It is astonishing to learn that in Thailand today, 5.4 million people are living under the poverty line. It is even more astonishing when the poverty line is set at the shockingly low figure of Bt1,134 per year.
Just as astonishing is the Finance Ministry's figure that the income gap between those in the top 20 per cent and those in the bottom 20 per cent is 12 times.
To the envy of the Pheu Thai Party, the Abhisit government is boasting about the success of its economic stimulus programmes, which have resulted in a fast economic recovery. Reflecting that success, the Stock Exchange of Thailand index has been on an upward trend, with 1,100 points as the target for the next six months. Some are sceptical whether this will translate into better living conditions for the poor. Others are optimistic that on the back of this overall economic recovery, the poor will also see a better quality of life. They are optimistic that if incomes grow faster across the board, this will narrow the gap. But will it?
Research carried out by Siam Commercial Bank (SCB) and published last week, shows us something to the contrary. SCB's data points to the fact that farmers in the Northeast are the poorest sector in the country, and that if they want to see a rise in their income, they can do so only by home relocation or change of employment. But farmers, as we know, lack all kinds of opportunities to catch up with higher earners.
From 1990 to 2007, figures show that the income gap widened. In 1990, the income of small-business owners in Bangkok was twice that of factory workers in Bangkok, and more than 10 times higher than that of farmers in the Northeast. In 2007, the gap had widened to three and 12 times, respectively.
I am from the Northeast and went to Khon Kaen University. When I graduated 20 years ago, the available jobs at home were for bank-tellers and administration officers at sugar mills. Or, I could opt for a public service job. Those types of employment are fine for those who enjoy routine work. But although there are many new businesses up and running in the region, the types of work opportunities have not really become any more interesting. And as most jobs are not exciting, the pay scale is low. As a result, the purchasing power of people in the Northeast has remained low.
Central Plaza in Khon Kaen may be packed at the weekends, but I bet that its revenue generation does not match that of the company's smaller branches in Bangkok.
During a speech in Khon Kaen last week, economist Kosit Panpiemras said that, so far, economic growth has been concentrated in Bangkok, and that this is a sign of low quality growth. To him, the Northeast has huge potential, as it is home to two-thirds of the labour force and 58 higher educational institutions. However, the region still fails to attract new investment. As a result, graduates continue to escape to Bangkok to seek better job opportunities.
I can't help but agree with them. Without interesting jobs, quality workers will leave. Even farmers have to migrate to Bangkok for construction jobs that provide them with only a slightly higher income than they can get from the land.