Sustaining Growth and Performance in East Asia
Show Less

Sustaining Growth and Performance in East Asia

The Role of Small and Medium Sized Enterprises

  • Studies of Small and Medium Sized Enterprises in East Asia series

Edited by Charles Harvie and Boon-Chye Lee

This third book in the series focuses on how small and medium sized enterprises (SMEs) contribute to achieving and sustaining growth and performance in their economies, as well as the ways in which governments can assist and enhance that contribution. This is of particular concern given the trauma suffered by East Asian economies in the wake of the financial and economic crisis of 1997–98.
Buy Book in Print
Show Summary Details

Chapter 3: The Contribution of Micro-enterprises to Regional Economic Recovery and Poverty Alleviation in East Asia

Charles Harvie

Extract

3. The contribution of micro-enterprises to regional economic recovery and poverty alleviation in East Asia Charles Harvie 3.1 INTRODUCTION The economic and social crisis that afflicted East Asia1 from mid-1997 produced the biggest setback to poverty reduction in the region for several decades. Prior to the crisis, East Asian countries had achieved spectacular welfare gains. Consistently high rates of economic growth were translated into quantifiable welfare improvements, primarily because growth was largely inclusive – the poor shared in the benefits of development. Public provisioning of social services was widespread, and the productivity of the poor and their employment opportunities increased enormously. The absolute number of poor people fell and the severity of poverty declined. Between 1975 and 1995 poverty in East Asia2 dropped by two-thirds, and the pace of poverty reduction was faster than in any other developing region. In 1975, six out of ten East Asians lived in absolute poverty according to this standard; by 1995, the ratio had dropped to two out of ten. This meant that the number of poor in the region more than halved, from 720 million to 345 million (World Bank, 1997). Further, the rate of decline accelerated after 1985. The number of people in poverty fell by 27 per cent in 1975–85; in 1985–95 the decline was 34 per cent (World Bank, 1998). Since 1975 the region also achieved substantial gains in life expectancy, infant mortality and literacy rates. These are even more impressive when compared with social developments...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.


Further information

or login to access all content.