THE RURAL DEVELOPMENT THROUGH REORGANIZATION IN POVERTY

Even in the rapidly growing economies of East and South-East Asia, the social foundation of the urban miracle and the rural transformation were far less durable than initially expected. This weakness became more apparent with the onset of the economic crisis in 1997. During the high growth period, the reduction of absolute poverty and increased levels of social development (education, health, family planning and social mobility) were notable. The rapid expansion of the urban middle class was another achievement. These changes occurred across the region, despite the decline in public investment funds for social development. The onset of the economic crisis, however, triggered job loss, an increase in school dropouts among low-income and poor families, and cuts in basic health care and social services. Some attributed this to the fact that neither had the social development pattern been broad based during the high growth days, nor had the distribution of the social cost been widely shared during the crisis.