The effect of rural development in reducing the poverty gap and economic growth has not been much analyzed in recent studies. This study examines the effects of rural development (as calculated by using the Village Development Index, VDI) on poverty and economic growth. Precisely, poverty is measured by the depth of poverty (as measured by Poverty Gap Index, P1) and poverty severity (as measured by Poverty Severity Index, P2) using the aggregate data at the district level in Indonesia. Understandably, many factors influence the effort to reduce the poverty gap in rural areas, and it can be started by improving rural economic development. The result of this study indicates that regions with the VDI categorized as “self-sufficient” and “developed” villages have the potential to reduce the depth of poverty and poverty severity in its areas and to increase economic growth. In contrast, underdeveloped and very underdeveloped regions in their VDI category experienced a more significant gap in the depth and severity of the poverty. This result implies that the Indonesian government must accelerate and improve the development of rural areas, especially in less developed regions. Thus, a better rural development status will attract more opportunities to grow rural economic activities and improve the community welfare.
Infrastructure plays a pivotal role in national development. However, financing infrastructure projects becomes a major hurdle as it is often considered unbankable, high risk, and requires a long payback period. The use of crowdfunding as an alternative source for infrastructure project financing is flourishing, especially in European and American countries. In contrast, the utilization of crowdfunding for such purposes in Asian countries is very limited. Hence, this study reviews four crowdfunding platforms in Europe and America that have successfully raised capital for infrastructure projects which are Oneplanetcrowd, Convergence Finance, Citizenergy, and Infrashares. Learning from best practices of those platforms, policies, and regulations, the study proposes four crowdfunding business models to be implemented in Asian countries including (1) blended finance, (2) cross-border citizen funding, (3) commercial infrastructure financing, and (4) within country crowdfunding.
Cash transfer is considered as a relatively safe policy instrument to improve child welfare. Over the past ten years, Indonesia has made major progress in reducing the number of children involved in child work. It has done so primarily by expanding education provision to increase the time children spend in school and reduce the time children allocate to work. This progress has been supported by the implementation of poverty alleviation programmes that provided income assistance to vulnerable families. This paper aims to analyse whether cash transfer subsidies provided by the Government of Indonesia were sufficient for children to decrease the probability of working and reduce the hours of working activities of children within households. This paper includes a detailed exploration of differences in impacts by childrens gender and areas of residence. This paper uses cross sectional data to analyse the effects of the programme on childs work. The data covers children aged from six to 14 from the Indonesian Family Life Survey (IFLS) in 2014. The data is non-experimental and programme participation is not randomly assigned. The bivariate Probit with endogenous dummy models are also estimated for the probability that a child is working, controlling for additional characteristics of the child, head of household, household and community-level characteristics. The results of this paper are particularly relevant for understanding the role of cash transfer programmes in developing countries. The findings of this paper suggest that the Government of Indonesia needs to reach the poorest children who are out of school.
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