1. Poverty Reduction in Thailand Sugar high and tobacco addiction Presented by Mia and Mitch GTAP 2007

2. Poverty Impacts Experiment: Unilateral liberalization of other food and beverages 4% of total value total imports 3.5% of total value of output Resulted in 58 percent increase in imports Pre-liberalization: 1.18 million in $1day poverty Post liberalization 30,700 people released from poverty terms of trade: -0.4399 average utility per capita: 0.3543

3. Who are the Poor?

4. Poverty Drivers AGRICULT NNA GRC LT URBLABO R RURLABO RTRANSFERURBDIVRSRURDIVRSTotal Earning-0.002-0.0005-0.0001-0.00160-0.0014-0.0145-0.0202 Taxes0.00140.00040.00010.001300.00110.0110.0154 Cost of living-0.0014-0.0005-0.0001-0.0014-0.0032-0.0016-0.0177-0.0259 Total-0.0021-0.0005-0.0001-0.0017-0.0032-0.0019-0.0212-0.0307

5. Share reduction by stratum

6. Adding in Rich Country Ag Liberalization Thai unilateral liberalization of other food and beverage Term of Trade: -0.4399 AUP: 0.3543 Released from Poverty: 30,700 Rich Ag liberalization +Thai other food/bev Terms of Trade: 0.815 1.29 rich liberalization -.48 Thai liberalization AUP: 1.42 1.08 rich liberalization 0.36 Thai liberalization Released from Poverty: 70,000 40,000 rich liberalization 30,000 Thai liberalization

7. Findings and Conclusions Participating in liberalization, increases benefits for the poor Opening sector with high concentration of poor, does not necessary hurt them Rural diversified and Ag self-employed exhibit the greatest reduction in poverty Factor prices increases and decreasing costs of living work together to reduce poverty Tax replacement method important because increasing taxes increase poverty