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The road to pro-poor growth: the Indonesian experience in regional perspective

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  • C. Peter Timmer

Abstract

Indonesia's long-run 'pro-poor growth' record is among the best in Asia. It shows that appropriate policies can free societies from poverty's worst manifestations in a generation, a crucial message as democracy begins to influence the policy process. This paper places Indonesia's record in regional perspective, analysing determinants of income distribution in Asia and connecting this analysis to Indonesia's pro-poor growth process and the policy mechanisms that encourage pro-poor growth. Using a data set for eight Asian countries, it examines patterns of change in incomes and distribution across countries and over time. Building on Indonesian experience, the paper presents a pro-poor growth model encompassing three levels: improving the 'capabilities' of the poor, lowering transactions costs in the economy, especially between rural and urban areas, and increasing demand for goods and services produced by the poor. It finds that rapid pro-poor growth requires simultaneous and balanced interaction between growth and distribution processes.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Bulletin of Indonesian Economic Studies.

Volume (Year): 40 (2004)
Issue (Month): 2 ()
Pages: 177-207

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Handle: RePEc:taf:bindes:v:40:y:2004:i:2:p:177-207

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Cited by:
  1. Pranab Bardhan, 2006. "Globalization, Inequality, and Poverty," IDB Publications 9126, Inter-American Development Bank.
  2. Sumarto, Sudarno & de Silva, Indunil, 2013. "Poverty-growth-Inequality Triangle: The Case of Indonesia," MPRA Paper 57135, University Library of Munich, Germany.
  3. Andrew Leigh & Pierre van der Eng, 2007. "Top Incomes in Indonesia, 1920-2004," CEPR Discussion Papers 549, Centre for Economic Policy Research, Research School of Economics, Australian National University.
  4. Rashid, Shahidur & Cummings, Ralph Jr. & Gulati, Ashok, 2005. "Grain marketing parastatals in Asia," MTID discussion papers 80, International Food Policy Research Institute (IFPRI).
  5. Foldvari, Peter & van Leeuwen, Bas & Marks, Daan & Gall, Jozsef, 2013. "Indonesian regional welfare development, 1900–1990: New anthropometric evidence," Economics & Human Biology, Elsevier, vol. 11(1), pages 78-89.
  6. Bas van Leeuwen & Peter Foldvari, 2012. "The development of inequality and poverty in Indonesia, 1932-1999," Working Papers 0026, Utrecht University, Centre for Global Economic History.
  7. Andy Sumner & Peter Edward, 2013. "From Low Income, High Poverty to High-Income, No Poverty? An Optimistic View of the Long-Run Evolution of Poverty in Indonesia By International Poverty Lines, 1984–2030," Working Papers in Economics and Development Studies (WoPEDS) 201310, Department of Economics, Padjadjaran University, revised Jun 2013.
  8. Mwangi S. Kimenyi, 2005. "Economic Rights, Human Development Effort and Institutions," Working papers 2005-40, University of Connecticut, Department of Economics.
  9. Bardhan, Pranab, 2006. "Globalization and rural poverty," World Development, Elsevier, vol. 34(8), pages 1393-1404, August.

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