In 2002, the proposed of public sector reform in Thailand based on the impact of the East Asian financial crisis in 1997 that hardest hit Thailand’s economy. Many issues have caused serious problems for the country whether it be business organization collapsed, the unemployment rate increased as well as corrupt and unethical practices began to increase. Public service reform is a critical requirement for effective management of the public sector which enable the country to overcome the crisis and move towards a strong and self-reliant path in the 21st century. At that time, the focus of the administrative reform was on size and structure streamlining, adjusting the roles of the public sector to be compatible with a new development approach, improving reliable management information systems, and modernizing the budget and legal system which is called new public management.
The results of the public service reform in Thailand influenced many changes to the new public management era, including reorganization of public agency structure and work processes as well as a shift in the perspective and work culture of government officials. Under the administration of Mr.Thaksin Shinwatra, the former prime minister since 2001 – 2006, the government established the state administration act (No.5) of B.E. 2545 (2002) and the Government Organization Restructuring Act of B.E. 2545 (2002), a significant step of public sector reform scheme in Thailand. Within the implementation of this act, the structure of each ministry underwent a tremendous change.
According to the establishment of 2 laws, the government established the state administration act (No.5) of B.E. 2545 (2002) and the Government Organization Restructuring Act of B.E. 2545 (2002), the government realized that public sector improvement is required to monitor the implementation of strategic plans developed to bring about the change required by one organization. Thereby, the government decided to establish the Office of the Public Sector Development Commission (OPDC) on October 3, 2002 in accordance with the state administration act (No.5) of B.E. 2545 (2002). OPDC is a non-departmental government agency under the Office of the Prime Minister. Its main responsibilities to serve as a host agency in the implementation of change, proposing solutions to fundamental problems and weakness that hinder public sector development; and enhancing and strengthening capacities to enable Thai public sector to respond the rapid changes of society and the world. Moreover, the government established 6 new ministries in order to eliminate the overlapping in each ministry. From this result, the ministries increase from 13 to 20 ministries. Table 1 shows the list of government ministries in Thailand.