Aloysius Gunadi, Brata (2008): Creating New Regions, Improving Regional Welfare Equality?
Download (136kB) | Preview
In concurrent with reformation and decentralization, number of sub-national administrative in Indonesia increase significantly. Existing regions has been splitting to create new regions. As the result, number of municipalities and districts in Indonesia in recent years are more than 450. The creation of new regions has been expected will increase citizens’ welfare in the regions and reduce regional inequality. However, indicative evidences shows negative impacts of this reform such as increase of inefficient administration cost of government, decrease capacity to deliver public services and increase potential for inter-group conflict. All of these indicative evidences will affect the welfare of citizens as seen on the human development indicators. Based on this background, the aim of this article is to analyze the relation of creation of new regions with the evolution of regional welfare inequality. The study employed human development index (HDI) at sub-national level (kota/kabupaten) as the indicator of welfare. The evolution of regional inequality of the HDI is analyzed by comparing coefficient of variation in the HDI from 1996 to 2005. This paper also estimated a preliminary empirical model to assess the impact of pemekaran on the within province inequality. The policy implication of this finding is that pemekaran should be controlled.
|Item Type:||MPRA Paper|
|Original Title:||Creating New Regions, Improving Regional Welfare Equality?|
|Keywords:||new region, ‘pemekaran’, human development index, inequality|
|Subjects:||R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R5 - Regional Government Analysis > R58 - Regional Development Planning and Policy
H - Public Economics > H7 - State and Local Government ; Intergovernmental Relations > H75 - State and Local Government: Health ; Education ; Welfare ; Public Pensions
R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R1 - General Regional Economics > R11 - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
|Depositing User:||Aloysius Gunadi Brata|
|Date Deposited:||07 Jan 2009 05:24|
|Last Modified:||13 Oct 2016 22:53|
Akita, Takahiro and Armida S. Alisjahbana (2002), ‘Regional Income Inequality in Indonesia and the Initial Impact of the Economic Crisis’, Bulletin of Indonesian Economic Studies 38(2): 201-22.
BPS-BAPPENAS-UNDP (2001), Indonesia Human Development Report 2001, BPS-BAPPENAS-UNDP, Jakarta.
BPS-BAPPENAS-UNDP (2004), Indonesia Human Development Report 2004, BPS-BAPPENAS-UNDP, Jakarta.
Brata, Aloysius G. (2007), ‘Konsolidasi Daerah dan Pelayanan Publik’, paper presented at Seminar Internasional Ke Delapan Dinamika Politik Lokal Di Indonesia: “Penataan Daerah (Territorial Reform) dan Dinamikanya”, Yayasan Percik-Ford Foundation, Salatiga, July 17-19, 2007.
Fitrani, Fitria, Bert Hofman and Kai Kaiser (2005). ‘Unity in Diversity? The Creation of New Local Governments in a Decentralizing Indonesia’, Bulletin of Indonesian Economic Studies 41 (1): 57-79.
Garcia, Jorge and Lana Soelistianingsih (1998), ‘Why Do Differences in Provincial Income Persist in Indonesia?’ Bulletin of Indonesian Economic Studies 34 (1): 95-120.
Haddad, Monica. A. and Zorica Nedović-Budić (2006), ‘Using Spatial Statistics to Analyze Intra-urban Inequalities and Public Intervention in São Paulo, Brazil’, Journal of Human Development 7(1): 85-109.
Heikkila, Eric J. (1999), ‘From HDI to hdi: A Case Study of Local Planning and Human Development in Indonesia’, Regional Development Studies 5: 41-62.
Hill, Hal and Takhashi Shiraisi (2007), ‘Indonesia after the Asian Crisis’, Asian Economic Policy Review (2007) 2: 123-141.
Islam, Iyanatul (2003), ‘Dealing with spatial dimensions of inequality in Indonesia: towards a social accord’, Paper for the Second Inequality and Pro-poor Growth Spring Conference on the theme of ‘How Important is Horizontal Inequality’?, World Bank, Washington DC: June 9-10,2003, accessed 28/5/2008 from <http://siteresources.worldbank.org/INTDECINEQ/Resources/DealingwithSpatialDimensions.pdf>
Kanbur, Ravi, A. J. Venebles and Guanghua Wan (2006), ‘Spatial disparities in human development: An overview of the Asian evidence’, in Kanbur Kanbur, Ravi, A. J. Venebles, Guanghua Wan (eds.), Spatial Disparities in Human Development: Perspectives from Asia, Tokyo-New York-Paris: United Nations University Press., Pp. 1-6.
Majumder, Rajarshi (2005), ‘Human Development in India: Regional Pattern and Policy Issues’, Indian Journal of Applied Economics 2(1).
Nordhold, Henk Schulte, and Gerry van Klinken (2007), ‘Pendahuluan’, in Henk Schulte Nordhold and Gerry van Klinken (eds.), Politik Lokal di Indonesia, Yayasan Obor Indonesia, Jakarta, pp. 1-41.
Resosudarmo, Budy P. and Yogi Vidyattama (2006), ‘Regional Income Disparity in Indonesia: A Panel Data Analysis’, ASEAN Economic Bulletin 23(1): 31-44.
Scott, Tim (2006), ‘Decentralization and Human Development: Findings and Recommendations From a Review of National Human Development Report’, NHDR Occasional Paper 6. , UNDP.
Suryadarma, Daniel, Wenefrida Widyanti, Asep Suryahadi, and Sudarno Sumarto (2006), ‘From Access to Income: Regional and Ethnic Inequality in Indonesia’, SMERU Working Paper (May 2006).
Tadjoeddin, Mohammad Zulfan, Widjajanti I. Suharyo, and Satish Mishra (2001), ‘Regional Disparity and Vertical Conflict in Indonesia’, Journal of the Asian Pacific Economy 6(3): 283-304.
USAID-DRSP (2006), Stock Taking on Indonesia’s Recent Decentralization Reforms-Main Report, accessed 21/5/2007 from <http://pdf.usaid.gov/pdf_docs/PNADH312.pdf>.