Lessons from Asia’s experience on Pro-Poor Growth AADC Workshop, India March, 2012 Siriporn Wajjwalku Thammasat University Thailand

Outline of the presentation Pro-Poor Growth Experiences: GGP in Thailand Pro-Poor Growth and donor Pro-Poor Growth and recipient Next Step: Growth and distribution OR inequality and policy instrument?

Pro-Poor Growth (1) “A pace and pattern of growth that enhances the ability of poor women and men to participate in, contribute to and benefit from growth” (OECD, 2007)

Pro-Poor Growth (2) “Pro-Poor Growth is measured by changes in the incomes of the households in which poor women and men live and the assets they and their children acquire to earn higher incomes in the future” (Manning, 2007)

Pro-Poor Growth (3) Key issues 1. To decrease inequality 2. To reduce poverty 1. To decrease inequality  country level : reform of socio-economic structure  the internal affairs of the recipient  the role of donor(?) 2. To reduce poverty  household level : development project supported by donor

Experiences: Japanese GGP in Thailand (1) Japanese GGP in Thailand Sector : Agriculture and rural development Amount of projects : 26 projects Period : Locations : Central, North, and Northeast

Experiences: Japanese GGP in Thailand (2) Japanese GGP: Objectives 1. To promote sustainable development at the grassroots level 2. To strengthen and promote active participation of local authority, local community, and NGOs in aid process, including aid delivery and utilization

Experiences: Japanese GGP in Thailand (3) Approach and Modality 1. Request based (demand driven) 2. Bilateral 3. Small scale project Process 1. Project formulation  application form and field visit 2. Project implementation  progress report and field visit (optional) 3. Project evaluation  final report and field visit

Experiences: Japanese GGP in Thailand (4) Distribution of projects Central : 2 projects in 2 provinces North : 13 projects in 6 provinces Northeast : 11 projects in 6 provinces Types of received institutions Local authority : 2 projects Local community : 5 projects NGOs : 19 projects

Experiences: Japanese GGP in Thailand (5) Types of NGOs Domestic – national NGOs : 8 projects Domestic – local NGOs : 10 projects International NGOs : 1 project Observation Representation of local people and community

Experiences: Japanese GGP in Thailand (6) Success 1. Income generation at the household level (Vegetable Bank, Organic Farm, etc.) 2. Knowledge generation and accumulation both at household and community levels Challenges 1. Long term sustainability  aid for trade 2. Level and degree of local participation

Pro-Poor Growth and donor Experience from GGP Success 1. Efficient delivery process 2. Promotion of in-country process Challenges 1. Organizational capacity in the recipient country 2. Dialogue design and selection process (to promote partnership and ownership)

Pro-Poor Growth and recipient Experience from GGP Success 1. Higher income (farm and off farm activities) 2. Higher standard of living (welfare and education for children) 3. Strong local community Challenges 1. Limited capacity of local authority, local community, and local people 2. NGOs and their representation for local community and people

Next Step: Growth and distribution OR inequality and policy instrument? 1. Restructuring socio-economic systems  Institutional redesign  political will + mature civil society (donor’s role = capacity building/ democratization) 2. The compatibility of country-level policy or direction and household-level project design 3. As an emerging donor, what should be our focus – poverty reduction or inequality decrease, and how to design the development cooperation program/project?