Development success story
Thailand – Property
Over the past four decades, Thailand has made remarkable progress in social and economic development, moving from a low-income to a high-income country in just one generation.
As such, Thailand has been widely cited as a development success story, with sustained strong growth and impressive poverty reduction. The Thai economy grew at a median annual growth rate of 7.5 % during the boom years from 1960 to 1996 and 5 % between 1999 and 2005, in the wake of the Asian financial crisis. This growth created a variety of jobs that helped lift many people out of poverty.
Progress in many areas of social assistance has been impressive: more children now have more years of education, and almost all of them are now covered by insurance, while other types of social insurance have expanded. Thailand’s economic growth is expected to accept the year 2020 due to the impact of the COVID-19 (coronavirus) epidemic, through a decline in external demand affecting trade and tourism, supply chain disruptions, and a weakening of domestic consumption. Poverty has decreased significantly over the last 30 years, from 65.2 % in 1988 to 9.85 % in 2018 (according to official national estimates).
However, both rising household incomes and consumption growth have slowed nationally in recent years. This has led to a reversal of the trend in poverty reduction in Thailand as the number of people living in poverty has increased. Between 2015 and 2018, Thailand’s poverty rate fell from 7.2 % to 9.8 %, and the absolute number of people living in poverty increased from 4.85 million to 6.7 million. The increase in poverty in 2018 was widespread – it occurred in all regions and in 61 of the 77 provinces. The conflict-affected South became the region with the highest poverty rate for the first time in 2017. Inequality – as measured by the Gini coefficient – increased between 2015 and 2017. During this period, the average per capita household consumption increased, but consumption by 40% of the population living below the poverty line decreased. According to the World Bank’s Human Capital Index, which measures the level of productivity of the next generation of workers relative to their full potential if all education and health outcomes were maximized, the uneven quality of education could be a major challenge for Thailand. A Thai child born today can expect to complete 12.4 years of schooling by the age of 18. However, when corrected for learning quality, this represents only 8.6 years of schooling, indicating a window of opportunity of 3.8 years. In Thailand, the survival rate for adults ages 15 to 60 is lower than in more than half of the countries where such data are available. Over the past 15 years, the prevalence of diabetes and hypertension in Thailand has tripled and quadrupled, respectively, and, combined with high rates of road traffic injuries, has had a negative effect on adult survival rates. Only 85% of 15-year-olds are expected to measure their age after age 60.
The year 2020 marks the beginning of the implementation of the new Thailand – World Bank Group Country Partnership Framework (CPF) FY19-FY22. In 2019, the planet Bank and also the Kingdom of Thailand celebrated the 70th anniversary of their partnership. Since Thailand became the 47th member of the globe Bank on May 3, 1949, the kingdom of Thailand and also the UN agency Group have built a powerful and productive partnership which has evolved from one focused on traditional lending and advice into an innovative knowledge-based partnership that reflects Thailand’s dynamic middle-income status. The CPF supports Thailand’s 20 Year National Strategy (2017-2036) that focuses on key economic and social reforms to finish poverty and boost shared prosperity. The overarching goal of the CPF is to support Thailand’s transition to an innovative, inclusive and sustainable economy. it’s six objectives: Improving the business environment through the promotion of competition and innovation Strengthening fiscal and economic institutions Enhancing the standard of infrastructure investments Addressing global climate change and water resources management Promoting quality education Supporting the inclusion of vulnerable groups, particularly within the fragile, conflicted areas of Southern Thailand The current IBRD portfolio in Thailand consists of Trust Funds and Advisory Services and Analytics (ASA). Currently, there aren’t any loans within the portfolio. As of March 2020, trust funds amounted to US$4.95 million with activities supporting the environment sector and peacebuilding in Southern Thailand. Eight active ASAs including one Reimbursable consulting service (RAS) engagement cover macroeconomic analysis, marine plastics, education, productivity, social protection, poverty assessment and inclusion. Thailand is that the 2019 Chair of ASEAN, under the theme “Advancing Partnership for Sustainability.” the globe Bank is supporting the country’s chairmanship in several priority areas including human capital development, malnutrition and stunting, regional connectivity, and marine plastic debris. The International Finance Corporation (IFC) – the planet Bank Group institution that has the financing to the private sector – is guided by its 3.0 strategy framework. Key focus areas for IFC engagement include (i) infrastructure, with a particular concentrate on leveraging public-private partnerships; (ii) innovation to accelerate access and affordability of reliable broadband services and insurance products; (iii) green growth which places a premium on technology and increased climate finance to assist Thailand to produce a more resilient growth model; (iv) sustainable cross-border development; and (v) strengthening the enabling business environment so it helps leverage greater commercial financing which maximizes public resources.
The World Bank is partnering with Thailand to address the challenges that affect people’s daily lives through joint grants with local organizations, international agencies, think tanks and academic institutions.
Projects funded by World Bank grants have supported peacebuilding efforts in southern Thailand, where conflict has claimed 6,000 lives since 2004. Implemented in 27 communities, the project in the three southern provinces of Pattani, Narathiwas, and Yala has helped demonstrate the value of community development and capacity building in fostering understanding and improving the ability of civil society to engage effectively with the state.
Another grant-funded project aims to help the Thai industry reduce the use of ozone-depleting warming gases. The HCFC phase-out project, recently completed at the peak of 2019, has enabled more than 80 small and medium-sized foam manufacturers to switch their production technology to non-ozone-depleting, low-warming impact alternatives.
Thailand also joined the World Bank Group’s Market Readiness Partnership, a global natural action alliance of more than 30 nations to reduce greenhouse gas emissions and energy consumption. Thailand also received a $3.6 million grant from the World Bank’s Forest Carbon Partnership Facility to manage and protect its forests.
Under the Reimbursable Advisory Services (RAS) agreement, the World Bank supported the Office of Insurance Commission’s self-assessment of current insurance regulatory and supervisory practices and provided advice on consistency with international standards. This has helped to create an environment in which the insurance sector can develop effectively and better protect the poor from risks and losses. Other work carried out under the SIR included improving Thailand’s rail sector, advising on reforms to Thai enterprises, and improving public spending in the education sector.