Between 1987 and 1990 Thailand experienced double-digit growth, fed by high capital inflows. This made Thailand one of the first developing countries to recover from the recession of the 1980s. Since 1990 growth and capital inflows have continued at a high level. The book makes a detailed study of the macroeconomic impact of capital inflows during recent years and during an earlier period when growth, and capital inflows, were high, in the late 1970s. It is shown that the results of the recent period are more sustainable than those of the earlier period, due to the differences in the nature of capital inflows, in external conditions, and in economic policies.

Since c1970, Thailand's position in the world has changed from potential communist 'domino' to one of the world's most dynamic economies. The confrontational politics of the 1970s, with the student-led revolution of 1973 and the bloody right-wing backlash In 1976, were replaced by a new consensus in the following decade, A concerted export drive sparked off a tremendous economic boom during the 1980s and early 1990s. Tourism also expanded rapidly, and is now the single largest foreign exchange earner. Economic Success has, however, been at a cost. Each year Bangkok has become more chaotic in the face of increased traffic and an Unprecedented building boom, and nationally there has been a widening gap between the 'haves' and the 'have-nots'. Moreover, Thailand is experiencing a potential AIDS time-bomb and serious environmental degradation. Despite Such pressures, and the sudden economic crisis of mid-1997, Thailand has enjoyed an enviable record of stability in recent years.