1.9. Making Markets Work for the Poor: A Comparative Study of Community-Based Local Economic Development To Support Livelihoods Programs for the Poor in Indonesia and Japan

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Last Updated 10 October 2016

Karim (Bappenas)


This paper investigates two different cases of community-based local economic development initiatives in order to narrowing the gap between a rapid economic expansion in urban areas and a slowdown or downturn of agricultural-based rural economies, as well as providing broader livelihood opportunities for the poor. In doing so, this paper elaborates the comparative study of the sustainable livelihoods approach (SLA) by comparing one of the new strategies for Indonesia’s poverty alleviation focused on the poorest households in some of the poorest areas, the PKKPM Program, and one of the most extensive Japanese government initiatives utilising the ;other functions of highways’ by creating roadside stations (Michi-no-Eki) to promote and accelerate local economic development. Further, it then discusses the possibility of improving the effectiveness of SLA implementation in Indonesia by using some key lesson learned from best practice in Japan.Keywords: sustainable livelihoods, poverty, community empowerment, economic development.