Beyond the statistics

Beyond the statistics

Uneven access to education, healthcare and basic justice widen the rich-poor gap in the world's most unequal societies, including Thailand. By Tanyatorn Tongwaranan

Statistics used for measuring inequality, even those that have been universally accepted by economists for decades, no longer tell the whole story about the deep-rooted gap between rich and poor in Asia.

Quality of life cannot be determined solely from numerical data as many wealthy countries are also experiencing rapid rises in inequality. However, the trend could be reversed if proper economic, social and financial policies are put in its place.     

"To address the issue of inequality, there are many dimensions we need to consider," said Porametee Vimolsiri, deputy secretary-general of the National Economic and Social Development Board of Thailand (NESDB).

"Economic aspects such as income distribution or property ownership are not the only factors to consider when a country wants to address issues of inequality. We need to take into account the social opportunities for education, healthcare, the justice system and political participation to deeply tackle this problem."

The faster pace of economic development in recent decades has enabled many to bring large numbers of people out of poverty but while their incomes have risen, the quality of life for most has not improved much, in Dr Porametee's view.

No region has grown faster than Asia but it remains home to two-thirds of the world's poor, and an estimated 1.7 billion people still struggle on less than US$2 a day and approximately 700 million live on less than $1 a day, according to the Asian Development Bank (ADB).

"Technology, globalisation and domestic policy are key drivers of inequality," said Singapore ambassador-at-large Tommy Koh. The cures include strong rule of law, a non-corrupt government, equality of opportunities and social mobility.

Dr Porametee agreed that is important for governments to create opportunities and justice for everybody in the society. "A child's development starts from the mother's womb, so for those who are born in poor families, they are being disadvantaged since the very beginning."

WORST IN ASIA

Thailand is the most unequal country in Asia, according to the CIA World Factbook, and the 12th most unequal worldwide, followed in Asia by Hong Kong (13th globally) and Papua New Guinea (19th). Singapore is ranked 29th in the world, followed by Malaysia (33rd), the Philippines (36th), Cambodia (45th), Vietnam (73rd), Indonesia (78th) and Laos (70th.)

"Although we have seen some improvements over the past decades, disparity still remains one of the biggest issues in Thailand," said Dr Porametee.

For economists, the most widely accepted gauge of inequality is known as the Gini coefficient. Developed by the Italian statistician Corrado Gini in 1912, it measures statistical dispersion to represent income distribution. A scale of zero to one is used, with zero (impossible to achieve even in the fairest countries) representing perfect equality.

From 2005 to 2013, equality in Thailand has improved slightly, with its Gini index declining from 0.514 to 0.484, according to the World Bank.

While Thailand has seen its share of unrest, it has somehow managed to avoid the sort of violent turmoil that dissatisfaction with economic and social inequality has set off in other countries.

The World Development Indicators 2013 report by the World Bank showed that wealthy Thais, in the top 10%, possessed 853.6 times more land than the poor, while their incomes were 34.9 times higher. The poorest 10% own 70,000 rai while the richest 10% own 58.3 million.

 "Wealth and capital [in unequal countries] are being concentrated in the hands of business owners and top management rather than proportionally distributed to labour," said Dr Porametee, adding that wage increases tend not to match the gains in profit by most companies.

As well, workers in countries such as Thailand tend to be powerless and unable to negotiate wage increases. "Employers view a graduation certificate as more important than the actual skills of the worker, resulting in a skill mismatch and a degree-based wage rather than a skill-based wage," he said.

SOCIAL WELFARE

Limited opportunities to pursue higher education — and the weak education system in Thailand in general — have also led to a wider disparity gap.

"Although there are many schools available in Thailand in both urban and rural areas, the quality of education is not yet standardised," he said, noting that many schools still had only one teacher that teaches all subjects.

The opportunity for higher education for the bottom 10% is only 3.5%, which is 19.1 times less than that of the top 10%, and those who live in Bangkok tend to have more opportunities for better education.

In addition, medical doctors and quality healthcare are still concentrated in Bangkok where there is one doctor for every 886 people, compared with 1:4,176 in the Northeast.

Opportunities to enjoy basic rights and justice also are also beyond the reach of most of the poor as they cannot afford the cost of pursuing grievances in the justice system, according to Dr Porametee.

He also expressed scepticism about some of the claims that have been made about representative democracy.

"People may seem to be able to participate in political system in Thailand, but in reality, the power to make decisions is concentrated in those who are closely related with the political parties," he said.

In other countries such as Malaysia, he said, disparity is also high, but some governments have better policies to take care of those who have fewer opportunities.

"Inequality has various dimensions and the government needs to make its people feel that they are being well taken care of. These social investments can no longer wait; it has to be done today."

Dr Aynul Hasan officer-in-charge of the Macroeconomic Policy and Development Division of UN Economic and Social Commission for Asia and the Pacific (UN Escap) agreed, suggesting that there is no shortcut when it comes to social investment.

"If you don't start it today, you are simply postponing the problem to another day. It is about time that Thailand should start addressing this issue," he said.

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