Comprehensive Thai Welfare System Within 6-7 Years

[webfact]

WELFARE SEMINAR

Comprehensive system 'within 6-7 years'

By Jeerapong Prasertpholkrang

The Nation

PM says it must not be a burden on society

Prime Minister Abhisit Vejjajiva yesterday explained his vision of social welfare as a national agenda issue and the aim of providing comprehensive welfare by 2016-17.

Speaking at a seminar entitled "The future of Thai society and social welfare", Abhisit said every citizen should have a guarantee for their well-being and security.

However, a social welfare system should not put a heavy financial burden on the state coffers and lead eventually to the need to hike tax rates.

"We should start laying down the foundations for social welfare - but must be cautious and ensure that the budgets are not out of control."

"For example, the current monthly Bt500-per-person welfare for senior citizens is not enough to cover the cost of living, but if we raised the allowance to Bt1,000, then we would have to use another Bt40-50 billion in state funds.

"Given this, we should provide basic welfare as a right for the people, and then the people themselves may contribute to a national co-savings scheme in which individuals and the government are joint contributors," he said.

Demographically, Thailand was inching closer to an ageing society - so the country needed to prepare a welfare system for the next 20 years. Otherwise, the country would face a critical shortage of revenue.

A good welfare system, he said, must be inclusive and cover every Thai citizen, and not allow politicians to abuse it for their own gains.

Suwanee Kamman, deputy secretary-general of the National Economic and Social Development Board, said the central government had been responsible for 35 per cent of the country's total welfare costs from 2005-08.

During the same period, the private sector shouldered 29 per cent of the cost, compared to 31 per cent by the household sector, and 4.4 per cent by local communities.

Chinchai Chi-charern, a deputy director of the national social welfare commission, said Thailand should adopt a combination of measures to suit its society and conditions.

"We must ensure that the welfare system really helps the needy. Second, those who have reasonable income must co-pay for the welfare - such as via a national co-saving scheme, the farmers' welfare scheme, and community welfare scheme.

"Third, some basic social services must be free, such as education and allowances for the disabled. Fourth, businesses must be promoted to be givers to society via voluntary schemes," he said.

Wutthisan Tanchai of Thammasat University said the social welfare system should include both western welfare measures and Thai aspects, such as the role of local communities and entrepreneurs, as well as balanced management of resources.

-- The Nation 2010-09-14

[jackr]

Sounds good. There's also a couple million guys wandering around in orange that could be contributing to the state.

[SomTumTiger]

Sounds like a reasonable idea If this had come from Thaksin, it would have been something that could have been abused - "One Retirement plan, one cow, one tambon" or some other crap like that.

[Spee]

For all those sweating the strong baht and crappy foreign exchange rate, the solution appears to be on the horizon.

[bangon04]

Abhisit has grown up in the UK observing the welfare system there. He knows that it needs enough people to pay their taxes to support all the others, and it needs to prevent foreigners coming in to take advantage. Thailand seems to be pretty good at keeping foreigners at arms length, but not so good at getting enough people to pay their taxes.

It also needs Thai people to embrace the concept of planning for their future and contributing to a national plan.......

[Thai at Heart]

Abhisit has grown up in the UK observing the welfare system there. He knows that it needs enough people to pay their taxes to support all the others, and it needs to prevent foreigners coming in to take advantage. Thailand seems to be pretty good at keeping foreigners at arms length, but not so good at getting enough people to pay their taxes.

It also needs Thai people to embrace the concept of planning for their future and contributing to a national plan.......

A good welfare system, he said, must be inclusive and cover every Thai citizen, and not allow politicians to abuse it for their own gains.

I wonder if he meant Blair and Brown when he said this.

[Pib]

No doubt Thailand could use some more welfare safety nets to help the poor, old, handicapped, etc., especially as Thailand becomes a wealthier nation.

But a social welfare system can also become too expensive when politicians want to expand the benefits while doing smoke-and-mirrors budget math to prevent raising taxes to pay for the increased benefits. Hopefully, Thailand will do a better job at getting it right compared to what has happened in some western countries in terms of welfare system benefits and associated costs.

[TAWP]

Employee co-payment to the state for a future retirement found is a pyramid scheme and closing in on collapse in the west. Why would they want to implement it here?

[hyperdimension]

Some countries impose compulsory contributions into a retirement fund that is invested into the stock markets. But look at where the stock markets have gone over the past few years - it's quite depressing to know that for a lot of people in old age around half of their wealth that they had amassed over much of their lifetime had been wiped out in a matter of months.

I have a strong belief that long-term buy-and-hold investing in the stock markets is a big hoax and is promoted by fund managers who just want to earn stable ongoing commissions, targeting stupid, ignorant or busy people.

Edited September 14, 2010 by hyperdimension

[damian7000]

Sounds good. There's also a couple million guys wandering around in orange that could be contributing to the state.

haha...my thoughts exactly. most are not much more than smart(er) bums who have found a way to get food and shelter given to them by the rest of society...and be revered at the same time to boot

[Buchholz]

"most" Monks = Bums

say wha'??

[rubl]

Sounds good. There's also a couple million guys wandering around in orange that could be contributing to the state.

Monks have a different type of contribution to the country and it's population. With a tax-free bracket of 100,000 Baht and some common deductions it wouldn't help either. Actually a large part of the population doesn't earn enough to have to pay tax and that legally !

Edited September 14, 2010 by rubl

[licentiapoetica]

It's never going to happen.

Edited September 14, 2010 by licentiapoetica

[hoaker]

"For example, the current monthly Bt500-per-person welfare for senior citizens is not enough to cover the cost of living, but if we raised the allowance to Bt1,000, then we would have to use another Bt40-50 billion in state funds

Someone has failed their mathematics 101. Assume the entire nation is senior citizen it would cost the state 77 billion, excluding costs, fund managements, etc so I guess the team of managing this gets a fat welfare check out of 50 billion before there even 40.

[Piengrudee]

Why 'within 6-7 years'? Mark will get banned for 5 years by the court, and he will return to implement the comprehensive system

[asiawatcher]

Welfare at large in the west has destroyed the economies. It starts down low then expands until there are more and more taxes paying for welfare and not much else. Then there is no incentive to work and what with subsidies for rent, health, unemployment, retraining schemes ( scams) and so on, I mean the rest of us will have to work harder than we already do to support the bludgers. No - I would not introduce any welfare and if people cannot save enough to retire without handouts or assistance from family support then check out early and leave us all in peace.

As Farang we have no chance of welfare in this country anyway so why should we keep being taxed when we have no possible benefit? Or maybe this is a way to raise taxes again on the promise we get it back in the long term. Swallow that and we are all buffaloes!

[somchai69]

A laudable agenda, but can the Thai tax system afford it?

Look at the way european countries are struggling to meet there commitments.....................

[David006]

"For example, the current monthly Bt500-per-person welfare for senior citizens is not enough to cover the cost of living, but if we raised the allowance to Bt1,000, then we would have to use another Bt40-50 billion in state funds.

How many Thais know about this?? .... anyone know anyone that gets it??....

Okay belay that...wifey say her mum gets it..anyone over 60..

....Sounds about the same amount as my Brit OAP would be...

Edited September 14, 2010 by David006

[Ricardo]

It's a positive-sign IMO, that PM-Abhisit (or indeed any politician) understands the need, to identify the source of the extra-funds, before committing to spend the money.

Thailand could use a better social-system, but it needs to be paid-for, like most other things in life.