NESDC proposes six urgent measures to tackle poverty and inequality

The National Economic and Social Development Council (NESDC) has released its 2024 report on poverty and inequality in Thailand, showing that although the country’s long-term poverty situation has continued to improve, the number of people living below the poverty line has risen this year.

According to the report, Thailand had 3.43 million people classified as poor in 2024, accounting for 4.89% of the total population, up from 3.41% in 2023.

The national poverty line also increased to 3,078 baht per person per month. Most of those newly falling below the poverty line were agricultural workers, representing 45.49% of the poor population, a reflection of the agricultural sector’s vulnerability to the broader economic slowdown.

The NESDC noted that this situation highlights the dynamic nature of poverty, which can shift rapidly in response to economic and social conditions, as well as natural disasters. While the rise in poverty in 2024 may be temporary, it is considered a warning signal requiring close monitoring.

The report further stated that recent poverty and inequality trends point to deep-rooted structural issues that continue to evolve and pose direct challenges to Thailand’s economic and social development.

In the 2024 fiscal year, the government allocated a total expenditure budget of 3.60 trillion baht, equivalent to 19.58% of gross domestic product (GDP), with 3.54 trillion baht successfully disbursed.

Most budget spent on social equality strategy goes to routine expenses

Under the government’s 2024 fiscal framework, the strategy for creating social opportunity and equality received the largest share of funding, amounting to 827.04 billion baht, or 23.35% of the total national budget.

However, despite the government’s consistent focus on reducing social inequality over the past five years, a closer examination shows that much of this budget was allocated to routine and ongoing expenditures rather than new structural reforms.

The NESDC report noted that a significant portion of the spending under this strategy went to local administrative grants, the National Health Security Fund, and medical expenses for civil servants, state employees and public officers.

This pattern, the agency said, reflects the limited structural impact of current government spending, indicating that deep-rooted poverty and inequality remain difficult to address effectively.

Nevertheless, the overall poverty and inequality situation in Thailand continues to reveal structural vulnerabilities across multiple dimensions, posing major obstacles to sustainable development and long-term problem-solving.

These challenges include the economic fragility of poor households, policy implementation that does not align with local contexts, and unequal access to quality public services, particularly in education, healthcare and the justice system.

To ensure that anti-poverty policies and local development initiatives deliver tangible results, the NESDC recommends that policymakers adopt an integrated and evidence-based approach that links multiple dimensions of inequality and development.

The agency emphasised that policy implementation must focus on strengthening income security, providing comprehensive and adequate social protection, promoting balanced and equitable regional development, and enhancing human capital to improve quality of life in the long term.

Among the NESDC’s key policy recommendations:

1. Regular evaluation of high-budget projects

Government agencies should give greater priority to systematic and continuous monitoring and evaluation of major public programmes.

These assessments should cover:

• Short-term outcomes, such as service accessibility and public satisfaction;
• Medium-term impacts, such as behavioural or economic improvements among target groups; 
• Long-term effects, including quality of life enhancement, inequality reduction, and the sustainability of state measures.

Such evaluations would provide empirical evidence to guide future policy decisions, allowing the government to revise or discontinue projects that are ineffective, redirect resources towards high-impact or urgent initiatives, and strengthen public transparency and trust in state budget management.

2. Developing an integrated national citizen database

The NESDC called for the acceleration of a centralised citizen data system that can systematically connect databases across all government agencies.

A comprehensive and unified database, it said, would address long-standing problems of fragmented and inconsistent data collection by individual departments. To achieve this, the government must set clear standards for data collection and sharing, and establish strong governance mechanisms to protect citizens’ personal information.

Such a system would enable authorities to accurately assess public needs, support targeted welfare delivery and human capital development, and reduce budget duplication and repetitive registration processes for multiple government schemes.

It would also allow the state to track demographic and socio-economic changes across different life stages, ensuring that public services are inclusive, equitable and responsive to citizens’ real circumstances.

3. Investing in essential infrastructure for sustainable agricultural development

The NESDC emphasised that assistance for poor farming households should focus on building long-term self-reliance, through a combination of complementary measures, including:

Conditional financial support – Providing targeted cash assistance tied to participation in skill training or production restructuring programmes.

• Market access and bargaining power – Promoting fair and direct market channels for farmers by enhancing their capacity in market management and supporting digital platforms that connect producers directly with consumers.
• Technology and innovation – Expanding farmers’ access to agricultural technology and innovation through low-interest loans or co-payment subsidies for small-scale producers.
• Land and water management reform – Investing in land reform and water infrastructure to ensure production stability and mitigate the risks posed by natural disasters.

4. Performance-oriented human capital development

The NESDC stressed that improving the quality of education tools and systems in the long term should focus on outcome-based human capital development, emphasising practical skills, lifelong learning, and employability.

The council proposed two key approaches:

• (1) Developing comprehensive learning assessment tools – Education evaluation systems should reflect students’ full potential, not only their mastery of core curricula but also their ability to think critically, solve problems creatively, collaborate effectively, and use digital technology proficiently.
• (2) Integrating education databases – A centralised data system linking individual student assessments with school and institutional information should be established. This would enable continuous monitoring of individual learning progress and outcomes, and support evidence-based school improvement planning.

The NESDC also encouraged the expansion of “Learn to Earn” education models, which combine learning with income-generating opportunities, to help students from low-income families remain in school and reduce the risk of dropping out.

A key part of this approach involves strengthening the national credit bank system, ensuring it is unified and standardised across the country. This would allow students to transfer credits between institutions, across formal and informal learning systems, and from real work experience.

Furthermore, the council highlighted the importance of vocational apprenticeship programmes, structured long-term training under expert supervision, designed to cultivate specialised and practical skills that enable participants to build stable careers. This differs from short-term internships, which primarily aim to provide exposure and general experience rather than professional mastery.

5. Enhancing healthcare capacity under the S-A-P service model (Standard–Academy–Premium)

The NESDC recommended that public health budget allocation be guided by the S-A-P healthcare service model, which focuses on optimising the roles and capacities of different service units. The three-tier system is defined as follows:

• S (Standard): General and community-level healthcare facilities providing essential medical services to the public.
• A (Academy): Institutions responsible for medical education, personnel training, and academic research in health sciences.
• P (Premium): Advanced medical facilities comparable to teaching hospitals, equipped to deliver specialised and high-complexity treatments.

According to the NESDC, adopting this model would ensure that resource allocation corresponds to the functional capacity of each service level and promotes equitable healthcare coverage across all regions.

The council also urged stronger promotion of public–private partnerships (PPP) in the health sector, such as allowing private firms to invest in or manage certain hospital services under contractual arrangements. This approach could be particularly effective in developing pharmaceuticals and medical devices, helping reduce reliance on imports and boosting domestic innovation.

In addition, the NESDC emphasised the importance of local participation in healthcare delivery. Local administrative organisations should be encouraged to contribute through logistical support, patient transport, staff provision, and community-based health promotion and disease prevention programmes.

These initiatives, the agency said, would enhance the overall quality, accessibility, and equity of Thailand’s healthcare system, while promoting more efficient use of limited public resources.
 
6. Developing systemic mechanisms to reduce hidden costs in access to justice

The NESDC recommended that the government establish systematic mechanisms and measures to address the hidden costs and procedural barriers that citizens face when accessing the justice system, including excessive fees, lengthy processes, and administrative complexity.

The council suggested that several measures should be implemented in parallel, including:

• (1) Public communication and legal awareness – Expand communication channels and public education on citizens’ legal rights and the fundamentals of judicial procedures. This should be done continuously through diverse media such as radio, television, and digital platforms. The goal is to empower citizens to understand and defend their rights more effectively.
• (2) Enhancing legal aid mechanisms – Strengthen the quality and efficiency of legal aid services by improving the professional capacity of public defence lawyers and establishing a more specialised case-matching system, ensuring lawyers are assigned based on their expertise. This would help increase efficiency in legal proceedings and reduce inequality in access to justice.