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Monday, January 10, 2011

BB Restrictions Vs Chily Price Rising : How Bad Are Inequalities Recently?

Karni Ilyas once tweeted "Upper and Middle Class People were loudly talking about Black Berry content restrictions, while Lower Class were loudly complaining about higher prices of chilly". Previous phenomena may explicitly shown how was inequalities in Indonesia, where the "have" talking about luxurious goods, and the "have not" talking about primary goods (in assumption chili is primary food". The gap between the up-middle class and low class has becoming wider.

Is inequality bad? For Simon Kuztnet, USA economist and former nobelist in economy, inequality is a common side-effect as country moving in stage-development transition. Inequality deemed as the period where the capital accumulation occur, and as time move by, inequality suppose to reduce. Kuznet argued, as growth continuously growth, inequality will simultaneously reduced, as an effect of proper distribution of accumulated capital. However, how long the inequalities prevail?, such a proper question for developing countries which seeks for a decent equalities.

Given Indonesia case, however the inequality seemed has further widening. Evidence proved by BPS report in 2009 had reported that 60% of GDP flows in Java. Another evidence was poverty rate, which shown a big gap between Java and outer Java, especially in East Indonesian regions. Mean poverty rate in Java, by 2009, is 13%, comparing to east Indonesian regions, such as Maluku and Papua, which are 30% and 40%.

This soaring inequalities, are also followed by corrupt government, highly birocrated administrations, which in turn slowing off the stabilizing action from governmental programs.

Rapid mass of premature modernization may also take into account, as the reasons for widening gaps in society. Proper modernization suppose to lead for an advanced, educated society. However, the opposite happened. How may rural now spent time for electronic voucher? How many kids spent his time all over the computer, left off productive things that they could done? How many punk, overdressed people, upcoming recently, which spent most of their time watching concert, making riots over the cities? All thanks to rapid, but pre-mature modernizations.

That was my opinions on how recent inequality may be explained. It is pretty obvious opinions need more data, and supporting facts, however, we may just use rationality and common sense to realize this phenomena. The case of BB vs Chily Price Rising is rightly on time, provide an excellent lessons, as well as homeworks for government. When they have a lot of their attention to financial market, industrialization, they may have long forgotten with their promise to improve the well-being of Indonesia people.

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