Boosting productivity and living standards in Thailand

Abstract

This document, as well as any data and map included herein, are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area.

Making growth more inclusive in Thailand

“…Almost a quarter of Thailand's poor are children, and 15% of people aged over 75 live below the national poverty line (United Nations, 2017;World Bank, 2016a). Recent and projected increases in economic growth (Koen et al, 2018) will enable Thailand to further reduce poverty and inequality. Prioritising policies that improve job quality and opportunities, social safety nets and educational achievement, especially in disadvantaged regions, will help ensure that growth translates into better well-being outcomes for all citizens.…”

“…One third of private sector workers and over half of young and low-skilled workers received wages below the minimum rate in 2013 (Lathapipat and Poggi, 2016). An education and professional qualification system that inadequately prepares workers for the labour market (described below) as well as low productivity levels are likely to be contributing factors to low wages (Koen et al, 2018). Meanwhile, there is room to improve other forms of labour protection, which are less developed than in OECD countries.…”

“…Improving education outcomes is essential to address inequality and to boost economic growth through the development of human capital (Koen et al, 2018). Indeed, the government has identified the need to improve the education system as a means for realising its strategic Thailand 4.0 vision.…”

“…Thailand is further establishing vocational education schemes on a bilateral basis between regional chambers of commerce and relevant public institutions in an effort to meet labour demands in the agricultural and services sectors. This includes developing new curricula to respond to the needs of the ASEAN Community and industries within special economic zones (Koen et al, 2018;United Nations, 2017). Although the government's programmes are promising, TVET students need to acquire generic, transferrable skills (particularly in numeracy and literacy) alongside the specific on-the-job training.…”

Sustainable finance for inclusive growth in Thailand

“…Thailand's current fiscal position is sound (Koen et al, 2018), but its population is ageing much faster than in comparator countries. With rising life expectancy and low fertility rates (1.5 child per woman (World Bank, 2017b)), Thailand's dependency ratio is more in line with high-income countries such as Korea and Singapore, than other regional emerging economies such as Indonesia, the Philippines, Malaysia or Viet Nam (Figure 1).…”