Korn illustrates the Thai and global economic crisis, reflecting problems of an aging society, low birth rates, and educational inequality, warning that without budget restructuring, Thailand may risk lacking funds to pay expenses next year.
On 26 July 2026 at the Parliament building, Korn Jatikavanich, Deputy Leader of the Democrat Party and former Finance Minister, gave a lecture as part of the DIP16 project under the topic “Financial factors affecting the country for youth groups.” He portrayed the major challenges facing the global and Thai economies and offered policy recommendations to find solutions for the country.
1. Free-market capitalism is challenged – AI reorganizes human society.
Korn stated that the free-market capitalist system driving the global economy since World War II is now challenged by “inequality issues” and “environmental impacts.” Meanwhile, Thailand focuses on profit-making without mechanisms for checks and balances or fair competition. This situation hits hardest the younger generation (Gen Z), who face living costs exceeding their incomes—including housing, employment, elder care, and their children’s education—compounded by the arrival of artificial intelligence (AI), which is "restructuring society" into five groups.
1. The 0.01% group (technology power holders): owners of AI, data centers, and global platforms.
2. The 1% group (traditional asset owners): holders of land, real estate, and major brands.
3. The 10% group (technology adopters): those enhancing work capabilities with AI.
4. The 20% group (service providers/specialized skills): doctors, nurses, chefs, athletes, and artisans.
5. The remaining group (excluded from the economic system): the majority of people unable to adapt quickly and dependent on state assistance.
Entering the full AI era.
2. Global transition: from the energy era to full AI era. Structural changes in the global economy are reflected in the top 10 largest companies over the past 20 years.
In 2006: dominated by energy and finance companies (ExxonMobil, Citigroup, Toyota, BP).
By 2026: clear shift to technology and AI leaders such as NVIDIA ($5,110B), Apple ($4,631B), Alphabet ($4,332B), Microsoft ($2,860B), and Amazon ($2,639B).
High educational inequality and low birth rates.
3. Dissecting Thailand’s national budget structure: constraints and fiscal burdens. Turning to Thailand, demographic issues (low birth rates, aging society) combined with educational inequality further lock the national budget, with 69% allocated to fixed expenses and obligations:
1. Public personnel expenses (39.5%): salaries, welfare, Government Pension Fund, and local administration.
2. Social welfare budget (15.0%): universal health coverage (214 billion baht), elderly allowances (100 billion baht), free education budget (80 billion baht), and social security (65 billion baht).
3. Debt servicing (12.2%): 8.2% interest and 4.0% principal repayments.
(The remainder includes other expenses 31.0%, investment budget compensation 1.9%, and state enterprises 0.4%).
Proposes overhauling the budget structure.
Korn warned that if the government continues to manage the budget wastefully without a long-term strategy, focuses on populist projects, and allows structural corruption, it risks losing the capacity to care for the majority of the population. He proposed two key solutions:
1. Build a new economic engine by upgrading people’s skills (Reskill/Upskill) and developing future technology industries to generate national income.
2. Start reforms in the political sector by redefining the state’s role, restructuring the budget, employing transparent fiscal tools, and creating welfare that effectively reduces inequality before the fiscal crisis becomes irreversible.