Book contents
- Frontmatter
- Foreword
- Preface
- Author Profiles
- Abbreviations and Acronyms
- Contents
- 1 Introduction
- 2 Development Policies and Performance
- 3 Critical Constraints to Growth
- 4 Critical Constraints to Reducing Poverty and Inequality
- 5 Macroeconomic Management
- 6 Industrialization: Patterns, Issues, and Constraints
- 7 Infrastructure Development: Challenges and the Way Forward
- 8 Human Capital and Economic Development
- 9 Economic Growth, Employment Creation, and Poverty Alleviation
- 10 Poverty Reduction: The Track Record and Way Forward
- 11 Decentralization
- 12 Making Indonesia's Growth Green and Resilient
- Index
9 - Economic Growth, Employment Creation, and Poverty Alleviation
Published online by Cambridge University Press: 05 May 2012
- Frontmatter
- Foreword
- Preface
- Author Profiles
- Abbreviations and Acronyms
- Contents
- 1 Introduction
- 2 Development Policies and Performance
- 3 Critical Constraints to Growth
- 4 Critical Constraints to Reducing Poverty and Inequality
- 5 Macroeconomic Management
- 6 Industrialization: Patterns, Issues, and Constraints
- 7 Infrastructure Development: Challenges and the Way Forward
- 8 Human Capital and Economic Development
- 9 Economic Growth, Employment Creation, and Poverty Alleviation
- 10 Poverty Reduction: The Track Record and Way Forward
- 11 Decentralization
- 12 Making Indonesia's Growth Green and Resilient
- Index
Summary
Introduction
This chapter focuses on linkages between economic growth, employment creation, and poverty alleviation. Broadly speaking, the fruit of economic growth is distributed through income opportunities and social policies that redistribute income, such as progressive taxation and social security, and that enhance economic opportunities of the deprived, such as education and public health. Because of limited space, the chapter's scope of discussion is confined to economic growth and poverty alleviation through employment. The chapter focuses on employment, not other forms of income opportunities, because employment is often the only reliable means of income for most citizens and the deprived. It is increasingly accepted that realizing high economic growth alone does not necessarily guarantee poverty alleviation. The economic and labor market performances in Indonesia during the decade after the Asian financial crisis (AFC), corroborate this observation, and similar evidence abounds elsewhere in the world. This chapter thus sheds light on the relations between economic growth, employment creation, and poverty alleviation in Indonesia in order to gain insight into strengthening the linkages.
The effect of economic growth on poverty reduction depends largely on the employment parameter that connects the two. Creation of employment can be considered as a function of economic growth, but the relation is not linear, because many variables affect the capacity of the economy to generate employment, which will be discussed in the first half of this chapter.
- Type
- Chapter
- Information
- Diagnosing the Indonesian EconomyToward Inclusive and Green Growth, pp. 301 - 340Publisher: Anthem PressPrint publication year: 2012
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