regional disparity in thailand by assist. prof. duangmanee laovakul faculty of economics thammasat...

Regional Disparity in Thailand

byAssist. Prof. Duangmanee Laovakul

Faculty of EconomicsThammasat University

Siam City HotelSeptember 09, 09

Income Distribution and Poverty Incidence in Thailand

• 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

• Highest inequality

- North (except 1998: South)

• Lowest inequality

- Bangkok

• The inequality in the urban areas is higher than in the rural areas.

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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)

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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)

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Unemployment

• The highest unemployment rate: Bangkok

• The lowest unemployment rate: Northeast

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Health Care Service Disparity

Population served by each doctor by Region:1988-2005

Source: Thai Public Health Report: 2005-2007, Ministry of Public Health21

Population served by each Health Care Center Officer by Region:1988-2005


• 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

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The Difference between Population per Medical Personal of Bangkok and Northeast:1988-2005


Private Hospitals by Region: 2006


Health Care Center per population by Region


• The highest ratio of population to health care center: Northeast

• The lowest ratio of population to health care center: North

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Population per Health Care Center by Region


• The highest ratio of population to bed: Northeast

• The lowest ratio of population to bed: Bangkok

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Population per bed by Region: 1988-2005


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.

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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 12-14 (secondary school):


Lowest opportunity: Bangkok

(12% difference)34


• Age 15-17 (high school):



• Age 6-17 (handicap):

Highest opportunity: North


• Rate of continuing study from primary school to secondary school:

Highest rate: Northeast

Lowest rate: South35


• 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: North36

Quality of education

• National Test Results (2001-2003) 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 (2001-2003) 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

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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.

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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.

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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)

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Local Government Revenues

• 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.

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• The smallest local revenue per head: Northeast

• The highest local revenue per head: Bangkok

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Policies to Address the Regional Disparity

• Fiscal Policies

- Taxes: oProgressive tax rateoExpand tax base → impose direct taxation

i.e. property tax, capital gains taxoReduce tax leakage

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- Expenditureso Provide Social welfare/ Social Safety Net: education, health care service,

etc.o Target the pooro Building people capacity in the long- run

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• 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

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regional disparity in thailand by assist. prof. duangmanee laovakul faculty of economics thammasat...

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