Income gap between rich and poor in Thailand is huge
Thailand takes an embarrassing third place on Credit Suisse's 2016 Global Wealth Report. The gap between poor and is almost nowhere in the world as large as in Thailand. For example, 1 percent of all Thais own 58 percent of the wealth in the country.
Thailand has experienced impressive economic growth. Poverty has decreased somewhat over the past forty years, but the gap between rich and poor has only widened. For example, the number of poor in the country fell from 34,1 million in 1989 to 7,4 million in 2013, yet inequality rose sharply in the same period.
Inequality in income is a structural problem and is perpetuated by government, laws and systems, so that the elite benefit more from economic growth and become increasingly wealthy.
Although this and previous governments promise to tackle income inequality, they have hardly succeeded. The current government promises to revive the ailing economy, but is not really succeeding. Critics say the current government is too focused on industry and investors, leaving poor Thais behind.
More money should be made available in Thailand to help the poor and education should be affordable for everyone, writes Bangkok Post.
Source: Bangkok Post
Something more should be done than helping the poor and better education. A fairer fiscal policy in which the richest pay more taxes so that there are resources for education, a better healthcare sector (health care, etc.) And two: much higher wages so that the purchasing power would rise above the poverty line. But to achieve that, the Thai will have to organize themselves in unions because the very rich will not give it as a gift.
Interesting article.
Where exactly is the poverty line in this analysis? Income, assets (movable and immovable property)…?
From when is one considered "rich"?
My personal standards are tarnished by lack of experience….I relate what I see in the north of Thailand with what I experienced in Belgium, the Netherlands, Germany.
I was told by a Thai graduate that 90% of graduates (bachelor) do not work in their field. I know another thai in the village, also graduated master degree, who sells fried bananas and potatoes. She can live well with husband and child and mother.
They lack a good network.
The majority of jobs are not filled through job advertisements, but with the help of friends and acquaintances, those jobs are filled in companies.
Companies and governments should be required to always post a vacancy for every open position during a certain period of time (e.g. a month), but whether it will work here in Thailand….
I think they would rather adopt a less classified but a related one here, one would just have less control/overlord over the person if they were chosen on rational grounds.
And so the rich “circle” remains closed.
This country is in the hands of about 200 wealthy families, that is my experience after many conversations with wealthy Thai / Chinese compatriots. Most of the wealthy therefore did not appreciate the fact that the 300 baht standard was set per day, which in principle is still is far too little, because Thailand is becoming more and more expensive.
The unions have no power and are kept sweet by the Thai elite. Unfortunately, there is no good economic model for the poorest and the middle class. Despite this, many live far beyond their means and finance anything and everything, which is completely irresponsible.
That's right Colin, it's really only about 200 families, mostly Thai-Chinese, better known as the Bamboo network. And these are doing everything they can to keep the situation that way, because a better educated person could become a competitor and in any case would not want to work for 300 baht a day. The same network, through the bureaucracy, ensures that foreign anti-competitive laws such as the Foreign Business Act remain unchanged.
As a billionaire, it is not a problem if the country hardly develops. Especially if you own a monopoly. And while exploiting the lower educated and small businesses, you occasionally donate something & show it regularly on your own TV channels
Most of the wealthy elite do not benefit from having to share the wealth. They are more likely to think give the masses bread and circuses and we will keep control. Many years ago, the Netherlands was also able to experience such a culture. Lots of poverty and little compassion. The steps that were then taken in the Netherlands at the time will partly lead to a solution here in Thailand. It is a long-term road, but the people will have to be ready for this and united cooperation is a requirement. A good government with a social heart and decisiveness in the areas that are needed to bring about change. I realize that it takes a lot, because the elite are everywhere and alert to any threat to their absurd existence.
The majority of the wealthy actually benefit from sharing their wealth (and paying taxes). They just don't know the history. Wealthy, companies generally benefit from a good infrastructure, political stability and a well-educated population (as employees).
The exploitation of a population will eventually lead to social unrest and possibly a 'revolution'. And history in other countries shows that the military ultimately sides with the people. The real rich in this world are already preparing for such a revolution by building homes with complete self-sufficiency far away from civilization (in New Zealand). However, that is not the case for all rich people.
look here: https://www.youtube.com/watch?v=FfCNo1mdjuo
It is of course not nice that the richest 1% of the Thai own 58% of the wealth in the country.
On the other hand, we have to see Thailand in the context of the rest of the world, and then we can read in the same report that it is estimated that the richest 1% of the world's people own half (50%) of all wealth.
The deviation from the global (or global, if you prefer) average is therefore not very large and historically well explained, which does not alter the fact that the pursuit of a more balanced distribution fits in with the current juncture.
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https://goo.gl/photos/jU32iHRdqHJP7bGY7
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I think this global average is quite different from the ratio per country. The richest in the world in relation to the vast mass of havenots of the real third world. I think your comparison is just flawed. There are only a few countries that perform worse than Thailand. Russia is the furthest.