Agricultural growth and rural poverty reduction in Mainland Southeast Asia

Abstract

For centuries, the countries of Mainland Southeast Asia (MSEA) have endured stifling poverty. Poverty was most heavily concentrated in rural areas, but not confined to them. Over recent decades, rapid reductions in poverty incidence have occurred. It is now well-recognised that the central driver of poverty reduction over a long period is economic growth, broadly understood (Dollar and Kraay 2002). But is this account sufficient? Does the composition of the growth matter, including its sectoral makeup? Are there other macroeconomic variables that also have a significant impact on the rate of growth? What is the relative importance of poverty reduction in rural and urban areas, and are their economic determinants the same? This chapter addresses these questions.