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Anti-Poverty Programs in Indonesia

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  • Anne Daly
  • George Fane

Abstract

Between 1994/95 and 1997/98, Indonesia's spending on anti-poverty programs grew from 0.1% to 0.3% of GDP. The introduction of the 'social safety net' raised anti-poverty spending to 1.4% of GDP in 1998/99 and changed its main focus from job creation schemes, financed mainly by loans and grants to small firms and community groups, to in-kind subsidies for rice, public health care, scholarships for children in poor families and grants to schools in poorareas. The most accurately targeted program was health care, which covered twice as many people in the two poorest deciles as in the remaining eight. For most other programs, this targeting ratio was only about 1.5. We argue that the education and health care programs were the most successful, and doubt that the rice subsidy, job creation and loans schemes were worthwhile.

Suggested Citation

  • Anne Daly & George Fane, 2002. "Anti-Poverty Programs in Indonesia," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 38(3), pages 309-329.
  • Handle: RePEc:taf:bindes:v:38:y:2002:i:3:p:309-329 DOI: 10.1080/00074910215535
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    References listed on IDEAS

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    Cited by:

    1. Sumarto, Sudarno & Bazzi, Samuel, 2011. "Social Protection in Indonesia:Past Experiences and Lessons for the Future," MPRA Paper 57893, University Library of Munich, Germany.
    2. Chikako Yamauchi, 2010. "Community-Based Targeting and Initial Local Conditions: Evidence from Indonesia's IDT Program," Economic Development and Cultural Change, University of Chicago Press, vol. 59(1), pages 95-147, October.
    3. Kim, Younoh & Radoias, Vlad, 2016. "Education, individual time preferences, and asymptomatic disease detection," Social Science & Medicine, Elsevier, pages 15-22.
    4. Sumarto, Sudarno & Suryahadi, Asep, 2004. "The Role of Agricultural Growth in Poverty Reduction in Indonesia," MPRA Paper 60724, University Library of Munich, Germany.
    5. Julia, Tobias & Sumarto, Sudarno & Moody, Habib, 2014. "Assessing the Political Impacts of a Conditional Cash Transfer: Evidence from a Randomized Policy Experiment in Indonesia," MPRA Paper 59091, University Library of Munich, Germany.

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