The image of a dry region plagued by poverty and underdevelopment compared to other areas is what many of us remember about Thailand's Isan. However, who knows that today, this vast northeastern region (the largest in the country) is transforming into a "New Isan," becoming an important economic strategic area of Thailand ready to connect to the global stage.

Towards Urbanisation
Urbanisation is a term used by scholars to describe the phenomenon of cities transforming from rural areas, which is one of the significant trends occurring worldwide. The United Nations predicts that within 30 years, the proportion of the global population living in urban areas will reach 68%, or approximately 6.7 billion people, out of a total world population of 9.8 billion. In Thailand, over 51% of the population currently resides in urban areas, and this is expected to rise to 69.5% in the next 30 years, meaning that only 30.5% of the country will remain rural.

This change reflects that Thailand will no longer have just "Bangkok" as its sole major city, but other provinces will gradually develop as well.

In the case of Isan, it is evident that since the 1970s, the region has grown and transformed in line with the global economic and social systems. Between 1980 and 2000, the urban population in Isan nearly doubled, from 1.8 million to 3.5 million. Economically, Isan has the highest GDP growth rate in the country, averaging 8% per year. Interestingly, when looking at the Gross Regional Product, it is found that the economy of Isan, often perceived as primarily agricultural, actually derives 79% of its income from non-agricultural sectors, while income from agriculture accounts for only 21%. This shift is a result of the expansion of the industrial sector in recent years.

Diversity of Isan's Economy
Provinces with a clear proportion of income from the industrial sector include Nakhon Ratchasima and Khon Kaen.
Provinces with significant income from trade and services include Ubon Ratchathani, Udon Thani, Roi Et, Maha Sarakham, Nong Khai, Sakon Nakhon, and Chaiyaphum.
Provinces with a significant proportion of income from agriculture include Buriram, Surin, Si Sa Ket, Kalasin, Nakhon Phanom, Loei, Yasothon, Amnat Charoen, Bueng Kan, Nong Bua Lam Phu, and Mukdahan.

Path to the Future
With an area of over 168,000 square kilometers and a population of over 21 million, Isan is a region with immense potential in terms of geography, suitable for being a "gateway" for trade and investment from borders and abroad, as well as having a workforce and production bases in agriculture and industry, along with being the best source of jasmine rice in the country. These factors make Isan ready for significant growth in the near future.

Additionally, government investment plans in transportation networks are a crucial variable in promoting economic distribution across the region. One of these is the Belt and Road Initiative (BRI), under the cooperation of the Chinese government with various countries, which began in 2013. This can be seen as the 21st-century Silk Road, as it connects transportation routes between China and various countries, covering over 80 nations worldwide, including Asia, Europe, and Africa. Thailand's Isan is also part of the China-Indochina Economic Corridor.

The projects that Thailand is collaborating on with China include the construction of two high-speed rail routes: the Bangkok-Nong Khai route and the Nong Khai-Vientiane route. While this project may be viewed as a tool to expand China's influence on the global stage, countries, including Thailand, also benefit significantly from this infrastructure development, particularly in terms of job creation, stimulating and enhancing economic potential, and driving trade and investment cooperation by connecting various regions of the world.

There is nothing more certain than the prosperity that will come in terms of both space and the quality of life for the people who own the cultural resources and have an open mindset, which is crucial for developing global cooperation today in this region.

Source:
Article "Belt and Road Initiative: How Far Has It Progressed?" from scbeic.com
Article "A New Perspective on Isan: Insights from Economists at Khon Kaen University" from voicetv.co.th

By: Nattacha Tawanachoti

SOURCE: www.tcdc.or.th