Conflict, Legitimacy and Government Reform: Equitable Allocation of ...

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0.50 0.40 0.30 Philippines Indonesia Malaysia Diagram 3 Diagram 3 Gini coefficients of household income, selected Southeast Asian countries Panel Discussion Thailand 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 Why does Thailand become a society with huge inequality? Source: Adapted from a graph prepared by Hal Hill, ANU Why does Thailand become a society with huge inequality? Professor Professor Simon Simon Kuznets Kuznets studied studied a a connection connection between between economic economic prosperity prosperity and income and income distribution distribution in the in United the United States, States, Germany Germany and and United Kingdom. United It was Kingdom. observed It was that observed when these that when countries these began countries to develop began to during the early develop days, during income the per early capita days, income perked per up capita and income perked inequality up and income remained high. inequality However, when remained further high. development However, when took further place, development income per capita took has increased place, constantly. income per Up capita to certain has increased points, constantly. inequality Up declined to certain gradually. points, He explained inequality many declined reasons gradually. attributed He to explained such occurrence. many reasons First, attributed during to early stages such of economic occurrence. development, First, during savings early stages concentrated of economic in development, a small group of people savings that could concentrated invest to in generate a small group more income of people than that others. could Second, invest to some economic generate fields more have income higher than productivity others. Second, than others. some economic For instance, fields have industries grew faster higher productivity than the agricultural than others. sector. For instance, When industrialization industries grew faster progressed than at an accelerated the agricultural rate, income sector. of When workers industrialization in these fields progressed increased at a an faster rate compared to other fields, leading to inequality. Third, in urban areas, income of workers in different occupations varies. Skilled workers can increase their wages above unskilled workers and profits 47 9
48 KPI Congress XI accelerated rate, income of workers in these fields increased at a faster rate compared to other fields, leading to inequality. Third, in urban areas, income of workers in different occupations varies. Skilled workers can increase their wages above unskilled workers and profits of employers who are factory owners increase at an accelerated rate, thus widening inequality. Up to a certain point, these inequality would decline gradually due to several reasons. For instance, when saving concentration dissipates because other groups have higher income and higher saving opportunities. At the same time, new groups with greater economic power that become successful demand the government to implement public policies to mitigate income inequality. As for Thailand, Duangmanee Laowakun applied Kuznets’ method to calculate income level that might be a turning point that could reduce income inequality value. It was found that this probable threshold might be the income per capital of 45,215 baht in 1994 (Duagmanee and associates, 2009: 3-22) 2 and it was found that genie coefficients showed a declining trend during 1991-1998 but the values perked up again in 2000 and 2006. Therefore, such turning point did not really occur. Why has income distribution inequality in Thailand not been reduced as envisaged in Kuznets’ study? History tells us that there are two different approaches to mitigate income inequality. One way is to use taxation and money transfer to create wealth and income equality. Another approach is to allow social forces to exert pressure to mitigate inequality, for example, a labor union succeeds in negotiating for a higher wage with the employer. In practice, many countries use both approaches, that is, having both public policy and social pressure. The countries studied by Kuznets showed a more equitable income distribution because those in power, that is, governments were pressured 2 Pranee’s study (2002) also adopted Kuznets’ concept. It was found that the turning point likely occurred in 1993 when annual income per capita was 40,436 baht.
Page 1: Conflict, Legitimacy and Government
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Page 9 and 10: 8 KPI Congress XI Group 3: Judicial
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Page 14 and 15: Conflict, Legitimacy and Government
Page 22 and 23: KPI Congress XI Program Conflict, L
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Page 32 and 33: His Royal Highness Crown Prince Mah
Page 36: Panel Discussion on Conflict, Legit
Page 39 and 40: 38 KPI Congress XI Professor Dr. Kr
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Page 53 and 54: 52 KPI Congress XI A good taxation
Page 55 and 56: 54 KPI Congress XI Even though dire
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98 KPI Congress XI Creating a merit
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100 KPI Congress XI government inve
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102 KPI Congress XI on the drafting
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104 KPI Congress XI tool through wh
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106 KPI Congress XI a web-site link
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108 KPI Congress XI Examples of loc
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110 KPI Congress XI fairness which
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112 KPI Congress XI implementing ru
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114 KPI Congress XI The World Movem
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Government and Political Legitimacy
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124 KPI Congress XI (3) Prohibition
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126 KPI Congress XI government stab
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128 KPI Congress XI local resources
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130 KPI Congress XI rights to the l
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132 KPI Congress XI governments as
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134 KPI Congress XI administrative
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Reform of Economic Policy for Reduc
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Group 3 Judicial Review and Judicia
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142 KPI Congress XI enhanced by a c
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Judicial Activism Judicial Review a
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Judicial Review and Judicial Activi
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Judicial Review and Judicial Activi
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Group 4 Innovation for Political Co
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154 KPI Congress XI Pride is consid
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156 KPI Congress XI 1) Perception o
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158 KPI Congress XI sustainable sol
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160 KPI Congress XI Recommendation
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Citizen Politics in Checking of the
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The Strategy of Public Administrati
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Bureaucratic Reform Dr. Pheeraphon
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Group 7 Reforming Local Government
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180 KPI Congress XI media. In the p
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182 KPI Congress XI informal worker
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184 KPI Congress XI opened up for a
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186 KPI Congress XI community organ
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188 KPI Congress XI 6. Amend the lo
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Biographical Information
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194 KPI Congress XI Others Certifie
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196 KPI Congress XI Bovornsak Uwann
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198 KPI Congress XI Corruption in t
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200 KPI Congress XI Positions: Educ
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204 KPI Congress XI Current positio
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