Thailand, a vibrant nation in Southeast Asia, is known for its stunning beaches, ornate temples, and bustling cities. But Where Is Thailand Country exactly, and what role does it play on the global stage? Nestled in the heart of Southeast Asia, Thailand shares borders with Myanmar, Laos, Cambodia, and Malaysia. This strategic location has historically made Thailand a crucial hub for trade and cultural exchange in the region. Beyond its geographical significance, Thailand is also a dynamic and evolving country, actively working towards sustainable development and economic progress.
For years, the World Bank Group has been a key partner in Thailand’s journey, collaborating to address critical challenges and foster inclusive growth. Through grant funding and technical expertise, the World Bank works alongside Thai government agencies, local organizations, and international institutions to improve the lives of Thai citizens. This partnership focuses on three core platforms: Sustainable Financing, Sustainable Cities, and Sustaining Innovation, each designed to propel Thailand towards a more resilient and prosperous future.
This article delves into the specifics of the World Bank’s impactful collaborations within Thailand, highlighting key achievements and ongoing initiatives across these platforms. Understanding where is Thailand country geographically is just the beginning – exploring the nation’s development trajectory reveals the depth and importance of these international partnerships.
Sustainable Financing: Cultivating a Green Economy in Thailand
Recognizing the urgent need for environmentally conscious economic growth, the World Bank Group is deeply involved in scaling up sustainable finance within Thailand. Collaborating closely with the Bank of Thailand, financial regulators, and leading financial institutions, these efforts are designed to channel investment towards environmentally sound projects and practices.
One significant milestone in this area is a 2023 study conducted jointly by the World Bank and the Thailand Securities Exchange Commission (SEC). This comprehensive study benchmarked the Environmental, Social, and Governance (ESG) reporting practices of companies listed on the Thai stock exchange. The findings, detailed in a publicly available report, revealed encouragingly high overall ESG disclosure levels among Thai listed companies. Notably, larger companies, measured by market capitalization, demonstrated even stronger disclosure rates compared to their smaller counterparts. The study also provided valuable recommendations for further enhancing Thailand’s sustainability reporting practices, paving the way for greater transparency and accountability in the corporate sector.
Building on this foundation, in 2024, a dedicated World Bank team initiated a crucial project to assess the potential financial risks posed by climate change to Thailand’s financial sector. Understanding and mitigating these risks is paramount to ensuring the long-term stability and resilience of the Thai economy. As part of this initiative, the World Bank team conducted a specialized training workshop in May 2024 for representatives from the Bank of Thailand and various financial institutions. This training focused specifically on climate risk stress testing, particularly the physical risks associated with climate change, such as increasingly frequent and severe extreme weather events. This work built upon previous technical assessments of financial stability risks stemming from flooding, a significant concern for Thailand.
The International Finance Corporation (IFC), the World Bank Group’s arm focused on private sector development in emerging markets, plays a vital role in driving sustainable finance in Thailand. IFC has a proven track record of catalyzing investment in green and blue bonds and sustainability-linked loans within the country. Examples include IFC’s subscription to the first green and blue bond issued by Krungsri and IFC’s investment in a sustainability-linked bond issued by Central Pattana. Currently, IFC’s efforts are concentrated on assisting leading Thai financial institutions in designing and effectively communicating transition strategies aimed at reducing emissions and aligning their operations with the ambitious goals of the Paris Agreement.
A significant achievement supported by the IFC is the introduction of the Thailand Taxonomy Phase 1, a classification system for environmentally sustainable economic activities launched in July 2023. Phase 1 of the taxonomy focuses on the energy and transportation sectors, providing clear definitions and thresholds for environmentally sustainable activities within these crucial areas. Building on this progress, Thailand is now actively developing the second phase of the taxonomy, which will expand its scope to encompass the manufacturing, agriculture, construction & real estate, and waste management sectors. The target launch date for Phase 2 is mid-2025. The World Bank and IFC are collaborating closely to provide ongoing support to Thailand in the effective implementation of this vital taxonomy, ensuring its successful adoption and impact.
The World Bank’s flagship technical assistance program, the Partnership for Market Readiness (PMR), has played a crucial role in assisting Thai officials in designing and implementing innovative carbon pricing instruments to reduce the country’s greenhouse gas emissions. PMR support has been instrumental in developing an Energy Performance Certificate scheme database, facilitating the measurement of energy efficiency in commercial buildings and industries. Furthermore, PMR supported the creation of a robust measuring, reporting, and verification (MRV) system to track and monitor energy efficiency improvements. The program also conducted a thorough assessment of the legal framework required for Thailand’s Emissions Trading Scheme (ETS), a market-based mechanism designed to cap overall greenhouse gas emissions and allow companies with lower emissions to sell surplus allowances to larger emitters. Through the Low Carbon City Program, PMR also facilitated the development of greenhouse gas abatement plans for 25 municipalities across Thailand.
Continuing this critical work, the follow-up Partnership for Market Implementation (PMI) program will provide ongoing support to the Thai government in evaluating carbon pricing instruments. This support is particularly timely as Thailand prepares to implement a carbon tax in 2025, with the potential introduction of an ETS in 2029.
For over 25 years, another long-standing grant-funded project has been instrumental in phasing out ozone-depleting substances in Thailand. The HCFC (hydrochlorofluorocarbon chemicals) phase-out project has enabled more than 80 small and medium-sized foam manufacturers to transition to production technologies that utilize alternatives that do not deplete the ozone layer and have a reduced impact on global warming.
Sustainable Cities: Building Resilient and Livable Urban Centers
Recognizing the rapid urbanization occurring in Thailand, the World Bank is actively partnering with five key cities – Khon Kaen, Chiang Mai, Phuket, Rayong, and Nakhon Sawan – to facilitate mobilizing private sector financing for essential urban infrastructure projects. Since February 2024, a series of workshops have been conducted with diverse stakeholders to showcase successful examples of infrastructure and transit-oriented development (TOD) implementation. These workshops provided a valuable platform for central and local government agencies to exchange perspectives and best practices.
Thailand boasts one of the most advanced carbon markets in the Southeast Asian region. The World Bank conducted a comprehensive assessment of the market potential for low-carbon interventions across 10 secondary cities, including the potential for monetizing emission reductions through carbon finance. The interventions assessed included rooftop solar installations, energy efficiency retrofits in buildings, LED street light replacements, and the transition to electric vehicles. The analysis revealed that the combined emission reduction potential across all interventions in these ten provinces is estimated to be substantial, reaching 46.2 million tonnes of CO2 equivalent (TCO2e). These interventions, requiring a total capital expenditure of approximately $6.8 billion, offer significant financial savings: $9.5 billion from rooftop solar, $1.3 billion from energy efficiency retrofits, $278 million from LED street light replacements, and nearly $1.3 billion from EV upgrades. Importantly, the payback periods for these investments are relatively short, ranging from 2 to 5 years, highlighting the strong potential for both environmental impact and attractive financial returns.
Following the devastating floods in Northern Thailand in 2024, the Office of National Water Resources (ONWR) requested the World Bank to conduct a rapid damage assessment. The assessment estimated that the damages within the affected catchments, encompassing buildings, infrastructure, agriculture, and fisheries, range between US$ 0.9 to 1.2 billion. This represents approximately 0.20% of Thailand’s 2023 GDP, highlighting the significant economic impact of such climate-related disasters.
Since 2007, the World Bank has been actively promoting peace and development in conflict-affected areas of Southern Thailand through grant-funded support to the government, communities, and civil society organizations (CSOs). Initial projects were implemented in 27 communities across Pattani, Narathiwas, and Yala provinces, utilizing a community-driven development (CDD) approach and providing small grants to CSOs financed by the State and Peacebuilding Fund and the Korea Trust Fund for Economic and Peace-Building Transitions. These initiatives supported a diverse range of community development activities. During a second phase, the World Bank provided crucial livelihood and psychosocial support to 200 former combatants of insurgent groups and detainees/returnees, facilitating their reintegration into civilian life amidst ongoing subnational conflict.
Since 2022, the World Bank, in partnership with the Thai Health Academy, the National Human Rights Commission of Thailand, and other stakeholders, has sponsored a training of trainers (TOT) program aimed at strengthening skills within conflict-affected communities to promote resilience, mental health, and human rights. This TOT network has expanded to include over 500 participants, who are now actively supporting the most vulnerable groups in Southern Thailand.
Sustaining Innovation: Investing in Human Capital and Education
Recognizing that a skilled and adaptable workforce is essential for sustained economic growth, the World Bank has partnered with the Equitable Education Fund since 2021 to address learning gaps between schools serving households from different socioeconomic backgrounds and geographic areas. This collaboration focuses on enhancing the literacy, digital literacy, and social-emotional skills of Thailand’s future workforce.
The Fundamental School Quality Level (FSQL) for Thailand has been implemented in 275 remote schools across the country. FSQL serves as a valuable self-assessment tool for schools to evaluate their quality across key dimensions, including school leadership and management, classroom management, teacher development, and infrastructure. The initial pilot phase of FSQL provided valuable quality indicators in these areas. Currently, a second pilot phase is underway, featuring an improved version of the instrument with the potential to make FSQL results publicly accessible. This initiative is part of a broader effort to enhance accountability within the Thai education system.
More recently, the World Bank has been supporting reforms in technical and vocational education and training (TVET) colleges. This includes the development of a novel social and emotional learning (SEL) program, slated for nationwide delivery across Thailand in 2025. This program will utilize a validated instrument designed to enhance teachers’ pedagogical skills in delivering SEL. Furthermore, the World Bank is supporting efforts to improve the diagnosis of skills gaps in Phayao, Rayong, and Pattani provinces. The findings from this work will inform actionable policy recommendations aimed at addressing identified skills shortages and improving workforce readiness.
Knowledge Work: Informing Policy and Economic Understanding
Twice a year, the World Bank publishes the Thailand Economic Monitor (TEM), a key publication that reviews recent economic developments in Thailand and provides independent analysis of the near- and medium-term economic outlook. The TEM report also offers valuable policy advice aimed at promoting sustainable and inclusive economic growth.
Other examples of the World Bank’s analytical work in Thailand include various in-depth studies and reports on specific sectors and development challenges. These knowledge products serve as important resources for policymakers, researchers, and the public, contributing to a deeper understanding of Thailand’s economic landscape and informing evidence-based policy decisions.
Last updated October 2024
