In 1934 the Siamese Council of Ministers agreed to participate in an international rubber control scheme without understanding either the dynamics of the expansion process or the extensiveness of the planting of small stands of rubber trees in peninsular Siam. The area estimates and export statistics available in Bangkok caused the government to believe that the quota offered by the International Rubber Regulation Committee was generous, and they consequently signed agreements with the producers' organizations and cooperating countries subject only to the ratification of the People's Assembly. The State Councilors were so confident of perfunctory approval of what appeared to be a technical issue that they delayed submitting the proposal until three months after the effective date of the agreement. But when the debate opened the representatives from the South sharply challenged the government estimates for failing to account for the areas of immature trees or to recognize that low prices had depressed production below current capacity. Neither Premier Bahol's plea that negotiations with countries “which are already civilised require something substantial in the way of evidence, such as statistics,” nor the need to honor the government's commitment dissuaded them.1 A minor political crisis was precipitated as the Assembly rejected the proposal and Siam's first constitutional government resigned.
The efficiency of the sheet rubber marketing system in Thailand is analyzed in the framework of the structure‐conduct‐performance model from the field of industrial organization. Market performance is evaluated by the degree of monopsony profits and progressiveness. Examination of the multiple relationships at the three principal levels of the vertical network indicates that the system does not fit pure models of microeconomic theory. Comprehensive analysis leads to different conclusions than the more traditional, partial analysis. Diagnosing the structural and behavioral determinants of performance also assists in identifying policy measures to improve marketing efficiency.
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