INEQUALITY BETWEEN THE REGION IN THE PROVINCE OF CENTRAL JAVA 2012 – 2016

Abstract

The development becomes an activity process that  must be conducted  by all nation as the effort to remove the backwardnessand to repair  the prosperity in all aspects  in human life.  Different with the paradigm of traditional economy development, modern economic development concerns in economic growth, unemployment problem, poverty, inequality and structural imbalance. In decade 1970s, redefinition of economic development was reachedby the effort with removing the poverty, development and inequality. In the developing country, especially in Indonesia, the emergence of economic inequality between the regions it is the global phenomena that must be  faced.  The main discussion in the  implementation of the  economic development  policy in the developing country  in the past is the  economic  inequality  problem,  because there is  the tendency that the  development policy  that has been designed to increase the economic growth in contrast in make worse the condition of economic inequality  between the regions  in a nation. The problem of economic inequality theoretically can be explained by using neo classic hypothesis. In the beginning process of development in a nation, the economic inequality between the nation tends to widen (divergen) because it is caused by mobility of production factor (capital and labor) that are not  running well, so it is concentrated in the  developed region. With the process of  sustainable development, and with the better  infrastructure  so the  mobility of  production  factor  will be better,  thus  the  economic inequality between the  region   will be  reduced (convergen). This  writing  tries to analyze  and  answer  the  problem of  economic  inequality between the  region in Central Java 2012 – 2016 with  some of problems   about: income per capita and  economic inequality  in Regency/City in central java, based on data  in 35  regencies/cities  in Central Java.  Meanwhile presumed that in the area of developing region generallythe  economic inequality  between the region  tend to  be higher, and in the developed region  the economic  inequality  tend to be lower.

Keywords: Economic Development, Economic Growth, economic Inequality, Divergen, Convergen