The center-periphery problem<\/p>\n
By S. Belen<\/p>\n
JAKARTA (JP): Immanuel Wallerstein's theory about the main
\ncharacteristics of gap-related problems between the center and
\nthe periphery also applies to the relationship among islands in
\nIndonesia.<\/p>\n
The main characteristics of gap-related problems, as discussed
\nby A. Wisnuhardana in his \"Social gaps: A ticking time bomb\"
\narticle in this newspaper on Oct. 25, include the flows of
\ncapital and technology from the periphery to the center and the
\nlarge-scale exploitation of natural and human resources mostly in
\nthe periphery. These problems often cause the widening gaps
\nbetween the center and the periphery as well as between a small
\ngroup of economic elite and the larger part of the population.<\/p>\n
Wisnuhardana's article focused on the relationship between
\ncentral and peripheral capitalist states, with advanced western
\ncountries acting as the center and developing regions as the
\nperiphery.<\/p>\n
Within the Indonesian context, Java, during the Dutch colonial
\nperiod, played a role as the center and the other islands as the
\nperiphery. Trade and business concentrated in Java, while the
\nother islands supported it. On a larger scale, Indonesia,
\ntogether with other colonized territories, supported and served
\nthe Netherlands, which acted as the center.<\/p>\n
Although many colonized countries have already achieved
\nindependence, the pattern of imbalanced relationships between
\ndeveloped countries as the center and developing countries as the
\nperiphery still occurs. The pattern is replicated at the national
\nlevel in many developing countries. In China, for example, the
\ncenter is the eastern coast areas where industrialization is
\nconcentrated, while the periphery is the remaining parts of that
\ncountry. In Malaysia, the center is the western coast of its
\npeninsula, whereas the periphery is the other part of the
\npeninsula and East Malaysia (Sarawak and Sabah).<\/p>\n
In Indonesia, even after its independence, conditions during
\nthe colonial period have strengthened during its modern history.<\/p>\n
How has this happened? On the national economic scale, there
\nis a triangle relationship -- among multinational corporations
\n(like the Dutch East Indies Company during the colonial period),
\nthe ruling elite of the government and the business elite of the
\nprivate sector -- which collaborates for their mutual benefit.
\nHere, collusion, corruption and monopolistic practices usually
\noccur.<\/p>\n
Industrialization, business and trade have been concentrated
\nin Java as the center. Although mining and other industries also
\noperate in Sumatra, Kalimantan, Sulawesi and Irian Jaya, they are
\nnot well dispersed, leaving Java as the main key linking many
\ntypes of industries throughout the country.<\/p>\n
In the rest of the country, mining and primary industries
\noperate to produce raw materials and other products to be
\nsupplied for further processing or consumption in Java.<\/p>\n
Statistical data show that the western part of Indonesia
\ndominates about 83 percent of the country's gross domestic
\nproduct (GDP), while the eastern part holds only 17 percent. Of
\nthe 83 percent, the major concentrated portions are in Java.<\/p>\n
The central role of Java during the colonial period was
\nfurther strengthened by multinational companies, supported by big
\ndomestic counterparts, mainly belonging to conglomerates. Since
\nthe beginning of national development in 1969, the ruling elite
\nof the government has facilitated a number of companies through
\nfinancial support, special privileges and monopolistic rights.
\nThese companies then grew bigger and bigger. Multinational
\ncompanies and their partners prefer to invest in Java because its
\ninfrastructure -- such as roads, railway systems, shipping,
\naviation, telecommunication, electricity and gas network -- is
\nbetter than on other islands. The quantity and quality of human
\nresources in Java are higher than those outside of Java.<\/p>\n
The main characteristics of gap-related problems between the
\ncenter and the periphery at the international level -- as pointed
\nout by Wallerstein -- also apply to the center-periphery
\nrelationship at the national level in Indonesia. Capital, for
\ninstance, always flows from the periphery to the center. People
\noutside of Java are highly dependent on industrial products from
\nthat island. They have to buy the products at more expensive
\nprices because of higher transportation costs. Money circulated
\noutside of Java flows back to the island because many small-scale
\ncompanies there, particularly those operating in the service
\nsector such as banks, insurance companies, bookshops, newspapers
\nand hotels, are in fact branches of big companies in Java.<\/p>\n
The use of technology creates bigger gaps. In general, Java is
\nbetter and quicker than the other islands in using advanced
\ntechnology transferred from developed countries. Furthermore, the
\nuse of such technology in the industrial sector threatens the
\nexistence of local traditional industries. Many skills used in
\nlocally-developed technology tend to disappear sooner in Java, as
\ncompared to the other islands, due to the concentration of modern
\nindustries there. In the other islands, the rapid use of
\nindustrial products derived from Java threatens the existence of
\nlocal home industries, such as the local production of food and
\ndrinks, traditional weaving, medicinal herbs, traditional
\nwoodwork and house building. The decrease of the local home
\nindustries means the extinction of certain traditional skills,
\nwhich supported people's lives for centuries.<\/p>\n
The peripheral areas tend to be more dependent on the central
\narea. As a consequence, the more modern products are consumed,
\nthe less the production capacities outside Java are.<\/p>\n
The exploitation of natural resources, such as minerals,
\nforests, fish and plantation resources outside of Java tends to
\ndegrade the environment there, leading to the limitation of the
\nuse of natural resources by people for their subsistence. That
\nlimitation and the rapid decrease in production capacities
\naccelerate the impoverishment process outside of Java.<\/p>\n
In terms of human resources, the bigger the discrepancies
\nbetween Java and the other islands tend to be, the more Java
\nbecomes urbanized as people flow to Java from the periphery.
\nAdditionally, the concentration of better universities and
\ngreater working opportunities in Java increase the \"braindrain\"
\nfrom other islands to Java. The lack of quantity and quality of
\nhuman resources outside of Java decreases the capacity to
\naccelerate regional development there.<\/p>\n
Ultimately, this gap between Java and the other islands, and
\nbetween the western and eastern parts of the country, will
\ngenerally threaten national unity. The gaps are another ticking
\ntime bomb. Therefore, the accentuation of development outside of
\nJava (especially in eastern provinces), poverty eradication
\nprograms and the specialization of industries according to
\nregional characteristics are examples of policies to be
\nimplemented more consistently in the future.<\/p>\n
Separatist regional movements in the past will not be repeated
\nif serious efforts are made to eliminate this time bomb. The
\nimbalanced relationship between Indonesia as one of the
\nperipheral countries with other developed countries as the center
\nshould not sacrifice its national unity.<\/p>",
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