Thai govt puts social welfare on agenda

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Thai govt puts social welfare on agenda 
Bangkok Post: 14 Sep 2010
NATIONAL DEVELOPMENT
Govt puts welfare state on agenda

The government plans to press ahead with its scheme to develop a social welfare state and put an end to populist policies, Prime Minister Abhisit Vejjajiva says.

The plan to transform the country into a social welfare state is on the national agenda, Mr Abhisit told a seminar on social welfare organised yesterday by parliament and the Social Development and Human Security Ministry.

The prime minister said the government would ensure adequate social welfare benefits reached every possible segment of society within six to seven years.

The plan to create a social welfare system was a key feature of the 11th national economic and social development plan.

Mr Abhisit said past governments tended to roll out measures in the form of charity to help poor people. Those in power were selective as to who they wanted to help and when.

He said a social welfare state policy was intended to address social, economic and political problems.

Welfare schemes must be designed to eradicate poverty as many poor people still had no access to public health services and were still deprived of basic human needs, which contribute to social inequalities. This has adverse repercussions on national security.

Mr Abhisit said Thailand would become an ageing society in the next 20 years and the government must make preparations to ensure there were enough funds to look after elderly people.

He said the government would steer clear of populist policies as the public deserved the right to welfare provided by the state no matter who was in power.

State welfare should not be thought of as an act of politicians dispensing favours and largesse to the poor.

"State welfare is a right that the people deserve to enjoy," he said,

Mr Abhisit said a study by the Asian Development Bank showed "charity measures" only covered between 60% and 70% of the target groups while the rest were still in dire need of assistance and had been left in the lurch.He said the government must also ensure welfare schemes, which would be funded by high taxes, must not put a strain on state spending.

http://www.bangkokpost.com/news/local/196087/govt-puts-welfare-state-on-agenda

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EDITORIAL

Thailand is not ready to start a welfare state
By The Nation
19-11-2010

The govt must be wary of continuing with populist policies to secure support; we simply can't afford it.

As the lame-duck session of the US Congress kicked off this week, legislators are facing a dilemma on how to turn around the economy and cut the national debt at the same time. The dilemma is reflected in the nationwide debate over a series of measures proposed by President Barack Obama's bi-partisan commission on reducing the national deficit.

While top economists such as former Federal Reserve chairman Alan Greenspan agree with the urgent need to cut the deficit, which has risen to an alarming level, some prominent House members such as Democrat Nancy Pelosi describe the draft proposals as "unacceptable".

The proposed measures, in spite of the imperative, are politically unpopular. Americans are finding it difficult to swallow the bitter pill of US$4 trillion spending cuts to reduce the deficit by 2020. The administration proposes cutting public spending, eliminating tax breaks and raising the social security retirement age, as suggested by the commission.

The current debate in the US can tell the Thai government something about the necessity of withstanding political pressure in order put the fiscal position on sound a foundation. The bi-partisan commission, co-chaired by former senator Alan Simpson and former Clinton White House chief of staff Erskine Bowles, has suggested a series of measures such as a progressive social security system, new taxes and spending moratoriums. But these measures will certainly be unpopular if the public perceives them as a means to decrease the social benefits they are otherwise entitled to.

America is not a welfare state, but the debate over social welfare benefits is a critical issue in the nation's politics. Healthcare reform and the retirement age issues receive strong public attention because they directly affect the well-being of the people.

Most people in most countries would prefer to have the government guarantee their well-being as best it can. But in reality, most governments cannot find sufficient revenue to cover all the costs of universal healthcare and a welfare safety net. Some developed countries can provide better welfare benefits to their people than others because they finance the social security system by imposing high tax rates that bring in substantial revenue. However, tax increases are highly sensitive and politically difficult to implement. Some governments thus resort to financing social security benefits at the expense of their fiscal stability.

The Thai government has recently toyed with populist policies to win support from ordinary people. Measures have included monetary handouts to senior citizens and for infants, and the provision of free public transportation to the needy on a permanent basis.

The current government may easily forget the fact that once the public enjoys and gets used to these benefits, future governments will find it difficult to discontinue them during times of economic difficulty.

Thailand is far from able to brag about being a wealthy or even a sustainable growing nation. Thus, it is not realistic for the government to follow a generous state welfare system as implemented by some European nations that have an affluent middle-class with a large tax base. In addition, the efficiency of social welfare benefits does not solely depend on the amount of money spent, but also on whether that money is spent wisely.

As the next general election approaches, we should not be surprised to hear more politicians making promises about extra freebies for voters, especially among the lower-income population. Thailand's economic performance is still subject to risk factors arising from the global recession, so the Abhisit government must be careful not to endanger the nation's fiscal stability. The government should closely monitor its budget deficit to ensure that it does not leave future generations paying for its own indiscretion.

Even though the government claims it has the money to increase welfare benefits, including freebies that could be deemed unnecessary, what will happen when the next government faces pressure to cut spending? When people become addicted to handouts, their complaints are loud when they are forcibly weaned off them.

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PM to set social welfare measures 
The Nation: 9 Jan 2011
PM to set 'people's agenda' today

Bt17-bn welfare plan is govt's 'biggest attempt to change country for the better'

Prime Minister Abhisit Vejjajiva will today unveil what his ruling party calls the people's agenda for 2011 - a mixture of populist and social-welfare measures - which will be implemented over the next 12 months.

"It will be our biggest-ever effort to change the country for the better, especially in terms of reducing discrepancies and injustice in our society, while offering a wider social safety net and new opportunities to the people to realise their full potential," said Buranaj Smutharaks, the Democrat Party spokesman.

The message sounds like the ruling party is set to call a general election any time before Parliament completes its term late this year.

Prime Minister Abhisit was earlier expected to dissolve Parliament around March this year for the new polls to take place some time in April.

welfare package

Last Friday, a Government House source disclosed that the latest populist-cum-social welfare package would cost Bt17 billion and is aimed at 5.1 million mothers and children, workers in the informal economy, disabled persons and virtually all low-income earners nationwide.

Buranaj said all these measures will be implemented until the country holds the next polls. They will feature prominently in the upcoming election campaign launched by the party and its coalition partners in a bid for re-election.

Among the measures are:

Workers in the informal economy such as motorcycle taxis, street-side vendors and taxicabs could be soon entitled to benefits under the social security system.

They will also be granted loans from state-owned banks such as Government Savings Bank. Motorcycle taxis will be legalised to close a loophole so that police and state officials could no longer ask for bribes. Street-side vendors in selected areas of Bangkok will be granted the right to do their trade legally.

To reduce the burden of the cost of living on low-income earners, the government will cap diesel price at Bt30 per litre; extend free electricity to those using 90 or less units per month; reduce the production cost of food industry, and enforce the anti-monopoly law.

Buranaj said another set of measures will provide welfare to mothers, children, and self-employed workers nationwide.

First, there will be child development centres in every subdistrict by the year-end for children aged 3-5.

Second, the social security law will be amended to allow more workers to join so that they can benefit from the social safety net.

On education, Buranaj said the agenda is to expand formal school and vocational training opportunities so that the country has competent human resources for a brighter future. Disabled children will also be covered by the new measures.

Regarding the justice process, he said the government will set up a community justice centre at every subdistrict nationwide to help educate villagers and improve the justice mechanism, while increasing the use of social media at local and national levels to reduce inequalities.

"We'll execute these policies along with the [Pracha Wiwat] measures towards the end of this administration's term. They will be our platform in the election campaign so that voters will be reassured that these policies would be continued," he said.


http://www.nationmultimedia.com/2011/01/09/national/PM-to-set-peoples-agenda-today-30145981.html