Grand Project Schemes

In a break from grassroots-type projects and programs, the Thai government has been proposing a number of grand projects designed to create new regional centers of economic activity:[23]

• In January 2003 for example Thaksin announced a 28 billion baht ($650 million) plan to make the northern city of Chaing Mai an international aviation hub. The initiative aims to upgrade airport facilities and capacity to promote Chiang Mai as an alternative site to Bangkok for foreign trade and investment.
• Also in January 2003 Thaksin unveiled a 100 billion baht plan to transform the resort island of Pyhuket into a laboratory for high-tech research and development. The software industry is one of several export businesses the authorities hope will be centered here.
• In another major initiative, the government has recently resurrected centuries-old plans for cutting a canal through Thailand to shorten shipping routes between Europe and East Asia. The proposed project, including construction of two harbors, a monorail and a highway across the Isthmus of Kra would cost around $35 billion.

While EAEM model cannot serve as the sole basis for future growth, it's not clear that massive expenditures of this nature will necessarily come up with new services in which the country has a clear comparative advantage.