Centralised Development and Inactive Business Sector: The Case of Nakhon Si Thammarat City Municipality

Abstract

This article examines the relationship between the business sector and the policymaking of Nakhon Si Thammarat City Municipality in Southern Thailand. We find that business influence on local policy remains highly limited. We argue that this is primarily due to two factors: political and economic centralisation which limits the capacity of the municipal government, and the limited economic opportunities for medium and large businesses within the municipal borders. The result is that medium and large firms tend to focus their attention on and cultivate links with officials at the provincial and national level. At the same time, small businesses have expanded in the municipality. However, their inability to coordinate to make collective demands limits their influence on municipal policymaking. Instead, small entrepreneurs individually lobby the local government through the same channels as the general public, appealing for allocations from the government's limited community service budget.