Executive Summary
The aims and objectives of the study
The promulgation of both the Constitution of the Kingdom of Thailand
B.E. 2540 (1997) and the Determining Plans and Process of Decentralization
Act B.E. 2542 (1999) provided a strong impetus for nationwide
decentralization. This momentum has been maintained over the past
decade, with increased autonomy and democracy at the local government
level. However, while there have been many positive developments,
challenges in the decentralization process remain. In particular, some
aspects of decentralization are still opposed by central government
agencies. This occurs, in part, because there continues to be ineffectiveness
at the local level, as well as a lack of institutional capacity to carry out policy
initiatives. The research aims to highlight these challenges, with the
objectives of the study as follows:
1. To evaluate the process of decentralization and explore the obstacles
in the decentralization process between 1997 and 2008.
2. To evaluate the effectiveness of statutory reforms and other
decentralization policies and compare them to similar processes
in other countries.
3. To clarify the direction of the decentralization process in Thailand,
as well as provide recommendations to ensure state agencies work
towards the same policy direction.
4. To contribute to the existing empirical data on Thailand’s
decentralization process with the purpose of generating further
research.
2 Executive Summary
In order to explore Thailand’s decentralization process since 1997, and
to suggest any policy directions for improving and developing local
administrative bodies, the team of researchers made the following
assumptions:
1. Local governments are public bodies that are established by the
modern state and thereby subsidiary to the State.
2. Local governments are local bodies that are granted autonomy to
carry out local administrative initiatives.
3. Local governments are bodies that help create the efficient delivery
of public services.
4. Local governments are institutions which ensure local democracy.
5. Local governments are bodies that operate with good governance
and knowledge.
While policy recommendations of this study are based on the above
principles, the purpose of this study is to reveal the challenges that have
occurred with respect to: (1) organizational structures of local government
bodies; (2) devolution of functions to local administrations; (3) local
revenues and fiscal decentralization; (4) reforming the local personnel
management system; (5) public participation; and, (6) changing approaches
to monitoring local administration.
This study presents an in-depth assessment of each of the six areas
mentioned above. Based on the findings, the team of researchers has
presented suggestions to improve the process of decentralization in these
areas. These suggestions have been defined as short term (1-3 years),
medium term (4-6 years) and long term (7-10 years) strategies.
Executive Summary 3
Summary of Findings
1 Local Government Structures: Managing Relations Between and
Within Local Government Bodies
Since the Determining Plans and Process of Decentralization Act B.E.
2542 (1999) came into effect, there have been many positive developments
in the local government structure.
First, as a result of decentralization principles as explicitly stated in the
Act, the subsequent legal provisions have provided not only a framework to
enhance and guarantee local autonomy, but also the basis for devolved
functions. These devolved functions are to be carried out autonomously by
local bodies; and thereby, enhancing channels and opportunities for
popular participation and local interests.
Second, since 1997 the government reform has brought about recent
changes in local elections, with local residents now able to directly elect
both local councils and Mayors. This has paved the way for “a strong local
executive” type of local governance.
Third, the legal framework has resulted in a two-tier administrative
structure consisting of the Provincial Administrative Organization (PAO),
municipality and Tambon Administrative Organization (TAO). PAO is the
upper-tier which operates large-scale administrative duties and public
services, while the municipality and TAO are the lower-tier which is
responsible for small-scale duties.
This transformation enhances the spirit of democracy and autonomy of
local administration, but many challenges still remain.
First, while the creation of the two-tier structure has helped reduce
redundancy in administering public services, it lacks effective mechanisms
to coordinate works and functions assigned between all levels of local
government and also between the central and local administrative
agencies.
4 Executive Summary
Second, although the introduction of direct elections for executives of
local governments strengthens their authority and power, it serves to
weakens the local council, particularly, its power to check and balance the
executive.
Third, the size of local elected bodies does not match the type and size
of locality. For instance, the number of TAO councilors varies according to
the number of villages in the area, whereas the number of municipality
councilors is fixed and stipulated by law. Accordingly, the number of
representatives from the TAO is higher than the number of representatives
from the municipality. This has resulted in TAOs being reluctant to upgrade
and become a municipality, even though that would bring about increased
authorities and responsibilities.
Fourth, the purpose of amending the legal framework was to
strengthen the executive at the local level. While increasing power of local
executives embraces the principles of decentralization, there is much fear
that increased authority of the executive may lead to monopoly of power at
the local level. To counter this, the law limits executives to two consecutive
terms. However, this generates controversies among local politicians as to
whether the term should be limited since this is not the government at the
national level and local government in Thailand in principle is not a partisan
politics. .
Policy Recommendations: Improving the Local Administrative
Structure
Based on the difficulties mentioned above, various improvements and
amendments need to be made to the local administration structure both
internally and externally. Any modifications made must be suited to the size
and functions of the local authority. Most importantly, any changes must
reflect democratic measures and enhance local participation. The team of
researchers recommends implementing changes to the local
administration structure as outlined in the following table: