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Rapid economic growth and poverty decline: a comparison of Indonesia and Thailand 1981-1990

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  • Anne Booth

    (SOAS, University of London)

Abstract

This paper contrasts the achievements of Indonesia and Thailand in reducing poverty through the 1980s. It is argued that estimates produced by the World Bank suggesting that the headcount incidence of poverty in Thailand in 1990 was higher than Indonesia were flawed because the poverty line used was not truly comparible. But there can be little doubt that the reduction in the headcount incidence of poverty was greater in Indonesia than in Thailand over the 1980s, as was the decline in the absolute numbers of poor people, even though rates of GDP growth were faster in Thailand. Three possible reasons for the superior performance of Indonesia are suggested: regional disparities in economic growth have been more pronounced in Thailand, the expansion of post-primary education has been very slow, and Indonesia was starting from a much higher incidence of poverty in 1980 than was Thailand. © 1997 John Wiley & Sons, Ltd.

Suggested Citation

  • Anne Booth, 1997. "Rapid economic growth and poverty decline: a comparison of Indonesia and Thailand 1981-1990," Journal of International Development, John Wiley & Sons, Ltd., vol. 9(2), pages 169-187.
    • Handle: RePEc:wly:jintdv:v:9:y:1997:i:2:p:169-187
    DOI: 10.1002/(SICI)1099-1328(199703)9:2<169::AID-JID363>3.0.CO;2-G
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    References listed on IDEAS

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    1. Ravallion, M., 1992. "Poverty Comparisons - A Guide to Concepts and Methods," Papers 88, World Bank - Living Standards Measurement.
    2. Johansen, F., 1993. "Poverty Reduction in East Asia; The Silent Revolution," World Bank - Discussion Papers 203, World Bank.
    3. Blackburn, McKinley L, 1994. "International Comparisons of Poverty," American Economic Review, American Economic Association, vol. 84(2), pages 371-374, May.
    4. Lipton, Michael & Ravallion, Martin, 1995. "Poverty and policy," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 41, pages 2551-2657, Elsevier.
    5. Ravallion, Martin & Huppi, Monika, 1991. "Measuring Changes in Poverty: A Methodological Case Study of Indonesia during an Adjustment Period," The World Bank Economic Review, World Bank, vol. 5(1), pages 57-82, January.
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