Prof. Dr. Kriangsak” urges Thailand to escape poverty by reforming populist policies: proposes a “Sweep–Target–Grab” strategy for inclusive and sustainable quality of life

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Prof. Dr. Kriengsak Chareonwongsak, Chairman of the Nation Building Institute (์ฺNBI) addressed "How can Thailand escape poverty?" He stated that Thailand is right now facing a poverty crisis, which requires immediate action. According to the National Economic and Social Development Council's (NESDC) 2024 poverty and inequality stats, the majority of the poor (45.49%) are agricultural workers with limited education who live mainly in the Northeast and the South. Such as Mae Hong Son, Yala, Pattani, Narathiwat are the provinces with the greatest poverty rates. Poverty is mostly caused by a lack of money, debt, a lack of agricultural land and a lack of high-income earning abilities.

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The "Cycle of economic vulnerability" is the key cause of Thailand's increasing poverty rate in 2024. Low-income earners struggle to save money due to insufficient income for everyday costs and debt burdens that hinder them from working and investing for the future. This makes it impossible to leave poverty without systematic policy measures that increase people's economic potential and stability.

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The government's previous initiatives to reduce poverty have been limited by the following:

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1) Ineffective measures: The " Social Welfare card holders" , a well-intended Thai welfare innovation, creates a database and provides help directly. However, in practice, it has been marred by omissions, with more than half of the truly poor receiving no assistance.

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2) Prioritize quick relief efforts: Populism policy emphasizing short-term support such as repayment suspensions. These policies are costly and ineffective in achieving long-term change.

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3) Failure to address structural issues: In fiscal year 2024, just 21.28% of funds were devoted to improving human capital capacity, restructuring production, or constructing critical infrastructure, which is insufficient to increase people's self-reliance.

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Prof. Dr. Kriangsak provides policy recommendations at three levels: macro, micro, and individual, to solve poverty sustainably.

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Macro Policy: "Sweeping Out" the Poor through National restructuring

According to Prof. Dr. Kriangsak, the government needs to reconsider its policy approach. It must include a multilevel policy approach. At the macro level, a policy of "sweeping out" the majority of the poor aims to address the issue of widespread poverty. This initiatives intends to lift the majority of the population out of poverty by restructuring the country's economic and social structures, generating opportunities and reducing citizens' living costs.

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"Policy of Sweeping Out the Poor through Intelligent and Inclusive Urbanization"

Prof. Dr. Kriangsak remarked that many studies have shown that urbanization is directly associated with poverty alleviation. These efforts can be accomplished using the following :

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1) Urban Housing for All: Providing affordable and rental housing in major and secondary cities, as well as ensuring housing rights in slum areas through the use of "urban community title deeds" to cut expenses, establish stability, and prevent evictions.

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2) Connected Cities: Investing in inexpensive public transit systems that link suburban and metropolitan locations and building a complete digital infrastructure (Fiber/5G) to cut travel expenses and improve access to information and markets.

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3) Inclusive Urban Economy: Setting up a special fund and low-interest loans to help SMEs and startups in secondary cities create jobs and expand economic prosperity beyond Bangkok.

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4) Human Capital in Cities: Creating practical skills development centers in low-income urban areas, focusing on market-relevant skills such as digital skills, logistics, and healthcare, while also assuring access to outstanding education and public health services.

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Micro-policies: Tackling poverty in "Targeted" areas

Prof. Dr. Kriangsak suggested the government should develop micro-level measures to reduce poverty, with a focus on target groups and locations with particularly severe poverty. The policies include:

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1) Restructuring Agriculture's Labor Sector

Agricultural labor (30%) contributes to only 8% of GDP, indicating extremely low productivity. As such, the government must implement proactive policies to "move agricultural labor to higher-productivity service and manufacturing sectors" through reskilling and upskilling, as well as promote the use of agricultural technology and mechanization (farm mechanization) and large-scale farming to increase income for farmers who remain in agriculture.

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2) Promoting Women's Economic Roles.

Prof. Dr. Kriangsak noted that investing in women is the most cost-effective way to reduce poverty. Due to research, women spend the majority of their income on their children's education and health. As such, the government should enact policies such as expanding childcare facilities outside of working hours to provide women more time to work and offering low-interest loans to female entrepreneurs. Addressing the gender income and pension inequality includes assisting in the development of unions or groups, such as the Self-Employed Women's Association (SEWA) model in India, to develop networks and economic strength.

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3) Targeted Poverty Alleviation

This is an adaptation of a successful Chinese strategy: "Pairing agencies and officials into poor areas." Officials examine the specific difficulties of particular homes and communities and connect them to suitable government initiatives to offer focused and meaningful support.

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Individuals: The state should provide “Grabbing of” basic insurance for all low-income people.

Prof.Dr.Kriangsak stated that the government should implement "grabbing" measures to assist the remaining poor, with the ultimate goal of helping the populace to be self-sufficient rather than dependent exclusively on government aid.

Following:

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1) Universal Basic Competency and Development and Job Guarantee.

The government must shift its focus from aid to capacity building by establishing universal basic competence for all citizens. This initiative will also investigate an employment guarantee program in which the state serves as the Employer of Last Resort by providing jobs in public benefit initiatives to people who are unable to find work, ensuring income security and stability.

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2) Universal Share holding and Passive Capital

To reduce capital ownership inequality, the government should consider a universal share holding policy, which would distribute shares of high-potential state enterprises to the public via a compulsory savings system, allowing everyone to own production factors and receive dividends. Beyond just wages.

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Finally, Prof. Dr. Kriangsak underlined that resolving poverty in Thailand requires a transition from a reactive strategy and immediate assistance to a proactive policy approach focused on addressing structural challenges and empowering residents to become self-sufficient. Hence, policy suggestions at three levels include macro- microeconomic reform, as well as individual guarantees.

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"The government should not spend its budget on populist initiatives but rather work to develop honest politics devoid of corruption and vote-buying among low-income people. As a result, Thailand will be able to create a future in which all inhabitants have the ability to leave poverty and enjoy a sustainable standard of living." Prof. Dr. Kriangsak said

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