Following the 1997 Southeast Asian financial crisis, Thailand implemented substantial reforms in its financial sector, strengthening corporate governance, reforming lending practices, and boosting incentives for increasing competition. The resilience of the Thai economy facilitated a quick recovery. After contracting more than 10 percent in 1998, Thailand's economy grew at a rate of more than 4 percent in both 1999 and 2000, and grew by 1.8 percent in 2001 despite a global slowdown.

The country's economic growth has contributed to a sharp drop in poverty levels. Between 1999 and 2000 poverty rates fell drasticaly. Nearly a million people have bounced back out of poverty following the country's economic recovery.

The government, the first to be elected under the new constitution, has focused on four programs: establishing a centralized asset-management corporation, granting a debt moratorium, supplying a one million baht fund for promoting new enterprises, and providing universal health care to the population. The government's medium-term strategies focus on poverty reduction and balanced development.

His Majesty the King has recently laid out an agenda to address poverty by promoting a community-driven, self-sufficiency economy. The King has also spoken out against corruption and called for better management of natural resources. The Senate is playing an increasingly important role -- together with the National Social and Economic Council -- in providing more checks and balances as the country moves forward under the new constitution.