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Siamese Twin Troubles: Structural and Regulatory Transformations in Unequal Thailand

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  • Veerayooth Kanchoochat

Abstract

This paper takes an institutional approach to inequality in Thailand by exploring the country's structural and regulatory transformations. It discusses how Thailand's transition from agriculture to industry and services has been impeded by both the demand and supply sides of government subsidies since the 1950s. The relative failure of structural transformation has slowed down economic catch‐up and widened the well‐being gap between those inside and outside the agricultural sector. Furthermore, while regulatory transformation has mitigated state‐led malaise in certain Asian economies, post‐1997 reform in Thailand has incentivized unconventional political actors, such as academics, medical doctors and civil society leaders, to make collective efforts in toppling elected governments in exchange for gaining selection into oversight agencies. The case of Thailand indicates how regulatory reform may create perverse incentives that adversely affect democratization, decentralization, competition, and taxation. Dealing with inequality therefore requires a big push toward progressive structural and regulatory transformations altogether.

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  • Veerayooth Kanchoochat, 2023. "Siamese Twin Troubles: Structural and Regulatory Transformations in Unequal Thailand," Asian Economic Policy Review, Japan Center for Economic Research, vol. 18(1), pages 47-68, January.
    • Handle: RePEc:bla:asiapr:v:18:y:2023:i:1:p:47-68
    DOI: 10.1111/aepr.12400
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    Cited by:

    1. Mercado, Rogelio & Park, Cyn-Young & Zhuang, Juzhong, 2024. "Trends and drivers of income inequality in the Philippines, Thailand, and Viet Nam since the early 2000s: A decomposition analysis," Journal of Asian Economics, Elsevier, vol. 94(C).
    2. Takatoshi Ito & Kazumasa Iwata & Cassey Lee & Colin McKenzie & Shujiro Urata, 2023. "Inequality, Social Justice and Welfare in Asia: Editors' Overview," Asian Economic Policy Review, Japan Center for Economic Research, vol. 18(1), pages 1-14, January.
    3. Richard F. Doner, 2023. "Comment on “Siamese Twin Failures: Structural and Regulatory Transformations in Unequal Thailand”," Asian Economic Policy Review, Japan Center for Economic Research, vol. 18(1), pages 71-72, January.
    4. Pasuk Phongpaichit, 2023. "Comment on “Siamese Twin Failures: Structural and Regulatory Transformations in Unequal Thailand”," Asian Economic Policy Review, Japan Center for Economic Research, vol. 18(1), pages 69-70, January.

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