Will our middle class disappear?<\/p>\n
By Meuthia Ganie Rochman<\/p>\n
JAKARTA (JP): Many analysts view that a middle class has
\nsteadily developed in such Asian emerging markets as China,
\nThailand, Malaysia and Indonesia. Popular analysis of this middle
\nclass applies the consumption indicator.<\/p>\n
In the above countries, the meaning of consuming activities
\nhas widened from a mere phenomenon of production to a new model
\nof domination. They are new tools of submission-substituting
\ncoercion, new mechanisms of social integration (albeit from
\ndifferent aspects they also reinforce disintegration), expansion
\nof authority and vision of identity.<\/p>\n
Recently, consuming activities were recurrently attached to
\nthe middle class. This article aims to explain the likely
\nconsequences of the recent economic crisis on the existence of
\nIndonesia's middle class.<\/p>\n
A German sociologist, Solvay Gerke, conducted research in the
\nearly 1990s on Jakarta's middle class. She argues that the
\norganizing principle of middle-class development in Jakarta was
\nbased on a pattern of consumption.<\/p>\n
Since the 1970s, economic development bolstered various kinds
\nof occupations and supported the growing capabilities of
\nIndonesian households to participate in a modern consuming
\nculture.<\/p>\n
However, income alone is not a solid means for class
\ndefinition. This modern culture is possible to materialize by
\nmaking "lifestyling" strategy, that is, projecting consumption to
\naffirm one's identity in a "modern" consuming life.<\/p>\n
Examples of lifestyling are buying fake branded goods, buying
\non credit, borrowing fashion goods from friends or other family
\nmembers, and patungan (pooling money). The lower and middle
\ngroups of the middle class, through lifestyling, perform symbolic
\nconsumption.<\/p>\n
The real consumption is only conducted by upper slices of
\nmiddle class. Accordingly, Jakarta's middle class does not
\nreflect the real class situation and opportunities as understood
\nby Max Weber, a founding father in sociology.<\/p>\n
The growth of new middle classes -- like bureaucrats,
\nprofessional groups and intellectuals -- does not follow the
\nprocess of economic rationalization and differentiation. Instead,
\nit grows through the development of bureaucracy and government
\npolicies.<\/p>\n
Gerke's analyses (1995) has problematic aspects. One is that
\nher analysis on consumption is detached from the forms of social
\norganizations, only has the "life praxis". This raises questions
\non what are the social positions of the middle class and their
\ninfluence toward social change.<\/p>\n
A study by K.C. Ho, a sociologist from Singapore, describes
\nthe growth of the middle class in urban areas as the outcome of
\neconomic development. He analyzed different occupational
\nbackgrounds of middle classes in some Asian countries.<\/p>\n
The richer countries, such as Singapore, Taiwan and South
\nKorea, have middle classes with highly skilled occupations. Those
\ncountries become capitals of regional headquarters, market
\nstrategy management and middle- to high-tech goods production.
\nWhile countries such as Indonesian and Thailand are locations for
\nassembling, packaging and low-tech goods productions.<\/p>\n
Based on professional, administrative, and managerial
\noccupational categories, and data from the International Labor
\nOrganization, the total of Indonesia's middle class is below 10
\npercent (before the economic crisis), compared to Singapore 15.8
\npercent, Japan 15.7 percent, Hong Kong 14.3 percent, Malaysia
\n11.6 percent, South Korea 10 percent, the Philippines 6.9 percent
\nand Thailand 5.2 percent.<\/p>\n
In Indonesia, the past period of easy bank credits propelled
\nthe growth of enterprises and consumption activities. The role of
\ngovernment banks that lend money, sometimes without transparency,
\nalso induced a booming private sector that, in turn, facilitated
\nthe growth of the middle class.<\/p>\n
This class is depicted as a group that should have
\norientations similar to their past counterparts in western
\ncountries: reformation mended, critical toward the state and an
\nendorsed rule of law as well as democratization.<\/p>\n
Based on these characteristics, many analysts view that
\nIndonesia's middle class is not yet born. Some depictions of the
\nmiddle class are as follow. First, the present middle class
\nengenders from government policies and is, therefore, uncritical
\ntoward it. A critical middle class is still scarce. It is
\nfragmented into individual groups and organizations.<\/p>\n
Second, research conducted by the Kompas daily about 1990
\nshows that the middle class is excessively oriented to consuming
\nactivities. It rarely bought books, showing a lacking attention
\nto knowledge development.<\/p>\n
Third, the middle class is weak from an organizational aspect.
\nIt seems that it is more the problem of society in general. Dr.
\nJuwono Sudarsono, now the state minister of environment, once
\nwrote that what is needed to develop democracy is organizations
\nthat are capable of translating the people's dissatisfaction
\nwithin a governance framework.<\/p>\n
This view gets support from a prominent study by Margaret
\nSommers, which shows that the struggle for civil rights in the
\nUnited Kingdom was undertaken by organizations with strong
\ntraditions on rights and responsibility among their members.<\/p>\n
The position of the middle class must be viewed with a
\nframework of governance, whereby the balance between the
\ninterests of the middle class and other classes depends on the
\nstructure of industry, the position of the state (for example,
\nhow far economic claims do not capture its direction), and the
\nbalance between ideas of growth and populism.<\/p>\n
Analyses of middle classes in Asia must be redirected. The
\naspiration that this class inherently bear characteristics
\nsimilar to the West is unrealistic.<\/p>\n
In Southeast Asia, the position of governments is,
\nhistorically, more dominant. Culturally, people give greater
\nauthority to their government. In this context, it is reasonable
\nthat the middle class does not make a sharp distinction with the
\nstate.<\/p>\n
Regarding the aspiration on governance, the primary issue is
\nnot the contraction of state authority and human rights. Instead,
\nthe endorsement of rule of law is expected to have capability to
\ncurtail nepotism and patronage, which are considered more
\ndestructive.<\/p>\n
On the other hand, the middle class expects greater authority
\nfor the state to help them face global competition by enforcing
\nlabor law, state-led trade diplomacy, providing facilities and
\nsubsidies and so forth.<\/p>\n
It shows that relations between the middle class and the
\ngovernment is always being constructed along with class's
\neconomic interests. Through this economic interest, the
\naspiration on the governance system develops.<\/p>\n
Indonesia's economic crisis must have considerably affected
\nthis class in the form of contraction of spending and individual
\naspiration about the future.<\/p>\n
In financial terms, a part of the middle class must slip down
\nto a lower class. But from a political aspect, this class has
\nshown its activities. What is important from its demands to the
\ngovernment is not about reinstating the former living standard.
\nInstead, it is trying to renegotiate some foundations of the
\ngovernance system. This negotiation now takes form in the demands
\nmade by students, intellectuals, business groups and others. This
\nought to be viewed positively.<\/p>\n
The new role of the middle class is an important development,
\nconsidering the former condition where this class grew. In the
\npast, social stability was established based on "system
\nintegration". This kind of integration is cherished when most
\nsocial groups live together within economic and political
\nstructures, without being much affected by social consensus,
\nincluding about equality.<\/p>\n
In the past, Indonesian society did not have a chance to build
\nmuch of a consensus. Economic growth, though, has yielded well-
\nbeing for the people. It is this collective consensus that
\nconstitutes the new role of this class.<\/p>\n
The writer is a member of the teaching staff at the School of
\nSociology, University of Indonesia.<\/p>",
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