Saturday, August 14, 2010

Indonesia's widening wealth gap

A yawning wealth gap is given under current circumstances. Below is an excerpt from today's ST on the situation in Indonesia. Unless the rich can get richer helping the poor come up, they have no incentive to do so. Eventually this will force the government to redistribute wealth. Typically the rich will try to control the government before this happen. Under the Washington Consensus, they usually succeed.

While the elite is benefiting from the boom and the middle class is growing - recent figures put around 35 million people in this category - life for the ordinary Indonesian has not improved much.

The first study, a 119-page report by the Harvard Kennedy School Indonesia Programme, points out that Indonesia is probably becoming 'more unequal'.

No comments:

Post a Comment