Widening Income Gap In Thailand Key Obstacle To True Democracy

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Widening income gap key obstacle to true democracy, panel says

By Pravit Rojanaphruk

The Nation

Many negative socio-economic factors such as absentee parents and gaps in economic conditions and educational opportunities hinder the development of Thai democracy, a panel said yesterday.

Seven per cent of the 20 million households in Thailand have absentee parents, which results in their children being left behind to be looked after by ageing grandparents. This leads to inadequate educational care for children - a trend that is growing especially in the North and Northeast, Niphon Puapongsakorn, chairman of the Thailand Development Research Institute (TDRI), said.

"This matter is directly linked to the current [political] conflict," he said. Niphon was speaking at a conference on social equality and Thai democracy organised by the King Prajadhipok Institute. The "replication of poverty" continues because grandparents, who are often less educated than their children, cannot nurture the need for knowledge in their grandchildren.

Another worrying trend is the widening income gap. Those with just high-school education under their belts experience the slowest growth in income, while people from low-income families are less likely to enter university.

Niphon said another worrying disparity was the huge gap of wealth, which could be bridged if the government introduced inheritance tax.

In a separate survey, Thawilwadee Burikul, King Prajadhipok Institute's research and development director, said only 25 per cent of Thais had savings. Meanwhile, 7 per cent of the respondents said they had to change residence recently because they could no longer afford the rent.

As for the dropping level of trust in society, Thawilwadee said most respondents had little trust in what they saw on television since the 2006 coup, while only 1 per cent of the population were politically active on the Internet.

Respondents in her survey were asked to weigh the value of democracy vis-a-vis the economy, and about half said the two were equally important, while 17 per cent considered the economy more important.

Only 6 per cent of the respondents valued democracy more.

Thawilwadee said that if people cared for the quality of democracy they should pay more attention to issues such as caring, allowing and accepting people who think differently and helping raise the level of trust among fellow countrymen.

-- The Nation 2010-11-06

[asiawatcher]

There are some valid points here but look at the number of 'mistakes' by irresponsible sexual activities and then the mother enters a bar trade or the father takes no responsibilities and the grand parents will not reject a child and thus the cycle continues.

This is about education and the income or lack thereof, of course, creates jealousy between the haves and the have nots. This is not something that can be fixed by politics. This is about education and removal of ignorance at all levels of society.

[rreddin]

There are some valid points here but look at the number of 'mistakes' by irresponsible sexual activities and then the mother enters a bar trade or the father takes no responsibilities and the grand parents will not reject a child and thus the cycle continues.

This is about education and the income or lack thereof, of course, creates jealousy between the haves and the have nots. This is not something that can be fixed by politics. This is about education and removal of ignorance at all levels of society.

I live in the countryside in Issaan. This is a farming area. There are very few non-farming related jobs in the area and the income generated by the farms cannot support all the of the local population. As a result, many people from the village have gone to where the better paid jobs are, either elsewhere in Thailand or abroad. They send money back to support their family. Many of the farmers also go away to work when they have planted their crop and return when it is harvest time. As an example, my niece's husband earns four times as much as a farm labourer in Japan than he earns in Thailand.

That means there are several families in which the grandparents, usually the widowed grandmother, is bringing up a small child on Bt3000 a month sent by the parents. Out of school, the only form of mental stimulation many of these children get is from watching TV.

Raising standards of education is important to enable the current and future generations of children to have better paid jobs. Those jobs have to be created in the areas where they now live if the migration from the countryside is to slowed - it will never be stopped - and the number of absentee parents reduced.

However, I fear there will be very little progress in this direction until the country as whole chooses to something about it.

[millwall_fan]

The saddest factor in this poverty is that it is so unnecessary. This is the 22nd or 23rd ricest country on the planet (depending on which definition of richest countries you read) The problem is the income disparity. The rich are very very rich in relation to the poor. The tax regime is pitiful - the rich pay only 7% in tax and there is a cut off at I believe 40,000Baht per week. So the government doesn't have the money to invest in its people. Nothing will change until the country changes and a government is elected that acknowledges that the Thai people are being short changed by the Ruling Elite. That same Ruling Elite are, at present unwilling ot contemplate that change and have the military to back up their claim to power.

Taxes should be raised closer to world averages, the lid on taxes should be lifted. A powerful incorruptible Audit body needs to ensure that the rich and the biggest companies are paying taxes that reflect their income. The resulting income plus some government borrowing need to be spent on a massive programme to help the poor including a totally revamped education system, access to jobs for all (rather than government jobs being bequeathed) State subsidies for poor families, further improvements in the health care system, the extension and improvement of Mr Abhisaits old age pension system (great idea but 500 baht a month is not nearly enough) Then there needs to be a massive programme of public works to improve transport links from Bangkok to the North and North East - high speed rail lines and much improved roads. Grants for businesses in the North and North East would enable familes to stay together rather than the econonically active generation being forced to work in Bangkok. If these activities result in labour shortages, full citizenship rights for ethnic minorities including Hill Tribes might ease that problem (and whilst they're about it, how about citizenship rights for Farangs with Thai familes in the same way it would happen in the West!!

A spin off of this spending and borrowing is that it probably wouldn't be approved of by the international money markets so it would weaken the baht and boost tourism, bringing much needed revenue for mom and pop guest houses, restaurants etc.

A second spin off is that it would bring peace to the country, the poor would once again feel valued and part of society. They might even forget about a certain Macedonian citizen who started giving them all those things 10 years ago!!!!

[ThaiRich]

It's all about education. I doubt any of the lower cast of Thai Society even finished high school or went onto college. The only way to narrow the income gap is by FIRST narrowing the education gap. We all know that kids in government schools in Bangkok, Chaing Mai and other major cities get a far better education than those kids living in some small village in Nakon Nowhere. The typical Thai was of handeling things, instead of admitting the problem and doing whatever it takes to fix it. It's just easier to talk in circles and in the end do nothing about it.

[jayjay0]

I will only say that yes the education system needs lot's and lot's of improvement. In my opinion if the present government stay's in power there will be steps taken towards that end. It is by no means a quick fix situation.

I was wondering about the gap in income. Who are they talking about. Are they talking about the very poor and the handful of super rich. Or the middle class and the poor or the middle class and the rich. Kind of a meaning less statement with out definition.

They also said and I quote

(Niphon said another worrying disparity was the huge gap of wealth, which could be bridged if the government introduced inheritance tax.)

How in the name of all that is will a inheritance tax help the poor or the middle class the only one it will help is the government They will get the money.

Now if it was to be set up that all the money generated by this tax was to go to the education system with the primary goal to bring all schools into line with equal resources it would help in the long run. Remember I said this is not going to happen over night. (of course there will be money diverted into the wrong pockets) but not all of it. I guess you could call that narrowing the gap but to what purpose They should be more concerned with the poor getting more money.

I see that this is from the nation sorry to say I don't trust them for news they are kind of like The national enquirer in the states. I see the panel was formed by the Thailand Development Research Institute (TDRI), never heard of them and if that is all they can come up with have them give me a call I can do better and probably a lot cheaper. A six figured figure come to mind.

[TAWP]

The tax regime is pitiful - the rich pay only 7% in tax and there is a cut off at I believe 40,000Baht per week. So the government doesn't have the money to invest in its people.

<deleted>, where do you get your numbers from?

The upper bracket in the staircase is 37% in tax. See for example http://www.taxrates.cc/html/thailand-tax-rates.html