OPINION: A letter from Thailand

The small city of Maha Sarakham lies in the far northeast of Thailand, among the several provinces that border on Laos and Cambodia. The region is known as Isan and the economy is based on agriculture, primarily rice cultivation. Unlike the larger city of Khon Kaen to the west, Maha Sarakham has few high rise buildings and looks much as it did decades ago.

The most impressive new buildings are to be found on a visit to the new campus of Maha Saraham University. In fact the university, which claims almost 50,000 students, and the public Rajaphat University, are the heart of the city’s economy. The entertainment district caters to students along with the sprawling market which looks like many open air markets in the region but is much larger and much more brightly lit at night.

In stark contrast is Mega Bangna, a huge futuristic shopping mall in the suburbs of Bangkok. It features over 400 stores and dozens of restaurants including the Santa Fe Steakhouse. After lunch at Baan Ice I walked by a Starbucks and then just a few hundred meters away I found another Starbucks. In 1998, I cut the ribbon to formally open the first Starbucks in Thailand. Now there are over 400 in the country. American and European brands were in profusion in the many high-end shops which cater to affluent Thai. With air conditioning and piped in music, they are a world away from shopping in Maha Sarakham.

For over two generations, sons and daughters left family farms in Isan to work in the factories and service industries in Bangkok. Young children were often left with grandparents while the workers sent money back home. The income gap between the rural north and metropolitan Bangkok has persisted, despite increases in personal wealth throughout the country. Over many decades the U.S. has played an important role in helping Thailand’s efforts to improve the livelihood of those in the rural north. In the post-World War II era, the U.S. Agency for International Development, the Peace Corps and other agencies including the U.S. Department of Agriculture all contributed to the nation’s economic development and to strengthening our close bilateral ties.

Thailand became a treaty ally of the U.S. in 1954 and hosted thousands of U.S. servicemen in the Vietnam War. Dozens of U.S. companies including Ford and General Motors invested in factories in Thailand, helping make it the “Detroit of the East.” A generation of wealthier Thai sent their children to study in American universities, and they went on to become leaders in government and industry.

After a six-year absence, I find that much is changing in how Thailand regards the United States. The announcement of 36% U.S. tariffs on Thai products (now reduced to 19%) shocked the country, already preoccupied with the suspension and possible dismissal of its prime minister and the border war with Cambodia.

The complete dismantling of USAID and the cancellation of almost all its contracts in Thailand mark the end of an era of cooperation on economic development. Stories of visa problems encountered by students returning to the U.S. to complete their studies are leading families to consider alternatives, including Australia.

Meanwhile, China sees an opportunity to expand its economic role in the country. We are now seen to be backing away from a relationship which began in 1833 when the U.S. first established diplomatic relations with any Asian nation, the Kingdom of Siam.