Prayuth’s poverty regime

17 11 2020

A story in the Bangkok Post reports that Jinanggoon Rojananan, deputy-secretary general of the National Economic and Social Development Council (NESDC), “11.4 million households are at risk of falling into poverty from the economic crisis caused by the pandemic, with the unemployment rate rising…”.

Today, there “are 637,000 households dependent on public and private financial assistance” with 467,000 of them reporting lower incomes today. These “households work in sectors that are more prone to job losses such as tourism or self-employment.” Jinanggoon claims that poverty fell between 2018 and 2019.

That poverty is claimed to have decreased between 2018 and 2019 may not be a huge surprise as the junta poured money into “buying” votes through all kinds of programs it once lambasted as “populist” or as “policy corruption.” But Jinanggoon seems to be warning of a dire downturn in 2020.

But the story of the Gen Prayuth Chan-ocha regime over several years needs to be told. Back in March, the World Bank reported:

Between 2015 and 2018, the poverty rate in Thailand increased from 7.2 percent to 9.8 percent, and the absolute number of people living in poverty rose from 4.85 million to more than 6.7 million. The increase in poverty in 2018 was widespread – occurring in all regions and in 61 out of 77 provinces. In the Central and Northeast, the number of poor increased by over half a million in each region during the same period. The conflict-affected South became the region with the highest poverty rate for the first time in 2017.

In suggesting why these increases in poverty have occurred, the World Bank states:

The population at the bottom 40 percent of the income distribution is not sharing as well in prosperity, and in the recent period of 2015-2017, consumption and income growth in this bottom 40 percent were negative. The reversal in trend among this bottom 40 during this period is related to declines in all forms of labor incomes, including a stagnation in wage growth and declines in farm and business incomes.

The full report can be downloaded as a PDF. For an academic discussion of this report and its implications, another PDF is available.

Meanwhile, some of the filthy rich are doing well, with CP having a massive rise in profits.


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