Plan won’t end poverty

In a recent meeting with her newly appointed advisory team, Prime Minister Paetongtarn Shinawatra declared war against poverty. She made a pledge to eradicate Thailand’s poverty within the remaining three years of her administration.
This bold ambition is laudable, especially given Thailand’s enduring structural inequalities. However, the question remains — can this deeply ingrained issue be solved in such a short timeframe?
Thailand’s poverty problem is complex and structural correction is needed to fix it. Yet governments resort to quick fixes, such as cash handouts. These handout programmes have been a staple of all parties’ campaign pledges to entice voters during elections. No matter what form they take, these so-called economic stimulus packages and handouts provide only short-term relief, without correcting structural problems.
Currently, Thailand’s average poverty line stands at 2,997 baht per person per month, according to a revision made two years ago. Official data suggests that about 4.5 million people live below this line.
Yet a staggering 14.5 million people eligible for state welfare cards registered under the previous prime minister Prayut Chan-o-cha administration, suggesting the number of low-income individuals is much higher. This discrepancy indicates the poverty line might need re-evaluation to reflect the realities of today’s economy.
The challenge ahead for Ms Paetongtarn is insurmountable. Without real structural reforms — such as progressive tax systems, equitable welfare distribution and fairer access to economic opportunities — the social inequality and wealth gap will only widen.
Corruption also hinders progress. Without significant anti-corruption measures and a genuine focus on sustainable economic growth, any temporary gains made from cash handouts or stimulus packages will quickly fade.
A reformist government must think beyond short-term populism and focus on lasting reforms that address the core issues of income inequality and the imbalance in economic power as well as economic resource distribution.
Of course, boosting the economy and GDP is crucial, but it must be paired with the closing of the gap between the rich and poor. Let it be recalled that Thailand had the highest level of income-based inequality in the East Asia and Pacific region in 2021, according to the World Bank.
This despondent trend will persist, if not worsen, if the benefits of economic growth continue to be disproportionately reaped by a small elite.
The government’s ongoing handouts of 10,000 baht to 14.5 million low-income and vulnerable citizens, a spin-off from the yet-to-be-implemented digital wallet campaign, serve as short-term relief.
It cannot be taken as a long-term solution to Thailand’s poverty crisis. Such handouts put pressure on the country’s fiscal standing and creditworthiness, addressing only the symptoms of poverty rather than tackling the root causes.
Ms Paetongtarn’s aspiration to end poverty within this government’s term is a positive goal, with a monumental challenge to overcome.
The focus must be on creating a sustainable framework that promotes long-term economic equality, ensuring the country’s economic opportunities are accessible to all Thais, not just the privileged few. Whether her administration can meet this challenge is uncertain, but the era of relying on political handouts must end.