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Social Impacts of the Indonesian Crisis: New Data and Policy Implications

Author

Listed:
  • Poppele, Jessica
  • Sumarto, Sudarno
  • Pritchett, Lant

Abstract

The social impacts of Indonesia’s crisis, while serious, have fortunately been less dramatic than early reports suggested. Rather than the universal devastation in poverty, employment, education and health so widely predicted and repeated in the media, new data reporting on conditions as of the fall of 1998 reveal a more complex and heterogeneous picture. Not surprisingly, given the genesis of the financial and economic crisis in the formal sector, people in urban areas hurting more than rural areas. People on Java appear to have been more effected and are bearing the brunt of the crisis, both in comparison to more isolated islands with less linkage to the formal, modern economy (Maluku) or islands with export commodities (large parts of Sulawesi, Sumatra). The new data also show that pre-crisis economic status or poverty rates are not good indicators of how much any given region or household has been affected by the crisis. While some of the poor are doing worse, others appear to be better off and many of the newly emergent urban middle classes are hit the worst of all. There are however hard hit areas in Kalimantan and the Eastern Islands which were both poor pre-crisis and which have been hit very hard by the crisis. These new data have important implications for policy makers in designing and adjusting programs aimed at minimizing the affects of the crisis on the poor and vulnerable.

Suggested Citation

  • Poppele, Jessica & Sumarto, Sudarno & Pritchett, Lant, 1999. "Social Impacts of the Indonesian Crisis: New Data and Policy Implications," MPRA Paper 60931, University Library of Munich, Germany, revised 15 Feb 2000.
  • Handle: RePEc:pra:mprapa:60931
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    File URL: https://mpra.ub.uni-muenchen.de/60931/1/MPRA_paper_60931.pdf
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    References listed on IDEAS

    as
    1. Pritchett, Lant & Suryahadi, Asep & Sumarto, Sudarno, 2000. "Quantifying vulnerability to poverty - a proposed measure, applied to Indonesia," Policy Research Working Paper Series 2437, The World Bank.
    2. Frankenberg, E. & Beegle, K. & Sikoki, B. & Thomas, D., 1999. "Health, Family Planning and Well-Being in Indonesia during an Economic Crisis: Early Results from the Indonesian Family Life Survey," Papers 99-06, RAND - Labor and Population Program.
    3. Lisa Cameron, 1999. "Survey of Recent Developments," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 35(1), pages 3-41.
    4. Frankenberg, E. & Beegle, K. & Sikoki, B. & Thomas, D., 1999. "Health, Family Planning and Well-Being in Indonesia during an Economic Crisis: Early Results from the Indonesian Family Life Survey," Papers 99-06, RAND - Labor and Population Program.
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    Citations

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    Cited by:

    1. Kyle, Jordan, 2017. "Local corruption and support for fuel subsidy reform: Evidence from Indonesia," IFPRI discussion papers 1620, International Food Policy Research Institute (IFPRI).
    2. Stefano Pagiola, 2004. "Land Use Change in Indonesia," Others 0405007, University Library of Munich, Germany.
    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. Pritchett, Lant, 2005. "The political economy of targeted safety nets," Social Protection and Labor Policy and Technical Notes 31498, The World Bank.
    5. Cameron,Lisa, 2002. "The impact of the Indonesian financial crisis on children : data from 100 villages survey," Policy Research Working Paper Series 2799, The World Bank.
    6. Albert Berry & Edgard Rodriguez & Henry Sandee, 2001. "Small And Medium Enterprise Dynamics In Indonesia," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 37(3), pages 363-384.
    7. Stefano Pagiola, 2004. "Deforestation and Land Use Changes Induced by the East Asian Economic Crisis," Others 0405006, University Library of Munich, Germany.
    8. James A. Levinsohn & Steven T. Berry & Jed Friedman, 2003. "Impacts of the Indonesian Economic Crisis.Price Changes and the Poor," NBER Chapters,in: Managing Currency Crises in Emerging Markets, pages 393-428 National Bureau of Economic Research, Inc.
    9. 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).
    10. World Bank, 2010. "Preparing for the Next Crisis : Establishing a Vulnerability and Shock Monitoring and Response System in Indonesia," World Bank Other Operational Studies 12640, The World Bank.
    11. Kanbur, Ravi & Squire, Lyn, 1999. "The Evolution of Thinking About Poverty: Exploring the Interactions," Working Papers 127697, Cornell University, Department of Applied Economics and Management.
    12. Pritchett, Lant & Suryahadi, Asep & Sumarto, Sudarno, 2000. "Quantifying vulnerability to poverty - a proposed measure, applied to Indonesia," Policy Research Working Paper Series 2437, The World Bank.
    13. Sumarto, Sudarno & Suryahadi, Asep, 2001. "Social Redistribution and Social Safety Net: The case of Indonesia during the Asian Financial Crisis," MPRA Paper 60286, University Library of Munich, Germany.
    14. Sumarto, Sudarno & Suryahadi, Asep, 2000. "Establishing Reliable Social Safety Net Programs: Lessons from the Indonesian Crisis Experience," MPRA Paper 60089, University Library of Munich, Germany.
    15. Graeme Hugo, 2000. "The Impact of the Crisis on Internal Population Movement in Indonesia," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 36(2), pages 115-138.
    16. Emmanuel Skoufias & Asep Suryahadi, 2000. "Changes in Household Welfare, Poverty and Inequality During the Crisis," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 36(2), pages 97-114.

    More about this item

    Keywords

    Economic crisis; social impacts; poverty; education; employment; Indonesia.;

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • N1 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations

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