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

government to pursue public policies to mitigate inequality. 3
Panel Discussion
In Thailand, groups led by a small number of people could usurp
power and resist changes. During the past few decades, monopolized
powers were concentrated in the centralized bureaucracy and commercial
military systems. (Riggs, 1964; Chai-Anan, 1982; Chambers, 2009)
Even after a parliamentary system was developed, the system has been
controlled by a small number of businessmen and retired bureaucrats
(both civilian and military alike). The military still plays a major role in
Thai politics, can stage a coup to abolish a constitution and elected
parliament, and impede sustainable democratization. No one in the
power center wants to solve inequality problems. Those who desire to
change this never got a chance to enter the power center. There might be
some discussion about inequality issues in an economic and social
development plan like the eighth plan. Later, there would be no
implementation of any public policy to tackle inequality problems in
earnest, not a single policy. In other words, we still lack a political will.
How can we progress?
I’ll leave political will for the time being and turn to review the
mechanisms that can help mitigate income inequality, that is, taxation
system or revenue generated from taxes and public expenditure (resource
allocation). Collectively, they are referred to fiscal policy.
A fair society must have a taxation system that is acceptable and fair.
However, it doesn’t mean that taxes must be collected from the rich just
to give it to the poor. Since the rich are wealthier, they can pay more,
that is, status-based taxation while gained benefits must not be less than
others. This means the rich must be taxed at an acceptable fair ratio.
3 In Thailand, labor unions succeeded in pressuring the government to pass the
social security act that applies to workers in formal sectors in 1988 after 30 years of
campaigning. However, since the scheme covers only a small portion of workers, it has
not contributed much to income distribution.
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