Indonesia: Building an Inclusive Development Model

Tulus T.H. Tambunan

Chapter 8 in Moving Toward A New Development Model For East Asia-The Role of Domestic Policy and Regional Cooperation, pp 223-254 from Economic Research Institute for ASEAN and East Asia (ERIA)

Abstract: After decades of high economic growth, Thailand is now facing many challenges; ensuring sufficient level of economic growth to avoid middle-income trap, and balancing its social and political successes with the economic one. Overall, the country has done well in reducing poverty, provision of basic and advanced health care and basic education. The least progress is economic and social inequality and environmental sustainability. The quality of human capital is also lagging behind other countries, as indicated by the low performance of the education system and the low levels of labor skills. To achieve a better socio-economic development balance, Thailand needs strong institutions that would steer the development process to a more balanced, productive and sustainable path of future economic and social development. More specifically, the country needs political leadership that is visionary, transparent and efficient.

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