| Summary: | The purpose of this study was to analyze pro-poor growth in the
district/city of South Sumatra Province using the income and non-income
dimensions approach in relation to the poverty rate changes since the early
implementation of triple track strategy, from 2005 to 2011. This study is expected
to know: (1) how the poverty condition and its change in terms of income and
non-income dimensions, (2) how the growth effects and the distribution effects
towards poverty changes, and (3) how the pro-poor growth level of the
district/city in terms of income and non-income dimensions in South Sumatra
Province.
The concept of pro-poor growth is based on the idea that economic growth
should benefit all parties, including the poor. Shapley Decomposition Technique
is used to determine how the growth effects and the distribution effects towards
the poverty changes in terms of those two dimensions. The pro-poor growth
concept used in this study refers to Kakwani and Son�s research (2008) which
uses Poverty Equivalent Growth Rate (PEGR) method as a measure in
determining the pattern of growth as pro-poor or anti-poor from the income
dimension, as well as Grosse, Harttgen, and Klasen�s research (2008) which uses
PEGR of non-income dimension.
Using Susenas data of South Sumatra Province in 2005-2011, discover a
tendency of non-income poverty rate higher than income poverty rate especially in
rural areas dominated. Shapley decomposition shows trade-off between growth
effects and redistribution effects against poverty changes. Growth which should
be reducing the poverty level is often hampered by the redistribution effects that
showed worsening inequality that accompanies growth. The trade-off is seen more
clearly in the non-income dimensions which showed that educational development
is still bias at population that has a secondary education and above.
The calculation results of the pro-poor growth level by PEGR discovered
that income growth tends to be trickle-down, although the poverty rate declines
but the benefits of growth received by the poor proportionately less than the nonpoor.
Income growth shows pro-poor in period of economic contraction, in which
income redistribution programs such as BLT implemented nationally. Quadrant
analysis results indicate that the pro-poor growth conditions worsened post-period
2008-2009 which characterized by most districts/cities are anti-poor growth of the
two dimensions.
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