Millions of people in Thailand risk falling into poverty

Thailand is facing a major challenge, as around 24 million citizens are at risk of falling into poverty.

According to the latest report from the National Economic and Social Development Council (NESDC):

Despite significant progress in reducing poverty rates by more than half, Thailand faces a major challenge as around 24 million citizens remain vulnerable to multidimensional poverty.

The comprehensive analysis of social conditions in Thailand reveals that, while the country has made remarkable progress in reducing poverty over the past decade, complex challenges persist beneath the surface of these improving statistics.

The poverty profile shows mixed progress

Thai family. Photo: Aphiluck Puangkaew – UNICEF

The 2023 data indicate that Thailand has 6.13 million people in multidimensional poverty, or 8.76% of the total population, a figure that shows that the country has succeeded in halving its multidimensional poverty rate since 2015.

However, a more in-depth examination of the data presents a more nuanced picture.

The NESDC classifies the country's disadvantaged populations into three distinct groups:

1. Those who are faced only with financial poverty;
2. Those who are faced only with multidimensional poverty;
3. Those who are facing both of these challenges simultaneously.

Of the 7.17 million Thais classified as poor in 2023, around 4.78 million face multidimensional poverty without financial difficulties, while 1.04 million experience financial poverty exclusively.

The most concerning are the 1.35 million citizens, representing 18.8% of the total poor population, who are facing both financial difficulties and quality of life issues, making their escape from poverty particularly challenging.

Millions of people on the brink

A homeless person uses a poster as a bed on Sukhumvit Road in Bangkok. Photo: Yokin Charoenying

The most alarming thing is perhaps the identification of a large population at risk.

The NESDC report highlights that more than 24 million Thais, or 34.7% of the country's population, are at risk of falling into multidimensional poverty.

The Secretary-General of NESDC, Danucha Pichayanan, explained:

« Most people currently identified as being in a situation of multidimensional poverty are classified as « slightly poor », that is to say they are faced with deprivations in more than one, but less than two of the four dimensions measured.

This suggests that there are significant opportunities to further reduce poverty, but also highlights the precarious situation of millions of other citizens.

The regional analysis reveals that the most vulnerable people are concentrated in the northeastern and central regions.

In these regions, insecurity of retirement, inadequacy of waste disposal systems, and limited ownership of assets appear to be common challenges.

A striking 70.5% of citizens near the poverty line in the northern and northeastern regions do not have retirement security, which is significantly higher than the average of 57.4% observed in other regions of the country.

Financial security: the major challenge

People shop at a market in Bangkok. Photo: Reuters

The NESDC report highlights that financial security has become the predominant factor in multidimensional poverty, particularly in Bangkok, where it is considered the most important factor, followed by living conditions and education.

Despite the government's ongoing efforts to improve financial education and retirement planning, retirement insecurity remains the most significant deprivation factor since 2017, noted Danucha.

In 2023, 7.06% of people in multidimensional poverty did not have retirement coverage.

Current challenges include difficulties in integrating informal workers into formal security systems and responding to changes in the work patterns of younger generations that could leave future workers without adequate retirement arrangements.

The current economic uncertainty, combined with still high levels of household debt, threatens to further increase financial burdens while reducing the savings capacity of vulnerable populations.

Adapted regional approaches are necessary

Inhabitants of a slum along the railway tracks in central Bangkok. Photo by Mladen Antonov – AFP

The report highlights that standardized national policies may not be able to address the various challenges faced by different regions.

For example, neighboring provinces often have very different poverty profiles:

The province of Phitsanulok is mainly faced with waste management problems, while the neighboring province of Uttaradit is faced with significant gaps in pension coverage.

« Policy implementation must prioritize the specific challenges of each region », concludes Danucha.

« In addition, isolated interventions may prove ineffective due to the interdependence of poverty factors, such as financial burdens that affect savings capacity, asset ownership and food security. »

See also:

Thailand: one in ten children faces severe food poverty

Thailand wants to reduce poverty through the sufficiency economy

Poverty is declining in Thailand

How poverty has been halved in Thailand

The plan to end the poverty pandemic in Thailand

The Chinese solution to poverty presented as a model for Thailand

Source: The Nation Thailand