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?
- Growth was slow and land ownership was very unequal.
- It had no farmland.
- Its government banned foreign trade.