Poverty and Inequality Analysis
All indications are that the economic crisis in Indonesia, especially in the formal sector, will not be over in the near future. After a contraction in the economy of approximately 14% in 1998, predictions are that the Indonesian economy would either experience no growth or would continue to decline in 1999, at a rate of up to 3%.
As part of the Government’s Social Safety Net strategy that has been put in place to provide assistance to those sections of society who have been worst affected by the economic crisis, a number of programs have been designed to provide emergency short term employment opportunities. These programs have been labelled Padat Karya or labor intensive programs.
Few of the price-distorting mechanisms were recorded centrally and can only be identified on-site, within the locality, making monitoring difficult. Moreover, because local governments have had inadequate local revenue bases, they are easily tempted to restore tariffs and toll barriers, despite the damaging effects on growth and welfare.
If we take time to leaf through the previous five editions of the SMERU Newsletter, it will become apparent how little we have revealed of one of the most important aspects of the crisis, its gender dimension. We are all aware of how important this aspect really is and frequently discuss it. In fact we live with it; yet, we frequently forget to include it in our agenda.
Providing adequate food, clothing and shelter for individuals and their families is one of the basic requirements in any society. Apart from the subsistence economy, to a large extent this is dependent upon people’s capacity to locate some form of income-generating employment.
