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The Spatial Dimension of Welfare and Poverty: Lessons from a Regional Targeting Programme in Indonesia
Author(s) -
Daimon Takeshi
Publication year - 2001
Publication title -
asian economic journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.345
H-Index - 28
eISSN - 1467-8381
pISSN - 1351-3958
DOI - 10.1111/1467-8381.00149
Subject(s) - poverty , decentralization , economics , dimension (graph theory) , welfare , empowerment , scale (ratio) , development economics , psychological intervention , inclusion (mineral) , economic growth , sociology , geography , market economy , social science , psychology , mathematics , cartography , psychiatry , pure mathematics
This paper examines the spatial dimension of welfare and poverty in Indonesia and explores the effective policy interventions to remedy the regional economic disparity which was most vividly shown during the recent economic crisis. The econometric estimations confirm the existence of a spatial poverty trap, where poverty persists for generations. The inclusion of the placement of Impres Desa Tertingal (IDT) implemented during 1994–96 suggests that the regional targeting programme could fail to achieve its policy goal when the empowerment of local communities is insufficient. It is suggested that full–scale decentralization could remedy the targeting policy failure. JEL classification : O 15; O 18; R 15