ID :
49351
Fri, 03/06/2009 - 21:09
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http://m.oananews.org//node/49351
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Economists: Stimulus packages don't reach truly vulnerable
BANGKOK, March 6 (TNA) - The economic stimulus packages introduced by successive Thai governments are not well-targeted to reach really ‘vulnerable’, and the government should invest in a system to compile information on the most vulnerable portion of the population, according to Thailand’s leading economists.
The comments were made in a seminar on ‘Economics Shocks and the Vulnerable in Thailand: A Case Study of Rising Food and Fuel Prices,’ organised by the Office of the National Economic and Social Development Board (NESDB), Thailand Development and Research Institute (TDRI) and the United Nations Country Team for Thailand.
Professor Dr. Ammar Siamwalla, TDRI distinguished scholar, said that unlike the 1997 economic crisis which first affected the financial institutions and the middle-class, this time, the most vulnerable people, that is the poorest of the poor, are first group being hard hit due to the rapid increase in food and fuel prices.
Dr. Ammar said the TDRI report indicated that the range of subsidies introduced by successive Thai governments to help citizens during the economic slowdown were meant to support only household expenditures. For example, the ‘Six Months Six Measures’ stimulus packages which ended last month offered subsidies for transport and utilities, but no provision for basic food items, which are really needed by the most vulnerable.
The report also found that the measures launched by both the previous and incumbent governments are not well-targeted due to lack of up-to-date information on numbers, location and situation of the poorest sectors of population.
The report also suggested that cash transfers are an efficient and effective mechanism for cushioning the impact of economic shocks on vulnerable groups, as seen being implemented in other countries.
In Thailand however, no large scale cash transfer programmes have been introduced due to the difficulties in targeting those most in need.
Meanwhile Dr. Ekniti Nitithanprapas, senior expert on macroeconomic policy in the Ministry of Finance, said that the database of the really vulnerable is needed in order for the government to inject the right remedy to those who suffer in the economic shock.’
Dr. Ekniti noted there is an estimated 37 million persons in the labour force in Thailand, but 23 million of those are not registered, and thus excluded from all kinds of assistance.
They do not ‘exist’ as far as the 30-baht health care scheme and social security system are concerned.
Those who registered for social security benefits are bureaucrats and private employees, he noted. They benefit from many stimulus packages, but not so with the vulnerable and at-risk lower-income population, including upcountry farmers and the homeless in urban areas, he said.
Dr. Ekniti suggested that if the comprehensive database of vulnerable groups is compiled, any government will be able to lay out an appropriate national development plan, as well as find appropriate and timely solutions to any economic crisis. (TNA)
The comments were made in a seminar on ‘Economics Shocks and the Vulnerable in Thailand: A Case Study of Rising Food and Fuel Prices,’ organised by the Office of the National Economic and Social Development Board (NESDB), Thailand Development and Research Institute (TDRI) and the United Nations Country Team for Thailand.
Professor Dr. Ammar Siamwalla, TDRI distinguished scholar, said that unlike the 1997 economic crisis which first affected the financial institutions and the middle-class, this time, the most vulnerable people, that is the poorest of the poor, are first group being hard hit due to the rapid increase in food and fuel prices.
Dr. Ammar said the TDRI report indicated that the range of subsidies introduced by successive Thai governments to help citizens during the economic slowdown were meant to support only household expenditures. For example, the ‘Six Months Six Measures’ stimulus packages which ended last month offered subsidies for transport and utilities, but no provision for basic food items, which are really needed by the most vulnerable.
The report also found that the measures launched by both the previous and incumbent governments are not well-targeted due to lack of up-to-date information on numbers, location and situation of the poorest sectors of population.
The report also suggested that cash transfers are an efficient and effective mechanism for cushioning the impact of economic shocks on vulnerable groups, as seen being implemented in other countries.
In Thailand however, no large scale cash transfer programmes have been introduced due to the difficulties in targeting those most in need.
Meanwhile Dr. Ekniti Nitithanprapas, senior expert on macroeconomic policy in the Ministry of Finance, said that the database of the really vulnerable is needed in order for the government to inject the right remedy to those who suffer in the economic shock.’
Dr. Ekniti noted there is an estimated 37 million persons in the labour force in Thailand, but 23 million of those are not registered, and thus excluded from all kinds of assistance.
They do not ‘exist’ as far as the 30-baht health care scheme and social security system are concerned.
Those who registered for social security benefits are bureaucrats and private employees, he noted. They benefit from many stimulus packages, but not so with the vulnerable and at-risk lower-income population, including upcountry farmers and the homeless in urban areas, he said.
Dr. Ekniti suggested that if the comprehensive database of vulnerable groups is compiled, any government will be able to lay out an appropriate national development plan, as well as find appropriate and timely solutions to any economic crisis. (TNA)
