วรรณพงษ์ ดุรงคเวโรจน์ คณะเศรษฐศาสตร์ มหาวิทยาลัยเชียงใหม่

1. Wannaphong Durongkaveroj
Faculty of Economics, Chiang Mai University

2. Problems
 Even though Thailand has economic growth, there is
the vast difference between the rich and poor.
 This disparity prevails as the national income,
educational attainment, health care, opportunities are
unevenly distributed.

3. Problems (cont.)
 The lack of opportunities to access the basic needs of
life causes people are not able to develop their level of
living and has to accept the low wage.
 When people have low income, it is impossible to
afford the modern medicine relevant to their
diseases, school tuition.
 The fruit of economic growth can not result from the
impoverished people.

4. Problem (cont.)
 The poor in Thailand are 7.75 million people or 5.1% of
all population living below the poverty line 1,678 Thai
Baht per month.
 The Gini Coefficient now are 0.48 that it is higher than
the acceptable level at 0.40

5. Leading Question
 Can we eliminate penury?
 Can we narrow the disparity between the rich and the
poor, the impoverished people and the affluent
people?
 Can we raise the citizen’s living standard?
 Can we develop our country?
 Or is it impossible?

6. Social, Political, and Economic View
 Adam Smith (1776) said the duty of government are
national defense, administration of justice, the
provision of certain public goods.
 Thomas Paine (1791) said the duties of government are
to overcome the poverty, to provide the poor welfare,
to provide education, to provide the elderly welfare, to
pay cash to women who are mother, to fund wedding
couple, to help make funeral arrangement, and to
create the pool of jobs.

7. Social, Political, and Economic View
(cont.)
 Joseph E. Stiglitz (2008) said that government can
intervene the market when there is market failure
including monopoly power, public
goods, externalities, asymmetric
information, unemployment so as to achieve the
socially optimal equilibrium.

8. Leading Question
 If the poor can not afford the basic needs of life due to
their insufficient income, can government provision
through the welfare help improve the impoverished
people’s level of living?

9. Purposes of study
 To analyze the structure of Thailand’s education
system, free universal coverage health system, and
welfare’s system. And tax system as well as the
situation of penury and income inequalities in
Thailand.
 To find the demand for social welfare and the
statement of existing social welfare program.
 To find the ways for Thailand to become a welfare
state.
 To propose the ways to develop Thai citizen’s living
standard

10. Definition
 Welfare State is
- A government that entirely provides for the welfare, or the
well-being, of its citizens.
- A welfare state provides education, housing, sustenance
and healthcare for its citizens.
- The state that plays a key role in the protection and
promotion of the economic and social well-being of its
citizens.
- The state that emphasize on redistribution of rights and
the benefits that government should provide to its own
citizens.

11. Requirements of becoming a welfare state
LAW
TAX WELFARE
REFORM PROGRAM

12. Idea on Welfare State
 Assoc. prof. Euamporn Phijaisanit, Ph.D. (2009)
divided , by beneficiary, welfare state to four kinds
 Residual Welfare State
 Solidarity Welfare State
 Institutional Welfare State
 Industrial Achievement Welfare State

13. Idea on Welfare State (cont.)
Moreover, by practically, there are two kinds
of welfare state
Universal Selectivity

14. Idea on Welfare State (cont.)
 Assoc. Prof. Kittipat Nonthapatamadul (2007) said
that welfare state is an alternative for government to
satisfy citizens while maintaining the free market and
democracy without implementing the communist.
 Barr (2003) said that welfare state worked like Robin
Hood that help eliminate poverty, more equitable in
allocating of income, reduce the problem of divided
society.

15. Review Literature (cont.)
 Lane Kenworthy (1998) did a research “Do social-
welfare policies reduce poverty”.
He found that there is significant reduction in
absolute and relative poverty in European countries
and the United States by comparing it between pre-
and post-reforming country to become a welfare state.

17. Welfare in Each Country
 England : National Health Services, Personal Health
Services, Social Security
 The U.S. : WIC, TANF, Child support, Food
stamps, Vocational
Rehabilitation, AFDC, EITC, Energy or Utility
Assistance
 Germany : Initiative 50 plus, Help Toward Work
(HTW)

18. Welfare in Each Country (cont.)
 France : CNAMTS, MSA, CRAM, CPAM, CNAF, CAF,
Couverture Maladie Universelle
 Sweden : Child care, daddy months,
 Denmark : Insured unemployed, the public employment
services, the preventive home visit

19. Welfare in Each Country (cont.)
 Norway : Folketrygdfonder, employment services,
service housing, home help
 Finland : Home Help Services, Old Age Allowance,
employment service, sickness insurance and disability
insurance

20. Related Theory
 Maslow’s Hierarchical Theory of Motivation
 Bergson Social Welfare Function
 Rawlsian Social Welfare Function
 Pareto Optimality Criterion
 Consumer Behavior Theory
 Nicholas Kaldor and J.R. Hicks’s Compensation Criterion
 Consumer Behavior Theory

21. Related Research
Research in other countries
 Lane Kenworthy
 John D. Stephens
 Timothy J. Bartik
 Assar Lind beck
 Robert Moffit

22. Review Literature (cont.)
Research in Thailand
 Robin Broadway, Katherine Cuff, and Frank Flatters
 Kuntapat Eiumpeung
 Tanakitti Bamrungchaokasem
 Worawan Chandoevwit
 Aphilarb Phaophinyo
 Tata Ei
 Thailand Development Research Institute
 The National Statistical Office of Thailand

23. Research Method
 Primary data
- Questionnaire
 Secondary data
- Tax Structure
- Education System
- Health System
- Welfare System
- Poverty and Income Inequalities Situation

24. Research Method (cont.)
 Population are people who work in Chiang Mai
University : 11,437 people
- Government Officer 1,352
- University Routine Officer 4,446
- University Casual Officer 4,697
- Routine Worker 942

25. Research Method (cont.)
 Taro Yamane, confidence level at 95%
n=
n=
n= 387
Thus, researcher collected 400 samples.

26. Research Method (cont.)
 Using stratified random sampling divides samples into
4 groups and using accidental sampling in each group
as followed,

27. Research Method (cont.)
 Details of questionnaire
 General Information
 Statement of social welfare
 Statement of social problem and welfare demanded

28. Results
 Tax Structure
- Revenue Department: Individual Income
Tax, Corporate Income Tax, VAT, Specific Businesss
Tax, Stamp Duty
- Excise Department : Excise Tax
- Customs Department : Custom Duty (Tariff)

29. Result (cont.)

30. Result (cont.)

31. Result (cont.)

32. Results (cont.)
 Education System
Thailand uses the system of “6-3-3” means
- Six years for elementary education
- Three years for junior high school
- Three years for senior high school

33. Results (cont.)
 Modes of learning : three kinds of education
- Formal Education
- Non-formal Education
- Informal Education
 Compulsory Education : 9 years (Grade 9)
 Basic Education : 12 years (Grade 12)

34. Results (cont.)
 Health System
Thailand has three health insurance
 Social Security Organization
 Government Officer
 Universal Coverage

36. Results (cont.)
 Exemption of Universal Coverage
- Infertility
- Intrauterine Insemination
- Gender Reassignment Surgery
- Mental Disorder
- Drug Abuse
- Organ Transplantation

37. Results (cont.)
 Welfare System
By Ministry of Social Development and Human
Security
 Benefits cover the ten group of people.
- Children - Vagrant
- Women - Trafficked people
- The disabled - Violent people
- The elderly - Homeless people
- HIV infected people - Self-Help Settlement

38. Poverty Situation

39. Income Inequalities Situation
Gini Coefficient

40. Warm-Family Index
Warm-Faimily Index

41. Crime Rate
Crime Rate

42. Results from Questionnaire
400 samples represent, follow Taro Yamane,11,437
population under 95% confidence level.
Fields of question
- General
- Statement
- Welfare Demand

43. Variable Obs Mean Std. Dev. Min Max
sex 400 .47 .4997242 0 1
age 400 38.0375 10.06077 23 60
job 400 1.4425 .8082865 0 3
edu 400 3.045 .7644842 0 5
welfarerec~d 400 .9225 .5851065 0 3
satis 400 1.9625 .6221426 0 4
want 400 .0375 .1902215 0 1
reform 400 .05 .2182179 0 1
willing 400 .1575 .3647277 0 1
pay 400 1.7825 1.226358 0 6
com1 400 4.3725 .7349109 1 5
com2 400 4.5575 .6803314 1 5
com3 400 4.595 .6220469 1 5
com4 400 4.5225 .6127253 1 5
com5 400 4.44 .7667266 1 5
com6 400 4.1675 .8980311 1 5
com7 400 4.3175 .890886 1 5
com8 400 4.3425 .8196789 1 5
com9 400 3.61 1.075076 1 5
living 400 1.4175 .7413283 1 4
income 400 1.955 .6434361 1 4
health 400 2.7775 .6588467 1 4
other 400 3.8425 .5082712 1 4
wantfund 400 1.67 1.043466 1 4
wantwork 400 2.335 .848277 1 4
wanthealth 400 2.8375 .9127851 1 4
wantedu 400 3.165 1.046668 1 4

44. Welfare Receipt
Cumula
Frequ Valid tive
Receive ency Percent Percent Percent
Valid Nothing 74 18.5 18.5 18.5
Health 294 73.5 73.5 92.0
Funds 21 5.3 5.3 97.3
Educati
11 2.8 2.8 100.0
on
Total 400 100.0 100.0

45. Satisfaction
Valid
Freque Perce Perce Cumulativ
Satisfaction ncy nt nt e Percent
Valid Strongly
14 3.5 3.5 3.5
dissatisfy
dissatisfy 39 9.8 9.8 13.3
moderate 299 74.8 74.8 88.0
Satisfy 44 11.0 11.0 99.0
Strongly
4 1.0 1.0 100.0
satisfy
Total 400 100.0 100.0

46. Demanding more welfare
Cumulati
Freque Valid ve
ncy Percent Percent Percent
Valid Yes 385 96.3 96.3 96.3
No 15 3.8 3.8 100.0
Total 400 100.0 100.0

47. Wanting to reform to become a
welfare state
Cumulati
Want to Freque Valid ve
reform ncy Percent Percent Percent
Valid Yes 380 95.0 95.0 95.0
No 20 5.0 5.0 100.0
Total 400 100.0 100.0

48. Willing to pay to help finance
Cumulati
Freque Valid ve
ncy Percent Percent Percent
Valid Yes 337 84.3 84.3 84.3
No 63 15.8 15.8 100.0
Total 400 100.0 100.0

49. Percent of Salary willing to pay
Percent of Frequen Valid Cumulativ
salary cy Percent Percent e Percent
Valid 0 % 63 15.8 15.8 15.8
1% 91 22.8 22.8 38.5
5% 170 42.5 42.5 81.0
10% 36 9.0 9.0 90.0
15% 31 7.8 7.8 97.8
20% 4 1.0 1.0 98.8
25% 5 1.3 1.3 100.0
Total 400 100.0 100.0

50. Experiencing Social Problem
Fre Cumula
Living que Perce Valid tive
Standard ncy nt Percent Percent
Valid severe 286 71.5 71.5 71.5
moder
69 17.3 17.3 88.8
ate
little 37 9.3 9.3 98.0
Very
8 2.0 2.0 100.0
little
Total 400 100.0 100.0

51. Demand for welfare
Cumulati
Financial Freque Valid ve
Assistance ncy Percent Percent Percent
Valid Most
262 65.5 65.5 65.5
desire
Moderat
51 12.8 12.8 78.3
e
Little 44 11.0 11.0 89.3
Very
43 10.8 10.8 100.0
little
Total 400 100.0 100.0

52. Test Relationship
 Satisfaction and the demand for more welfare
Hypothesis
Ho = There is no relationship
H1 = Satisfaction and the demand for more welfare are
related

53. Asymp.
Sig. (2-
Value df sided)
Pearson Chi- 120.09
4 .000
Square 9(a)
Likelihood
41.121 4 .000
Ratio
Linear-by-
Linear 32.916 1 .000
Association
N of Valid
Chi-Square Tests 400
Cases
a 5 cells (50.0%) have expected count less than 5. The

54. Test Relationship (cont.)
 Experiencing Social problem and the demand for
financial aids
Ho = There is no relationship
H1 = Experiencing social problem and the demand for
financial aids are related

55. Asymp. Sig.
Value df (2-sided)
Pearson Chi- 135.842(
9 .000
Square a)
Likelihood Ratio 121.680 9 .000
Linear-by-Linear
Association 99.474 1 .000
N of Valid Cases
400
Chi-Square Tests
a 6 cells (37.5%) have expected count less than 5. The minimum ex

56. Conclusions and Proposal
 Tax system
The optimal tax criterion requires Efficiency,
Equity and Administrative Ease. Thailand’s tax
structure may be equitable with a deduction in the
first bracket. However, this deduction causes the loss
of government revenue.

57. TAX PROPOSALS
1. Maintaining the progressive tax rate but broader tax
base and lower tax rate (Martin Feldstein)
2. Eliminating the tax exemption that seems to coddle
the rich instead of the poor
3. Proportional progressive tax structure

58. Conclusions and Proposals (cont.)
 Education System
Education is an important source of development.
Not only private benefit but also social benefits prevail
as a result of an increased educational attainment.
Government should
- Increase the compulsory education to 12 years or grade
12.
- Indoctrinate about morality in university

59. Conclusions and Proposals (cont.)
 Health System
Health system in Thailand is good enough to serve all
of the citizens because there are three kinds of health
insurance provided for government officer, employee and
the rest of people with universal coverage.
 Government should
- reform the health system to reduce the overlap of each
program, we should use only health insurance
- Use the same system (three health insurance) but reduce
the exemption to universally cover every diseases.

60. Conclusions and proposals (cont.)
 Welfare system
It covers the ten kinds of beneficiary. There are many
types of program to take care of impoverished people.
However, in each field, it does not cover every province
around Thailand.
• Government should
- Provide more program in each coverage
- Pay attention to “missing ”
poor, women, children, elderly, and disabled.

61. Conclusions and proposals (cont.)
 Penury and Income Inequalities
- Better situation in poverty rate and Gini Coefficient
- Fluctuation in the warm-family index
- Increase in crime rate
Government should
- Pay attention not just economic growth but also economic
development in terms of education, health, social
unrest, freedom, political situation and also happiness.

62. Welfare Proposals
 Social Insurance Programs
 Public Assistance Programs
 Desired welfare from questionnaire
- financial Aids
- 1,500 Thai Baht for the elderly and the disabled as well as
provide them nursing home
- Help children’s parent since birth until age 15
- Help female-head family who has child
- unemployment compensation
- allow to leave from work about a year when worker bear a
child but still receive salary

63. Proposals for further study
 Expand the population
 Cost-benefit analysis of reforming Thailand to become
a welfare state
 Experimental economics about how welfare related to
an improved living standard and reduce the absolute
poverty
 Study about disadvantages of welfare state

64. The government
administration is similar
to “Traveller Map”

65. Thank you