Independent Evaluation

Evaluation of the Social Sector Program in Thailand
Completed: 2005

The Social Sector Program (SSP) was part of the International Monetary Fund-led rescue package that aimed to help Thailand manage the impact of the 1997 financial crisis. SSP's three main objectives were to

• help mitigate the short-term adverse impacts of the crisis on Thai society, particularly on the most vulnerable groups;
• initiate structural reforms to enhance the competitiveness of the Thai economy through the development of human resources; and
• reduce inefficiencies in the provision of social services. Overall, the Program is rated partly successful.

Key Issues

• Weak Monitoring System
  After program completion, the continuity to maintain records was lacking, as implementing line agencies were unaware of the conditions of SSP. While the Government agreed in principle to monitor the Program, it did not provide adequate resources and qualified personnel to carry it out.



• Decentralization of Health and Education
  In SSP, decentralization was viewed as one way to improve governance in the health and education sectors. ADB's experience in other countries (e.g., Indonesia and the Philippines) showed that successful decentralization is a long and complicated process as several issues can hinder its implementation.



• Technology and Capacity Building
  One of SSP's conditionalities was the enhancement of labor competitiveness through training in information technology. Although equipment for training were made available, only a limited number of trainees were trained and thus there is limited impact. Most schools have limited capacities to upgrade their technologies. With rapid changes in technology, equipment in schools becomes outdated quickly. Further, the skills of information technology teachers need to be upgraded. Hence, the provision of new technology must be linked with training. Also, with local governments and local institutions gradually assuming responsibility over most education matters, capacity building and training are needed early on.



• Health Care Reforms
  Thailand will need to promote standard quality for health services and standardized monitoring of health facilities, particularly in the rural areas. Restructuring public hospitals in Thailand as corporations is another pending issue that needs attention.

  Lessons Identified

• One of the important lessons learned from the Program concerns the manner of ADB's response to the challenges and tensions of a crisis, such as the Asian financial crisis. Liquidity support was needed, and ADB acted expeditiously to support the International Monetary Fund-led rescue package.



• Political changes can take place during the implementation of a program loan. The challenge is to develop programs and policy objectives that are robust enough to withstand changes in government leadership.



• Formulating social sector reforms requires knowledge of the legislative system and political economy of the developing member country.



• Adequate sector analysis, extensive needs assessment, broad consultation, and a well-defined monitoring and evaluation system are requirements for the program loans to be successfully implemented and to have a positive impact.



• Clear partnerships or links between national and local institutions are important in planning the decentralization process.



• To provide an objective assessment of impact and achievements, the design of a program loan must incorporate
  • specific targets,
  • clear measures of achievement during and after implementation, and
  • systematic monitoring and evaluation system with specific time frames.
  Without these, it is difficult to evaluate the precise contributions of the program to reforms, the impact of the program on key indicators, and the extent of capacity building that took place.



• Further work is needed to
  • strengthen the social security system to include coverage for workers in the informal sector who belong to vulnerable groups;
  • improve the quality of education, and deploy more teachers in the rural areas;
  • improve the health financing system;
  • support science, technology, research, and innovation; and
  • enhance private sector participation in the social sectors.