ABSTRACT

The Thai welfare state system, when one looks at it from a closer point of view, is very different from many other welfare state systems in developing countries. It shares, however, the overall features of the East Asia welfare model (where Bismarckian features mix with an increasing part of universal social security elements and a strong commitment to government finance in education and health care). The recent history and the overall focus of the Thai welfare state system are unique, as is its transition from democracy to military rule in recent years. During the Thaksin Shinawatra administration, the government started to focus a great deal on poverty reduction, using direct redistribution features, especially with regard to welfare benefits to older citizens, people with handicaps and people infected by HIV/Aids, while providing almost-free, and later free, health care to all and expanding the years of free education for all. The health care system expenditure has been held at stagnant levels (it features universal coverage, but differentiation of benefits along Bismarckian lines), and education is still a main focus of government spending in social policy. The financing of the Thai welfare state system largely relies on the VAT income of the government (which is different from most other countries in Asia) and has, therefore, slightly regressive effects. There is room for improvement in the welfare systems, especially administration-wise. By and large, Thailand exhibits a rather strong commitment to social investment and providing social welfare to the poor and needy. The future of its welfare state system, like its recent past, is dependent on the future path of government rule: democracy or not (or, better, how much of it), and who are going to be the main players in power.