We document a rapid increase in income inequality in China's . The relationship between log GDP per capita and Gini coefficient in . and Indonesia, also exhibit similar patterns of large regional income disparities (30). relationship between globalization and income inequality is a subject .. the following Asian countries i.e. Bangladesh, China, India, Indonesia. Our study aims to determine the causality relationship between economic growth and income inequality. Using panel data set of 26 provinces from Indonesia for.
In his study of the change, Li Shi of Beijing Normal University decomposed the contribution of different sectors to wealth inequality in He related 97 per cent of the increase in wealth inequality to changes in the values of finance and housing 11 and 86 per cent respectively.
This suggests a positive feedback loop between financialisation-wealth inequality-financialisation, which is evidenced by the burgeoning levels of indebtedness and wealth inequality.
More wealth begets more debt due to rising price of collateral. China has gradually moved toward resembling a market economy in many important traits, including exposing itself to the whims of financial capitalism.
Indonesia needs China more than China needs Indonesia: Jakarta Post columnist
This combustible mix may put China at risk of serious financial crisis. It should pose a major concern for any serious policymaker.
In order to avoid a bumpy ride in the coming years, China needs to wean itself off its heavy dependence on credit to achieve GDP growth. It needs to seriously address its inequality problem. China should start by reforming its banking systems and eliminating financial repression distortions.
Let me make it simple: No matter how strategic Indonesia's position may be on the globe - we are always proud of our strategic geographical position - for China, we are just another important trading partner. In less than two decades China will take over the US' position as the world's largest economy.
The financial origins of China’s rising inequality | East Asia Forum
The relations between China and the US will continue to worsen, although a total trade war is unlikely, the impact on the world would be too devastating. Militarily, it will also be very difficult for the US to maintain its hegemony.
The unpredictable US President Donald Trump will become a disruptive factor, because his eccentric leadership appears not that different from former Libyan leader, the late Muammar Gadaffi or former Cuban leader Fidel Castro.
Prof Kishore Mahbubani and Prof Tommy Koh warned that Asean, of which Indonesia is the de facto leader, will go through a very dangerous period in the next 10 years. Mahbubani talked about China's rising power while the US declines, and there is a common sentiment across the board that China is a serious threat to the US.Indonesia's Economy Needs to Internationalize More, Says Lembong
Koh pointed out that the situation in the South China Sea will deteriorate and China will become more assertive. Former foreign minister Marty Natalegawa urged Indonesia to step up its leadership in Asean in navigating the difficult course. There can be no changing the balance of power, only the dynamics of power, he said. Indonesia needs to boost its diplomatic agility.
There is no point in trying to contain China, but rather to introduce different dynamics, in order to create an equilibrium. The question is how can Indonesia take a leading role during Asean's navigation when internally many Indonesians still think that Indonesia is so important to China that it would not dare to confront us? Baseless chauvinistic pride and a false sense that we are a great nation has often and will continue to trouble us when we are not ready to accept our position. We, Indonesians, should realise that China is much more important to us than we are to them, although we often believe the opposite.
China will soon become the world's largest Official Development Assistance ODA provider and there is almost no chance of reducing the flow of Chinese exports and investment. China appears threatening because its military expenditure continues to rise in line with its rapidly growing GDP.
The critics argue the new policy will trigger an influx of foreign workers into Indonesia.
The financial origins of China’s rising inequality
Tens of thousands of unskilled Chinese labourers now are working, they claim, in China-funded projects, many of them turn-key contracts.
The critics have a point, but they do not see the bigger picture.
The ghost of communism continues to haunt Indonesia with many people branded communists, including Jokowi himself.