Financial Inclusion, An Economic Democratization Endeavor Running



"Large Project" political democratization, slowly walked in Indonesia, although there needs to be improvement here and there. Awareness of democracy and political participation is growing into one indicator. 

However, there is one more "big project" that must be completed and need collaboration of various parties in this country. Agenda big question is the democratization of the economy. 

Economic democracy is clearly stated in Article 33 paragraph 4 of the 1945 Constitution reads: The national economy shall be conducted in accordance with the principles of economic democracy, equitable efficiency, sustainability, environmental friendliness, independence, and balancing economic progress and national unity. 

More broadly, it can be understood as an equal opportunity to improve the well-being of every citizen. In this case, every citizen has an equal right to access resources, which enable them to improve their welfare. 

Although it is clearly stated in the 1945 Constitution, but the democratization of the economy has not run as in the political sphere. Inequality between the rich and the poor are getting gaping, because opportunities to access economic resources are not equally distributed. 

From the data released by the Bank of Indonesia (BI), shows that the gaping economic inequality. In 2013, the Gini ratio reaches 0.41 percent or higher from the previous year at the level of 0.37. 

Bappenas cites Meanwhile, rising Gini ratio is mainly due to the growth of the middle class consumption class up much more rapidly, than the poor. Or more precisely, the purchasing power of the growing middle class stronger than the poor who remain stalled. 

Regardless of what the cause, the higher the Gini ratio in Indonesia reflects the opportunity to access economic resources are less evenly distributed. Thus, the development cake has been enjoyed by the middle class, rather than the poor. 

Quoting Prof. John Roemer of Yale University (1998), there are at least three things that have been the cause of the imbalance. The first is the imbalance in the effort, hard work or ability of an individual. The second reason has more to do with the inequality of opportunities to access economic resources, and the third relates to the policies implemented by the government. 

Yes, an explanation of the Roemer makes sense, especially if it is associated with the Indonesian context. That, there are some things that become the cause of economic inequality, especially in the second and third points that cause inequality of opportunity.

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