Thailand is known as the country with the second-largest economy among all nations in Southeast Asia. As a result of this, you would expect the country to be quite rich to an extent, but this is not true as the poverty level in this country is quite significant. But why is Thailand so poor when compared to developed nations around the globe?
Basically, Thailand is poor because the country has been experiencing various economic woes for several decades. As a result of this, lots of people in the country are struggling to make ends meet or lead a quality life regardless of how much they work. Imbalanced development, environmental problems, corruption, political instability, and poor educational system are other factors contributing to the rising poverty level of the Land of Smiles.
However, it is noteworthy that Thailand is still richer and better than the majority of the countries in Southeast Asia. And this is why numerous people from neighboring Southeast Asian countries flock to Thailand to find better opportunities and improved living conditions. Nevertheless, this doesn’t overshadow the fact that Thailand is a poor country.
How poor is Thailand?
Before explaining why Thailand is so poor, it is paramount to first consider how poor the country is. According to World Bank, the poverty rate of Thailand was 65% in 1988. As the living condition of the country improved, the rate fell to 7.2% by 2015.
However, due to some poor economic and political decisions, the poverty rate of Thailand has increased to 9.8 by 2018. This means that almost 2 million new individuals had joined the poor people in the country. So, as the number of poor people in Thailand increased, the number of the middle class or rich people fell. It is believed that this trend also continues today.
The reasons why Thailand is so poor
Having noted how poor Thailand is, it is crucial to look at some of the reasons behind the rising poverty level of this Southeast Asian country. The most notable reasons are:
- Poor economy
Over the past few years, Thailand has been experiencing stunted economic progression. For instance, in 2018, the World Bank noted that the GDP of this country only grew by 4.1%; hence, Thailand had one of the lowest GDP growth in Southeast Asia. Besides, the country has continued to witness a huge inequality between the rich and the poor.
- Imbalanced development
According to Borgen Project, Thailand is so poor because the development in the country is not widespread. Instead of developing different parts of the nation, the government is fixated on improving Bangkok and a few other urban areas. As a result of this, the poverty rate of the people in the rural areas is growing at a rapid rate.
Let’s talk about the disparity in Bangkok and other parts of the country. Generally, only around 10% of all individuals in Thailand live in Bangkok, but the capital city is responsible for over 50% of the GDP of the country. Also, the city has trains and other functioning public transportations, but this doesn’t apply to most other places in the country.
- Unfavorable environmental condition
Another factor behind the rising poverty level of Thailand is unfavorable environmental conditions. As noted by NASA, many countries are dealing with some droughts in recent years, and Thailand is one of those countries. Since about 32% of the workforce in Thailand is into agriculture, it is not strange that the unfavorable environmental conditions are affecting lots of people.
In addition, tsunamis, floods, and other natural disasters caused lots of issues in Southeast Asia many years ago. Even today, the region is not entirely free of these diseases. So, the people of Thailand are still struggling to recover from these issues as the country does not offer enough safety nets.
- Political instability
The effect of politics on the economic growth of a country cannot be overemphasized. Unfortunately, Thailand has been politically unstable for several decades. In the 1970s, the country was brought to a standstill numerous times by the communist guerillas.
In addition, Thailand had witnessed 19 successful military coups in less than 90 years. Many of these military regimes placed stringent restrictions on local and foreign businesses. As a result of this, many businesses went bankrupt or stopped operating in the country.
Over time, the political instability of Thailand has contributed to how poor the country is.
- Corruption
From civil servants to police officers, politicians, army generals, etc., lots of individuals in Thailand are corrupt. Most individuals in the country are looking for ways to get their shares of the national wealth. As a result of this, many people look for ways to cut corners to make tons of money in Thailand. Unfortunately, this has made lots of people to be poor as the national wealth of Thailand is only shared by a few privileged and corrupt individuals.
- Poor educational system
When it comes to the educational system, Thailand is undoubtedly one of the worst-performing countries in Asia. Since most teachers in the country are grossly underpaid, they are hardly committed to their jobs. The working condition is not only poor and hardly regulated. All these factors have affected the quality of education that students can get from educational institutions in the Land of Smiles.
- Lack of viable middle-class families
In Thailand, there is no real middle class that can be compared to the middle class of the Western countries. Most working-class individuals only make around $300 each month. Only a few university graduates or skilled individuals make up to $1,000 per month in the country.
As a result of little or no middle class, Thailand has remained a poor nation.
You can also check Quora to learn more about some of the reasons suggested for why Thailand is poor.
Conclusion
Based on the information above, Thailand is so poor because of the poor economy, corruption, political instability, imbalanced development, and unfavorable environmental condition. So, these issues must be first addressed if Thailand will ever become a rich country.
