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Poverty Impact Analysis: Approaches and Methods - Chapter 9

Computable General Equilibrium— Microsimulation Model: Economic and Poverty Impacts of Trade Liberalization in Indonesia - Giới thiệu Chính phủ Indonesia đã tích cực theo đuổi tự do hóa thương mại đơn phương, song phương, khu vực và đa phương trong hai thập kỷ qua. Tự do hóa tất cả được thực hiện trong bối cảnh thành viên của Indonesia trong các Tổ chức Thương mại Thế giới (WTO), Hợp tác kinh tế châu Á - Thái Bình Dương (APEC) Hiệp hội quốc gia Đông Nam Á (ASEAN) tự do thương mại, ASEAN-Trung Quốc Khu vực Thương mại miễn phí,. | CHAPTER 9 Computable General Equilibrium Microsimulation Model Economic and Poverty Impacts of Trade Liberalization in Indonesia Guntur Sugiyarto Erwin Corong and Douglas H. Brooks Introduction The Indonesian government has actively pursued unilateral bilateral regional and multilateral trade liberalization for the last two decades. All liberalization was done in the context of Indonesia s membership in the World Trade Organization WTO Asia-Pacific Economic Cooperation APEC Association of Southeast Asian Nations ASEAN Free Trade Area ASEAN-China Free Trade Area and ASEAN-China Japan Korea ASEAN 3 . Indonesia has also played an active role in the WTO by coleading the Group of 33 G33 countries in the ongoing negotiations for the Doha Development Agenda DDA .1 The main objective of the DDA is to help developing countries by removing distorting tariffs and subsidies and improving market access to help promote economic development and reduce poverty. The government s involvement in these various trade agreements as well as in structural adjustment programs with the World Bank and the International Monetary Fund has intensified the country s trade liberalization process. As a result Indonesia has in some instances unilaterally hastened the liberalization pace beyond its commitments with the WTO WTO 2003 . The rapid pace of unilateral trade liberalization and the imminent agricultural liberalization resulting from the DDA have been the subject of policy debates. Questions have been raised such as What are the economywide and poverty impacts of trade liberalization Is there any justifiable reason for still protecting the agricultural sector What are the effects of farm trade liberalization that might result from the DDA Since most farm workers are among the very poor will they benefit from the DDA and if so how 1 G33 was co-led by Indonesia and the Philippines during the 2001 WTO ministerial meeting. Applications of the CGE Modeling Framework for Poverty Impact Analysis .