALONGKON Bodinthrathepphayawarangkun, ascended the throne in December 2016. He signed the new constitution in April 2017. Thailand has also experienced violence associated with the ethno-nationalist insurgency in its southern Malay-Muslim majority provinces. Since January 2004, thousands have been killed and wounded in the insurgency.

Thailand has experienced a substantial fertility decline since the 1960s largely due to the nationwide success of its voluntary family planning program.  In just one generation, the total fertility rate (TFR) shrank from 6.5 children per woman in 1960s to below the replacement level of 2.1 in the late 1980s.  Reduced fertility occurred among all segments of the Thai population, despite disparities between urban and rural areas in terms of income, education, and access to public services.  The country's "reproductive revolution" gained momentum in the 1970s as a result of the government's launch of an official population policy to reduce population growth, the introduction of new forms of birth control, and the assistance of foreign non-government organizations.  Contraceptive use rapidly increased as new ways were developed to deliver family planning services to Thailand's then overwhelmingly rural population.  The contraceptive prevalence rate increased from just 14% in 1970 to 58% in 1981 and has remained about 80% since 2000. 

Thailand's receptiveness to family planning reflects the predominant faith, Theravada Buddhism, which emphasizes individualism, personal responsibility, and independent decision-making.  Thai women have more independence and a higher status than women in many other developing countries and are not usually pressured by their husbands or other family members about family planning decisions.  Thailand's relatively egalitarian society also does not have the son preference found in a number of other Asian countries; most Thai ideally want one child of each sex.

Because of its low fertility rate, increasing life expectancy, and growing elderly population, Thailand has become an aging society that will face growing labor shortages.  The proportion of the population under 15 years of age has shrunk dramatically, the proportion of working-age individuals has peaked and is starting to decrease, and the proportion of elderly is growing rapidly.  In the short-term, Thailand will have to improve educational quality to increase the productivity of its workforce and to compete globally in skills-based industries.  An increasing reliance on migrant workers will be necessary to mitigate labor shortfalls.

Thailand is a destination, transit, and source country for migrants. It has 3-4 million migrant workers as of 2017, mainly providing low-skilled labor in the construction, agriculture, manufacturing, services, and fishing and seafood processing sectors.  Migrant workers from other Southeast Asian countries with lower wages - primarily Burma and, to a lesser extent, Laos and Cambodia - have been coming to Thailand for decades to work in labor-intensive industries.  Many are undocumented and are vulnerable to human trafficking for forced labor, especially in the fisheries industry, or sexual exploitation.  A July 2017 migrant worker law stiffening fines on undocumented workers and their employers, prompted tens of thousands of migrants to go home.  Fearing a labor shortage, the Thai Government has postponed implementation of the law until January 2018 and is rapidly registering workers.  Thailand has also hosted ethnic minority refugees from Burma for more than 30 years; as of 2016, approximately 105,000 mainly Karen refugees from Burma were living in nine camps along the Thailand-Burma border.

Thailand has a significant amount of internal migration, most often from rural areas to urban centers, where there are more job opportunities.  Low- and semi-skilled Thais also go abroad to work, mainly in Asia and a smaller number in the Middle East and Africa, primarily to more economically developed countries where they can earn higher wages.

Laos is a predominantly rural country with a youthful population - almost 55% of the population is under the age of 25.  Its progress on health and development issues has been uneven geographically, among ethnic groups, and socioeconomically.  Laos has made headway in poverty reduction, with the poverty rate almost halving from 46% in 1992/93 to 22% in 2012/13.  Nevertheless, pronounced rural-urban disparities persist, and income inequality is rising.  Poverty most affects populations in rural and highland areas, particularly ethnic minority groups. 

The total fertility rate (TFR) has decreased markedly from around 6 births per woman on average in 1990 to approximately 2.8 in 2016, but it is still one of the highest in Southeast Asia.  TFR is higher in rural and remote areas, among ethnic minority groups, the less-educated, and the poor; it is lower in urban areas and among the more educated and those with higher incomes.  Although Laos' mortality rates have improved substantially over the last few decades, the maternal mortality rate and childhood malnutrition remain at high levels.  As fertility and mortality rates continue to decline, the proportion of Laos' working-age population will increase, and its share of dependents will shrink.  The age structure shift will provide Laos with the potential to realize a demographic dividend during the next few decades, if it can improve educational access and quality and gainfully employ its growing working-age population in productive sectors.  Currently, Laos primary school enrollment is nearly universal, but the drop-out rate remains problematic.  Secondary school enrollment has also increased but remains low, especially for girls. 

Laos has historically been a country of emigration and internal displacement due to conflict and a weak economy. The Laos civil war (1953 - 1975) mainly caused internal displacement (numbering in the hundreds of thousands).  Following the end of the Vietnam War in 1975, indigenous people in remote, war-struck areas were resettled and more than 300,000 people fled to Thailand to escape the communist regime that took power.  The majority of those who sought refuge in Thailand ultimately were resettled in the US (mainly Hmong who fought with US forces), and lesser numbers went to France, Canada, and Australia. 

The Laos Government carried out resettlement programs between the mid-1980s and mid-1990s to relocate ethnic minority groups from the rural northern highlands to development areas in the lowlands ostensibly to alleviate poverty, make basic services more accessible, eliminate slash-and-burn agriculture and opium production, integrate ethnic minorities, and control rebel groups (including Hmong insurgents).  For many, however, resettlement has exacerbated poverty, led to the loss of livelihoods, and increased food insecurity and mortality rates.  As the resettlement programs started to wane in the second half of the 1990s, migration from the northern highlands to urban centers - chiefly the capital Vientiane - to pursue better jobs in the growing manufacturing and service sectors became the main type of relocation.  Migration of villagers from the south seeking work in neighboring Thailand also increased.  Thailand is the main international migration destination for Laotians because of the greater availability of jobs and higher pay than at home; nearly a million Laotian migrants were estimated to live in Thailand as of 2015.

With a relatively well-developed infrastructure, a free-enterprise economy, and generally pro-investment policies, Thailand is highly dependent on international trade, with exports accounting for about two thirds of GDP. Thailand's exports include electronics, agricultural commodities, automobiles and parts, and processed foods. The industry and service sectors produce about 90% of GDP. The agricultural sector, comprised mostly of small-scale farms, contributes only 10% of GDP but employs about one third of the labor force. Thailand has attracted an estimated 3.0-4.5 million migrant workers, mostly from neighboring countries.

Over the last few decades, Thailand has reduced poverty substantially. In 2013, the Thai Government implemented a nationwide 300 baht (roughly $10) per day minimum wage policy and deployed new tax reforms designed to lower rates on middle-income earners.

Thailand's economy is recovering from slow growth during the years since the 2014 coup. Thailand's economic fundamentals are sound, with low inflation, low unemployment, and reasonable public and external debt levels. Tourism and government spending - mostly on infrastructure and short-term stimulus measures - have helped to boost the economy, and The Bank of Thailand has been supportive, with several interest rate reductions.

Over the longer-term, household debt levels, political uncertainty, and an aging population pose risks to growth.

The government of Laos, one of the few remaining one-party communist states, began decentralizing control and encouraging private enterprise in 1986. Economic growth averaged more than 6% per year in the period 1988-2008, and Laos' growth has more recently been amongst the fastest in Asia, averaging more than 7% per year for most of the last decade.

Nevertheless, Laos remains a country with an underdeveloped infrastructure, particularly in rural areas. It has a basic, but improving, road system, and limited external and internal land-line telecommunications. Electricity is available to 83% of the population. Agriculture, dominated by rice cultivation in lowland areas, accounts for about 20% of GDP and 73% of total employment. Recently, the country has faced a persistent current account deficit, falling foreign currency reserves, and growing public debt.

Laos' economy is heavily dependent on capital-intensive natural resource exports. The economy has benefited from high-profile foreign direct investment in hydropower dams along the Mekong River, copper and gold mining, logging, and construction, although some projects in these industries have drawn criticism for their environmental impacts.

Laos gained Normal Trade Relations status with the US in 2004 and applied for Generalized System of Preferences trade benefits in 2013 after being admitted to the World Trade Organization earlier in the year. Laos held the chairmanship of ASEAN in 2016. Laos is in the process of implementing a value-added tax system. The government appears committed to raising the country's profile among foreign investors and has developed special economic zones replete with generous tax incentives, but a limited labor pool, a small domestic market, and corruption remain impediments to investment. Laos also has ongoing problems with the business environment, including onerous registration requirements, a gap between legislation and implementation, and unclear or conflicting regulations.

high-quality system, especially in urban areas; mobile and mobile broadband penetration are on the increase; FttH has strong growth in cities; 4G-LTE available with adoption of 5G services; seven smart cities with aim for 100 smart cities by 2024; one of the biggest e-commerce markets in Southeast Asia; fixed-broadband and mobile marketplace on par with other developed Asian markets; development of Asian data center underway; Internet connectivity supported by international bandwidth to Singapore, Malaysia, and Hong Kong, and terrestrial cables with neighboring countries; two more submarine cables under construction with anticipated landings in 2022; government restricts Internet and freedom of press, with additional constraints in response to pandemic-related criticism in 2020; importer of broadcasting equipment and integrated circuits from China and export of same to neighboring countries in Asia (2021)

reliance on radio network to communicate with remote areas; regulatory reform is below industry standards; government aims to strengthen infrastructure and attract foreign investment; low fixed-broadband penetration; dominance in mobile broadband with 4G and LTE, but low compared to other Asian markets; ASEAN Digital Hub investment provides international capacity; state owns almost all media, except for some entertainment outlets, and has suppressed some news; importer of broadcasting equipment and computers from China; providers examining m-payment platforms and 5G tests (2021)

separatist violence in Thailand's predominantly Malay-Muslim southern provinces prompt border closures and controls with Malaysia to stem insurgent activities; Southeast Asian states have enhanced border surveillance to check the spread of avian flu; talks continue on completion of demarcation with Laos but disputes remain over several islands in the Mekong River; despite continuing border committee talks, Thailand must deal with Karen and other ethnic rebels, refugees, and illegal cross-border activities; Cambodia and Thailand dispute sections of boundary; in 2011, Thailand and Cambodia resorted to arms in the dispute over the location of the boundary on the precipice surmounted by Preah Vihear temple ruins, awarded to Cambodia by ICJ decision in 1962 and part of a planned UN World Heritage site; Thailand is studying the feasibility of jointly constructing the Hatgyi Dam on the Salween river near the border with Burma; in 2004, international environmentalist pressure prompted China to halt construction of 13 dams on the Salween River that flows through China, Burma, and Thailand; approximately 100,000 mostly Karen refugees fleeing civil strife, political upheaval and economic stagnation in Burma live in remote camps in Thailand near the border

southeast Asian states have enhanced border surveillance to check the spread of avian flu; talks continue on completion of demarcation with Thailand but disputes remain over islands in the Mekong River; Cambodia and Laos have a longstanding border demarcation dispute; concern among Mekong River Commission members that China's construction of eight dams on the Upper Mekong River and construction of more dams on its tributaries will affect water levels, sediment flows, and fisheries; Cambodia and Vietnam are concerned about Laos' extensive plans for upstream dam construction for the same reasons