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Monday, November 30, 2009
Thailand's shocking inequity statistics
How will this political mess end? Will Thaksin Shinawatra finally return to haunt us with his bottomless greed? Or will the old, oppressive system that perpetuates social injustice prevail to suffocate us?
Is there any way out of this madness?
Ask historian/thinker Nidhi Eeo-seewong, and his answer is a resounding no. In his latest column in Matichon newspaper, he predicted that the proxy wars between the two ruling elite groups - one led by Thaksin, and the other by the old ruling clique - will not only continue to play out on the streets, but they would also get more violent.
"Thailand will never be the same again," he wrote. "There is no use in being nostalgic. Instead, we must put our heads together to find out how to minimise the damage."
How, indeed? How can normalcy return when the root problem of extreme economic disparity remains unaddressed?
How extreme? Prof Pasuk Phongpaichit did not leave room for doubt about our shamelessly unfair society in her recent keynote speech on "Towards a Fair Society" at the King Prachadhipok Institute conference. Among the glaring facts:
- The top 20% own 69% of the country's assets while the bottom 20% own only 1%.
- 42% of bank savings money comes from only 70,000 bank accounts holding more than 10 million baht. They make up only 0.09% of all bank accounts in the country. In other words, less than 1% of the people own nearly half of the country's savings.
- Among the farming families, nearly 20% of them are landless, or about 811,871 families, while 1-1.5 million farming families are tenants or struggling with insufficient land.
- 10% of land owners own more than 100 rai each, while the rest 90% own one rai or less.
- On income distribution, the top 20% enjoy more than 50% of the gross domestic product while the bottom 20% only 4%.
- The average income of the bottom 20% is the same as the poverty line at 1,443 baht per month.
- The gap between the richest and poorest family is 13 times, higher than all our neighbouring countries.
A fairer taxation system could reduce this economic disparity, she said. This can be done by expanding the base of direct taxpayers, introducing progressive land, inheritance, capital gains and interest taxes, for example. Unfortunately, the current taxation system worsens economic disparity by allowing easy tax evasion among the super rich while focusing on indirect taxation which treats the poor the same as the rich. Talk about justice!
State expenditure on free education, public health welfare, a comprehensive social security system and better agricultural policies have proven elsewhere to help bridge the gap, she said.
In Thailand, however, the amount of state expenditure is not only too small, most of them benefit the cities, thus worsening the gap between the rich and the poor.
The lack of political will among the power cliques and corruption are apparently Thailand's biggest obstacles. But the decline of public trust in parliamentary/money politics is no reason to debunk it, she insists. It is still the best system to allow democracy to grow more strongly, to effect fair taxation and state spending for the public good, to fight corruption and facilitate peaceful conflict resolution. "We just need to be patient."
Political scientist Seksan Prasertkul also offered his views on how to minimise Thailand's future pain. When society has become fragmented and pluralised by competing economic interests and globalisation pressures, the best damage-control strategy is to institutionalise participatory decision-making from the ground up, give political decentralisation a stronger push, and be more open to civil society voices.
As the clash of the titans looms, we should not let their cautionary advice go unheeded. For no matter who wins, their priority is to strengthen their interests and power. Without participatory politics, democracy will continue to be unstable. And without fixing the stark economic disparity through fairer taxation and state expenditure, the country's prospects ahead are indeed grim.
This statement I read in your article.
I am very sorry to air my doubts about the correctness of it. I actually know several Thai people who own inbetween 100 and 1 rai of land. A Thai friend told me even that most Thai farmers own inbetween 1 and 100 rai. The statement in your newspaper seems to neglect them completely. Why?
With kind regards,
Limbo
And yes, nothing will change until the Thai people at large stop being apathetic about the political situation and stop voting for the leeches who mostly make up the parties and the parliament.
And even more important/critical is that the sincere and capable people who could guide and drive the country forward and who could develop and install policies and laws to distribute the wealth and create a more equal playing field will not come forward until they see strong signs that the electorate are becoming more serious, more selective and are actually rejecting the old gangs of thugs, leeches and thieves.
In other words it needs a middle class revolution (and I don't mean violence).
Thank you, Khun Sanitsuda, for your well written article.
Thank you, Prof Pasuk Phongpaichit, for your eye-opening statistics.
I agree with the article that at the moment people don't have a real choice in the direction of a more equal distribution of wealth.
It will be a slow and hopefully not too violent long way.
You are right, redistribute directly into his own pocket. Don't believe for a second that someone with billions and billions of baht made from a government monopoly would ever interested in seriously helping the poor.
Unfortunately or fortunately depending on who you are, Isan and northern people do not believe what Sanitsuda said and prefer to believe Thaksin instead.
I invite you to take a deeper look at the Thaksin era history, you might just find a different conclusion.
Redistribution of wealth should be through policy, appropriate laws and regulations, and though focused mechanisms which strongly establish equal opportunity for all and guaranteed equal justice for all, not through hand-outs and manipulation of the poor and uneducated.
Must admit that T did achieve some redistribution, but the beficiaries were his own family and his cronies, not the poor.
In todays Bangkok Post there is a confusing and saddening story about the nuclear plans. On one hand permission is being asked to proceed while noting that a viability assessment has not yet been completed. Thai staff have been sent to China for training last year even though the promoters insist that no decision has been made on using Chinese material.
The main point of your article talks about improving the tax take
The feeding frenzy for the nuclear project seems to be well under way. . How much longer can Thailand afford to feed so much to so few.
category ‹ Local issues ‹ Thai business + economic issues
View on economy and society
http://www.rd.go.th/publish/6045.0.html
Now 'yellow', after a militayr coup that enables them to do so, suddenly starts to cry foul and acts as if 'red' would have invented corruption, abuse of power and institutionalised theft.
The good thing of the red movement is that it for the first time challenged a hegemony that originated in an old feodal structure.
The popularity of Mr. Thaksin is a symptom of a changing system. It will take several decades, but once Mr. Thaksin will enter the history books as a historical figure, if you like it or not!
Aside from the fact that he in many ways was a disaster politically: he was and still is a man with a face, to the contrary of those dark figures who are hiding themselves behind the friendly faces of the Bangkok middle class house wives and elderly who have enough spare time to be used as yellow clad puppets, listening to sometimes very deceiving speeches written by their invisible puppetmasters.
The arrogance with which 'yelllow' shows its contempt for the rural population of Thailand is sickening.
Yellow is causing a serious rift in society.
I hope that very soon a democratically chosen government will be able to turn the tide. For my part Mr. Abhisit could be part of it.
Long live King and Country!
Limbo
Anyway, some figures might be questionable and I believe this was caused by
minimising the article.
Regarding Khun Taksin and political elites, I can only see the different as greater
and lesser evils.
If Thaksin does not serve his jail term and face his other trials then there would be no rule of law in Thailand.
That's the bottom line
The above quote from Mr. Limbo's comment#22 reminded me of another quote. It is a quote from visa pages in a United States passport and reads:
"Democracy is based on the conviction that there are extraordinary possibilities in ordinary people". -Harry Emerson Fosdick
Of course elitists, 'yellow' 'red' or 'red, white and blue', for that matter, don't want to hear about that kind of democracy. They prefer:
"Give me control of a Nation's money and I care not who makes the laws." - Mayer Amschel Bauer (Rothschild)
I really wish people would not quote totally wrong statistics to try to support their claims. You say 47million Thais voted for Thaksin? What's the source of this data please?
Further, you deliberately make no comment about the numerous claims and the mass of evidence of massive vote buying during this era. Plus the fact that the EC members went to jail.
Further, you seem to be suggesting that there is no evidence of corruption in the T period. Perhaps you'd like to take a look at the numerous cases slowly working their way through the Thai court system. And perhaps you'd like to take a look at the numerous pieces of specific evidence which have been appearing in the newspapers day by day about the current case, for which it is forecast that the verdict will be given mid January 2010.
Look forward to your further comments
The Thai people need to stop their blind faith in either the old style 'elite', and Taksin is an option on the road to a Cambodia/Burma style regime.
Once the Thai people are in a position to think 'for themselves', without recourse to any figure, of any ilk, they think will sort their problems out for them, I hope they will have the opportunity to determine their own futures. I'm not optimistic.
Wealth distribution data alone is insufficient, for you have to take tax distribution data into account in the same breath. I didn't see tax data in this article.
commercial or education.Only the monarchy has the moral high ground and we pray that His Majesty on this auspicious day on his 82nd Birthday will once again provide the direction and the motivation to extricate the Kingdom from moral turpitude and intellectual stagnancy.
May the Blessings of the Dharma shower Him with joy and good health.
Jamshed K. Fozdar
commercial or education.Only the monarchy has the moral high ground and we pray that His Majesty on this auspicious day on his 82nd Birthday will once again provide the direction and the motivation to extricate the Kingdom from moral turpitude and intellectual stagnancy.
May the Blessings of the Dharma shower Him with joy and good health.
Jamshed K. Fozdar
Wealth distribution statistics are shocking for the entire world.
Thailand's are not unusual.
The solution is for everybody to have only one child for the next 100 years so that the assets of 4 parents are left to each couple.
The world should return to the 1 billion population of 1900 instead of adding a billion every 10 - 15 years now.
The wealth inequality statistics for the entire world are shocking.
I suggest 100 years of everybody having only one child so that the assets of 4 parents are left to each couple.
This would restore the world's population to 1 billion, as it was in 1900.
The world now has some 6.5 billion people and is adding another billion every 10 - 15 years.
Any type of redistribution would only make everybody poor, and the reduction in motivation would ensure worsening poverty.
Another suggestion, stop the Thai tradition of the family member with the deepest pockets being expected to take care of everybody elses problems.
There is no point to try to get ahead if the result is simply a queque of relatives at the door with their hands out.
We, the older generation have left them the legacy of greed and "Thailand seems to have become a society without compassion." (Comment 5)
We walk by those who have nothing - Whose children are hungry & ill-educated - We moan about the likes of Thaksin - A person who we identify as a corrupt thief – Not a Politician, more a manipulator – Yet we rob & pillage the poor - We know that the King preaches "sufficiency", but it doesn't apply to us - Does it? NO - We need the 4X4, the latest phone, all the things money can buy.
Maybe when we have everything then we will consider the less fortunate – We are not like Thaksin, are we?
Meanwhile, those less fortunate can wait – Surely it is the luck of the draw – They were born poor, so should remain there – Servants to the rich – Can’t consider sharing – Sharing would dilute what we have – No, No – Lets leave things as they are.
Is this what we teach our children? – Who is the ‘We’ referred to?
I really dont understand why this have to be that difficult. Thailand have as far I can see normal income tax. The people with high income pay more then people with low income.
The tav4cfc2tsq5x go to the government for being used on health, schools, roads, infra structure and peoples well beings ( pension-social benefits, etcetera.
What happens in Thailand? Do the government give the tax money back to the rich?
Why is everything that is easy in the western world almost impossible in Thailand?
Truly ASIA!!!
How are we going to work towards an equitable and just society if we tell those men who preach and work for compassion and detachment in the government to retire behind the walls of the monastery? Who will follow in the footsteps of the religious King Bhumibol, who bows to his pure conscience and with proper knowledge works for the good of other sentient beings?
How are we going to work towards an equitable and just society if we tell those men who preach and work for compassion and detachment in the government to retire behind the walls of the monastery? Who will follow in the footsteps of the religious King Bhumibol, who bows to his pure conscience and with proper knowledge works for the good of other sentient beings?
This is not a problem that is easily solved, but people need to be aware of the problems associated with population growth (which also drives pollution, water & food demand, deforestation, overfishing etc) and so that they can gain perspective on the need to have many children in order to provide a safety net for your old age.
No justice, Court under the control of homosexual military leader, Thailand can not be peaceful. Time passes over four years after Homo gangs overthrew Thaksin Gov but there is no success of eradication of Thaksin. Thaksin and Democracy finally will prevail due to the death of Hopmosexual military leader.
Was he corrupt? yes. As are most all BKK politicians including the current PM. They just feel more comfortable being led by a trust fund kid, Abhisit, who has more ties to the UK than Thailand, then by a self-made billionaire.
Thailand will continue to squander it's economic potential under the current administration.
If you keep saying there nothing we can do. Well, if you don't start who will?
Many are certainly aware of these alarming numbers and most are,no doubt, living their daily lives in this sad reality. However,Thailand is a democratic country and so Thai people can vote to choose their representatives in the congress and government. Therefore,they're the principle responsible for their country's direction. They don't actually live in total ignorant Middle Age.
Have they ever asked themselves what they have learned from their good and bad experiences with all those precedent leaders and governments since the coutry turned democratic ? What have they done so far to make it out better than those old days?
As long as they keep idolizing persons who lead them instead of defending real political conviction, the country will never find real stability. Nothing comes out without effort and sacrifice.
The only way that can save Thailand and Thai people from the doom is that Thai people especially the government authorities, politicians, policemen, businesmen, media people and scholars at least show their responsibility and integrity, if there is some remaining. I emphasized those categories while excluding farmers, labours and other grass root people not because i saw little importance of the latter. But those i mentioned have more power and abilities to make greater changes for the better more rapidly and with their fair mind and intention. So far, most of them hardly show such essential qualities i wish for but their greed, self-interest and biases that lead the country to the worst as we see now.
Thaksin certainly cannot be called a good example of decency or integrity. But he is not the only one to be condemned and brought to justice as soon as possible. There are many , or too many, more of this kind that we must not promote or even agree with what they say or do. Bad news is that they are still enjoying their power , authority, greed while killing the whole society with no shame.
To all of you who attack Thaksin: YOU ARE SUPPORTING THE 2006 MILITARY COUP!
You are undemocratic, ignoring the voice of the North and Northeast of Thailand, and you dare to do it out of a sense of supremacy. ut
Thaksin was/is no a ngel in shining armor but even with a law system designed by the coup makers, the only conviction is questionable and PATHETIC .
Deal with the inequity! Do not blame Thaksin for bringing it to the surface
The problem now as I see it is that we look at the snapshot of the video and magnify it until it is bluring.
We need to step back and look at the whole video with a pair of eyeglasses.
All we have to do is to look back in history at the times of King Naresuan and King Taksin. YES, I have no doubt that things will play out and our children generation will do just fine.
As always, you are earning your living by selling out your country. Stop pestering Thai people. You are not offering anything new. You solution is copied from Thaksin.
By the way, you spelled "minimize" incorrectly.
Shame!
To Red Shirts and Yellow Shirts: I am a Thai working in the USA. I can share with you one thing. Vietnamese boat people whose lives we saved during the 70'2 are laughing at our stupid fight. They want to see Thailand separated like their country. You can see, the Cambodian PM is trying to contribute to that too.
Sanisuda and Thai media, could you please learn from the west --They only post positive things about their countries. Free press is a Bullshit talk. American media always feeds their population with how great their country is. The whole financial system here is corrupted, yet they remain positive! Gee...only if Thai media could be smarter!!!
You are Thai citizen work in the US. If you shamed the author because of one misspelled word, you should have been the expert to check your own grammar and sentences.
Thais did not save Vietnamese boatpeople, Cambodian and Lao refugees during the Indochina War. Their lives were saved by the United Nation. Their lives were saved by their own free will, determination and adrenalines to be free. On a contrary, Thai military, pirates, and criminals contributed significantly to thousands of deaths, maimed, killed, murdered, and drowned, and raped of boatpeople and refugees.
Vietnamese boatpeople, Khmer and Lao refugees have not forgotten their peril past. We settled throughout the U.S. Some have elected to Congress, Mayor, Governor and some have achieved the ultimate dream to be a doctor, lawyer, professor, and entrepreneur. You should applaud them for all these accomplishments. You should judge us more accurately. We do not enjoy seeing Thai fighting Thai. We have been there and there is no peace and happiness in bloodshed. Please leave Vietnamese boatpeople and Cambodian refugees out of your internal strife.
Thanks
Statements like in post #1 that claim the VAT taxes rich and poor equally are simply naive. It is true that sales taxes charge an equal rate per purchase to the rich and poor, but they actually cost the rich more baht per year since the rich make more purchases. It is generally accepted that the VAT costs the rich a lower percentage of their total wealth each year, but the fact is that the poor pay less total VAT than the rich. Is that equal? Not at all. Is that fair? You decide.
Statements like "Thaksin is a self-made billionaire" are equally naive. Thaksin was made a billionaire through the corrupt policies of his friends in office. Trust me, YOU would be a billionaire if you were given the same (now-illegal) government concessions he was given. Heck, Thaksin even admitted it in his address to his fellow telecoms after he had purchased (I mean won) his election and after blatantly evading the law. Thaksin himself stated that it was easy for him to make money when he started. The laws he got his friends to pass made it so that he only had to sell a few phones a day to make big profits, whereas after Thaksin took office he changed those laws to keep out his competition, and made it so they had to do hundreds of times the sales to make the same profit.
The original article by Khun Satisuda quoted some statistics that are clearly incorrect. This seemed like a "good heart/bad head" situation, reminding us once again that there are lies, damned lies, and statistics.
That all having been said, the situation of inequity as brought up by Khun Sanitsuda, overpopulation as listed by several commentors, political corruption, and abuse of the concept "democracy" are all faces of the same problem. Though they may be attacked one at a time, it will not be until all four are fixed that any one will be truly repaired. Thus we will slowly and gradually worm our way out of this mess, and no one thing such as massive change in tax structure will completely fix even a single one of those problems.
Which one is the worst? I don't know. But I do know that the solution to at least some of these problems will come from real democracy. And real democracy does not mean just counting votes. Those votes must come from an informed and educated public - something that Thaksin severly curtailed and I am glad to see is gradually being brought back on track. It does not even require the massive investment in vote-buying that has so marked past elections to get the people to decide they love or hate any leader. All you need to do is to follow Thaksin's policies (and those of the great Communist regimes of other countries) to limit what the populace sees, reads, and hears. If Thaksin wanted to, I am sure he could have convinced the uneducated rural poor that he could fly and heal warts at the same time.
Inequality? Find me a country that does not have it. That does not mean that inequality is good, it just means that it will probably never be eliminated -- not even simple financial inequality.
Just look at the overall picture: Unless financial inequality is absolutely and totally eradicated, then there will always be poor people. This is because "poor" is a relative term. (The poorest person today has things that even the ultra rich did not have 200 years ago.) "Poor" means there are others that have more, and that will always be the case. The only way we could eliminate the poor would be to also eliminate the rich - something that even Thaksin clearly never envisioned. And I expect, neither is Khun Sanitsuda thinking about that now.
in the world and Thailand's economy would suffer greatly.Hats off to the Brain Washed Red Shirts for what they are doing is the same as the TRT Thaksin Loves Thaksin and has his own swell headed agenda and dosen't give a damn about the Thai people.Please Wake up Thaksin is not good for this country he is only tearing it apart.
The question is this:
What does the Thai government do to regulate land purchases in provincial Thailand?
From what I've seen, everything is done at very local level, and I'd be willing to bet there are no controls in place.
What will stop a bad situation becoming significantly worse?
We need better education, good education so that everyone could become smart enough not to fall into the games of politicians. That way, perhaps it won't be so easy to be used.
In my opinion Thaksin was a crook, killer and dictator, but even then he was hardly different than the people who have been running things for centuries here. That China has now taken over Thailand ethnically and political/culturally is another real damage that democrats will not admit to.
Change? what kind of change are you talking about? how can a positive change occur without proper education? you point out a very good point with the Chinese influence on Thailand, however, this is just an example of indirect imperialistic influence. Chinese are taking their values and giving it to Thailand which is obvious for the innocent Panda being a perfect example.
But remember that this is Thailand, this is NOT CHINA. Although this change as you refer to, but I do not agree with a country with its own cultures and history, be influenced or changed by political greed.
What you see here could be change, but it'll be ignorant to say that this is just the way it is. If this is what change is suppose to be, then the diseases thats being plaguing the country would make matters worse for the future.
In order for change to take place, is not only within the hands of politicians, but people also need to be prepared for the change. Not only that, they need to be aware of what is happening within their own country. THat is why there is history, the whole notion of education with a look into humanity's troubled past.
Without education, the people especially the poor cannot be aware of the games the politicians play, you will be easily manipulated for only the sake of money.
That is why they say, educated people are dangerous....so forget education, if we need to control the country that has mostly the farmers and poor people, just use money, and give to them.
Maybe to some politicians, this is their strategy for change that can benefit them. But do you think this kind of change is proper? It only creates more greed, it only creates more chaos, only creates more hatred among divided people of values.
For myself, Thailand is going through change, and that is the change of struggle against values. We are struggling between right or wrong, the foundations of Thai Buddhism, the way of life it taught us since the eary times, versus the temptation of modernistic acquirements or globalized influence. THese two are in conflict with each other, that is why it becomes unaware for especially the poor and uneducated people to notice. This is all the software stuff...in the minds.
As for the land stats in comment #3, i agree. My friend owns 33 rai, but is not in the 10 percent or 90 percent.
Absolute Power Corrupts Absolutely.
People are where they are because of who they are. Poverty and ignorance breeds poverty and ignorance. Opportunity exists everywhere for those who are capable of seeing it and acting on it. It is called natural selection and that at the end of the day prevails. No social engineering will change this fact of nature.
Democracy and "Coup" can not co-exist. Respect the vote of the people. Rich or poor, one person, one vot. This is the great equalizer that allows society to grow/improve over time.
I hear these people say that disproportionate taxation is not "The way" to real change. Well, please show me one Industrial nation that does not have a disproportional tax system? Please, show me. There needs to be downward distribution of wealth in order to help build a nation.
Is a nation the top 5% or the bottom 50%?
Thailand is one of the most disproportionally poor nations in the world. The poor are not looking to be rich, they are simply looking for improved quality of life.
Case in Point - Come to America during this recession. Rich are OK, but let me tell you, the top 50% are not getting richer when the bottom 50% are struggling. The rich grow when the poor grow. When the middle class and poor stop spending, the economy comes to a halt. The economy does not grow off of the rich, it grows off of the bottom 50% of the nation's backs.
So prop them up...and Thailand will grow both in culture and wealth.
The attitude of this article and of so many people in Thailand seem to assume that Thailand is a democracy.
Thailand is not a democracy and before it may call itself a democracy all people must understand the essential principles of a democracy.
Each person of voting age has the right to vote freely.
The judiciary must be independent of government, free of any other influence or vested interest and administer the law equally to all.
The military must be under the direct control of the elected government. A military coup will thereby not be possible.
A clear code of behaviour must be established for all those within the political system such as MPs who must make full disclosure of their commercial interests.
Whilst it is rather more involved, these principles must be in place before a democracy can even be born.
In Thailand they are not and they are not because few people even understand democracy beyond one person one vote.
Having read articles particularly one by a professor of political sciences who declared that Thai democracy was being hijacked, spoken with Thais, watched Thai news and read BP, it is clear that there is little understanding of democracy.
It is for the people of a country to change a regime whatever it may be. Democracy cannot be imposed by any law, it has to be brought about by pressure from the people. However, this cannot happen if the people do not know what democracy is.
The only way to bring about long term change in Thailand has suggested in this article by Khun Sanitsuda is to teach Democracy especially in schools and on TV so that all age groups may understand. The best method to get the message over on TV is to incorporate it into one of the Thai soaps.
It is necessary to look at its causes. Where Abhisit was coming from? The Yellow Shirt!
Where the Abhisit government was coming from? The 2006 military coup!
The Democrats have less seats from the last "pseudo-election" compared to Pua Thai.
Disinformation and misinformation are his strong suits. He said Democrats will get 240 seats at the next election, ABAC poll said less than 30% approved Abhisit and more than 85% get tired of his policy based on disinformation and misinformation.
He lead a failed state, that his government spent time to assure the international community that Thailand will not have the coup, but no one trust this kind of promises.
Abhisit led a minority government, by the numer of Democrats at the parliament.
He praticed politics of "juggling" more burning bottles than he can handle it. He will fall flat on his face.
The depletion of Thai resources to serve a failed state by Abhisit will bring Thailand deeper into division, because those who cannot get those resources "oficially and legally" will fall into desperation, and desperate people can do a lot of bad things.
Now the Thai "top brass"are happy, because Abhisit waste Thai weath and national wealth on them. There are thos e who did not get those wealth.
If Abhisit is sure he will get 240 seats, call the election now, to prove how big a "stateman"he is.
William
Albert Einstein
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region in terms of inequity statistics
since Asian political leaders have
personal interest first and public
interest later. Economic policies are
biased towards the powerful while the
have-nots are taxed equally like the
value-added tax. We need more of the
likes of Sanituda in exposing all the
inequities in our society nowadays...
where the poor gets poorer everyday
while the rich gets richer.