The cost of inequality Arief Anshory Yusuf

Source: CIA, World Fact Book, 2013, World Bank WDI, and author’s calculation Indonesia can be categorized as a country of high inequality and low income,..

Among developing countries, the increase in Indonesian inequality over the last decade is among the highest, while most others declined. Source: World Bank Poverty & Inequality Database Note: The inequality indicators are three-years average where data available.

Current status of Indonesian regional development (2012) GDP Per Capita (Rp million) Poverty incidence (%)  60% of Indonesian GDP generated in Java  Jakarta per capita income is 46 times of Maluku province  Poverty incidence in Papua is 31%, Jakarta is 3.7%

Trend in inter-regional disparity ( ) Provincial GDP per capita remains highly unequal Poverty incidence converges

Social Dysfunction: why inequality matters Richard Wilkinson Emeritus Professor of Social Epidemiology Slides borrowed from: TED’s TALK: “How inequality harms society”

Wilkinson & Pickett, The Spirit Level Neither health nor social problems are related to national income per head Index of: Life expectancy Math & Literacy Infant mortality Homicides Imprisonment Teenage births Trust Obesity Mental illness – incl. drug & alcohol addiction Social mobility Index of health and social problems

Wilkinson & Pickett, The Spirit Level Child well-being is better in more equal countries

Wilkinson & Pickett, The Spirit Level The UNICEF Index of Child Wellbeing is not related to National Income per head

Wilkinson & Pickett, The Spirit Level People in more unequal countries trust each other less

Wilkinson & Pickett, The Spirit Level People in more unequal states of the USA trust each other less

Wilkinson & Pickett, The Spirit Level Mental illness is more common in more unequal societies

15 Infant Mortality Rates are Higher in More Unequal Countries Source: Wilkinson & Pickett, The Spirit Level (2009)

Male mortality (25-64 yrs) and income inequality in US states and Canadian provinces. Source: Ross NA, Wolfson MC, Dunn JR, Berthelot JM, Kaplan GA, Lynch JW. British Medical Journal 2000;320:

Daly M, Wilson M, Vasdev S. Income inequality and homicide rates in Canada and the United States. Can J Crim 2001; 43: Homicide rates are higher in more unequal US states and Canadian provinces USA states Canadian provinces

18 Teenage Birth Rates are Higher in More Unequal Rich Countries Source: Wilkinson & Pickett, The Spirit Level (2009)

Wilkinson & Pickett, The Spirit Level Imprisonment rates are higher in more unequal countries

Wilkinson & Pickett, The Spirit Level More children drop out of High School in more unequal US states

Educational Scores are Higher in More Equal Rich Countries Source: Wilkinson & Pickett, The Spirit Level (2009)

Wilkinson & Pickett, The Spirit Level Social mobility is lower in more unequal countries

Wilkinson & Pickett, The Spirit Level Index of: Life expectancy Math & Literacy Infant mortality Homicides Imprisonment Teenage births Trust Obesity Mental illness – incl. drug & alcohol addiction Social mobility Health and social problems are worse in more unequal countries Index of health and social problems

Inequality and growth Summarized by: Jorge Alberto Charles-Coll (2013), The Debate Over the Relationship Between Income Inequality and Economic Growth: Does Iinequality Matter for Growth?

Equity for Growth Keadilan untuk Pertumbuhan PERTUMBUHAN EKONOMI TINGGI KEADILAN/ PEMERATAAN PRAKONDISI PEMERATAAN KESEMPATAN PENDIDIKAN KESEHATAN MODAL INSANI PEMBANGUNAN MANUSIA INOVASI PRODUKTIVITAS/ DAYA SAING NEGARA LINGKUNGAN PENDUKUNG

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