World Food Policy Volume 3, No. 2/Volume 4, No. 1, Fall16/Spring17 | Page 10

World Food Policy Table 1. Key Trends in the Thai Agriculture and Food Processing Sectors Time period Major policy components Economic development factors 1850– 1930 • Expansion of rice frontier and development of cash cropping rice monoculture • Opening of economy to interna- tional (especially European) trade. Including trade and extraterritori- ality agreements with Britain and other nations • Government assistance with ir- rigation and land clearing proj- ects • End of royal monopoly on rice trade • Ending of corvee labor system and slavery encouraged free peasant landholder class to enter cash econ- omy through rice trade • Inward migration of Chinese mer- chants who as middlemen helped develop the rice trade. 1930– 1960 • Emphasis on national self- sufficiency • Export taxes introduced for rice and tariff protection for other agricultural crops • These taxes fund beginning of industrial development, partic- ularly processing of agricultural products • Nationalist military governments and Japanese occupation moved trade focus from Europe to Asia • Consolidation of rice trade into few family firms with patronage from Thai army and bureaucrats • Agricultural share of GDP falls from 50% to 40% in the 1950s • Continuing expansion of rice frontier meant little investment in productivity or infrastruc- ture • Rice dominates agriculture oc- cupying more than 70% of cul- tivated areas and employing up to two-third of total labor force (1958) • Main agricultural development strategy expansion of irrigated areas 1960– 1973 • Investment in agricultural di- versification and moderniza- tion • Reorientation from state enterpris- es toward private (and foreign) in- vestment to develop the economy • Diversification to crops for in- 10 dustrial inputs, e.g. sugar cane and jute • Beginning of mass influx of US Aid and military spending as well as business investment • Land devoted to crops other • Establishment of NESDB and be-