Indonesia is part of Southeast Asia, and also one of the economy pioneer in this part of Asia. As a country with the fourth largest population in the world, around 255 million people, and live in an approximately 735 thousands square feet of land and sea, Indonesia has plenty of natural resources, and human power to boost their economy. In addition, with those sources and power, Indonesia should be able to have a great economy. Unfortunately, Indonesia also suffer a common economic problem, which is an unequal income distribution. This condition is described by the increasing amount of Gini index in Indonesia in the last decade. Therefore, it is important to know the cause of unequal income distribution, and also the government reaction in …show more content…
Commodity boom is a phenomena when the price of many physical commodity rise like a rocket. This attracted Indonesia 's businessman to take an advantage of this event by exploiting the natural resources that Indonesia 's has, and then became the exporter of the commodity. The commodity boom in Indonesia might boost the economy of Indonesia, but there were some drawback also. The example of the impact of commodity boom is shown at 2008 that Indonesia suffered for some food and commodities shortage in domestic. This was because Indonesia was too focus on exporting their commodities, such as crude palm oil, coal, and gas, until they overlook the local condition that lead the price of some commodities in domestic rose (Wright). As a result, some part of Indonesia that do not have much natural resources left behind because many Indonesian businessman focus on investing in the region that has the commodity. Furthermore, the commodity boom just benefit and make the rich people become richer, and widening the gap from the …show more content…
This makes some regions to have better resource and commodity from the others, which attract the investors to invest in wealthier region. Moreover, this leads the richer region to have better economic growth that effect them to earn greater income. The commodity boom also take a part in raising the income inequality because it more benefit the rich people rather than the poor. In addition, the poor people who the one that feel the impact from this phenomena, since the price of some commodities in Indonesia rise, as a result of the over export in the commodity. Then, the poor labor welfare that makes the low-income people to suffer more because the government is not strict enough, so that there are workers that earn less money than the minimum wage, and cause them unable to improve their life and income to shrink the gap. Moving to the government reaction, they raise the minimum wage in order to make the low-income people to have an improvement in their life. Furthermore, the government also allocate lots of money in helping poor people, by giving them health care and smart card in a purpose of creating healthier and smarter new generation. Moreover, a better new generation means that a higher quality of human resource will be create and supply, which responsible of the Indonesia 's economy in the
There is a high level of inequality of power and wealth within the Indian society indicating a high level of power distance. The wealth of India is very unevenly distributed; only 3% of the population in 2011 fell into the middle-income segment. The upper-middle income segment is about 1% of the population and the
People now had the chance to look for gold out west and the Gold Rush began. This is when America really had its boom. Lastly, we now have twice as much, if not more, natural resources than we had before.
Income inequality in the United States has increased and decreased throughout history, but in the recent years, the widening gap has become a serious issue. Income inequality is usually measured by Gini coefficient. According to this method coefficient varies between 0 and 100; while 0 represents complete equality (income is distributed equally among all the population of the country), 100 represents complete inequality (only one person receives all the country’s income, while the rest of the population receives nothing). According to the Census of Bureau, the official Gini coefficient in the U.S. was 46.9 in 2010. This is way higher than the all-time low coefficient of 38.6 set in 1968 (qtd. in Babones).
Mail orders catalogues Ensured that mass consumption was always kept going and that people could get things they wanted. Other factors which helped bring the boom about were Natural resources and new technologies these helped as the U.S.A had a great source of natural resources to supply to help make new technologies and mass production of things. The new technologies allowed people to buy things o help them around the house and to give them a pleasurable life. This was only possible as the Americans discovered credit. Credit was another factor in the boom, credit allowed to people to buy things
World Growth, 2011. The Economic Benefit of Palm Oil to Indonesia, Palm Oil Green Development Campaign, 1-27
nation. The sand is Most developing nations concentrate on one or few primary products. their exports. When the market demand decreases for that product it will reduce. export revenues significantly and disrupt domestic income and employment.
This coupled with rising number of coal-fired power plants being set up in India to supply electricity for its vast population as well as India’s favorable geographical position towards Indonesia is evidence to Indonesia’s comparative advantage in the production and export of coal. Also, the domestic consumption of coal in Indonesia is relatively low. Therefore, the high national production along with high foreign demand leads to a scenario of larger
If income inequality continues to grow, the economy will break down. For example, if the housing price continues to rise because of the rich people, poor people will not have a place to live since they cannot afford to buy these expensive houses. When this happens, it will create another housing bubble because the houses are not worth buying, which means the market value of the house exceeds the house’s value; therefore, nobody will buy the house including the riches since they already have houses to live. Moreover, poor people do not believe they can get access to wealth because they cannot afford anything, and they cannot afford the tuition fees for a good education, which is the traditional route to success.
‘How has Globalization shaped Energy Systems in Emerging Economies and the Global South? Illustrate your answer in reference to your chosen case study country.’
This report analyses social and economic factors such as, risk of poverty, employment rate and population completed at least upper secondary education. In this report you can find summary of the data, descriptive statistics, correlation and regression analysis, which shows that poverty has a small negative relationship with employment rate and negative relationship with education. Thus, this means if countries would increase employment rate and increase number of people who finish secondary education they would be able to reduce poverty level in the countries.
Economic boom in India and China: India and China account for 1/3 of the world population and these countries have seen a great economic boom in the recent years and this partially is attributed to the rising costs. Around the world, people have eaten more as they grew richer. This phenomenon is called Nutritional transition. Hundreds of millions more people are now rich enough to eat meat compared with 10 years ago, with meat consumption in China more than doubling over the past 20 years.
During this period, global consumer price inflation presented a trend of fluctuation reduction. According to World Bank data (2015), world real GDP growth slightly which is from 2.4 to 3.3 in 2012-2016. Moreover, weaker investment environment lead to the job creation rate decrease of 1.4% every year after 2011, the unemployment rate is high correspondingly (world economic situation prospects 2016). Industrial commodities like energy, metals and minerals both decline more than 35 each from the beginning of 2011 to the end of 2014 and this trend will continue (World Bank 2015). Meanwhile, China as the world’s largest exporter and the second largest importer country, economic growth becomes slowing than before (Chen 2016). It has the significant impact on the global trading environment. At the same time, global trading volume
A lot of people in the world are in poverty today. Various countries are trying to minimize the poverty level by the government subsidizing most of the things in the country such as education, food, and health services. Also, factories have started production goods in surplus. This excess production will lead to deflation because when there is an excess supply of goods and services, the price of the good or service will fall making the people pay less for more. More so, some countries have started maximizing the use of fertilizers in farms in order to increase agricultural production which will reduce poverty. Here, poverty will be looked at broadly and different plans put forth by different people to eliminate poverty will be discussed.
Economic growth is the most effective instrument for reducing poverty and enhancing the quality of life in developing countries. The benefits brought about from economic growth is strong growth and business opportunities enhance incentives. This may lead to the rise of a strong and growing group of entrepreneurs, which should generate pressure for enhanced administration. Strong economic growth therefore advances human development, which in turn promotes economic growth. But, under different conditions, comparative rates of development can have altogether different consequences for neediness, the occupation prospects of poor people and more extensive pointers of human development. The extent to which growth decreases neediness depends on the extent to which the poor take an interest in the growth process and share in its returns (Riley, G.
The Article discussed inflation in the Philippines this year, its effect to the economy and how the country handle it over time. The analysis looks into the macroeconomic issues that affects economics. It focuses on the main points about inflation. This will cover how inflation are being measured, the effects on demand and supply and analyse the relationship of inflation to the Philippine economy.