The age-old wrestle with financial disparity continues to solid a shadow on Thailand’s society as inequality widens, significantly in the agricultural sector, which sees roughly 6% to 8% of its populace remaining below the poverty line. According to a latest examine by the Trade Policy and Strategy Office (TPSO), this disparity has been fuelled by a number of elements, together with the move to a digital economy, an ageing society, post-Covid-19 financial recovery speed, and the burning problem of climate change.
TPSO’s director-general, Poonpong Naiyanapakorn, acknowledges that while the nation has experienced consistent financial progress, the distribution of that wealth remains a significant issue. The GDP enlarged from 7.7 trillion baht in 2008 to 10.2 trillion baht in 2021, yet economic inequality remained fixed. Restating the United Nations’ (UN) sustainable growth targets, Poonpong confused the significance of both private and non-private sectors working cohesively to mitigate the economic disparity concern, which threatens the stability of Thailand’s societal and economic evolution.
Historically, the poverty-stricken population made up 65% in 1988, decreasing to 6.3% in 2021. Even then, the past ten years (2011 to 2021) have shown no significant discount. Surprisingly, about 11% of households whose primary revenue is from agriculture reside below the poverty line, drawing their line at an income of 2,802 baht per month per individual.
When juxtaposed with ASEAN neighbours via the Gini coefficient, an idea to measure income inequality, Thailand finds companies in nations like Indonesia and Vietnam. However, wealth distribution is extra balanced with a low financial disparity in developed East Asian international locations like Japan and South Korea than in Thailand, reported Bangkok Post.
The research reveals socio-economic transformations such as the shift to a digital economic system, progress of platform-based economies, adoption of labour-replacing applied sciences, and large-scale data processing to be principal drivers of economic disparity inside the nation. While these evolutionary steps provide opportunities for these proficient in expertise, they concurrently pose challenges for the technologically disadvantaged, thereby adding to economic disparity.
Moreover, the UN postulates that Asia will bear the brunt of an growing elderly population, especially these aged 65 and above, between 2019 and 2050. In this regard, Thailand ranks fifth in East Asia and Southeast Asia, committed to a median of 17.2% ageing populace throughout this period, following South Korea, Singapore, Taiwan, and Macau.
The National Economic and Social Development Council’s report claims that Thailand in 2021 was house to an estimated thirteen.eight million aged residents, making up 20% of the population. This proportion is expected to inflate additional by 2040, reaching 31.3%.
Notably, Confidential in the aged population indicates a reciprocal decline within the workforce, thus creating a higher dependency ratio upon working-age people, being a major contributor to economic disparity throughout the country.
In simultaneous prevalence, the nation is treading the path to financial recovery post-pandemic. Nevertheless, financial progress has staggered since the contraction in the course of the outbreak. Vulnerable groups, similar to small-scale vendors who lost revenue owing to business closure during the pandemic, in addition to employees and weak persons, have been profoundly and persistently impacted. Poonpong emphasised that these are the groups the federal government ought to assist to promote swifter recovery and reduction in long-term economic disparity.
The exacerbating problem of local weather change, leading to extra frequent disasters like floods and droughts, has far-flung implications. These adjustments are anticipated to amplify Thailand’s financial disparity, as a substantial fraction of the poor and disadvantaged populace stays reliant on agriculture..