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The International Journal of the Royal Society of Thailand
Volume XII, 2020

Power, presents some case studies of oligarchy at work in politics, in business
7
and in finance.

Towards a Fairer Society, Stability and Growth

The international debate on inequality is not only about inequality but also
the role of the state. In the extreme version of neoliberalism, the state should do
8
the very least necessary to allow free-market capitalism to operate. In truth,
no states have gone so far, but there has been a general tendency to reduce the
state’s role in the neoliberal era. Moreover, opponents have floundered in
attempts to find a strong intellectual foundation to oppose neoliberal ideology.
Thomas Piketty’s work (2014) has been so popular because he seems to offer that
foundation. He argues that, left unattended, the capitalist economy will lead to
greater social division, greater conflict and multiple failures. States thus have a
duty to prevent this by crafting a social order that its members accept as fair.

Over the past generation, Thailand has been successful in nurturing
economic growth, but has also developed a society with inequalities of income
and wealth at a dangerous level. Over the past decade, Thai politics has been in
turmoil with the results of four elections overthrown, two military coups,
repeated waves of street demonstrations, and a rising trend of political violence.
Although these politics have been complicated by many factors, including
personalities, in the background are the tensions of an unequal society.

Moving beyond this phase of conflict and mutual distrust will take time.
Reducing the high levels of inequality in the society will not quell the immediate
conflict but is a prerequisite for achieving a more peaceful and coherent society
in the long run. The state can assist by removing structural supports for

inequality and creating systems and structures that are more equitable. The task
is far from impossible. Many countries offer successful examples, including
Japan and most of the core OECD countries.
There is a sprawling debate in the economic literature on what underlies
the difference in policy. Political systems are one factor. Democratic states are more
likely to have effective redistribution policies than authoritarian states.
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Pasuk and Baker, ed. 2016.
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8 See for example a brief review in Pasuk and Baker, ed. 2016: 3-7.
9 For a comprehensive discussion of advantages of democracy, see for example, Chaiwat, 2017.

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