“LOW BIRTH RATE AND AN AGED SOCIETY”: OPPORTUNITIES AND CHALLENGES FOR THAI LOCAL ADMINISTRATIVE ORGANIZATIONS

Abstract

This academic article aims to analyze the opportunities and challenges facing Thai Local Administrative Organizations (LAOs) within the context of a “Low Birth Rate and an Aged Society,” while providing policy recommendations and strategic adaptation frameworks for LAOs to serve as primary mechanisms in an aging society. The study reveals that Thailand has transitioned into a “Complete Aged Society,” with the lowest birth rate in a decade. Consequently, LAOs confront five critical challenges: 1. local fiscal crises characterized by declining revenue and rising welfare expenditure; 2. operational redundancies and inter-agency integration issues; 3. limitations in specialized personnel and workforce capacity; 4. a lack of age-friendly infrastructure; and 5. an oversupply of early childhood public services. However, this crisis presents opportunities for LAOs to transition from “welfare providers” to “facilitators” of the grassroots economy through the Silver Economy concept, leveraging the potential of Active Ageing individuals to drive local development. This includes resource re-allocation through the reskilling of personnel to align with an aging population. Strategic adaptations for LAOs are proposed across three dimensions: 1. Collaborative Governance, positioning LAOs as the central hub of cooperation; 2. local fiscal innovation, such as community welfare funds and Social Impact Bonds; and 3. the creation of Multi-Generational Spaces. Ultimately, All of these proposals will enable local government organizations to effectively serve as the “frontline” in transitioning Thai society toward a super-aged society.