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Regional Disparity in Thailand

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. 3. Highest income inequality - In the past → South - Present → Northeast

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Regional Disparity in Thailand

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

  2. Income Distribution and Poverty Incidence in Thailand

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  4. 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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  6. 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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  11. 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% or82,940people) 11

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  15. The poorest: Northeast (13.05% or 2,830,300 people in 2007) • The second poorest: North • The fewest poor: Bangkok (1.14% or64,400people) 15

  16. Unemployment

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

  19. Health Care Service Disparity

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  21. Population served by each doctor by Region:1988-2005 21 Source: Thai Public Health Report: 2005-2007, Ministry of Public Health

  22. Population served by each Health Care Center Officer by Region:1988-2005 22 Source: Thai Public Health Report: 2005-2007, Ministry of Public Health

  23. 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

  24. The Difference between Population per Medical Personal of Bangkok and Northeast:1988-2005 24 Source: Thai Public Health Report: 2005-2007, Ministry of Public Health

  25. Private Hospitals by Region: 2006 25 Source: Thai Public Health Report: 2005-2007, Ministry of Public Health

  26. Health Care Center per population by Region 26 Source: Thai Public Health Report: 2005-2007, Ministry of Public Health

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

  28. Population per Health Care Center by Region 28 Source: Thai Public Health Report: 2005-2007, Ministry of Public Health

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

  31. Population per bed by Region: 1988-2005 31 Source: Thai Public Health Report: 2005-2007, Ministry of Public Health

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

  33. 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

  34. 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): Highest opportunity: East Lowest opportunity: Bangkok (12% difference) 34

  35. Opportunity to access education • Age 15-17 (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

  36. 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

  37. 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

  38. 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 38

  39. 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

  40. 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

  41. 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

  42. Local Government Revenues

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  44. 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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  46. The smallest local revenue per head: Northeast • The highest local revenue per head: Bangkok 46

  47. Policies to Address the Regional Disparity

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

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

  50. 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

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