CEDS, Universitas Padjadjaran Seminar ketimpanganpembangunanIndonesia dari berbagai aspek: Mengurai TantanganPembangunan di Era PemerintahanBaru J akarta, 21 Agustus 2014 www.ceds.fe.unpad.ac.id EmpoweringCivilSocietyNetworksinanUnequal MultiPolarWorld Indonesia(ECSNIndonesia) Outline Outline 1 Indonesian level and trend of inequality in 1. Indonesian level and trend of inequality in a global perspective. 2 The trend of Indonesian various 2. The trend of Indonesian various indicators inequality 3 Th d A l ti 3. The causes and cures: An exploration Indonesia can be categorized as a country of high inequality and low income, .. Source: CIA, World Fact Book, 2013, World Bank WDI, and authors calculation .. and also of high inequality and high poverty. a d aso o g equa ty a d g po e ty ZAF 6 0 HIGH POVERTY LOW POVERTY HIGH INEQUALITY CHL CRI ECU BRA PER PRY PAN COL SLV BOL HND SWZ CAF RWA NGA ZMB 5 0 HIGH POVERTY HIGH INEQUALITY INDONESIA LTU URY ARG MYS THA MEX TUR MKD DOM BTN PER SLV FJ I CHN CMR GEO IDN CIV MRT TGO SEN UGA AGO GIN BFA MOZ MWI MDG LBR 4 0 G i n i
I n d e x MEDIAN INEQUALITY INDONESIA HRV BLR BIH POL WBG BGR LTU LVA KAZ J OR ROM AZE ALB TUN MDA EGY ARM IRQ KGZ LKA TJ K VNM SDN KHM NPL ETH IND NER BGD MLI SLE BDI 3 0 HIGH POVERTY O V E R T Y UKR BLR SVK 2 0 0 20 40 60 80 100 $ LOW INEQUALITY LOW POVERTY LOW INEQUALITY M E D I A N
P O PPP$2 Poverty Incidence Source: World Bank Poverty & Inequality Database Note: Using the most recent data from the last 5 years (2007-2011) where available. Among developing countries, the increase in Indonesian inequality over the last decade is q y among the highest, while most others declined. Source: World Bank Poverty & Inequality Database Note: The inequality indicators are three-years average where data available. Indonesian Gini coefficient has reached its record high, contributed by its large increase in the last g , y g decade. For the last decade it rise by ~30% Source: SUSENAS (Authors calculation) By other measure, the rise is ~60% (Palma Index or decile dispersion (Palma Index or decile dispersion ratio) Palma Index Decile Dispersion Ratio 1.95 2.15 2.35 Palma Index = share 10% richest/share 40% 11 12 13 14 Mean income of 10% richest to 10% poorest 1.35 1.55 1.75 poorest 8 9 10 11 0 75 0.95 1.15 1.35 5 6 7 0.75 Palma Index (All) Palma Index (Urban) 4 1 9 9 3 1 9 9 5 1 9 9 7 1 9 9 9 2 0 0 1 2 0 0 3 2 0 0 5 2 0 0 7 2 0 0 9 2 0 1 1 2 0 1 3 All Indonesia Urban Rural Palma Index (Rural) J ava Non-J ava As also indicated by the increasing share of the 20%richest and declining share of 40%poorest 20% richest, and declining share of 40% poorest. Source: SUSENAS (Authors calculation) The large increase in equality happens everywhere in Indonesia everywhere in Indonesia. Source: SUSENAS (Authors calculation) The lower the initial inequality, the higher its change over time (Inequality convergence) change over time (Inequality convergence). Source: SUSENAS (Authors calculation) In a large number of highly unequal cities, poverty incidence actually increased over the last decade. This is despite the cities high economic growth This is despite the cities high economic growth and national decline in poverty over the same period. 4 . 5 HIGH INEQUALITY DECLINING POVERTY HIGH INEQUALITY INCREASING POVERTY . 3 . 4 f f i c i e n t
i n
2 0 1 2 MEDIAN INEQUALITY . 2 G i n i
c o e f E R T Y
C H A N G E . 1 -20 -10 0 10 LOW INEQUALITY DECLINING POVERTY LOW INEQUALITY INCREASING POVERTY Z E R O
P O V E Change in poverty incidence (2003-2013) Non-city (kabupaten) City (kota) Source: SUSENAS (Authors calculation, for Gini coefficient) and BPS (for poverty incidence) Is the story mainly about the very rich leaving everyone else behind? It may seemso everyone else behind? It may seem so. Source: SUSENAS (Authors calculation) Causes: An exploration Causes: An exploration Less and less pro-poor growth Less and less pro poor growth Commodity boom of the 2000s Policy failures political economy bottleneck Policy failures political economy bottleneck Mis-targetted subsidy Rice policy p y Labor market regulation Institutions, governance, corruption Failed functioning of state-budget Inequality of opportunity less pro-poor growth less pro poor growth 8 7 5 6 e d i a n
s p l i n e 2002-2012 3 4 M e 1990-1996 2 0 20 40 60 80 100 Percentiles Inequality of opportunity? Inequality of opportunity? 6.00 Schooling years (year) 40.00 H.Education (%) 40.00 Clean water (%) 4.00 5.00 25 00 30.00 35.00 25 00 30.00 35.00 2.00 3.00 15.00 20.00 25.00 15.00 20.00 25.00 1.00 2.00 5.00 10.00 5.00 10.00 0.00 0.00 1 9 9 2 1 9 9 5 1 9 9 8 2 0 0 1 2 0 0 4 2 0 0 7 2 0 1 0 0.00 1 9 9 4 1 9 9 7 2 0 0 0 2 0 0 3 2 0 0 6 2 0 0 9 2 0 1 2 Gap between 20% richest and 20% poorest KESENJ ANGAN AKSES TERHADAP PENDIDIKAN MASIH SANGAT TINGGI TALENT POOL RENDAH MASIH SANGAT TINGGI TALENT POOL RENDAH Lama sekolah (tahun) Angka partisipasi murni SMA Lama sekolah (tahun) SMA 9 1 9.7 10 12 61% 62% 69% 0.7 0.8 5.4 7.9 9.1 6 8 0.4 0.5 0.6 3.4 4.6 5.4 2 4 19% 28% 0.2 0.3 0 2 1992 2002 2012 6% 0 0.1 1992 2002 2010 20% termiskin (Q1) 20% terkaya (Q5) 20% termiskin (Q1) 20% terkaya (Q5) Sumber: www.keberpihakan.org PERGURUAN TINGGI MASIH EKSKLUSIF PT ADALAH PENGHASIL INOVATOR DAN WIRAUSAHAWAN 36.7% 40% Angka partisipasi murni PT 25.6% 26.3% 36.7% 30% 35% 15% 20% 25% 1 3% 5% 10% 15% 0.1% 0.6% 1.3% 0% 1992 2002 2010 20%t i ki (Q1) Q2 Q3 Q4 20%t k (Q2) 20% termiskin (Q1) Q2 Q3 Q4 20% terkaya (Q2) Sumber: www.keberpihakan.org In Heckman (2001) KUALITAS KESEHATAN ANAK BALITAINDONESIARENDAH BALITA INDONESIA RENDAH Pct of 5 years of age who are Stunted Percentage of Children under 5 years of age Affected by Wasting Stunted years of age Affected by Wasting 47.9 40 9 50 60 12.3 10.8 9.7 10 12 14 40.9 39.2 35.1 32.3 30.5 30 40 9.7 7.9 7.3 6.9 4.7 3 6 6 8 10 17.2 15.7 4.4 0 10 20 3.6 0 2 4 0 Sumber: FAO Food Insecurity Database Cure: Equity for Growth Keadilan untuk Pertumbuhan PERTUMBUHAN PRODUKTIVITAS/ NEGARA EKONOMI TINGGI DAYA SAING LINGKUNGAN PENDUKUNG PENDIDIKAN INOVASI KEADILAN/ PRAKONDISI PEMERATAAN PENDIDIKAN MODAL PEMBANGUNAN PEMERATAAN KESEMPATAN KESEHATAN INSANI MANUSIA KESEHATAN Terima Kasih Terima Kasih