Enhancing Macroeconomic Resilience For Poverty Alleviation In Asean: An Extensive Examination
Dr. Putri Ayu Kartika Dewi
Faculty of Economics and Business, Gadjah Mada University, Yogyakarta, Indonesia
Muhammad Rifqi Pratama
Faculty of Economics and Business, Gadjah Mada University, Yogyakarta, Indonesia
Abstract
Poverty remains a persistent challenge in the Association of Southeast Asian Nations (ASEAN) member states, despite various efforts to address it through regional integration initiatives. This abstract examines the ongoing battle against poverty in ASEAN, which has its roots in the organization's founding goals of promoting prosperity and social progress. Despite multiple initiatives and policies aimed at poverty alleviation, around 120 million people in ASEAN still live below the poverty line, with Indonesia and the Philippines having the highest poverty rates. Governments in ASEAN have pursued strategies such as maintaining a favorable foreign investment climate (FDI), striving for five percent annual economic growth, and managing inflation and unemployment. Among these strategies, FDI plays a crucial role as it contributes to economic growth and job creation. This abstract underscores the significance of FDI in poverty reduction and highlights the importance of maintaining macroeconomic resilience to achieve ASEAN's poverty alleviation targets.