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| Synonyms And Synonyms |
Our poverty rate in 1996 amounted to 34 million people, and remain the same in 2008 and to 31 million in 2010. Being a big question, who is enjoying the added income since 1996 or since the reform era? And more importantly, why this happens and how to fix it?
At the core liberal countries, capitalism brought economic growth in the long term. Inequalities also occur there, but people can accept such disparities.
Boumol, author of Good Capitalism and Bad Capitalism, describes capitalism as a tidal wave that rolled so that the bottom upward, too. State core liberal society guarantees the lowest with the market mechanism that encourages the emergence of many business and employment and a minimum wage is very high. In small businesses, workers and employers often gain a balanced and wages.
In addition to the normal mechanisms, the core liberal state run social programs or welfare programs, including pension system to cover a very broad, non-profit health insurance system, and various safety net for the poor and disaster victims.
Our social programs are not as good in the core countries. The question is, why the wave of growth for 15 years of liberalization can not lift the bottom?
Why Poverty Profile Not Changed?
Taking inspiration from Asia, particularly from China which are equally large population and has a vast area, the progress of a monolithic State Bamboo Curtain is designed with strong leadership or can be said to progress from above. Indonesia's progress achieved by political and economic ideology that is too liberal.
First, leadership is weak in the absence of the majority party, the political leadership into the internal dynamic in which more than half the energy spent to manage the interests of the coalition and busy restructuring of parliament deal with disturbances which of course endless.
People left and become adults in solving the problem. Indonesia is a country full of blessings. In addition to abundant natural resources, blessed with good society, patient, and really tenacious.
Liberal ideology in both the political and economic causes of progress or without direction full independence of the country. Goodness of such progress is a high independence, search for network and business gap by relying on its own merits.
The disadvantage is that many victims because of the nature of the economies in which we live as long as this is the freedom of anyone to enter a market. Marginal group which consists of players that are less dynamic than the market will be thrown open to constant new players are often more robust.
Market saturation, the competition is super tight and causing a wave of pressure out of the market. Look at how much investment the fuel pump from the city of Solo and Yogyakarta along the 60 km there is virtually fuel pumps at every 500 meters.
Investment pharmacies are also found in every few hundred yards in medium cities and even in small algae. As a result a lot of investment into Fuso. Nationally, the story above can be seen as a decline in growth.
That's why one of Indonesia's economic growth to moderate post-Reformation, at approximately 4-5 percent per year rate. In the New Order era, such as China at the moment, capitalism is directed by strong state leadership and also restrictions on the players and the direction of the semi-planning.
As a result, invested business people get a kind of market guarantee. Capital Limited as a characteristic of developing countries to be effectively invested in sectors with a particular market, but with limited players.
Form an oligopolistic market is not to harm consumers, but on the other hand led to one business sector can earn supernormal profits, accumulate capital, and plant them again in the form of business expansion, and even supports the application of technology or new product development.
Strong Leadership
Different from China which has strong leadership and relatively clean, oligopoly and licensing in Indonesia during the New Order led to collusion in which the license granted by bribery and corruption. In that case, the keyword to obtain high growth, particularly in developing countries that have limited capital accumulation (early capitalism / young), first, necessary to create a strong leadership.
Strong leadership can be achieved by setting the political system that allows the majority. Second, it should be revived semi-planning that directs investments with a rational calculation of the market, competitive markets or oligopolies controlled by players who pretty much, a law firm and to ensure the disappearance of corruption.
China benefited from the starting point of communism which has a capital endowment, for example, land more evenly. While we so far do not want to hear about it. Monopolies and oligopolies naturally without landing the country for 15 years to obtain his power by nature and tend to become more wild.
The absence of semi-planning led to the try all sectors by the great players. For example, the introduction of modern retail industry reached the districts and rural areas such as the vine roots to absorb much of the economic potential of the area toward the center.
This is as one example that causes a higher inequality in Indonesia today. The absence of innovation because it can not compete with developed countries in the field of research led to the field of business and jobs long contested by the entry of new players with capital, knowledge, and better technology. The picture as shown above has happened because at the time of the Reformation toppled the New Order should be recognized that the power that held it was not unexpected and may be said without any planning.
Change we can say very wild and can not benefit the good of our own historical development. New Order, however, managed to maintain high economic growth during a very long time.
New order also can overcome the poverty of a more serious point when hunger and hanger odeem or disease elephantiasis. Reform of our somewhat misguided because executed in situations euforis or less quiet. Now is the time to think again by taking lessons from our own history and to compare with other countries. (*)
By. Synonyms And Synonyms
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