Observations about Inequality in Thailand
Sirikanya Tansakun
Thailand Future Foundation
For KEPA Seminar on
SUSTAINABLE DEVELOPMENT GOALS AND INEQUALITY
ENGAGE ANALYSE INFORM
“Even though the Thai economy has established an impressive
record of economic growth, the income distribution is quite
uneven and a geographic imbalance still exists. The incomes in
the urban areas are generally about twice higher than those in
the rural communities, and the average income in the
metropolitan area of Bangkok is more than triple those in
villages in the Northeast. This disparity raises the potential
danger not only of an economic nature but of political
subversion as well.”
- National Economic and Social Development Board
“Even though the Thai economy has established an
impressive record of economic growth, the income
distribution is quite uneven and a geographic imbalance
still exists. The incomes in the urban areas are generally
about twice higher than those in the rural communities,
and the average income in the metropolitan area of
Bangkok is more than triple those in villages in the
Northeast. This disparity raises the potential danger not
only of an economic nature but of political subversion as
well.”
- National Economic and Social Development Board, “Evaluation of the
First Six-Year Plan 1961-1966”
1,429 4,369
28,808
89,739
2529 2554
Source: Household Socio-economic Survey, National Statistical Office (1986 and 2013)
Income gap between the richest 10% and the poorest 10% in 1986 and 2013
Unit: Baht/Month (Real term using 2011 as base year)
The Richest 10%
The Poorest 10%
20 21 Income gap (Times)
1986 2013
Inequality in Thailand has got worse over the past 3 decades.
1
1 2 3 4 5 6 8 9 10 1 7
village
The richest 10% Average income = 90,000฿/month
village
฿
The poorest 10% Average income 4,400฿/month
฿
55% of household heads
are elderly
28% of household heads
are farmers
41% of household heads
are professionals
22% of household heads
own business
฿ ฿ ฿ ฿ ฿ ฿ ฿
The poorest are the elderly, not farmers. 2
0.00.10.20.30.40.50.60.70.80.91.0
0-1K
10K-
11K
20K-
21K
30K-
31K
40K-
41K
50K-
51K
60K-
61K
70K-
71K
80K-
81K
90K-
91K
100K
-101
K
110K
-111
K
120K
-121
K
130K
-131
K
140K
-141
K
150K
-151
K
160K
-161
K
170K
-171
K
180K
-181
K
190K
-191
K
>200
K
Household income per month (Baht)
Median household income = 16,000฿
Average household income = 24,000฿
Income most households earn = 8,000 - 9,000฿
No
. of
ho
use
ho
lds
(mil
.)
Source: Household socio-economic survey 2013, National Statistical Office, TFF Analysis
Distribution of real household income 2013
Half of Thai households still earn less than 16,000 baht per month
3
63,000
368
Official survey data underestimates incomes and wealth of the very richest.
Average net worth of Forbes’s 50 billionaires
Net worth of
the richest household from survey data
Source: Household socio-economic survey, National Statistical Office in 2013, www.forbes.com
4
Average net worth of Forbes's 50 billionaires and the richest household from survey data
Unit: Mil. Baht
Rank Countries
# 11 Japan
# 34 Vietnam
# 116 South Korea
# 159 Malaysia # 161 Venezuela # 162 Thailand # 163 Indonesia
# 173 Russia
0
Wealth Inequality Ranking (out of 174 countries)
Source: Global Wealth Databook 2013
Thailand ranks near bottom on wealth inequality. 5
37% Income 2%
56%
60%
93%
Net worth
Land
Deposits
0.07%
<0
(Debts)
0.005%
Bottom 10% Top 10% Types of income/asset
Share of Income and Asset
Source: Household socio-economic survey in 2013, www.forbes.com, Duangmanee (2013)
Wealth concentration., Bank of Thailand
Thailand ranks near bottom on wealth inequality. 5
Total net worth
2 million
Households
Source: Office of the National Anti-Corruption Commission, Global Wealth Databook2011,
TFF Analysis
Members of Parliament
500 Families
The average wealth of MPs is higher than that of 99.999% of Thai households. 6
Total net worth
1.6 million
Households
Source: Office of the National Anti-Corruption Commission, Socio-economic
Survey 2013, TFF Analysis
Members of National Legislative Assembly
214 Families
The average wealth of NLAs is higher than that of 99.99% of Thai households. 6
2x More likely that the children from the richest 20% households to pass PISA math test than those from the poorest 20% households.
4x More likely that the children from the richest 20% households to get into college than those from the poorest 20% households.
Source: Household socio-economic survey, National Statistical Office in 2013, Program of International Student Assessment 2013, TFF Analysis
7 There is also inequality in access to quality health and education.
“Persistent inequality in opportunity is much more difficult to accept, and can lead to a sense of injustice, resentment and conflict. People can accept losing the race, but not being prevented from competing. Such a focus on addressing inequality in opportunity requires policies to improve the access and quality of public services, especially education.”