Poverty, Growth, and Institutions in Developing Asia

by Edited by Ernesto M. Pernia and Anil B. Deolalikar

• ISBN13: 9781403918062
• ISBN10: 1403918066
• Format: Trade Book
• Copyright: 2004-03-04
• Publisher: Palgrave Macmillan

Summary

The theme of this book is that economic growth is key, but institutions and other national and subnational attributes matter as well. They are critical to explaining differences in social development and poverty reduction across countries and subnational areas that cannot be accounted for by growth alone. The book concludes that a more complete strategy needs to consider various institutional factors at the national and subnational levels to achieve rapid and sustained poverty reduction. Indeed, paying attention to these factors will benefit both growth and poverty reduction.

Author Biography

Ernesto M. Pernia is Lead Economist at the Economics and Development Resource Center at the Asian Development Bank.

Anil B. Deolalikar is based in the Department of Economics at the University of California.

Table of Contents

Foreword	xiii
Preface	xiv
Contributors	xvi
Acronyms and Abbreviations	xvii
Chapter 1 Introduction	1	(12)
Anil B. Deolalikar and Ernesto M. Pernio
Poverty Reduction in Asia	2	(2)
What are Institutions?	4	(1)
Institutions and Poverty Reduction	5	(1)
Organization of the Book	6	(7)
PART 1: General Essays
Chapter 2 Poverty Reduction: Approaches and the Role of Political Institutions	13	(26)
Anil B. Deolalikar and Ernesto M. Pernio
Evolution of Poverty Reduction Strategies	13	(9)
Growth and Poverty Reduction	16	(2)
Direct Poverty Alleviation Policies	18	(3)
Basic Social Services	21	(1)
Institutional Factors and Governance	22	(1)
Political Institutions and the Political Economy of Poverty Reduction	22	(13)
Democracy, Political Will, and Poverty Reduction	22	(2)
Interest Groups and Dominant Coalitions	24	(1)
Land Reform	25	(3)
Mobilizing Action for Poverty Reduction	28	(1)
Coalitions of the Poor	29	(1)
Obtaining Support from the Non-Poor	31	(1)
Timing of Program Capture	32	(3)
Conclusion	35	(4)
Chapter 3 Sociocultural Factors Affecting Poverty and Poverty Reduction	39	(58)
Mary Racelis and Marita Concepcion Castro Guevara
Introduction	39	(1)
A Multidimensional Perspective on Poverty	40	(7)
Poor People's Perspectives on Poverty and Well-being	41	(6)
Social Exclusion	47	(16)
Concept of Social Exclusion	47	(2)
Excluded Groups	49	(1)
Excluded Rural Poor	49	(1)
Excluded Urban Poor	53	(1)
Excluded Women	59	(4)
Resilience of the Poor: Coping Strategies and Social Capital	63	(7)
Coping Strategies	63	(2)
Social Capital	65	(5)
Civil Society	70	(10)
NGOs as Poverty Reduction Intermediaries	72	(3)
Assessing NGOs in Asia	75	(2)
People's Movements	77	(3)
Government Antipoverty Strategies Through Social Welfare and Safety Nets	80	(9)
Summary and Conclusion	89	(8)
Chapter 4 Public Sector Reform and Poverty Reduction	97	(40)
Alex B. Brilliantes, Jr.
Introduction	97	(10)
Analytical Framework	99	(5)
Mechanisms for Public Sector Reforms	104	(3)
Administrative Reforms for Poverty Reduction	107	(20)
Administrative Reform and Poverty Reduction: Exploring the Linkage	108	(2)
Administrative Reform in Bangladesh: Formalisms and Fuzzy Governance?	110	(2)
Implementing Massive Reforms in Pakistan: The National Reconstruction Bureau	112	(3)
Good Governance: A Pillar of Viet Nam's Doi Moi	115	(1)
Administrative Reform and Poverty Reduction Strategies	116	(1)
Thailand: Sustaining the Gains in Poverty Reduction	116	(1)
Lao PDR: Focal Site Strategy for Poverty Reduction	119	(1)
Korea: Bloated Bureaucracy as the Price of Growth?	120	(1)
Taipai: China: Political Will in Administrative Reforms Supports Poverty Reduction	121	(1)
Dealing with Corruption through Administrative Reform	122	(1)
Taipei: China: Eliminating "Black Gold" for Poverty Reduction	123	(1)
Korea: Targeting Corruption, 1970's to the 1990's	124	(1)
Addressing Corruption: The Experience of Other ADCs	126	(1)
Citizen Participation for Poverty Reduction	127	(5)
Citizen Participation for Good Governance: The Bangalore Score Card	128	(1)
NGOs in Bangladesh: A Paradigm of Citizen Participation	129	(1)
People Participation: The Saemaul Undong and Welfare Foundations in Korea	130	(1)
Partnerships with Civil Society for Poverty Reduction in the Philippines	131	(1)
Conclusion	132	(5)
Chapter 5 Decentralization and Poverty Reduction	137	(54)
Raghav Gaiha
Introduction	137	(2)
Rationale of Decentralization	139	(5)
Is There a Case for Decentralizing Redistribution?	139	(1)
Fiscal Decentralization	140	(2)
Resource Mobilization	142	(1)
Corruption, Capture, and Control	142	(1)
Alternative Perspectives	143	(1)
Case Studies	144	(32)
The Political Economy of Decentralization	145	(1)
The Nature of the Political Regime: A Comparative Analysis of Three Indian States	146	(1)
Exclusion of the Poor in Bangladesh	147	(1)
Reversal in the Philippines?	148	(3)
Fiscal Decentralization	151	(1)
The PRC Experience	151	(1)
The Viet Nam Experience	152	(1)
Incentives, Accountability, and Capture	153	(1)
The New Panchayati Raj in India	154	(1)
Agency Design and Incentives: A Comparison of Indian and Korean Irrigation Systems	159	(1)
Complementarity, Cooperation, and Coordination: Irrigation Associations in Taipei,China	160	(2)
Decentralization, Corruption, and Poverty	162	(4)
Role of the Community	166	(1)
Values, Incentives and Community Involvement in Primary Education: A Comparative Analysis of Two Villages in India and the PRC	167	(1)
Legal Impediments: The Case of School Management Committees in Punjab, Pakistan	168	(1)
Health and Education Programs in Bangladesh	169	(1)
Sustainable Development: The New Kerala Model	171	(1)
Summing Up	173	(1)
Coalitions of the Poor	174	(2)
Strategic Options	176	(3)
Political Economy	176	(1)
Fiscal Devolution	176	(1)
Coordination and Control	177	(1)
Social Cohesion	178	(1)
Capacity Building	178	(1)
Conclusion	179	(12)
PART II: Country Studies
Chapter 6 Revisiting Growth and Poverty Reduction in Indonesia	191	(28)
Arsenio M. Balisatan, Ernesto M. Pernici, and Abuzar Asra
Introduction	191	(3)
Data and Measurement Issues	194	(5)
Subnational Differences in Welfare	199	(6)
Other Factors Influencing Poverty Reduction	205	(6)
Differential Effects Across Quintiles	211	(2)
Conclusion	213	(6)
Chapter 7 Poverty, Inequality, and Growth in the Philippines	219	(28)
Arsenio M. Balisacan and Ernesto M. Pernio
Introduction	219	(3)
Aggregate Growth and Poverty Changes	222	(5)
Provincial Differences in Living Standards	227	(4)
Other Determinants of Poverty Reduction	231	(7)
Differential Effects Across Quintiles	238	(3)
Conclusion	241	(6)
Chapter 8 Poverty, Growth, and Inequality in Thailand	247	(26)
Anil B. Deolalikar
Introduction	247	(2)
Poverty in Thailand	249	(6)
Poverty Line	249	(1)
Extent of Poverty and Changes in Poverty	250	(1)
Headcount Ratio	250	(1)
Poverty Gap	251	(1)
Severity of Poverty	251	(1)
Regional Variations in Poverty	252	(3)
Economic Growth, Inequality, and Poverty Across Provinces	255	(14)
Relationship between Levels of Poverty, Inequality, and Mean Income	257	(5)
Relationship between Changes in Poverty, Inequality, and Mean Income	262	(5)
Effect of Initial Inequality on Economic Growth	267	(2)
Conclusion	269	(4)
Chapter 9 Economic Growth and Poverty Reduction in Viet Nam	273	(24)
Arsenio M. Balisacan, Ernesto M. Pernio, and Gemma Esther B. Estrada
Introduction	273	(2)
Data and Measurement Issues	275	(5)
Determinants of Poverty Reduction	280	(6)
Differential Effects Across Quintiles	286	(3)
Conclusion	289	(8)
References	297	(24)
Author Index	321	(4)
Subject Index	325