Regional Disparity in Thailand by Assist. Prof. Duangmanee Laovakul Faculty of Economics Thammasat University Siam City Hotel September 09, 09

Income Distribution and Poverty Incidence in Thailand

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Highest income inequality - In the past → South - Present → Northeast Lowest income inequality - Bangkok (mostly) - Central (2002, 2006 and 2007) The inequality in the urban areas is higher than in the rural areas. 4

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Highest inequality - North (except 1998: South) Lowest inequality - Bangkok The inequality in the urban areas is higher than in the rural areas. 6

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The poorest (as measured by the poverty line): Northeast (18.05% or 3,914,420 people in 2007) The second poorest: North The fewest poor: Bangkok (1.47% or 82,940 people) 11

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The poorest: Northeast (13.05% or 2,830,300 people in 2007) The second poorest: North The fewest poor: Bangkok (1.14% or 64,400 people) 15

Unemployment

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The highest unemployment rate: Bangkok The lowest unemployment rate: Northeast 18

Health Care Service Disparity

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Population served by each doctor by Region: Source: Thai Public Health Report: , Ministry of Public Health 21

Population served by each Health Care Center Officer by Region: Source: Thai Public Health Report: , Ministry of Public Health 22

The highest number of population served by doctor and health care service officer: Northeast The lowest number of population served by doctor: Bangkok The lowest number of population served by health care service officer: South 23

The Difference between Population per Medical Personal of Bangkok and Northeast: Source: Thai Public Health Report: , Ministry of Public Health 24

Private Hospitals by Region: 2006 Source: Thai Public Health Report: , Ministry of Public Health 25

Health Care Center per population by Region Source: Thai Public Health Report: , Ministry of Public Health 26

The highest ratio of population to health care center: Northeast The lowest ratio of population to health care center: North 27

Population per Health Care Center by Region Source: Thai Public Health Report: , Ministry of Public Health 28

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The highest ratio of population to bed: Northeast The lowest ratio of population to bed: Bangkok 30

Population per bed by Region: Source: Thai Public Health Report: , Ministry of Public Health 31

Education Disparity (Thai Education Situation: 2007/08: Witayakorn Chiengkul)

Most students who have to quit schools in the middle of the year are in Northeast, some are in the North. The government budget per head allocated to poor provinces is lower than in rich provinces. Government expenditures per head of schools in poor provinces is less than schools in Bangkok. 33

Opportunity to access education Age 3-5 (pre-school): Highest opportunity: Bangkok (70%) Lowest opportunity: Northeast (46%) Age 6-11 (primary school): Highest opportunity: East Lowest opportunity: Northeast (15% difference) Age (secondary school): Highest opportunity: East Lowest opportunity: Bangkok (12% difference) 34

Opportunity to access education Age (high school): Highest opportunity: East Lowest opportunity: Northeast Age 6-17 (handicap): Highest opportunity: North Lowest opportunity: Northeast Rate of continuing study from primary school to secondary school: Highest rate: Northeast Lowest rate: South 35

Opportunity to access education Rate of continuing study from secondary school to high school: Highest rate: Bangkok Lowest rate: Northeast and South (3 provinces) 2006 Highest number of years in school: Bangkok Smallest number of years in school: North 36

Quality of education National Test Results ( ) for M.6 students: Largest number of students who get “good” level: Bangkok Smallest number of students who get “good” level: South Greatest difference among schools: Northeast Smallest difference among schools: Bangkok 37

Quality of education National Test Results ( ) for students who already graduated high school: Largest number of students who get “good” level: graduated from school in Bangkok Smallest number of students who get “good” level: graduated from school in Northeast Greatest differences among schools: Northeast Smallest differences among schools: Bangkok 38

Education Opportunities for poor students Northeastern students get the lowest education subsidy per head at most education levels, except pre-school and primary school (southern students get the lowest). The education subsidy per head for Northeastern students is lower than the overall average → the inequality in budget allocation. 39

The inequality of education outcome Students who get high national test scores (both M.3 and M.6 level) are in well developed areas with good schools. Students from Northeast and the three provinces in the South get low national test scores (both M.3 and M.6 level). As a result, students from poor areas cannot pursue a higher education level. 40

Economic Development and Education Service Economic development is imbalanced. The lowest income group (40%) has less opportunity to get education. The government should support grants for their allowance, travel expense and etc to the poor. (Thai Education Situation: 2008/09: Witayakorn Chiengkul) 41

Local Government Revenues

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The North, Northeast and South regions can collect less tax revenue from their own sources than can the Central and Bangkok regions. The Northeast receives the highest grants. 44

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The smallest local revenue per head: Northeast The highest local revenue per head: Bangkok 46

Policies to Address the Regional Disparity

Fiscal Policies - Taxes: o Progressive tax rate o Expand tax base → impose direct taxation i.e. property tax, capital gains tax o Reduce tax leakage 48

- Expenditures o Provide Social welfare/ Social Safety Net: education, health care service, etc. o Target the poor o Building people capacity in the long- run 49

Decentralization Policies - Distribute budget to local areas - Distribute grants to the needed areas Land Policies Land is a factor of production - Community Land Title - Land Bank - Reserve agricultural land for agricultural usage 50

Increase financial access for the poor - Microfinance 51