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Dealing with Spatial Dimensions of Inequality in Indonesia : Towards a Social Accord

By Islam, Iyanatul

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Book Id: WPLBN0000236970
Format Type: PDF eBook
File Size: 0.2 MB
Reproduction Date: 2005
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Title: Dealing with Spatial Dimensions of Inequality in Indonesia : Towards a Social Accord  
Author: Islam, Iyanatul
Language: English
Subject: Economics, Finance & business, World Bank.
Collections: Economics Publications Collection
Publication Date:
Publisher: The World Bank


Spatial disparities in pre-crisis Indonesia prevailed at moderate levels despite significant differences in the regional distribution of natural endowments and industrial activities and despite a highly centralised and autocratic form of governance that characterised the New Order regime under Suharto.2 Furthermore, such an outcome occurred in a context of rapid growth and sustained reductions in income poverty ? although there was a sharp, but transient, reversal in the progress against poverty in the aftermath of the 1997 financial crisis.3 When, after reigning for three decades, Suharto abruptly fell from power in 1998 in the wake of the 1997 crisis, Indonesian policy-makers understandably overlooked the notable aspects of a discredited regime and sought a clean break from the past.4 The transitional government of Habibie that succeeded Suharto decided in 1999 to disperse many significant functions of government across more than 30 provinces and over 400 districts and municipalities that range across the archipelago. The newly elected democratic governments of Wahid and Megawati that followed Habibie ensured that the move to a decentralised Indonesia would be maintained.5 They were largely driven by the need to maintain the cohesion of the Indonesian unitary state and...


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