IDEAS home Printed from https://ideas.repec.org/a/bla/asiaec/v17y2003i3p221-241.html
   My bibliography  Save this article

Evolution of Poverty During the Crisis in Indonesia

Author

Listed:
  • Asep Suryahadi
  • Sudarno Sumarto
  • Lant Pritchett

Abstract

The economic crisis caused a clear deterioration in the welfare of the Indonesian people. In this paper, we examine the appropriate method to compare the change in poverty rates over time. We then piece together a consistent series of estimates of poverty rates during the crisis from various sources, covering a period from February 1996 to February 2002. The reconciliation of these various estimates paints a very reasonable picture and neatly tracks events. The poverty rate increased from the lowest point of approximately 15% at the onset of the crisis in the middle of 1997 to the highest point of approximately 33% nearing the end of 1998. This maximum increase in poverty rate during the crisis of 18 percentage points implies that approximately 36 million additional people were pushed into absolute poverty due to the crisis. After the peak point, the poverty rate started to decline again and reached the pre‐crisis level of approximately 15% at the end of 1999, implying that the lost time in poverty reduction due to the crisis was approximately 2.5years. However, the poverty rate after this point appears to have fluctuated. During 2001 and early 2002, poverty was on the rise again.

Suggested Citation

  • Asep Suryahadi & Sudarno Sumarto & Lant Pritchett, 2003. "Evolution of Poverty During the Crisis in Indonesia," Asian Economic Journal, East Asian Economic Association, vol. 17(3), pages 221-241, September.
    • Handle: RePEc:bla:asiaec:v:17:y:2003:i:3:p:221-241
    DOI: 10.1111/j.1467-8381.2003.00184.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1467-8381.2003.00184.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1467-8381.2003.00184.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-766, May.
    2. Chris Manning, 2000. "Labour Market Adjustment to Indonesia's Economic Crisis: Context, Trends and Implications," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 36(1), pages 105-136.
    3. Frankenberg, E. & Thomas, D. & Beegle, K., 1999. "The Real Costs of Indonesia's Economic Crisis: Preliminary Findings from the Indonesia Family Life Surveys," Papers 99-04, RAND - Labor and Population Program.
    4. Frankenberg, E. & Thomas, D. & Beegle, K., 1999. "The Real Costs of Indonesia's Economic Crisis: Preliminary Findings from the Indonesia Family Life Surveys," Papers 99-04, RAND - Labor and Population Program.
    5. Paul Deuster, 2002. "Survey Of Recent Developments," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 38(1), pages 5-37.
    6. Hadi Soesastro & M. Chatib Basri, 1998. "Survey of Recent Developments," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 34(1), pages 3-54.
    7. Menno Pradhan & Asep Suryahadi & Sudarno Sumarto & Lant Pritchett, 2001. "Eating like which “Joneses?” an Iterative Solution to the Choice of a Poverty Line “Reference Group”," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 47(4), pages 473-487, December.
    8. E. Skoufias & A. Suryahadi, 2002. "A cohort analysis of wages in Indonesia," Applied Economics, Taylor & Francis Journals, vol. 34(13), pages 1703-1710.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Brocker, Johannes, 2005. "Necessary and unnecessary parameter restrictions for CDES demand systems," Conference papers 331358, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    2. Pritchett, Lant, 2005. "The political economy of targeted safety nets," Social Protection Discussion Papers and Notes 31498, The World Bank.
    3. Pritchett, Lant & Sumarto, Sudarno & Suryahadi, Asep, 2001. "Targeted Programs in an Economic Crisis: Empirical Findings from Indonesia’s Experience," MPRA Paper 58727, University Library of Munich, Germany.
    4. Tushar Bharati & Wina Yoman, 2021. "Internal Migration and Labor Market Outcomes in Indonesia," Economics Discussion / Working Papers 21-05, The University of Western Australia, Department of Economics.
    5. Jed Friedman, 2003. "How Responsive is Poverty to Growth? A Regional Analysis of Poverty, Inequality, and Growth in Indonesia, 1984-99," WIDER Working Paper Series DP2003-57, World Institute for Development Economic Research (UNU-WIDER).
    6. Sarah Xue Dong, 2017. "The differential impact of economic crisis on men and women, and its connection to intrahousehold bargaining," WIDER Working Paper Series 134, World Institute for Development Economic Research (UNU-WIDER).
    7. Asep Suryahadi & Wenefrida Widyanti & Sudarno Sumarto, 2003. "Short-term poverty dynamics in rural Indonesia during the economic crisis," Journal of International Development, John Wiley & Sons, Ltd., vol. 15(2), pages 133-144.
    8. Mahmud, Mahreen & Riley, Emma, 2021. "Household response to an extreme shock: Evidence on the immediate impact of the Covid-19 lockdown on economic outcomes and well-being in rural Uganda," World Development, Elsevier, vol. 140(C).
    9. Ross McLeod, 2003. "Towards improved monetary policy in Indonesia," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 39(3), pages 303-324.
    10. Kis-Katos, Krisztina & Sparrow, Robert, 2015. "Poverty, labor markets and trade liberalization in Indonesia," Journal of Development Economics, Elsevier, vol. 117(C), pages 94-106.
    11. World Bank, 2001. "Thailand - Secondary Education for Employment (Vol. 2 of 2) : Background Papers," World Bank Publications - Reports 15494, The World Bank Group.
    12. Sarah Xue Dong, 2017. "The differential impact of economic crisis on men and women, and its connection to intra-household bargaining," WIDER Working Paper Series wp-2017-134, World Institute for Development Economic Research (UNU-WIDER).
    13. Steven A. Block & Lynnda Keiss & Patrick Webb & S. Kosen & Regina Moench-Pfanner & Martin W. Bloem & C. Peter Timmer, 2002. "Did Indonesia's Cries of 1997/98 Affect Child Nutrition? A Cohort Decomposition Analysis of National Nutrition Surveillance Data," Working Papers in Food Policy and Nutrition 05, Friedman School of Nutrition Science and Policy.
    14. Dionisius Narjoko & Hal Hill, 2007. "Winners and Losers during a Deep Economic Crisis: Firm‐level Evidence from Indonesian Manufacturing," Asian Economic Journal, East Asian Economic Association, vol. 21(4), pages 343-368, December.
    15. Tsaneva, Magda, 2017. "Does school Matter? Learning outcomes of Indonesian children after dropping out of school," World Development Perspectives, Elsevier, vol. 6(C), pages 1-10.
    16. Susan Olivia & John Gibson, 2013. "Using Engel curves to measure CPI bias for Indonesia," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 49(1), pages 85-101, April.
    17. Tyers, Rod & Rees, Lucy, 2002. "Trade Reform and Macroeconomic Policy in Vietnam," Conference papers 331011, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    18. Christopher McKelvey & Duncan Thomas & Elizabeth Frankenberg, 2012. "Fertility Regulation in an Economic Crisis," Economic Development and Cultural Change, University of Chicago Press, vol. 61(1), pages 7-38.
    19. Nitya Rao, 2018. "Global Agendas, Local Norms: Mobilizing around Unpaid Care and Domestic Work in Asia," Development and Change, International Institute of Social Studies, vol. 49(3), pages 735-758, May.
    20. Shahin Yaqub, 2003. "Relating Severe Poverty and Chronic Poverty," Working Papers wpdea0307, Department of Applied Economics at Universitat Autonoma of Barcelona.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:asiaec:v:17:y:2003:i:3:p:221-241. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/eaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.