Not leaving Anyone Behind : Going Beyond GDP recovery growth

Business news in Thailand.

Not leaving Anyone Behind : Going Beyond GDP recovery growth
Thai Business Box

Not leaving Anyone Behind : Going Beyond GDP recovery growth

Written By - Patara Manas.

Pre-pandemic, with the existence of a yawning economic inequality gap very much established in Thailand, it can be argued that we have already left many behind.

Past policies have enabled economic resources to be concentrated at the very top of  Thailand’s income and wealth ladder. 

Those who start with economic advantages are able to design a system of economic inequality that preserves and amplifies their position at the top, to the detriment of  the rest of the public.

To avoid that same outcome on the other side of the coronavirus economy, policymakers’ response today will be most effective if directed at the roots of these underlying problems of economic inequality and not just in pursuit of GDP growth. 

GDP or Gross Domestic Product aggregates the value of all final goods and services in the economy.It is the most popular measurement used for the progress of a nation due to its simplicity and ease of calculation but it has been faulted for not being able  to measure a nation’s well-being or it’s income inequality.

For Thailand, the current Covid-19 crises presents a unique opportunity to redefine the status quo by focusing the rebuilding efforts and government expenditure on policies that will contain and narrow the income inequality gap.

In the absence of these targeted policies , the rebuilding effort and government expenditure will only push up the GDP reflecting the welfare of a handful of wealthy families and not of the rest of society.