Thailand Country Profile
Environment, Natural Resources and Extractive Industry
Business Corruption
Illegal logging constitutes a significant problem in Thailand. According to a 2008 news article posted on illegal-logging.info, illegal logging is widespread and involves collusion between corrupt officials and influential people. The officials take bribes to turn a blind eye to the logging operation; however, from time to time, logging scandals surface in the media, proving that the problem persists.
Currently, illegal logging of rosewood is increasing due to international demand, particularly from China and Japan. Thailand is discussing whether to ban trading of rosewood timber altogether as a means to curb illegal logging. Rosewoods are currently on the IUCN Red List of threatened species. Despite the fact that this rare tree species remains a target for loggers there has been no population assessment of Rosewood trees since 1998, as reported by the Coalition Against Wildlife Trafficking (CAWT) in a March 2011 article.
Political Corruption
A blatant conflict of interest exists in the Thai energy sector; the energy producers are the ones who also bring forward estimations of the energy demand of the country. According to an online article by Bangkok Post in 2007, the Electricity Governing Authority of Thailand overestimates Thailand's electricity demand by 40%.
A new rice buying scheme has been carried out by the government of Yingluck Shinawatra. The scheme has been a response to the previous rice mortgage scheme that involved high levels of corruption. Between 2005 and 2006, the government had lost THB 19 billion (USD 624 million) after buying millions of tons of rice far above market price. The new scheme introduced by the new government would let farmers sell their rice directly to the government and consequently not risk losing money when selling to the market. However, according to a September 2011 article by Bangkok Post, the new scheme would not end corruption as most of the money reimbursed to the farmers would fall into the hands of the people involved in carrying out the scheme. According to an October 2011 article by Bangkok Post, 82% of 67 economists, from the 31 leading economic research and analysis agencies, believe that corruption will definitely taint the new scheme.
