What this lesson teaches
I can judge the outcomes of economic change in Southeast Asia for growth, equity and economic nationalism.
Syllabus 9174, Paper 2, Theme II, Learning Outcomes. evaluate the outcomes of economic change across different contexts and over time
Make a guess
Malaysia and Indonesia grew fast from the 1970s. What do you think happened to poverty there?
- It disappeared by the 1980s.
- It fell sharply, though the 1997 crisis reversed some gains.
- It stayed the same, as the rich took the gains.
Show the answer
It fell sharply, though the 1997 crisis reversed some gains.
In Malaysia poverty fell from about 49 per cent of households in 1970 to about 17 per cent in 1990. Rural programmes helped.
Growth cut poverty sharply in the fast-growing economies. Poverty stayed high in the Philippines and Burma, and the 1997 crisis reversed some gains.
Poverty fell sharply where growth was fast and reached rural areas. In Malaysia, poverty fell from about 49 per cent of households in 1970 to about 17 per cent in 1990. It fell further by the late 1990s.
In Indonesia, official poverty fell from about 40 per cent of the population in 1976 to about 11 per cent in 1996. Rice programmes, rural schools and health clinics helped.
Thailand's poverty also fell steeply in the boom years before 1997, though the poor northeast lagged behind Bangkok.
In the Philippines, slow growth and unequal land ownership kept about two-fifths of Filipinos poor in the early 1990s. Burma remained one of the poorest countries in Asia.
The 1997 crisis pushed millions back into poverty. In Indonesia the poverty rate roughly doubled in 1998.
- Malaysia
- About 49% (1970) to about 17% (1990).
- Indonesia
- About 40% (1976) to about 11% (1996).
- 1998
- Indonesian poverty roughly doubles.
Worked example: Comparing poverty outcomes
Where did poverty fall most?
- Malaysia: a steep fall, helped by the NEP.
- Indonesia: a steep fall until 1997, then a sharp rise.
- Thailand: a fall, but regional gaps.
- The Philippines and Burma: poverty stayed high.
Watch out for this
Fast growth automatically ended poverty.
Growth cut poverty most where governments spread its benefits to rural areas. The 1997 crisis showed how quickly gains could be lost.
Check your understanding
Why did poverty stay high in the Philippines?
- Its government banned foreign trade and investment.
- It had too little farmland for its people.
- Growth was slow and land ownership was very unequal.
Show the answer
Growth was slow and land ownership was very unequal.
Right. Few gains reached the rural poor.