1. Wannaphong DurongkaverojFaculty 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 oflife causes people are not able to develop their level ofliving and has to accept the low wage. When people have low income, it is impossible toafford the modern medicine relevant to theirdiseases, school tuition. The fruit of economic growth can not result from theimpoverished 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 thepoor, the impoverished people and the affluentpeople? Can we raise the citizens 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 arenational defense, administration of justice, theprovision of certain public goods. Thomas Paine (1791) said the duties of government areto overcome the poverty, to provide the poor welfare,to provide education, to provide the elderly welfare, topay cash to women who are mother, to fund weddingcouple, to help make funeral arrangement, and tocreate 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 totheir insufficient income, can government provisionthrough the welfare help improve the impoverishedpeoples level of living? 9. Purposes of study To analyze the structure of Thailands educationsystem, free universal coverage health system, andwelfares system. And tax system as well as thesituation of penury and income inequalities inThailand. To find the demand for social welfare and thestatement of existing social welfare program. To find the ways for Thailand to become a welfarestate. To propose the ways to develop Thai citizens livingstandard 10. Definition Welfare State is- A government that entirely provides for the welfare, or thewell-being, of its citizens.- A welfare state provides education, housing, sustenanceand healthcare for its citizens.- The state that plays a key role in the protection andpromotion of the economic and social well-being of itscitizens.- The state that emphasize on redistribution of rights andthe benefits that government should provide to its owncitizens. 11. Requirements of becoming a welfare stateLAW TAXWELFARE 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 kindsof welfare state UniversalSelectivity 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. 16. Welfare in Each Country England : National Health Services, Personal HealthServices, Social Security The U.S. : WIC, TANF, Child support, Foodstamps, VocationalRehabilitation, AFDC, EITC, Energy or UtilityAssistance Germany : Initiative 50 plus, Help Toward Work(HTW) 17. 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 18. 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 19. Related Theory Maslows Hierarchical Theory of Motivation Bergson Social Welfare Function Rawlsian Social Welfare Function Pareto Optimality Criterion Consumer Behavior Theory Nicholas Kaldor and J.R. Hickss Compensation Criterion Consumer Behavior Theory 20. Related ResearchResearch in other countries Lane Kenworthy John D. Stephens Timothy J. Bartik Assar Lind beck Robert Moffit 21. 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 22. Research Method Primary data- Questionnaire Secondary data- Tax Structure- Education System- Health System- Welfare System- Poverty and Income Inequalities Situation 23. Research Method (cont.) Population are people who work in Chiang Mai University : 11,437 people- Government Officer1,352- University Routine Officer4,446- University Casual Officer 4,697- Routine Worker942 24. Research Method (cont.) Taro Yamane, confidence level at 95%n=n=n=387 Thus, researcher collected 400 samples. 25. Research Method (cont.) Using stratified random sampling divides samples into 4 groups and using accidental sampling in each group as followed, 26. Research Method (cont.) Details of questionnaire General Information Statement of social welfare Statement of social problem and welfare demanded 27. Results Tax Structure- Revenue Department: Individual IncomeTax, Corporate Income Tax, VAT, Specific BusinesssTax, Stamp Duty- Excise Department : Excise Tax- Customs Department : Custom Duty (Tariff) 28. Result (cont.) 29. Result (cont.) 30. Result (cont.) 31. Results (cont.) Education SystemThailand 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 32. 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) 33. Results (cont.) Health System Thailand has three health insurance Social Security Organization Government Officer Universal Coverage 34. Results (cont.) Exemption of Universal Coverage- Infertility- Intrauterine Insemination- Gender Reassignment Surgery- Mental Disorder- Drug Abuse- Organ Transplantation 35. Results (cont.) Welfare SystemBy Ministry of Social Development and HumanSecurity 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 36. Poverty Situation 37. Income Inequalities SituationGini Coefficient 38. Warm-Family IndexWarm-Faimily Index 39. Crime Rate Crime Rate 40. Results from Questionnaire400 samples represent, follow Taro Yamane,11,437 population under 95% confidence level.Fields of question- General- Statement- Welfare Demand 41. Variable ObsMean Std. Dev. Min Max sex 400 .47 .49972420 1 age 400 38.0375 10.06077 2360 job 4001.4425 .80828650 3 edu 400 3.045 .76448420 5welfarerec~d 400 .9225 .58510650 3 satis 4001.9625 .62214260 4want 400 .0375 .19022150 1reform 400 .05 .21821790 1 willing 400 .1575 .36472770 1 pay 4001.7825 1.2263580 6com1 4004.3725 .73491091 5com2 4004.5575 .68033141 5com3 400 4.595 .62204691 5com4 4004.5225 .61272531 5com5 4004.44 .76672661 5com6 4004.1675 .89803111 5com7 4004.3175.8908861 5com8 4004.3425 .81967891 5com9 4003.61 1.0750761 5living 4001.4175 .74132831 4income 400 1.955 .64343611 4health 4002.7775 .65884671 4 other 4003.8425 .50827121 4wantfund 4001.67 1.0434661 4wantwork 400 2.335.8482771 4wanthealth 4002.8375 .91278511 4 wantedu 400 3.165 1.0466681 4 42. Welfare ReceiptCumula Frequ ValidtiveReceiveency Percent Percent Percent Valid Nothing7418.518.518.5 Health29473.573.592.0 Funds21 5.3 5.397.3 Educati11 2.8 2.8 100.0 on Total 400 100.0 100.0 43. Satisfaction ValidFreque Perce Perce Cumulativ Satisfaction ncy ntnt e PercentValid Strongly143.53.5 3.5 dissatisfy dissatisfy 399.89.813.3 moderate299 74.8 74.888.0 Satisfy44 11.0 11.099.0 Strongly 41.01.0 100.0 satisfy Total 400 100.0 100.0 44. Demanding more welfareCumulati Freque Valid ve ncyPercentPercentPercent Valid Yes38596.3 96.396.3 No153.83.8100.0 Total400 100.0100.0 45. Wanting to reform to become awelfare stateCumulatiWant to Freque ValidvereformncyPercentPercent PercentValid Yes 38095.095.0 95.0No 20 5.0 5.0100.0Total 400100.0100.0 46. Willing to pay to help financeCumulatiFreque ValidvencyPercentPercent Percent Valid Yes33784.384.3 84.3No63 15.815.8100.0Total 400100.0100.0 47. Percent of Salary willing to payPercent of Frequen Valid Cumulativsalarycy PercentPercente Percent Valid 0 % 6315.8 15.815.81% 9122.8 22.838.55%17042.5 42.581.010%36 9.09.090.015%31 7.87.897.820% 4 1.01.098.825% 5 1.31.3100.0Total 400 100.0100.0 48. Experiencing Social ProblemFre Cumula Living que Perce Valid tive Standard ncynt Percent Percent Valid severe 286 71.571.571.5moder 69 17.317.388.8atelittle 379.3 9.398.0Very82.0 2.0 100.0littleTotal 400 100.0100.0 49. Demand for welfareCumulatiFinancialFreque Valid ve Assistancency Percent PercentPercent Valid Most 26265.5 65.5 65.5 desire Moderat5112.8 12.8 78.3 e Little 4411.0 11.0 89.3Very4310.8 10.8100.0littleTotal 400100.0100.0 50. Test Relationship Satisfaction and the demand for more welfareHypothesisHo = There is no relationshipH1 = Satisfaction and the demand for more welfare are related 51. Asymp. Sig. (2-Value df sided)Pearson Chi-120.094 .000Square9(a)Likelihood41.1214 .000RatioLinear-by-Linear32.9161 .000AssociationN of ValidChi-Square Tests 400Casesa 5 cells (50.0%) have expected count less than 5. The 52. Test Relationship (cont.) Experiencing Social problem and the demand for financial aidsHo = There is no relationshipH1 = Experiencing social problem and the demand for financial aids are related 53. Asymp. Sig. Value df(2-sided)Pearson Chi-135.842(9.000Square a)Likelihood Ratio121.680 9.000Linear-by-LinearAssociation 99.4741.000N of Valid Cases 400Chi-Square Testsa 6 cells (37.5%) have expected count less than 5. The minimum ex 54. Conclusions and Proposal Tax system The optimal tax criterion requires Efficiency, Equity and Administrative Ease. Thailands tax structure may be equitable with a deduction in the first bracket. However, this deduction causes the loss of government revenue. 55. TAX PROPOSALS1. 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 poor3. Proportional progressive tax structure 56. Conclusions and Proposals (cont.) Education System Education is an important source of development.Not only private benefit but also social benefits prevailas a result of an increased educational attainment.Government should- Increase the compulsory education to 12 years or grade12.- Indoctrinate about morality in university 57. Conclusions and Proposals (cont.) Health System Health system in Thailand is good enough to serve allof the citizens because there are three kinds of healthinsurance provided for government officer, employee andthe rest of people with universal coverage. Government should- reform the health system to reduce the overlap of eachprogram, we should use only health insurance- Use the same system (three health insurance) but reducethe exemption to universally cover every diseases. 58. 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. 59. 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 rateGovernment should- Pay attention not just economic growth but also economicdevelopment in terms of education, health, socialunrest, freedom, political situation and also happiness. 60. 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 childrens 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 61. Proposals for further study Expand the population Cost-benefit analysis of reforming Thailand to becomea welfare state Experimental economics about how welfare related toan improved living standard and reduce the absolutepoverty Study about disadvantages of welfare state 62. The governmentadministration is similarto Traveller Map 63. Thank you