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10 - Poverty, Inequality and Social Progress

Published online by Cambridge University Press:  05 June 2012

Hal Hill
Affiliation:
Australian National University, Canberra
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Summary

The previous chapters have assessed the New Order's record according to essentially economic criteria. It is important also to examine levels of and trends in a range of social indicators—poverty incidence, inequality, nutritional standards, wage levels, and standards of education and health. These are the focus of the four sections in this chapter. Social developments are important for at least three reasons. First, and obviously, they are the most tangible yardstick of the fruits of economic development. Improvements in economic indicators convey little meaning in the absence of these indicators. Improvements in economic measures, also, are pointless unless they are accompanied by commensurate improvements in the social field. Secondly, there is a clear and powerful nexus between the two series. Higher incomes provide the capacity for better nutrition and education, for example. Conversely, better standards of health, education, and nutrition are likely to result in higher productivity and efficiency. Thirdly, social advances contribute to community cohesion and harmony. Economic development is an inherently uneven and disruptive process. Traditional social organizations are uprooted and obligations weakened. Personal mobility and choices expand rapidly. In the process, some individuals (not to mention regions and ethnic groups) advance more quickly than others, while traditional supports — especially for the poor—may cease to be effective. Broad-based development is therefore essential if the process of national economic development is to proceed without interruption over a period of decades for a poor country such as Indonesia to ensure that all its people enjoy a decent standard of living.

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Publisher: Cambridge University Press
Print publication year: 2000

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