Make Thailand a welfare state

For all topics relating to thai labour and the social system, the plight of workers in Nakhon Ratchasima (Korat), Isaan and Thailand, or the hardship of the migrant workers from Thailand trying to make satang in other countries etc.
Benutzeravatar
KoratCat
Thailand-Forum-Administrator
Beiträge: 7869
Registriert: Sa Jul 22, 2006 11:00 am
Wohnort: Non Sung/Korat (Frankfurt/M)
Kontaktdaten:

Make Thailand a welfare state

Ungelesener Beitragvon KoratCat » So Nov 11, 2007 10:09 am

Make Thailand a welfare state

By Parista Yuthamanop

The country should become a welfare state, which is the most effective means of helping the poor in the long run, according to noted Thailand Development Research Institute (TDRI) economist Ammar Siamwalla.

Since many of the political parties are still using populist policies to woo voters, the honorary TDRI economist has questioned their long-term benefits.

Many policies introduced by the administration of former prime minister Thaksin Shinawatra such as crop price guarantees, an oil price subsidy and state-owned banks' easy credit were only good at temporarily improving the living conditions of the poor, he said.

"The populist policy is transient. The welfare state concept is a better option as it not only offers universal benefits, but also serves the middle path," Mr Ammar told the TDRI's annual seminar under the theme "Poverty Reduction: Competition, Giveaway or Welfare".

He said a comprehensive welfare system was increasingly necessary because the poor had been left out of the existing system. They were also vulnerable to unexpected events such as unemployment, illness, accidents and natural disasters causing them to lose opportunities in education and improved well-being, he said.

Demographic changes over the next 15-20 years that will see a rapid increase in the percentage of elderly people will further increase social burdens. A trend of slowing economic growth in the future could further complicate poverty reduction efforts.

Mr Ammar said policies offered by political parties for the election on Dec 23, which included some welfare schemes such as financial support for the elderly, were not enough.

"The welfare state concept has not been clearly presented in existing political campaigns," he said.

A key challenge of building the welfare state is to implement tax reforms and raise economic growth, said the economist.

"To finance it, the country should consider tax reforms rather than continual budget deficit," he said.

The government should consider increasing tax on property ownership because the present level is relatively low, he said.

The country's existing investment in social welfare stands at 2.3% of the gross domestic product, compared with 6-32% in Organisation for Economic Co-operation and Development countries.

Deputy Prime Minister and Industry Minister Kosit Panpiemras echoed the same view, saying the next government needs to come up with a better long-term policy on welfare.

"I don't oppose the populist policy totally. It could be useful if it is adapted to ensure fiscal and monetary discipline and sustainability. But if we want the country to develop well, we must think long-term," he said.

Somchai Jitsuchon, another TRDI economist, said among the populist policies introduced by the previous government, only the 30-baht health care scheme was effective in reducing poverty.

Other projects such as the Bank for Agriculture and Agricultural Co-operatives' farmer debt suspension, the One-Tambon-One-Product promotion and the small- and medium-size loans were ineffective, said Mr Somchai.

He said income distribution improved in the first three years of Mr Thaksin's administration because of its large spending, but worsened when his government later reduced its spending.

Bowornpan Atchakul, a TDRI researcher, said Mr Thaksin's policy of easy credit for the poor had resulted in over-indebtedness. Many village fund borrowers had tried to refinance their debt with other loans, showing that the money had not been effectively used to create future earnings, she said.

The village fund project was successful in giving better financial access to the poor, but not at solving their financial problems, she added.

Bangkok Post Nov. 11, 2007
Es gibt nichts Gutes, ausser man tut es! Erich Kästner, 1899 - 1974

Zurück zu „Labour / Social“



Wer ist online?

Mitglieder in diesem Forum: 0 Mitglieder und 16 Gäste