While there is a large consensus that knowledge is becoming an increasingly important stimulant of economic growth during this globalization era (Tangchuang, 2001: 5; cited in Thomas and others, 2000: 205), because all sectors have become knowledge-intensive with international standard mind set, not just those usually called “high technology” (cited in APEC Economic Committee, 2000: 3). Several observers argue that knowledge-based economy (KBE) is linked to the technological revolution and the internationalization of economic production. In a paradigm shift from traditional practices where physical capital was accumulated in an effort to secure, long-term economic growth and development, industrial companies and even agricultural sectors are now utilizing knowledge and ideas to produce increased competitiveness and overall economic performance. However, there is an argument on the reality of whether or not KBE should be seriously considering in the education reform and of “the new economy” as new engines of economic growth among developing countries where are normally rigidity, poor, inequality, poor quality of education, illiterates, high dropout rates, great public debt (Watanachai, 2002: 2; Svetanant, 2001: 41; BMI, 2002: 10) and infrastructure, computer literacy and information technology (IT) availability are far behind international standard. A study conducted by Tangchuang (1999), as well as, the work of Lopez and others (1998) revealed that there are actually many other evidences asserting relationships with economic growth among developing countries. For one hand, how the national economic policies, such as BOI, international investment, revenue and expenditure are set. Policy on education for its citizens, as well as cultural concerns and political stability are determined. On the other hand, how the employment, wage and the improvement of the quality of the labour force (CELS Database, 2002) are taken into account. Thomas and others (2000: 25) viewed the quantitative and qualitative sides of the growth process in the three key principles: A focus on three sets of assets: physical, human and natural capital; A concern for the distributive aspects across people and overtime; An emphasis on the institutional framework for good governance. As Amartya Sen (cited in Thomas and others, 2000: 1) said that “Economics is not only concerned with generating income, but also making good use of that income to enhance our living and our freedoms”. These overall assertion and issues are addressed and discussed in this paper as a case of Thailand.
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