Poverty Targeting in Asia
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Poverty Targeting in Asia Weiss 00 prelims i 8/2/05 12:34:03 pm Weiss 00 prelims ii 8/2/05 12:34:03 pm Poverty Targeting in Asia Edited by John Weiss Research Director, Asian Development Bank Institute, Tokyo, Japan A JOINT PUBLICATION OF THE ASIAN DEVELOPMENT BANK INSTITUTE AND EDWARD ELGAR PUBLISHING Edward Elgar Cheltenham, UK • Northampton, MA, USA Weiss 00 prelims iii 8/2/05 12:34:03 pm © Asian Development Bank Institute, 2005 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical or photocopying, recording, or otherwise without the prior permission of the publisher. Published by Edward Elgar Publishing Limited Glensanda House Montpellier Parade Cheltenham Glos GL50 1UA UK Edward Elgar Publishing, Inc. 136 West Street Suite 202 Northampton Massachusetts 01060 USA EEP edition A catalogue record for this book is available from the British Library ISBN 1 84542 123 X (cased) Printed and bound in Great Britain by MPG Books Ltd, Bodmin, Cornwall Weiss 00 prelims iv 8/2/05 12:34:03 pm Contents List of contributors vii Preface ix List of abbreviations x Maps xiv 1. Experiences with poverty targeting in Asia: an overview 1 John Weiss 2. Poverty targeting in India 34 Pradeep Srivastava 3. Poverty targeting in Indonesia 79 Ari A. Perdana and John Maxwell 4. Poverty targeting in the People’s Republic of China 136 Wang Sangui 5. Poverty targeting in Thailand 186 Peter Warr and Isra Sarntisart 6. Poverty targeting in the Philippines 219 Arsenio Balisacan and Rosemarie Edillon 7. Micro-fi nance and poverty reduction in Asia 247 John Weiss, Heather Montgomery and Elvira Kurmanalieva Index 269 v Weiss 00 prelims v 8/2/05 12:34:03 pm Weiss 00 prelims vi 8/2/05 12:34:03 pm Contributors Arsenio Balisacan is Professor of Economics at the University of the Philippines-Diliman and Director of the Southeast Asian Regional Center for Graduate Study and Research in Agriculture, Manila. Rosemarie Edillon is Executive Director of the Asia-Pacifi c Policy Center, Manila. Elvira Kurmanalieva is a Research Associate at the Asian Development Bank Institute, Tokyo. John Maxwell is a Fellow at the Research School of Pacifi c and Asian Studies, Australian National University, Canberra. Heather Montgomery is a Research Fellow at the Asian Development Bank Institute, Tokyo. Ari A. Perdana is a Researcher at the Center for Strategic and International Studies, Jakarta. Isra Sarntisart is Professor of Economics at Chulalongkorn University, Thailand. Pradeep Srivastava is Chief Economist at the National Council for Applied Economic Research, New Delhi. Wang Sangui is a Senior Researcher and Professor at the Institute of Agricultural Economics, Chinese Academy of Agricultural Sciences, Beijing. Peter Warr is John Crawford Professor of Agricultural Economics at the Research School of Pacifi c and Asian Studies, Australian National University, Canberra. John Weiss is Director of Research at the Asian Development Bank Institute, Tokyo. He is on long-term leave from the University of Bradford, UK, where he is Professor of Development Economics. vii Weiss 00 prelims vii 8/2/05 12:34:03 pm Weiss 00 prelims viii 8/2/05 12:34:04 pm Preface As a subsidiary of the Asian Development Bank, the Asian Development Bank Institute (ADBI) is committed to a program of research and capacity building that supports the Bank’s overarching goal of poverty reduction in Asia. As an important part of this work, in 2003 a series of studies were undertaken on the effectiveness of various measures aimed at channeling resources directly at the poor and vulnerable – so-called ‘poverty targeting’. Five important countries were selected for study – India, Indonesia, the People’s Republic of China, the Philippines and Thailand. The results of this work were discussed at an internal workshop in Tokyo in November 2003 and the fi nal drafts were produced in mid-2004. Edited versions of these are presented here as country chapters. In addition in 2003 ADBI commenced work on issues relating to micro- fi nance with a major conference on this topic held in Tokyo in December 2003. The fi nal chapter of this volume was presented at that conference as a survey of knowledge on the impact of micro-fi nance institutions on poverty in Asia. ADBI will be pursuing these topics in more depth in the future, but we are delighted at this stage to be able to publish our material internationally through this joint publication with Edward Elgar Publishing. I wish to acknowledge the help of colleagues at ADBI in putting this volume together, particularly Reiko Nishiura, who tidied up all the fi les. The efforts of all our country authors are also gratefully acknowledged. John Weiss Director of Research, Asian Development Bank Institute. ix Weiss 00 prelims ix 8/2/05 12:34:04 pm Abbreviations AAY Antyodaya Anna Yojana ACC/SCN Administrative Committee on Co-ordination/Sub- committee on Nutrition ADBI Asian Development Bank Institute ALEK Alasan Ekonomi (for economic reasons) ASA Associations for Social Advancement BAPPENAS Badan Perencana Pembangunan Nasional (National Development Planning Board) BIDS Bangladesh Institute of Development Studies BKB Bangladesh Krishi Bank BKK Badan Kredit Kecamatan (sub-district credit board) BKKBN Badan Koordinasi Keluarga Berencana Nasional (National Family Planning Co-ordinating Board) BP3 Badan Pembantu Penyelenggara Pendidikan (Board of Education Assistance) BPS Badan Pusat Statistik (Central Bureau of Statistics) BRAC Bangladesh Rural Advancement Committee BRDB Bangladesh Rural Development Board BRI Bank Rakyat Indonesia Bulog Badan Usaha Logistik (National Logistics Board) CAG Comptroller and Auditor General of India CARP Comprehensive Agrarian Reform Program CEO Chief Executive Offi cer CIDSS Comprehensive and Integrated Delivery of Social Services CIMU Central Independent Monitoring Unit CPI Consumer Price Index CSS Centrally Sponsored Schemes DDP Desert Development Program Desa Village DPAP Drought Prone Areas Program EAS Employment Assurance Scheme EGS Employment Guarantee Scheme x Weiss 00 prelims x 8/2/05 12:34:04 pm Abbreviations xi ESCAP Economic and Social Commission for Asia and the Pacifi c FAO Food and Agriculture Organization GDP Gross Domestic Product GMA Gamot na Mabisa Abot-Kaya (Affordable Medicine for All) GOI Government of India IAY Indira Awas Yojana ICDS Integrated Child Development Services Scheme IDT Inpres Desa Tertinggal (Presidential Decree on Neglected Villages) IFAD International Fund for Agricultural Development IMF International Monetary Fund IMI International Management Institute, Orissa INPRES Instruksi Presiden (Presidential Decree) IRDP Integrated Rural Development Program IWDP Integrated Wastelands Development Program JGSY Jawahar Gram Samridhi Yojana JPKM Jaminan Pelayanan Kesehatan Masyarakat (Community Health Care Guarantee Program) JPS-BK Jaring Pengaman Sosial-Bidang Kesehatan (Social Safety Net-Health Sector) JRY Jawahar Rozgar Yojana Kabupaten District KALAHI Kapit-Bisig Laban sa Kahirapan KDP/PPK Kecamatan Development Program/Program Pembangunan Kecamatan Kecamatan Sub-district kg kilograms KPS Keluarga Pra-Sejahtera (Pre-prosperous Family) KS Keluarga Sejahtera (Prosperous Family) KURK Kredit Usaha Rakyat Kecil (Credit for Activities of the Poor, East Java) KVIC Khadi and Village Industries Commission LGPR The Leading Group for Poverty Reduction MAKER Mathura Krishna Foundation for Economic and Social Opportunity and Human Resource Management MBN Minimum Basic Needs MDG Millennium Development Goals MFI Micro-fi nance Institution NBS National Bureau of Statistics, formerly State Statistics Bureau Weiss 00 prelims xi 8/2/05 12:34:04 pm xii Abbreviations NESDB National Economic and Social Development Board NFA National Food Authority NGO Non-Governmental Organization NOAPS National Old Age Pension Scheme NSAP National Social Assistance Program NSDP National Slum Development Program OECD Organization for Economic Co-operation and Development OPK Operasi Pasar Khusus (Special Market Operations) ORG Operations Research Group P2KP Program Penanggulangan Kemiskinan Perkotaan (Urban Poverty Alleviation Program) P3DT Pembangunan Prasarana Pendukung Desa Tertinggal (Supporting Infrastructure Development for Neglected Villages) PCF People’s Credit Fund PDI Planning and Development Initiatives, for Planning Commission, Government of India PDM-DKE Pemberdayaan Daerah dalam Mengatasi Dampak Krisis Ekonomi (Empowering the Regions to Overcome the Impact of the Economic Crisis) PDS Public Distribution System PEO Program Evaluation Organization, Planning Commission, Government of India PG Poverty Gap PKDP Padat Karya Desa Program (Labor-intensive Development Program) Podes Potensi Desa (Village Potential) Pokmas Kelompok Masyarakat (Community Groups) PRC People’s Republic of China PTCCS Primary Thrift and Credit Co-operative Society Puskesmas Pusat Kesehatan Masyarakat (Community Health Center) R&D Research and Development RAKUB Rajshahi Krishni Unnayan Bank Raskin Beras untuk Keluarga Miskin (Rice for Poor Families) REECS Resources, Environment and Economics Center for Studies, Incorporated REGP Rural Employment Generation Programme Repelita Rencana Pembangunan Lima Tahun (Five-year Development Plan) RMB Yuan, Chinese currency Weiss 00 prelims xii 8/2/05 12:34:05 pm Abbreviations xiii Rp Rupiah, Indonesian currency RPS Retention Pricing Scheme Rs Rupees SC Scheduled Caste SEWA Self Employed Women’s Association SGP Scholarships and Grants Program SGRY Sampoorna