Narrowing income gap will take time

[LizardKing]

Why on Earth would a manufacturer put a factory far away from the main population centre (read that: employees) and far away from transportation to move his product out of the country to the buyers?

 

FFS, of course most industry will be in BKK or the Eastern Seaboard and not Issan!

[rchapstick]

Interestingly, there is a large Seagate facility just outside Korat. Must have taken some massive incentives to persuade Seagate to invest there.

[Pom Michael]

Lizzy,

 

1. Because the Thai Government gives tax breaks of 200% for transportation - in addition to the myriad of other tax incentives to invest in Thailand.

 

2. Because the Thai Government (or at least the BOI) want to employ people in these other areas.

 

So, if properly built up (as in keep the heavy industry in proper zoned areas) - then let's say 10,000 employees are needed to stay in Udon or Ubon. Add all the extra infrastructure that will be required (think of the # of additional 7-11's to start with) - and soon it will just snowball into a growth center.

 

Look at what is happening in Udon Thani - increase in population brings expanded services (flights) and more people means more money means more everything.

 

Now, if properly planned (and for all the bad Thailand can do) this is one policy that is actually working good.

 

Cheers!

 

 

[ThaiHome]

I think a good comparison can be made between upcountry Thailand and the Deep South states of the US. Starting in the late 20’s a huge migration occurred where people, mostly young poor rural blacks, left their children with the grandparents and moved to big northern cities. This continued for most of a generation, and as time went on, the families established themselves in the North, in most cases setting up a middle class life style as working class salaries rose. Around the late 60’s early 70’s this migration was reversed as major companies started abandoning the big northern cities and moved to the South. By the late 70’s states such as Mississippi, Alabama, and Georgia who had seen their populations stagnant for over a generation all of sudden had large population booms with the accompanying increase in standard of living.

 

I see the same thing happening in Thailand.

TH