By Anchalee Kongrut*
Bangkok Post – 29 Dec 2017
(Source:https://www.bangkokpost.com/opinion/opinion/1387386/public-enemy-no-1-extreme-poverty)
When I look back through 2017, ‘Thailand 4.0’ seems to be the most frequently used buzzword of the government this year. We have repeatedly heard and seen authorities’ attempts to ‘digitalize’ the economy and various services.
And if you follow the news and policies of the government, ‘poverty reduction’ looks set to become its new buzzword for 2018. Why? Just last week, Deputy Prime Minister Somkid Jatusripitak, who told the media he understands poor people because he comes from a low-income background, publicly announced the government would eradicate extreme poverty so that no one will be living below the extreme poverty line by later next year.
Extreme poverty in his definition encompasses around 7 million people living below the poverty line, defined as earning 30,000 baht annually or lower. Moreover, the Finance Ministry on Wednesday declared four measures to provide assistance to 5.3 million poor people by offering them soft loans to start-up businesses, providing professional skills training and giving them personal finance advice (in the hope they can manage their money).
So we can expect the junta government to spend both time and resources next year to try and create the legacy of a savior who wiped out poverty from the country.
Personally, I believe the government deserves a pat on the shoulders for its previous efforts. It has introduced skills training, especially for the digital economy and to help develop workers’ ability to innovate. It has also initiated soft loans for entrepreneurs.
Another good measure that did not get enough media attention, in my opinion, is the government’s E-for-Employment campaign, which provides training and associated degrees or certificates, issued by vocational institutes, for factory workers. Since its launch this year, 82,000 workers and 1,500 factories have already joined the scheme.
Unfortunately, those capacity-building efforts are just a small part of the government’s poverty-eradication agenda. Most of its poverty-reduction centers focus on cash-handout measures. That’s a pity. The military government has increasingly acted like the politicians it berates for doling out cash to the public.
On Tuesday, Prime Minister Prayut Chan-o-cha, now mockingly dubbed ‘Santa Tu’, showered New Year gifts on people like confetti. For example, registered low-income earners are entitled to a measure introduced by the Bank for Agriculture and Agricultural Co-operatives that gives them a 30% reduction on interest rates for loans. The government will also give a 1,000-baht ‘reward’ to customers of the Government Housing Bank who have never defaulted on their payments. It also plans to give cash to parents of babies born during the New Year period.
The question to be asked, however, is can these projects really reduce poverty? Moreover, what else can the government do to reduce the income disparity?
I believe we have developed a better understanding of populism, after witnessing a series of policy moves that emerged from previous governments, suggesting this also will be short-lived.
Previous governments have doled out money to poor people for decades, not to mention giving debt relief. Still, poverty exists. Perhaps we need to ask ourselves what the real causes of poverty are, and what solutions, besides cash handouts, could prove effective. For me, poverty is a malaise caused by a lack of equal access to resources and opportunities. In countries where poverty is rampant, monopolies tend to thrive. This is due to established political institutes ruled by elites and authoritarians which have created economic policies to enrich a few groups linked to the ruling classes. Does this type of state remind you of anywhere?
The solution may not be just handing out money, but creating a level playing field. One antidote to poverty would seem to be affordable education for all parents, a reasonable level of health care accessible to most people, and laws and regulations applied equally to all.
So, apart from doling out money, this junta-government in particular can make use of its omnipotent power to fine-tune some of its public policies to create equal opportunities and a level playing field. For example, the government could deter land hording by increasing land taxes.
In terms of development policies, the regime seriously needs to examine its projects that create conflicts, such as building new coal-fired power plants, not only for environmental reasons but also on the grounds of equal access to natural resources.
To be precise, many development projects use vast amounts of land and resources — some were even rushed into being to stimulate short-term economic figures and appease investors. But the natural resources at stake are what local people depend on to make a living.
It’s about time policy makers start to seriously weigh the pros and cons of such projects and only choose those that are sustainable and beneficial to the majority of those concerned, rather than just the few.
The government should also better serve the middle class and urban dwellers by coming up with public policies that can help them cut their cost of living while still having access to key public services. It could provide affordable and good-quality mass-transit services so they don’t feel the need to splash out on a car.
On the subject of education, it may be time for the state to rethink its plan to privatize universities as that will make higher learning less affordable.
The government also needs to maintain its Universal Health Care Coverage because affordable health care trumps all. No one wants to be bankrupted by their medical bills.
The regime should also bear in mind that reducing poverty does not mean soliciting donations. It means creating a level playing field to narrow the income gap and help people prosper.
*Anchalee Kongrut writes for the Life section of the Bangkok Post.
