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What's Happened to Poverty and Inequality in Indonesia over Half a Century?

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  • Hal Hill

    (Arndt Corden Department of Economics, Crawford School, Australian National University, Canberra, Australia)

Abstract

Indonesia has achieved moderately fast economic growth for most of the past 50 years. Has this growth translated into rising living standards? This is the question that is addressed in this paper. The conclusion is a qualified yes. The caveat is attached for two reasons: (i) philosophically, the definition of living standards remains a subject of considerable conjecture, and (ii) not all social indicators point in the same direction. I focus primarily on trends in measurable indicators of human welfare, particularly poverty and inequality. Combined with major improvements in the coverage and quality of the country's statistics, and a now extensive literature, it is possible to document, and in some cases explain, trends in living standards in some detail. I also investigate whether (and how) the sudden swing during 1999–2001 from an authoritarian and centralized regime to a democratic and decentralized era impacted significantly on these trends.

Suggested Citation

  • Hal Hill, 2021. "What's Happened to Poverty and Inequality in Indonesia over Half a Century?," Asian Development Review, MIT Press, vol. 38(1), pages 68-97, March.
    • Handle: RePEc:tpr:adbadr:v:38:y:2021:i:1:p:68-97
    DOI: 10.1162/adev_a_00158
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    Cited by:

    1. Veerayooth Kanchoochat, 2023. "Siamese Twin Troubles: Structural and Regulatory Transformations in Unequal Thailand," Asian Economic Policy Review, Japan Center for Economic Research, vol. 18(1), pages 47-68, January.
    2. Patni Ninghardjanti & Wiedy Murtini & Aniek Hindrayani & Khresna B. Sangka, 2023. "Evaluation of the Smart Indonesia Program as a Policy to Improve Equality in Education," Sustainability, MDPI, vol. 15(6), pages 1-16, March.
    3. Brata, Aloysius Gunadi & Triandaru, Sigit & Patnasari, Yenny & Setyastuti, Rini & Sutarta, Agustinus Edi & Sukamto, Andreas, 2022. "The Spanish Flu Pandemic and Income Distribution in Java: Lessons from the 1920s," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 56(3), pages 103-117.

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