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Title: The social impact of the 1997-8 economic crisis in Indonesia
Author: Sumner, Andrew P.
ISNI:       0000 0004 2736 228X
Awarding Body: London South Bank University
Current Institution: London South Bank University
Date of Award: 2002
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In 1996, Indonesia had experienced over thirty years of rapid economic growth. Then, in 1997/8 Indonesia went through one of the worst financial and economic crashes in recent history. This thesis is an impact assessment of the social consequences of the 1997/8 crisis in Indonesia. Impacts are analysed within a Rights based approach to development based on a broadened definition of the 2015 international development targets utilising secondary data from the Central Bureau of Statistics. These are supplemented with a small-scale survey. The thesis argues that although Indonesia's economic development between 1965 and 1996 was real, social progress was not as strong as previously thought. The degree of severity of the social impact of the crisis was then a function of pre-crisis poverty. In particular, before the crisis there were a large number of households just above the poverty line and many education, health and environmental poverty indicators were weak. During the crisis, as a result of the hyperinflation and retrenchments, real wages fell heavily and the (income) poverty headcount increased significantly, as did poverty severity. Few areas or social groups escaped completely unscathed. Those provinces that were worst hit were those more closely tied to the global economy through international investment. Households compensated for the income loss through expenditure adjustments and there was a large increase in the labour force in agriculture and the informal sector. Impacts on education, health and environmental poverty were noticeable in some provinces but minimal at national level. The thesis is a contribution to knowledge at three levels. Firstly, it bridges a gap in the existing body of literature as no study has analysed systematically and in-depth the impact of the 1997/8 financial crisis on multifaceted dimensions of poverty in Indonesia. Secondly, it argues that the accepted view of the distribution of social impacts in Indonesia is not satisfactory when data are critically re-examined. Thirdly, the research models a 'poverty transmission mechanism' to link the macro-economy financial crisis to social impact at household level. The dissertation consists of two parts. In part one. the background and context of the research is established. Part two contains the substantive crisis analysis.
Supervisor: Not available Sponsor: Not available
Qualification Name: Thesis (Ph.D.) Qualification Level: Doctoral
EThOS ID:  DOI: Not available