Millions at risk of multidimensional poverty, reports NESDC

 

Despite significant progress in reducing poverty rates by more than half, Thailand faces a critical challenge as around 24 million citizens remain vulnerable to multidimensional poverty, according to the latest report from the Office of the National Economic and Social Development Council (NESDC).

 

The comprehensive analysis of Thai social conditions reveals that while the nation has made remarkable strides in alleviating poverty over the past decade, complex challenges persist beneath the surface of these improving statistics.

 

 

Poverty Profile Shows Mixed Progress

Data from 2023 indicate that Thailand has 6.13 million people experiencing multidimensional poverty – representing 8.76% of the total population – a figure that demonstrates the country has successfully halved its multidimensional poverty rate since 2015.

 

However, a closer examination of the data presents a more nuanced picture. The NESDC categorises the nation's disadvantaged populations into three distinct groups: those experiencing financial poverty only, those facing multidimensional poverty only, and those struggling with both challenges simultaneously.

 

Of the 7.17 million Thais classified as poor in 2023, about 4.78 million face multidimensional poverty without financial hardship, while 1.04 million experience financial poverty exclusively. 

 

Most concerning are the 1.35 million citizens – representing 18.8% of the total poor population – who contend with both financial difficulties and quality of life challenges, making their path out of poverty particularly arduous.
 

 

 

Millions on the Precipice

Perhaps most alarming is the identification of a vast at-risk population. The NESDC report highlights that more than 24 million Thais – 34.7% of the country's population – stand at risk of falling into multidimensional poverty.

 

"Most currently identified as multidimensionally poor are classified as 'mildly poor', experiencing deprivation in more than one but fewer than two of the four measured dimensions," explained NESDC secretary general Danucha Pichayanan. "This suggests significant opportunity for further poverty reduction, but also underscores the precarious position of millions more citizens."
 

 

Regional analysis reveals that those most vulnerable are concentrated in the Northeast and Central regions, with pension insecurity, inadequate waste-disposal systems and limited asset ownership emerging as common challenges.

A striking 70.5% of near-poor citizens in the Northern and Northeastern regions lack pension security, significantly higher than the 57.4% average observed in other parts of the country.

 

 

 

Financial Security: The Critical Challenge

The NESDC report emphasises that financial security has become the predominant factor affecting multidimensional poverty, particularly in Bangkok, where it ranks as the most significant contributor to poverty, followed by living conditions and education.

 

"Despite continued government efforts to enhance financial literacy and retirement planning, pension insecurity remains the highest-ranked deprivation since 2017," Danucha noted.

 

In 2023, 7.06% of multidimensionally poor people lacked pension coverage.

 

 

Current challenges include difficulties in integrating informal workers into formal security systems and addressing the changing work patterns of younger generations that may leave future workers without adequate retirement provisions.

 

The ongoing economic uncertainty, combined with persistently high household debt levels, further threatens to increase financial burdens whilst reducing savings capacity across vulnerable populations.

 

 

 

Tailored Regional Approaches Required

The report stresses that standardised nationwide policies may fail to address the diverse challenges faced by different regions. 

 

For instance, adjacent provinces often present markedly different poverty profiles; Phitsanulok province struggles primarily with waste-management issues, while neighbouring Uttaradit faces significant pension-coverage gaps.

 

"Policy implementation must prioritise region-specific challenges," Danucha concludes. "Moreover, isolated interventions may prove ineffective due to the interconnected nature of poverty factors, such as financial burdens affecting savings capacity, asset ownership and food security."