Politics of Thailand are currently conducted within the framework of a constitutional monarchy, whereby the Prime Minister is the head of government and a hereditary monarch is head of state. The judiciary is independent of the executive and the legislative branches. Thailand has multi party system. There are four major concepts or ingredients in Thailand politics which are as follows: 1. The status of the monarch as head of the armed forces and upholder of Buddhism and all other religions: – His sovereign power emanates from the people, and as head of state, he exercises his legislative power through parliament, executive power through the cabinet headed by a prime minister and judicial through courts. 2. The Legislative Branch:- The new leaders of 1932 realized that the goal of popularly elected government could not be attained immediately, and that considerable experimentation and adaptation would be necessary before a balance could be struck. 3. The Executive Branch:- Every constitution holds that the Prime Minister is head of government and chief executive. 4. Western democratic system: – For the past six decades, Thailand has been adopting the Western democratic system to the needs of a nation with its own identity and time-honoured culture. The Judiciary of Thailand is composed of three distinct systems: ( The Court of Justice system ( The Administrative Court system ( The Constitutional Court of Thailand. Thailand is divided into 76 provinces, which are geographically grouped into 6 regions. The capital Bangkok is not a province but a special administrative area and is 24 included as the 77th province since it is administered at the same level as the other 76 provinces. The name of the provinces are the same as that of their respective capital cities. The foreign relations of Thailand are handled by the Minister of Foreign Affairs of Thailand and the Ministry of Foreign Affairs of Thailand. Thailand’s foreign policy included support for ASEAN in the interest of regional stability and more emphasizes on a close and longstanding security relationship with the United States. Thailand participates fully in international and regional organizations.Economic-In the decade until 1995 the Thai economy was among the world’s fastest growing with a rate of 8% to 9% a year. The government has also been successful in reducing poverty and improving social services. Despite the hard times during the “Asian Crisis” of 1997-98, Thailand has made important progress in social and economic development, although in 2008 and 2009 economic growth has fallen sharply, mainly due to the global downturn and persistent political instability, which created a fear in the investor confidence. The country’s economy is mainly driven by the manufacturing sector. Thailand is an economy very export-dependent with exports accounting for two thirds of gross domestic product. The capital Bangkok has become the centre of economic activity and the most prosperous part of the country, accounting for about 60% of national GDP. Thanks to its good infrastructure, the city is competing with Singapore to become a regional hub for air travel within Southeast Asia. To cushion the impact of the global crisis, the Thai government has adopted a fiscal stimulus to stimulate domestic purchasing power through cash handouts. The second phase of the stimulus, worth almost $57 billion, includes a range of large infrastructure projects over 2010-12. The majority of workers was employed in the primary sector, although the figure has been rapidly falling, resulting from increasing mechanization and decline in relative importance of the sector in overall economic activities. The proportion of private sector employees to the total employment 35 steadily increased from 19 percent in 1985 to 31 percent in 2000, although slacking off somewhat in 1998 and 1999. Aggregate demand directly determines employment and hence unemployment in general. The so-called “jobless growth” is unlikely to take place in a country like Thailand because labor-intensive technologies are still widely used and labor is quite abundant with wages remaining relatively low. Thus, a fall in aggregate demand, e.g., the recession currently experienced by the Thai economy, would lead to a fall in demand for labor, young and old alike.