Fear of being left behind: Why Thailand followed Indonesia in seeking OECD membership

In late 2023, Thailand’s new government was aggressively courting international investment. Then-Prime Minister Srettha Thavisin, a former property tycoon, positioned himself as the leader who could reverse years of sluggish economic performance. While his administration launched populist measures like a digital wallet cash handout for 50 million people, officials also began laying the groundwork for a more fundamental economic overhaul: applying to join the Organisation for Economic Co-operation and Development (OECD).

The OECD is an international organisation comprising mostly developed nations that sets policy standards and provides recommendations on how countries can better manage their economies, institutions, and public services. Thailand formally became a candidate country in June 2024 and began the accession process in October. Although Srettha was dismissed from office by a court ruling in August for an ethical violation, the bid has continued under Prime Minister Anutin Charnvirakul, who now chairs a newly established national steering committee to oversee the process.

‘When Thailand becomes an OECD member, people will see the country in a new dimension,’ Anutin said. ‘No one will be able to point at Thailand and say it is dishonest, lacks oversight, is underdeveloped, or is in decline.’ Experts say the rigorous accession process is being used to drive reforms that have long proven difficult to achieve independently. ‘Although reforms to various aspects of Thailand’s regulations have been continuously discussed, progress has been limited,’ said Thammasat University economics professor Archanun Kophaiboon.

Thailand is not alone in Southeast Asia. Indonesia is also undergoing the accession process, having had its roadmap welcomed by the OECD in May 2024 after becoming the region’s first candidate country. Jakarta has incorporated the accession process into its 2025–2029 National Medium-Term Development Plan, with observers suggesting technical reviews could be completed by the decade’s end. Coordinating Minister for Economic Affairs Airlangga Hartarto said membership would help Indonesia navigate global uncertainty and an increasingly multipolar environment.

Six other nations are also in the accession pipeline: Peru, Argentina, Brazil, Romania, Bulgaria, and Croatia. Analysts argue that Southeast Asian countries are using global standards to enhance credibility, attract investment, and lock in domestic reforms. A major driver, according to Archanun, is the competitive dynamic within ASEAN, where member states vie for foreign direct investment. ‘When one country like Indonesia shows interest in joining the OECD, it creates pressure for Thailand to do the same,’ he said. Indonesia and Thailand are the region’s two largest economies.

Anutin personally submitted Thailand’s initial memorandum to the OECD in December, moving the country into the technical review phase. His committee aims to accelerate the process with an ambitious target of full membership by 2028. The government says the goal is to modernise the country’s systems, including regulations, governance, anti-corruption measures, public services, investment rules, labour standards, and environmental policies. The accession process is a multi-year technical dialogue designed to align a country’s laws, policies, and practices with OECD standards. Experts say it can take up to a decade, though five to seven years is more typical. Twenty-five OECD committees, covering everything from financial markets to fisheries, will assess Thailand’s policies during the review.