The road to pro-poor growth: the Indonesian experience in regional perspective
DOI: 10.1080/0007491042000205277
Title: The road to pro-poor growth: the Indonesian experience in regional perspective
Journal Title: Bulletin of Indonesian Economic Studies
Volume: Volume 40
Issue: Issue 2
Publication Date: August 2004
Start Page: 177
End Page: 207
Published online: 19 Oct 2010
ISSN: 0007-4918
Author: C. Peter Timmer *
a Center for Global Development , Washington DC
Abstract: Indonesia's long-run ‘pro-poor growth’ record is among the best in Asia. It shows that appropriate policies can free societies from poverty's worst manifestations in a generation, a crucial message as democracy begins to influence the policy process. This paper places Indonesia's record in regional perspective, analysing determinants of income distribution in Asia and connecting this analysis to Indonesia's pro-poor growth process and the policy mechanisms that encourage pro-poor growth. Using a data set for eight Asian countries, it examines patterns of change in incomes and distribution across countries and over time. Building on Indonesian experience, the paper presents a pro-poor growth model encompassing three levels: improving the ‘capabilities’ of the poor, lowering transactions costs in the economy, especially between rural and urban areas, and increasing demand for goods and services produced by the poor. It finds that rapid pro-poor growth requires simultaneous and balanced interaction between growth and distribution processes.

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