Inequality : Is it Cursed or Incapability to Manage?

Based on Popular theory we have 2 popular things, the cause of a country trap in inequality.
First theory is Modern Theory : Its tells less more about a country will meet its growth trap, due to
institution make insufficiency to make good politic fairs then lead a country in a prosperity. The
second theory is talked about external factor will always dominate a country to become welfare or not
.then this theory just will always hold its stance and complete each other to tell us why this inequality
happen.

Africa territory it self is the poorest territorial in the world, based on data its only has 16% of
world richness (UNDP, Newyork : Oxford Press), though it has really so rich natural sources. Africa
build their economic with their natural resources Like jewerlies, gold, diamond, and agriculture. And
agriculture sector is the highest income to contribute in their GDP income. Even we see geographically
has infertile territory.

Well in fact if compare to among of country in Africa territorial like Bostwana, Gabon, Ghana,
Tanzania and many more, South Africa is the richest country in Africa territory. Before gold, jewelry
was found south Africa economic sector is based on poor agriculture domination, but after its found,
jewerlies, diamond and gold has pushed Africa to activate their Economic growth like Industires Sector
growth ; like iron and steel manufacture.

From Popular Social scientist tells if inequality divided to 3 form

1. Individual Inequality in a country

2. Intercountry Inequality
3. Individual inequality in a one global system

Thus, something seems really relavant for our research is inequality South Africa- Tazmania. They
both are as one territory in Africa, but Africa Capita Income has 18 times more than Tanzania.
Where South Africa is classified as Upper Middle Income($2995-$9265) Country overtaking
Tanzania is Low Income Country (less than $755).

Based on Airlangga University scientific research this inequality happened because of few of thing :

1. Historitical aspect ; Historical aspect like religion ethnic, culture and the other primordial
things life philosophy, behavior, work ethos/ willing to acces information its really determined
people behavior in a country, to make self better creative and innovative and many more
between Tazania and South Africa itself. So thats why from its people itself its already
different between south Africa and anzania. So it just one of reason this inequality happened
2. Free Market Vs Government power in building economic system. Almost every developing
country has government intervention therir economic system. But now south Africa economic
development is moving to free market economic system. Now south Africa is lessing their
govertment to intervent economic sytem. Now Africa is similar like America. Theyre
becoming capitalist country, There is no too much government intervention. In order to make
investor interested.
3. Industries Structures : Agricuture sector is give massive contribute in GDP in Tanznia, but in
South Africa it self, its focus on manufacture iron and steel. This is also can be discussed as a
inequality former

So here also I give description about South Africa

South Africa Tanzania

GDP Total : $456,7 Billion GDP Total : $21,58 Billion

GDP Contributed Sector : GDP Contributed Sector
Agriculture : 3,8% Agriculture : 43,6%
Industri : 31 % Industri : 16,5 %
Services : 65,2% (2003) Services : 40% (2003)
Expor : $36,77 Billion Expor : $978 M
 Coomdity Expor : Comodity Expor :
Gold, diamond, platinum, steel, mineral, Gold, coffee, manufacture, sisal
machine

Thus as a theory it also said further a develop country will always have condition like this

1. Interdependency of primary product exprort (Unproceed agriculture product)

2. Poor productivity
3. Population explosion without highly education
4. Dependancy to other country, and a failure in International relationship

Aphertheid politic is also really influence why ineqeuality happens.Apherteid politic itself means
separately development . That is classified ethnic in south Africa .; Europe, Asian, African. With this
politic they live separated and cannot in the same territory. They called Homeland for African people
territory, or they called it Bantustan.

Aphertheid firstly published by politician named Verwoed, happened because of colonialism. The
desire of European people to took African sources. In a winning of National Party, European Party, it
led to do this cruel politic. After the national party took the chair, they empowered the self to the
parliements. In order to eradicate African politic power, this winning party eliminated Africa House of
Representative and make 3 big policy :

1. African cannot stay in a town longer than 72 hours

2. In 1945 was published Native Land Act disallowed African buy land in the town
3. African people cannot accesed education easily like white people do

A different ease to access thing of course will lead Africa to have inequality itself. And aphartheid
really left mark to now. Its really has big gap income among geographically territory in South Africa,
about 40% GDP is only produces from Province of Gauteng only and is used to white people
territory.

Till now apharteid politic is till left big marks for Africa, colonialism directly make inequality
grow. Becauuse of European desire to control Africa resources.

Go back to our topic to : Reducing Economic inequality and Finance Sustainable, there are so many
belief to tackle this problem. From Prabowo Subianto, Head of Gerindra Party, Indonesia Party he said
if we want to build economi we have to also develop 3 aspect, that is

1. Industries
2. Mineral and Energy
3. Agriculture

This 3 thing is really interconnected each other, to determine economic condition in a country

1. Industries. Industries Rellocation, usage of technology, efficiency, labor absorbing, right

industries policy. They all empower consumer purchasing ability. And its also bulid economic
If manufactures, industries isnt spreading widely to all of territory, inequality will
always grow well, industries absorb the laborer, they are souce of a living a country.
The amount of money, ability purchasing will not be equal, if industries isnt exist in
remoted area. With industries relocation to remoted area, will clearly impact to increase
people income. So thats why the money that town people if it is compared to remoted
are people was really inequal, because industries is only located in a town. If there is no
industries relocation there will always inequality. And this will be support with right
policies, to walfare the labor, like minimum paid regulation, labor right, and many more
it will eradicate inequality
2. Agriculture. There is no country that have good economic condition without good agriculture
too. A country that can feed the people, not dependant with import commodity, has low price in
agriculture, make the people healthy, no poverty, can create basic people to build the nation
first. Build the people is same like build the nation. Governtment must give space to every
 NGO corporation to expand their business in agriculture existing. Govt should support this
development with real policies that directly impact to the people.
3. Mineral and Energy. In recently days, renewable energy is really popular to make a country
walfare. Import depandancy will lead a country to a terrible and politic, economic instability.
Dependency of uneweable energy that will out of stock. To minimalize unreneable energy
usage, and use renewable energy will lead walfare to a country. If a country can press the cost
of using energy, of course it also clearly can make economic stability.
Charcoal, oil and gas is really worried in a future day, if it jus out of stock in a country
and cannot produce it anymore, but dont prepare for it self, they will really depandant
to the other ountry that can give them energy. And if its out of stock a country will pay
for this huge cost. Politic, economic, social instability will happen with this condition.
Govt should prepare biofuel. The country that create renewable for the country will
become the leader

Synergously, if a country balance in this 3 aspect, finance sustainability and economic growth, and
inequality can be eradicated. Based on world bank sources, to eradicate inequality there are ways do
that is

1. Create work field more thamn poor people

2. Taxation that can equal the people
3. Create economic condition that sustainable because of high price and go to finance sustainable
4. Government design social social security