Based on financial criteria set in 2017, the bar for monetary scarcity was established at 2,686 baht per individual per month, and was raised to 2,803 baht per month per person by 2021. Examining this elevation is crucial in assessing the four-year tenure of Thailand’s former premier, Prayut Chan-o-cha, and his flagship 12th National Economic and Social Development Plan.
Fortunately, the findings of the report note a diminishing trend in poverty levels throughout these four years. How compares the two extreme periods? In 2017, it was estimated that for every hundred Thai citizens, about 7.87 lived on a budget of or less than 2,686 baht per month. Contrastingly, by the year 2021, the numbers had improved, and only 6.32 out of every hundred Thais were falling below the poverty demarcation threshold, now pegged at a per capita monthly income of 2,803 baht. This achievement satisfyingly superseded the goal of the 12th development plan, which aimed to curtail poverty levels to less than 6.5%.
In addition to the reduction in poverty, the report unveiled that personal incomes witnessed a surge in this phase, and alongside, income disparity reduced as well. Attributed substantially to governmental expenditure as responses to cushion the economic fallout from the unprecedented Covid-19 outbreak in 2020, these developments painted a positive picture.
Concrete steps were undertaken to curtail costs and provide relief for approximately 13.65 million individuals possessing state welfare cards. Measures ranged from reducing common utility bills like those of electricity and water to diminishing student tuition fees. Relief efforts were also concentrated towards employers and folks insured under the social security network.
During this phase, the average per capita income observed a rise from US$6,104 in 2016, reaching a high of $7,850 by 2019. Although 2021 saw a drop to $7,091, the overall upward trend was encouraging. A similar positive direction was observed for income inequality, as highlighted in the report. Expressing the income differential between the richest 10% and the poorest 40% of the population, the report states a drop in this gap from 250% in 2017, down to 220% by 2021.
However, due to sluggish economic progress inherent in the stretch from 2017 to 2021, mean income levels went up by a measly 2.7% annually, a fact underlined by the report.
Who comprises this bottom strata of 40% of the Thai society? Primarily, it’s the workforce engaged in the agricultural sector. Their capacity to bolster income levels is severely throttled by restricted access to quality education. Other constituents of this group include the unemployed, older adults, children, students, home-makers, medical patients and persons with disabilities.
Income inequality, denoted by the Gini coefficient, showcased an edifying picture with a decrease from 0.453 in 2020, down to 0.430 by 2021. Although this was an encouraging trend, the target of 0.41 as set in the 12th developmental plan is yet unmet.
Notably, the report draws attention to the closing disparity between regions of Thailand in terms of income and economic progress. Taking the highest and the lowest economic regions as examples – the East and the Northeast, respectively – the previously broad income chasm has decreased significantly, marking a promisingly progressive trend.
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