Rule of Law Slump Threatens Thailand’s FDI and OECD Ambitions

Thailand’s slide down the global rankings in the Rule of Law Index poses a significant risk to the country’s economic ambitions, particularly its pursuit of Foreign Direct Investment (FDI) and its target to join the OECD by 2028.

Key Points

• Thailand scored 0.50 out of 1.00 overall, ranking 10th of 15 countries in East Asia and the Pacific and 24th of 44 upper-middle-income countries.
• It scored above the global average only in Order and Security. Its lowest listed factor score was Criminal Justice at 0.42.
• Absence of Corruption fell from 0.45 in 2025 to 0.44 in 2026 and declined 5.6% over five years. Regulatory Enforcement fell from 0.45 to 0.44 and declined 4.0% over the same period.
• The report cited declines in freedom of expression and assembly, civic participation, and judicial constraints on executive power.
• Thailand made no progress in improving the affordability, accessibility, and non-discriminatory nature of civil justice.

According to the latest report from the World Justice Project (WJP) released on October 24, 2026, Thailand has fallen three places to rank 80th out of 143 countries. The decline is driven by worsening scores in anti-corruption measures and law enforcement, areas critical for maintaining investor confidence.

A Score Below Average

Thailand achieved an overall score of 0.50 out of 1.00. While it ranks 10th out of 15 countries in the East Asia and Pacific region, its performance highlights systemic challenges in ensuring justice and constraining state power.

Notably, Thailand scored above the global average in only one of the eight assessed factors: Order and Security (0.75). In contrast, it fell below the global average in the remaining seven, including:

• Criminal Justice: 0.42 (Global average: 0.47)
• Absence of Corruption: 0.44 (Global average: 0.51)
• Regulatory Enforcement: 0.44 (Global average: 0.54)
• Fundamental Rights: 0.49 (Global average: 0.55)

Corruption and Enforcement Deteriorate

The report indicates a troubling trend over the last five years. The score for “Absence of Corruption” has contracted by 5.6%, while “Regulatory Enforcement” has dropped by 4.0%. Between 2025 and 2026 alone, both metrics saw direct declines, with Corruption falling from 0.45 to 0.44 and Regulatory Enforcement dropping from 0.45 to 0.44.

Beyond statistics, the country report highlighted specific declines in freedom of expression, freedom of assembly, and civic participation. Thailand is among 86% of nations globally that have seen a deterioration in at least one mechanism designed to prevent authoritarianism over the past five years.

Economic Implications

Dr. Phiset Sa-ardyen, executive director of the Thailand Institute of Justice (TIJ), emphasized that the rule of law is not just a legal issue but a foundational economic asset.

“A strong rule of law directly correlates with economic prosperity, price stability, and sovereign creditworthiness,” Dr. Phiset said. He added that clear rules, equal enforcement, and accessible dispute resolution are vital for attracting FDI as Thailand works toward its goals under the 13th National Economic and Social Development Plan.

“Elevating the rule of law is an investment in the nation’s foundation—protecting rights, fostering fair economic opportunities, and supporting sustainable development,” he noted.

Global Context

Globally, rule of law scores declined in 62% of assessed countries this year, marking the ninth consecutive year where more nations regressed than improved. Denmark, Norway, and Finland topped the global rankings. In the region, New Zealand ranked first (7th globally), followed by Australia and Singapore.

As Thailand seeks to position itself as a premier investment destination in Southeast Asia, addressing these governance and justice gaps will be essential to reversing the trend and restoring international confidence.