Global trends affect income share
Global trends affect income share
JAKARTA (JP): The problem of income distribution in a country
is bound to emerge as the country struggles to adjust itself to
global trends, an academician says.
Prof. Iwan Jaya Azis said in a scientific oration at the
University of Indonesia yesterday that the problem of income
distribution arises sooner or later as a country prepares to
conform to global changes.
Iwan cited adjustments to global changes as learning to rely
more on the strength of the market and private sector, reducing
protectionist measures and subsidies, attracting foreign
investment and boosting exports.
Azis, 43, who is currently a visiting professor at the Cornell
University in U.S., gave his oration, titled The gap between macro
economics and micro trends: a shortcoming of economic science?,
in a ceremony during which he was installed as a professor.
"This is not a simple problem and it is not within the
demarcation of economics," Azis said in the ceremony which was
attended by, among others, economists Prof. Ali Wardhana, Prof.
Sadli, Prof. Widjojo Nitisastro, Prof. Satrio B. Joedono, Prof.
Emil Salim, Prof. Subroto as well as Minister of National
Development Planning Ginandjar Kartasasmita and Minister of
Environment Sarwono Kusumaatmadja.
Iwan said he hoped the issue of income distribution would
receive more attention and be addressed by a solid framework
which can recommend all the positive aspects to be achieved
through liberal trade.
"This trend, I believe, is inevitable in the future, and
hopefully everyone in every country can benefit from its positive
aspects," he said.
Iwan said this problem must be solved by analyzing economic
interactions at the macro and micro levels occurring among the
components, among the variables and among social groups within
the countries.
He noted that there were links between population growths,
poverty and environmental degradation, which happened most often
in developing countries.
Generally, Iwan said, a high, uncontrollable population growth
will burden the global environment. But if such a situation was
put on a local context, more complex linkages would arise and the
poverty variable would appear.
He reckoned that it was possible to explain the relation
between micro trends and macro economic developments, although it
was difficult.
"I hope economists and social scientists, especially those
dealing with international trade, can give more attention to
this. The economic and political aspects of the global trend --
both which are positive and unfavorable -- need to be addressed,
especially in developing countries," he said. (pwn)