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The Road to Pro-Poor Growth: The Indonesian Experience in Regional Perspective

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  • Peter Timmer

Abstract

“Pro-poor growth” is the new mantra of the development community. Most donor agencies have active research programs underway to understand the pro-poor process, and the World Bank, with British, French and German bilateral support, is already studying how to operationalize the concept (USAID, 2004; World Bank, 2004). Definitions vary, but they all revolve around connecting the poor to rapid economic growth so there is a concomitant rapid reduction in poverty. What is new is the focus on economic growth as the primary vehicle for sustainable reductions in poverty, distributional initiatives and processes playing a secondary role. This exploratory essay, commissioned by the Indonesia Project at Australian National University (ANU), places this new interest in pro-poor growth in regional perspective and then attempts to draw historical and policy lessons for Indonesia.1 The main challenge is to link our relatively robust understanding of the growth process with much more limited understanding of distribution processes. A panel data set of eight Asian countries provides grist for the empirical mill. A revised version of this paper is forthcoming in the Bulletin of Indonesia Economic Studies.

Suggested Citation

  • Peter Timmer, 2004. "The Road to Pro-Poor Growth: The Indonesian Experience in Regional Perspective," Working Papers 38, Center for Global Development.
    • Handle: RePEc:cgd:wpaper:38
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    References listed on IDEAS

    as
    1. Elsa V. Artadi & Xavier Sala-i-Martin, 2003. "The Economic Tragedy of the XXth Century: Growth in Africa," NBER Working Papers 9865, National Bureau of Economic Research, Inc.
    2. Hill,Hal, 2000. "The Indonesian Economy," Cambridge Books, Cambridge University Press, number 9780521663670.
    3. Aart Kraay, 2004. "When is Growth Pro-Poor? Cross-Country Evidence," IMF Working Papers 2004/047, International Monetary Fund.
    4. Cornia, Giovanni Andrea (ed.), 2004. "Inequality, Growth, and Poverty in an Era of Liberalization and Globalization," OUP Catalogue, Oxford University Press, number 9780199271412.
    5. Robert J. Barro, 1998. "Determinants of Economic Growth: A Cross-Country Empirical Study," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262522543, December.
    6. Manning,Chris, 1998. "Indonesian Labour in Transition," Cambridge Books, Cambridge University Press, number 9780521594127.
    7. Kraay, Aart, 2004. "When is growth pro-poor? Cross-country evidence," Policy Research Working Paper Series 3225, The World Bank.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Indonesia; pro-poor growth; economic growth; distribution process;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • F35 - International Economics - - International Finance - - - Foreign Aid
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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