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Economic Evaluation of Poverty Alleviation by the National Program for Community Empowerment in Western Part of Rural Indonesia


  • Oktarina, Sachnaz Desta
  • Furuya, Jun


This study is aimed to evaluate community empowerment program known as PNPM Mandiri in terms of block grant allocations whether they are proven to impact poverty reduction in Indonesia. It is documented that economic and agriculture allocation play significant role in alleviating poverty as they are deemed as economical investment for rural entities. Another result suggested that transportation, economic, together with agricultural sector have particular relationship as grouped as economic capital that they could not be separated each other which, one treated to be increase, subsequently other sector will tend to increase as well. However, the notion of human capital personified into social, health, and education budget do not show significantly different due to particular reasons comprising elite dominance, poor healthcare delivery, and unequal expenditure of education distribution within family, respectively. The findings is fruitful in order to project more efficient budget allocation either to diversify variety of PNPM program to fasten and optimize poverty eradication.

Suggested Citation

  • Oktarina, Sachnaz Desta & Furuya, Jun, 2015. "Economic Evaluation of Poverty Alleviation by the National Program for Community Empowerment in Western Part of Rural Indonesia," Japanese Journal of Rural Economics, Agricultural Economics Society of Japan (AESJ), vol. 17.
  • Handle: RePEc:ags:jpjjre:242120

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    References listed on IDEAS

    1. Gibson, John & Olivia, Susan, 2010. "The Effect of Infrastructure Access and Quality on Non-Farm Enterprises in Rural Indonesia," World Development, Elsevier, vol. 38(5), pages 717-726, May.
    2. Nkonya, Ephraim & Phillip, Dayo & Mogues, Tewodaj & Pender, John & Kato, Edward, 2012. "Impacts of Community-driven Development Programs on Income and Asset Acquisition in Africa: The Case of Nigeria," World Development, Elsevier, vol. 40(9), pages 1824-1838.
    3. R. Bock & Rolf Bargmann, 1966. "Analysis of covariance structures," Psychometrika, Springer;The Psychometric Society, vol. 31(4), pages 507-534, December.
    4. Victoria A. Beard & Aniruddha Dasgupta, 2006. "Collective Action and Community-driven Development in Rural and Urban Indonesia," Urban Studies, Urban Studies Journal Limited, vol. 43(9), pages 1451-1468, August.
    5. Labonne, Julien & Chase, Robert S., 2009. "Who is at the Wheel When Communities Drive Development? Evidence from the Philippines," World Development, Elsevier, vol. 37(1), pages 219-231, January.
    6. Trani, Jean-Francois & Bakhshi, Parul & Noor, Ayan A. & Lopez, Dominique & Mashkoor, Ashraf, 2010. "Poverty, vulnerability, and provision of healthcare in Afghanistan," Social Science & Medicine, Elsevier, vol. 70(11), pages 1745-1755, June.
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