The Philippines and Indonesia: changing land distribution since independence and its implications for growth with equity

Abstract

ABSTRACT The paper compares evidence from the Philippines and Indonesia to examine the argument that the Philippines has a more unequal distribution of both agricultural land and household incomes than Indonesia. It is argued that the evidence from agricultural censuses and household surveys does not support this argument. Instead, the available evidence indicates that there has been a process of convergence in the distribution of land in the Philippines and Indonesia. The percentage of land in holdings over ten hectares has fallen in recent decades in the Philippines, while in Indonesia it may have increased. The cultivated area under large estates continues to grow in Indonesia mainly because of the growth of palm oil cultivation. Evidence on the distribution of household income and of land indicates that neither country has followed the Taiwan model of growth with equity in recent decades.