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    The Emergence of the Middle Class in ASEAN CountriesAuthor(s): Helen Hughes and Berhanu WoldekidanSource: ASEAN Economic Bulletin, Vol. 11, No. 2 (NOVEMBER 1994), pp. 139-149Published by: Institute of Southeast Asian Studies (ISEAS)Stable URL: http://www.jstor.org/stable/25770536 .Accessed: 01/07/2014 01:30

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    ASEAN Economic Bulletin Vol. 11,No. 2

    The Emergence of the Middle ClassinASEAN Countries

    Helen Hughes and Berhanu Woldekidan

    Middle classes are not simply middle income groups, but have cultural, social, political, andeconomic characteristics that make substantial contributions to development. Although

    middle classes are difficult to define precisely, it is clear that the middle-class populationincreases exponentially as a proportion of total population with economic growth. Estimates

    of the size of themiddle class have been made for theASEAN countries. Taking the growth ofthe middle class into account in national policies can facilitate development in housing,health, education and the environment.

    Although themember countries of theAssociation

    of Southeast Asian Nations (ASEAN) are disparate in terms of geography and population, the

    rapid growth of their middle classes is a commoncharacteristic.

    Middle classes are not synonymous with middle income groups. The latter merely represent astatistical entity. In countries such as Indonesiaand Thailand, middle income groups have suchlow incomes that they do not have generally rec

    ognized economic middle-class attributes.Middle-class families in these countries have

    incomes well above the median and are part of a

    relatively small middle and upper incomegroup. As per capita incomes rise, the middleclasses not only grow in absolute terms but alsoin the share of the total population, so that theirincomes overlap with median incomes. Thurow

    (1984) categorized households in the UnitedStates with incomes between 75 and 125 per centof median household income as middle class.Lawrence (1984) set the middle-class boundaries

    between two-thirds and one and one-third of the

    median income. Such measures, however, isolatemiddle income rather than middle-class groups.There is no indication that the middle classesidentified in this way have different behaviouraltraits to lower or higher income groups.

    Conceptually the middle class is a relativelyhigh income group with recognizable social,cultural and political as well as economic characteristics. These characteristics evolve over time.

    Middle classes play a key role in articulatingcountries' national cultural traits, although theydo not have amonopoly of a nation's culture. TheIndonesian middle class therefore has differentcultural characteristics from, say, Thai or Singapore middle classes. Middle-class objectives andbehavioural patterns do not imply the characteristics of societies of European origin. In each

    country middle classes have distinctive nationalcharacteristics, but they also have internationallyoverlapping patterns of behaviour.

    Social aspirations lie at the heart of middle

    ASEAN Economic Bulletin 139ovember994

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    class concerns. Middle-class activists tend to bein the forefront f defining and supporting a coun

    try's social relationships and standards. Equalityfor women is a largely middle-class concern andso is the fair treatment of minorities. Extremes of

    poverty and wealth are usually alien to middleclass ideals so that emerging middle-class

    political power has strong implications for policies that affect the distribution of income andwelfare measures. The middle class is generallyconcerned with the preservation of the environ

    ment. Very wealthy people can create their ownenvironment on their own estates, but when

    middle-class people demand improved air andwater, it becomes a social issue. For middle-class

    people, the streetscape is important. In economic

    jargon, the income elasticity of demand for socialand environmental concerns is high. The growthof the middle class inAsia has thus been associated with a growing social and political concernwith welfare and environmental issues.

    The income elasticity of demand for the rule oflaw and political democracy also appears to be

    high, so that demand for a democratic environment grows more rapidly than incomes.

    Participatory democracy with its demand forelected

    governmentsand

    multiparty systemsis a

    largely middle-class phenomenon. The demandfor personal freedoms the freedom to live in alocation of choice, to educate children accordingto parents' values, and the freedom to travelare other examples of rapid increases of demandassociated with the rise of the middle classes.

    Young middle-class people?

    university students? are often in the forefront of a wide range of

    social and political demands. The middle classaffects production and consumption by influenc

    ing economic and social policies indirectlythrough pressure groups and ultimately directlythrough parliamentary processes.

    In the short termmiddle-class pressures may be

    narrowly self-interested. Initially middle-classgroups are often highly protectionist. But aseconomies evolve, middle-class people generallysee that their interests and those of their countriesare better served by more open economic policies.Evolving checks and balances, including the

    growth of such working class institutions as tradeunions, make for the political opening of econo

    mies and greater social responsibility.The growth of the middle class thus has wide

    reaching implications for many aspects of

    ASEAN societies. This article, however, is limitedto the economic aspects of the emergence of the

    middle class in ASEAN. The concept of amiddle class is first discussed in an economicframe of reference. The size of the middle classin ASEAN is then estimated. The final sectionfocuses on the demand implications of the growthof the middle class inASEAN countries.

    What is theMiddle Class?

    Since the concept of a middle class has cultural,social and political as well as economic aspects ofbehaviour, it is extremely difficult to define. For

    tunately, the economic aspects of middle-classbehaviour appear to have greater internationalsimilarities than cultural, social or political traits,so that some attempt can be made to identify and

    quantify the middle class in broad economicterms. The ensuing estimates are inevitably veryrough. Ultimately only surveys that can elicitattitudinal

    responsesas well as

    objectivecharac

    teristics can provide relatively unambiguousestimates of middle-class numbers.

    In economic behaviour (consumption, saving,

    production, investment) middle-class economiccharacteristics are associated with the assumptions about economic man that have beenessential to the formulation of economics as asocial science. The middle classes tend tomaxi

    mize their personal utility in consumption and tomaximize profits in production. But their actions

    are not solely activated by personal (family)considerations. They recognize social obligations.Where externalities (including environmentaloutcomes and income distribution issues) are

    present, the individual economics of the invisiblehand are tempered by recourse to public economics. Rational economic behaviour is also a key

    middle-class trait. The demographic transitionfrom high mortality to low fertility is thus generally led by themiddle class. Children cease to be

    ASEAN Economic Bulletin 140ovember994

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    foreign countries, they travel abroad, and theyemigrate to high income countries. The braindrain from countries such as the Philippinesreflects the growing numbers of middle-class

    people who have the education, incomes and

    social sophistication to enable family members tomove from low to high income countries. Theyoften maintain homes in both countries. When thestate subsidizes the education that leads to an

    ability to emigrate, this is a loss to the economy.Over the emigrants' lifetimes, however, suchlosses are usually offset by remittances to their

    country of origin, the opening up of export opportunities from the home country and other benefits.

    The brain drain is thus unlikely to detract from a

    generally positive impact that the growth of themiddle class has on an economy.

    Being middle class is associated with occupational status. People tend to define themselves andothers in terms of the work they do. The middleclass includes entrepreneurs who are the ownersof relatively small and medium manufacturingand service enterprises and a large range of

    (professional, technical and management) staff inmedium to large scale businesses. Opportunitiesfor women have expanded inmiddle-class occu

    pations.The

    consequentformation of families

    with two high income earners has had a profoundimpact on consumption patterns.

    Sectors such as banking, insurance and other

    financial services develop to meet middle-classfinancial requirements as well as productionneeds, and they stimulate middle-class numbers as

    they develop. People working in the professions(law, medicine, accounting) and even para professional occupations (nursing, bookkeeping) are

    usually considered middle class. As farmers move

    from traditional to commercial forms of agriculture, with relatively sophisticated technology andwith relatively large capital inputs, they becomemiddle class.

    The middle to upper echelons of public sectorsform important components of the middle class.

    As the role of government expands to meetmacroeconomic and microeconomic require

    ments, the role of the public sector increases,adding to the numbers of the middle class. In

    some countries excessive government interventionin the economy has led to a very rapid increase in

    public sector employment. Where public sectorintervention is excessive, leading to overegulatedeconomies, the net social effect may be negative.

    The size of the middle class is boosted, but at thecost of economic inefficiency and a skewedincome distribution. A country such as Vietnamthus may have had a relatively large middleclass, but its positive productive effect was verylimited because of the limitations of central

    planning. The emergence of an excessive middleclass of officials and employees of public enter

    prises acted as a brake on development, and tookincome from low income groups to support the

    middle class.The emergence of the middle class cannot be

    simply taken to have totally positive effects on

    production and productivity, but in most countriesthe increases in skills implied in the growth of the

    middle class swamp the negative effects.

    Measuring the Size of theMiddle Class

    Direct estimates of middle-class numbers usuallycontain major differences of definition and

    measurement so thatthey

    cannot be used for international comparisons (Rodan 1993).

    The principal economic features of the middleclass are generally taken to be personal andhousehold income, education (human capital),occupational status and consumption patterns, andthese should form the basis of measurement.

    Translating these criteria into hard data is unfortunately very difficult. Attempts to work around

    median incomes result in estimates of middleincome, not middle-class groups. Because of

    differences of price relatives, particularly in areassuch as housing, patterns of minimum middleclass incomes did not emerge even when

    purchasing parity data was used. An income

    approach to identifying middle classes was therefore abandoned.

    Education data also proved unproductive in

    identifying middle classes because educationalattainments in Southeast Asia are changing veryrapidly. Secondary education did not prove to be

    ASEAN Economic Bulletin 142ovember994

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    a useful guide. Taking tertiary graduates as

    proxies for the middle class would exclude

    significant middle-class groups. Temporal definitions of middle class, such as having twosuccessive generations of tertiary education,

    would be even more exclusive.The two indicators that show the most promise

    are occupational data and consumption patterns.

    Occupational Data

    A first approximation of the size of the middleclass is based on occupational classifications.

    Although occupational data are available, theyhave to be adapted to be useful. Differences ofstatistical definitions among countries add to thedifficulties of using these sets of data. Nevertheless, they provide some useful insights.

    Table 1 shows the growing importance of professional and administrative, and clerical salesand service employees for the 1980s for the

    ASEAN countries, which had comparable data.The professional and administrative, and

    clerical, sales and service groups have beenadded together as a proxy for middle-classnumbers. The clerical, sales and service group is

    likely substantiallyto overstate the number of

    people with middle-class characteristics, particularly in low income countries, by including low

    level clerks, salespeople and ancillary workerssuch as janitors. Some of this overstatement is

    likely to be offset by the inclusion of middleclass people in agriculture and particularly in the

    production and transport categories. Employment

    was adjusted to create a total population base byusing household size, and this would have led tosome overestimation of middle-class numbers and

    proportions because households may have morethan one middle-class salary earner.

    Occupationally based data can only be used as

    very rough indicators. The absolute numbers andshares of the occupational categories grew withrates of economic growth, but seemed too high for

    most countries as proxies for middle-class

    populations. The inclusion of non-middle-class

    occupations in the categories used, as well as theswollen numbers in these occupations in the

    public sector apparently inflated the figures.

    Consumption Data

    Patterns of consumption by income groups, the

    ownership of consumer durables and of housing,appeared to be possible databases for identifyingthe size of the middle class. While consumptiondata showed the

    expecteddeclines in shares of

    food consumption and rises in the share of the

    consumption of goods and services with increases

    TABLE 1Employment by Occupation, 1980 and 1989

    Percentage of Total Employment

    Total Professional Clerical, Production

    Employment and Sales andnd(Millions) Administration Services Agriculture Transport

    1980 1989 1980 1989 1980 1989 1980 1989 1980 1989

    Malaysia 4.8

    Philippines 17.2

    Singapore 1.1Thailand 22.5

    6.4 9 1021.9 7 7

    1.3 14 2030.6 4 5

    27 32 3623 27 5140 40 213 14 71

    29 29 2944 19 21

    1 39 3567 13 14

    SOURCE:International abour Office, Yearbook of Labour Statistics 1989-90 (1991).

    ASEAN Economic Bulletin 143 November 1994

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    TABLE 2The Share of Employment inMiddle Class Occupations, 1980 and 1989

    Professional, Administrative Number ofMiddleClerical, Sales and Services Class Peoplea

    Share inTotal Employment (%)1980 1989 1989

    Malaysia 36 423

    Philippines 30 342Singapore 54 60Thailand 17 197

    aAssuming each employee is a head of a household, total middle-class population

    was obtained by using household size.SOURCE: International Labour Office, Yearbook of Labour Statistics, 1989-90

    (1991).

    in household income, it proved impossible toestablish internationally meaningful income cutoff points for such consumption patterns. Housingdata proved to be too fragmented to be inter

    nationally comparable. Private housing has beenso neglected in many developing countries that

    many middle-class people have inadequatehousing. The most promising data for the identification of a middle class seemed to be consumerdurable ownership.

    Radio ownership is so widespread in the

    ASEAN member countries, even in relatively lowincome countries with poor electrical services inthe countryside, that it cannot be regarded as anindicator of middle incomes and lifestyles (Table3). The ownership of televisions is even more

    dependent on access to power, and televisions aremore expensive than radios. Because of its entertainment value, television ownership is also high,but it is closely correlated with the ownership ofother consumer durables in all ASEAN countries.Television antennae are often seen above what

    TABLE3Percentage of Households with Radio and Television, 1988

    Number of Percentage of Percentage ofPopulation Households Average Households Households

    (Millions) (Millions) HouseholdSize with TV withRadio

    Indonesia3 175.6 39.0 4.58.2 66.2

    Malaysia6.9 3.6 4.74.4 202.8

    Philippines 58.7 10.3 5.71.4 77.7

    Singapore 2.7 0.7 3.8 92.0 110.0Thailand3 51.6 11.9 4.67.2 80.6

    aTelevision ownership for Indonesia and Thailand is understated compared with national sources.SOURCE:United Nations, Statistical Yearbook: Thirty eventh ssue 1988/89 (1992).

    ASEAN Economic Bulletin 144 November 1994

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    appear to be slum houses. Housing constraints insome countries mean that such dwellings may beoccupied by middle-class families, but they alsoindicate that the demand for television cannot betaken as a proxy for themiddle class.

    Tables 4 and 5 show the evolution of motor carand telephone ownership in ASEAN countries.Cars are clearly amuch more major consumptionitem than television sets. In low income developing countries their ownership is limited to upper

    middle-class and wealthy income groups. Government policy as well as incomes affect market

    penetration. In Singapore licensing policies aswell as density and excellent public transportlimit private motor vehicle ownership. The middleclass is thus likely to be larger than motor car

    ownership suggests.Telephone data include commercial telephone

    lines and are thus not as useful indicators ofhousehold characteristics as the other figures.

    Among the internationally available indicators

    of consumption patterns, television ownershipseems the best single proxy for middle-classstatus (Table 3) in its own right and because of itsclose linkage to other consumer durables. But thiswould make Singapore as well as Hong Kong andTaiwan predominantly middle-class economies,and this is clearly unrealistic. A television proxywould also overstate the size of the middle classin the other ASEAN countries.

    The analysis of consumer durable markets ledto some interesting insights. Market penetration

    TABLE 4Passenger Motor Vehicle Ownership

    Number ofMotor Motor VehicleVehicles ('000) per 1,000 of Population

    1980 1989 1980 1989

    Indonesia 640

    Malaysia862

    Philippines 466

    Singapore 165Thailand 410

    1,182 4.3 6.71,689 62.0 97.6

    413 9.5 6.769.8

    1,000 8.8 18.1

    SOURCE:United Nations, Statistical Yearbook: Thirty eventh ssue 1988/89 (1992).

    TABLE5Telephone Lines in Use Per Thousand Inhabitants

    Number of Telephone Lines inUse ('000) Telephone Line Use Per 1,000 of Population1980 1985 1987 1988 1980 1985 1987 1988

    Indonesia 513 796 890 938 0.4 0.5.5 0.5

    Malaysia 598 12,279 1,501 1,646 5 8 90Philippines 702 820

    -994 1.5 1.5 -1.7

    Singapore 702 1,074 1,164 1,220 29 4246Thailand 497 755 1,200 1 2

    SOURCE:United Nations, Statistical Yearbook: Thirty eventh ssue 1988/89 (1992).

    ASEAN Economic Bulletin 145 November 1994

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    takes the form of S-shaped exponential curves. Asthe best data were available for televisions,pooled data for Asian countries for 1988 and 1989were used to estimate a relationship betweenincome levels and television ownership. In 1988

    prices, at very low level of per capita income,below US$400, television ownership was flatand increased slowly as per capita incomes roseto US$800. Television ownership then rose at a

    very rapid rate to a per capita income level ofUS$6,300. The rate of increase then flattenedas television ownership approached marketsaturation.

    The growth of the middle class appears tofollow a similar pattern. At low per capita incomelevels, middle-class numbers and the percentageof the middle class in the total population is verylow, probably below 5 per cent. The rate of

    middle-class formation then begins to rise, andtowards a per capita income of US$1,000 the riseaccelerates until per capita income reaches

    US$,7000 or so.When some 50 per cent of thepopulation have become middle class the rate ofincrease of middle-class numbers then moves

    very slowly. At this point many non-middle-class

    people have what are generally regarded asmiddle-class

    consumption patterns,and

    manymiddle-class traits become pervasive, but it wouldtake all meaning from the middle-class concept to

    call a whole country middle class. Other groupsin society, notably blue collar workers and smallfarmers, retain distinct characteristics. Table 6estimates the size of themiddle class along theselines.

    The estimates of some 31 million middle-classpeople in ASEAN countries fell considerablybelow that of the population able to afford consumer durables, notably television sets. Iftelevision ownership is regarded as a guide to thesize of the market for sophisticated consumptiongoods, then the ASEAN affluent market consists of about 80 million people (based on Table3), that is more than twice the size of the middleclass. The demand for sophisticated goods runswell ahead of middle-class formation.

    The Consumption Implications

    As markets for increasingly sophisticated goodsand services expand, competitive productionopportunities grow in the domestic market and forexports. Increasing economies of scale are created

    in production so that costs and prices fall.

    Although the share of food in consumptiondeclines, absolute amounts of food purchased per

    familyincrease and the food mix becomes more

    varied and of higher quality, with processed food

    taking a greater share in the basket of food

    TABLE6Estimated Size and Share ofMiddle Classes inASEAN Countries, 1988

    Estimated Middle Classes

    Population Number Share of Population

    (Millions) (Millions) (Percentage)Indonesia 175.6 14.0

    Malaysia 16.9 2.55Philippines 58.7 7.02

    Singapore 2.7 1.40Thailand 51.6 6.22

    SOURCES: Population data are from the International Economic Data Bank, the Australian National University. The middle-class estimates are the authors'.

    ASEAN Economic Bulletin 146 November 1994

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    purchased. Growing refrigerator wnership makes

    higher quality food consumption possible.Purchases of clothing similarly increase per

    person although clothing purchases decline as ashare of total income, and become more complex

    with a greater reliance on made-up clothing and aconsequent shift of clothing production from thehome and small artisans to factories. Economiesof scale mean greater productivity and falling unitcosts for clothing of given quality.

    The production of consumer durables is usuallyregarded as an important component of importsubstitution (defined in terms of total market

    expansion). Where such import substitution is

    highly protected that the industries are inefficientwith the prices of goods above world prices, the

    growth of the market is curtailed as are employment opportunities for the middle classes and forthe economy as a whole. As noted, themarket forconsumer durables grows particularly rapidly.

    Retail and Wholesale Trade

    Changing household consumption trends stimulate and transform retail trade. Clusters of

    department stores and supermarkets grow in cen

    tral business districts and in suburban locations.Less spectacularly, retail outlets throughout urbanareas become diversified with some trendstowards specialized services and some towards

    department and supermarket type structures.Services such as electronic repairs multiply. Thewholesale and importing structures become more

    complex and grow in volume. Complementaryservices such as market research and advertisingdevelop. All this stimulates the formation of the

    middle class and overall employment and growth.

    Banking and Financial Services

    Rising savings lead to the diversification of consumer oriented financial services that complementthe evolution of capital markets for business.

    Branch commercial banking, specialized banking,consumer durable finance and stockbrokinggrow. Personal financial services funnel savingsinto business investment and thus stimulate the

    economy and contribute to the growth of middleclass occupations.

    Housing

    Middle-class growth has important implicationsfor housing. The market for housing tends to be

    more underdeveloped in most developing countries than other markets because land availabilityis limited and often closely held by large owners,because public utilities are not available and because financial markets are underdeveloped. Butonce a country has a sizeable middle class,national policies can create the conditions inwhich a private market for middle-class housingcan grow rapidly, leaving public resources for

    appropriate housing solutions for low incomegroups.

    ASEAN member countries are the leadersamong developing countries in the provision of

    housing. Although Singapore may have attemptedexcessive intervention in the public sector in thename of efficiency and welfare, channelling asubstantial portion of the middle class into publichousing, its housing programme, together with

    Hong Kong's, is recognized as a world leader. In

    other countries, notably Malaysiaand

    Thailand,the private sector has been able to cater formiddle-class housing effectively. Housing construction adds appreciably to skill formation,stimulates savings and investment, makes amajorcontribution to the growth of construction andconstruction materials industries and to entrepreneurial opportunities in those industries, and thusaccelerates in gross domestic product (GDP)growth (though the nature of housing use statistics usually damps down this effect).

    The creation of an efficient market for housingrequires the economic provision of public utilities

    (electricity, gas, water and sewerage) and publictransport t recoverable cost, so that the provisionof public goods is not subsidized for, and skewedtowards, the urban middle income classes.

    Housing makes considerable demands on thefinancial sector. In an unrepressed financial system, private banks and life insurance companiesare generally able to provide mortgage financing

    ASEAN Economic Bulletin 147ovember994

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    more efficiently than specialized governmentinstitutions. They are also less likely to overshootand undershoot demand than government entities.

    Middle-class housing has to be affordable, in

    keeping with a country's overall economic condi

    tions. But housing standards rise with economicgrowth. Middle-class families upgrade their hous

    ing as their incomes rise, often vacating relativelylow cost, depreciated housing.

    Education and Health

    While governments must take responsibility for

    providing basic health and education for thewhole population, presently themiddle classes aresubsidized at the cost of lower income groups as

    they take disproportionate advantage of qualitysecondary and tertiary ducation and sophisticatedhospital services. The emergence of amiddle classcreates opportunities for non-subsidized access tothese services for those who can afford to paythem.

    The introduction of fees in tertiary ducationalinstitutions, offset by scholarships and means test

    ing schemes, is becoming more acceptable.Private universities have long been established insome countries

    (the Philippines),and

    privatesec

    ondary education is not only common in countriessuch as the Philippines but it is beginning toemerge in formerly centrally-planned economies.

    Study abroad at undergraduate and graduatelevels is only partially funded by scholarships(including aid donor funded scholarships). Thestudents are largely from middle-class familiesbenefiting from the present skewing of freepublic secondary education towards the middleclasses. The combination of greater accountability

    in public expenditures and middle-class pressuresfor quality in health and education are growing,creating opportunities for the emergence ofprivate markets in these areas.

    Health departments are not noted for their efficiency and their funds are perpetually insufficientto meet their objectives. The encouragement of

    cost recovery combined with private health insurance schemes is developing in the health sector.

    The Environment

    Environmental products clean air, clean water,parks and gardens, the preservation of bio

    diversity and natural beauty? are middle-class

    goods. Many of these goods require public intervention to ensure that their costs are taken

    properly into account in pricing goods and services directly, or where externalities are large,through taxes or other measures. Singapore's

    management of its transport system, combiningthe taxation of private vehicles with the provisionof public transport, illustrates the policy optionsopen to an essentially middle-class society. Theemergence of a middle class is important forenvironmental issues not only because middleclass people have a greater demand, and theresources to pay, for better environmental outcomes ? sometimes cross subsidizing lowerincome groups in this instance but also because

    middle classes have the political organization andwill to make their rising demand effective andso push public policy in environmentally sounddirections.

    Conclusion

    The concept of the middle class does not lenditself to precise definition and estimating middleclass numbers is even more difficult. Although itcannot be clearly defined and estimated, this doesnot mean that the middle class does not exist. It

    may be called by other names and estimated dif

    ferently, but in both production and consumption

    it is playing an increasing role in countries. Theprincipal objectives of growth are closely relatedto enabling a large proportion of the population to

    enjoy middle-class living standards. The more

    prosperous an economy, the larger the middleclass, and the larger the middle class, the more

    prosperous the economy.

    ASEAN Economic Bulletin 148ovember994

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    NOTE

    The authors are grateful for the assistance of the Asian Development Bank, for whom this article was initiallyprepared.

    REFERENCES

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    Bautista, R.M. Development Policy in East Asia: Economic Growth and Poverty Alleviation. Singapore: ASEANEconomic Research Unit, Institute of Southeast Asian Studies, 1992.

    Indonesia, Biro Pusat Statistik. Cost of Living Survey. Jakarta: Biro Pusat Statistik, 1989.-. Expenditure for Consumption of Indonesia. Jakarta: Biro Pusat Statistik, 1990.

    Lawrence, R. Sectoral Shifts and the Size of the Middle Class . The Brookings Review (1984): 3-11.

    Philippines, Republic of, Statistics Office. Family Income and Expenditure Survey.Manila: Statistics Office, 1988.-. Family Income and Expenditure Survey. Integrated Survey of Households. Manila: Statistics Office, 1988.

    Rodan, G. The Growth of Singapore's Middle Class and its Political Significance . In Singapore Changes Guard,edited by G. Rodan. New York: Longman Cheshire and St Martin's Press, 1993.

    Thailand, Office of the National Income and Social Development Bureau. National Income of Thailand. Bangkok:Office of the National Income and Social Development Bureau, 1992.

    Thurow, L. The Disappearance of the Middle Class . New York Times, 5 February 1984, p. F3.United Nations. Statistical Yearbook: Thirty-Seventh Issue 1988/89. New York: United Nations, 1993.

    -. Report on the World Social Situation. New York: United Nations, 1993.

    Helen Hughes is Emeritus Professor of the Australian National University and Professorial Fellow at the BusinessCentre of the University of Melbourne. Berhanu Woldekidan teaches economics at the University of Papua NewGuinea.

    ASEAN Economic Bulletin 149 November 1994