scholarly journals Public Spending and Poverty Reduction in Indonesia: The Effects of Economic Growth and Public Spending on Poverty Reduction in Indonesia 2009-2018

2019 ◽  
Vol 4 (2) ◽  
pp. 49-56
Author(s):  
Hendrawan Toni Taruno

Poverty is a complex and multidimensional issue. Over the past four decades, the number of poor in Indonesia has experienced a significant decline, from 40.10 percent in 1976 to 9.82 percent in March 2018. Nevertheless, the disparity of poverty rates between provinces is still quite high. The poverty rate in several provinces in Java Island, for example, is already at the single-digit level, while in Eastern Indonesia, is still more than double-digit level. As it is known, public spending and economic growth are two crucial instruments on poverty reduction programs. This study aims to investigate the role of economic growth and public spending, particularly education, health, and social protection on poverty reduction in Indonesia. By using panel data from 31 provinces during 2009-2018 period, this study used two regression models to analyze the effects of these two variables on poverty reduction, both in urban and rural areas. This study shows that public spending on health and education sectors has a slightly different effect on poverty reduction between urban and rural areas. Convincingly, spending allocation on health and education has had a significant effect to reduce poverty rate in rural areas, while the decline of poverty rates in urban is likely more influenced by spending on health. This study also shows that over the past ten years, economic growth and social protection spending did not have a significant effect on reducing poverty rates. Therefore, in order to reduce poverty more effectively, it would be better for the government to focus its poverty reduction programs on investment in health and education sectors.

Author(s):  
Abel Kinyondo ◽  
Joseph Magashi

Poverty reduction has been a difficult milestone for Tanzania to achieve despite recording remarkable economic growth over the past decade. This is because the attained growth is not inclusive, in that sectors contributing to this growth employ fewer people. Given the fact that agriculture continues to employ the majority of people in Tanzania, efforts to improve livelihoods should necessarily be geared towards transforming the sector. It is in this context that using a sample of 3,000 farmers from 13 regions of Tanzania; this Tanzania, this study set out to examine challenges facing farmers and their respective solutions following the sustainable livelihood framework. Findings show that improving farmers’ livelihoods would entail concerted efforts by the government to avail to farmers, quality and affordable seeds, fertilizer, agricultural infrastructures, subsidies, extension services, markets, information alert, affordable loans, and areas for pastures. This implies that the government needs to allocate enough funds to the agricultural sector if farmers’ needs are to be met. We note, however, that government’s allocation to the sector has alarmingly generally been exhibiting a declining trend for the past four years. It is against this background that we strongly recommend that the government rethinks its position and prioritize the agricultural sector in its budget.


2017 ◽  
Vol 22 (1) ◽  
Author(s):  
Iwan Prasodjo

This article discusses on poverty rate and inequlity in urban and rural areas during 2011-15. It shows that poverty rate tends todecrease. The poverty in rural area is worse than that in the urban one. The urban poor people work in the informal sector or in the small business. The poor in the rural areas work in the agriculture sector. The majority of poorest provinces is in the east Indonesia. However, the majority of the poor people live in Java island. Eventough the income inequility in Indonesia is moderate, but it  has been increased since 2011. There are many more poor people above the national poverty line. The government could inprove rural and east Indonesia infstructure in order to increase agriculture production. In this way the poverty in rural area and the gap between east and west Indonesia could decrease.


2020 ◽  
Vol 10 (2) ◽  
pp. 39
Author(s):  
Ebrima K. Ceesay ◽  
Hafeez O. Oladejo ◽  
Prince Abokye ◽  
Ogechi N. Ugbor

Linkages between Climate Change, Economic Growth and Poverty Reduction have become increasingly popular in local and international communities. This is due to the fact that we are currently facing pressing issues about climate change and poverty reduction effects in our planet. In this paper an empirical testing of the effects of Climate Change, Economic Growth and Poverty Reduction was carried out. Panel estimation methods of fixed effect, random effect, and panel unit root test-fisher type with trend and constant were applied. From the results, shows that economic growth has a negative and highly significant effect on the growth of poverty in the selected West African countries. Using growth rate of economics as dependent variable, the result shows that growth of poverty is highly significant. The population living in rural areas is significant with growth of poverty and highly significant with growth of food security. The policy recommendation is that the government of the west African countries should put in place strategies to reduce poverty, climate change effects on economics growth by following measures; to have strong institution and avoidance of corruption.Such strategies contain to counter climate change effects and increase the resilience of the economy, society and country in general.


Author(s):  
Carol Ting

For more than a decade, the Chinese government has poured copious resources into rural informatization as a means to increase agricultural productivity and rural economic growth. Such efforts so far have not produced definite results in rural areas, but increasing economic inequality and rising environmental threats have already forced the government to rethink its growth-centered development policy. Indeed, recent government releases clearly state the resolve to departure from the “GDP obsession” of the past. Meanwhile, the past three decades saw the rise of a powerful alternative development approach—the Capability Approach (CA), which focuses on empowering individuals and sees economic growth as one element of well-being. Given that the CA can potentially help devising a more coherent and holistic framework for Information and communications technologies for development (ICT4D), this paper examines the compatibility between the Capability Approach and the top-down socialist approach towards rural informatization in China. Built on two case studies of rural informatization in rural China, the present paper identifies potential obstacles to the adoption of the Capability Approach and discusses policy implications and suggestions.


1972 ◽  
Vol 1 (01) ◽  
pp. 336-347
Author(s):  
R. Gar Forsht ◽  
J. Dean Jansma

There has been increasing concern over the past decade about the lack of economic activity in a number of major cities, many intermediate and small sized cities, and a significant number of rural areas within various regions of the United States. This concern about the depressed conditions in these urban and rural areas, relative to the nation, has attracted country-wide attention.


2018 ◽  
Vol 13 (1) ◽  
pp. 17-30 ◽  
Author(s):  
Sovia Dewi ◽  
M. Shabri Abd. Majid ◽  
Salina Kassim ◽  

Abstract Although the poverty rate in Indonesia has been declining in the last several years, the rate of poverty decline is slowing down. In order to achieve its poverty reduction target within the stipulated time period, the government has stepped up efforts to enhance the contribution of the financial sector towards poverty reduction. This study aims to empirically explore the interlinkages between financial sector development and poverty reduction in Indonesia. Focusing on annual data covering the period from 1980 to 2015, the study adopts the Autoregressive Distributed Lag (ARDL) cointegration approach to examine the long-run relationship between the variables. The study found that there is a long-run relationship between financial development, economic growth, and poverty reduction in Indonesia. It also documented a unidirectional causality running from the financial sector to poverty reduction and a bidirectional causality between economic growth and poverty reduction. Therefore, policies to ensure the conducive growth of the financial sector would go a long way in promoting the economy, creating employment opportunities, and consequently accelerating poverty eradication


2020 ◽  
pp. 149-154
Author(s):  
Somsy Xayalath ◽  
Eszter Balogh ◽  
József Rátky

The present paper explored the influence of breeding native pigs on livelihood conditions and the contribution of native pigs to the rural development and rural poverty reduction in the rural areas of Lao PDR. Pig production plays an important role in meat supply for both urban and rural areas of Laos. It is clear that most of the pig products in the country come from smallholder pig farms, and more than 90 percent of those products are the native pigs mostly raised by farmers in remote areas. In general, livestock production distributed between 15–18 percent to GDP, while most of animal production still remains as the traditional methods. Rural development is always the first priority of the Laos government since its independence in 1975, however, the poverty rate in rural areas remained high at 23% in 2018. It might block the development goal of the government which will lead the country out of the least development status by 2020. The food security and malnutrition in the rural or mountainous areas are considered as the majority issue that both government and several international organizations have been thriving hard to overcome, which researchers showed that more than 45% of children under 5 years of age were stunted, and 28% of them were underweight. Inspired of more than 50 % of the households in the rural areas of Laos reported they consumed chicken and pork at least one day a week. While native pigs play an important role on meat supply, it also constituted around 9–14 % of annual income of the households in rural areas. Therefore, the increase the production of pigs and poultry is one option to promote the meat supply to households in the rural areas of Laos. This paper will be a pathway to guide and identify for the final decision to what experiment will be implemented on Lao native pig in Laos (2021–2023) to complete the comparative study on reproductive physiology and reproductive management methods of Hungarian and Lao Indigenous pig breed. Which found it still needs further afford to research and improve more about native pig performance for all areas of productive and quality management.


2020 ◽  
Vol 3 (01) ◽  
pp. 47-64
Author(s):  
Naveed Jehan ◽  
Sajjad Ahmad Jan

Poverty is one of the main problems faced by the Pakistani economy that hinders economic growth and development. To surge the key elements, involved in poverty, this paper examines the effect of remittances, terrorism, GDP at factor cost, public spending on education and urbanization, on poverty reduction by apply VECM techniques, on data slab 1971 to 2018. Scales of some variables were transformed to log form to normalize them. The Johansen Co-integration shows long run relationship amongst the selected variables. The empirical results reveal that remittances, GDP at factor cost, public spending on education and health significantly play its role to alleviate poverty. Government must take some necessary steps involved in remittances receiving by poor household. The social protection programs must be extended to rural areas of the country so more people can be benefited from such programs.


2021 ◽  
Author(s):  
Ismat Ara Begum ◽  
Rezaul Karim Talukder ◽  
Mohammad Mizanul Haque Kazal ◽  
Mohammad Jahangir Alam

Social protection is an essential government investment that contributes to economic growth and makes growth more pro-poor through directly reducing poverty. The Government is strongly committed to reducing poverty, improving human development and reducing inequality. This commitment is reflected in Vision 2021, the Perspective Plan 2010–2021 and in the Sixth & Seventh Five Year Plans. The Government realizes that notwithstanding the past impressive progress with poverty reduction, there is a substantial number of populations that remains exposed to poverty owing to various vulnerabilities. Evidence shows that the poor and vulnerable group cannot cope with all the frequently occurring risks and shocks with their own resources. In recognition of these concerns, the Government has embarked upon the formulation of a comprehensive National Social Security Strategy. It builds on the past rich experience and seeks to streamline and strengthen the existing safety net programs. It also broadens the scope of Social Security from the narrow safety net concept to include employment policies and social insurance to address the emerging needs. Given this backdrop, this chapter deals with the assessment of social security interventions against Life Cycle Risks, measures for resilience of safety net programs, and finally presents the government priorities based on existing policies.


1992 ◽  
Vol 9 (4) ◽  
pp. 372-384 ◽  
Author(s):  
Minseok An ◽  
George H. Sage

In the past decade, to help maintain political stability and promote economic growth, South Korea has committed substantial resources to commercialized sports, including golf. A major source of support for building golf courses has come from government leaders and economic and social incentives as well. In the past 4 years the government has given permission to build 135 new golf courses. The official government discourse about the new golf courses is that they are being built in the interest of “sport for all.” But the golf courses overwhelmingly require membership, which is extremely expensive. Despite the enormous power and resources of the dominant groups in Korea, there are elements of opposition. The golf boom has been severely criticized because it removes large amounts of land from agricultural and industrial productivity, contaminates farm land, and pollutes water. It also represents the worst aspects of the social imbalance of wealth.


Sign in / Sign up

Export Citation Format

Share Document