Another major reason is the widespread corruption existing there. Rise in public expenditure and widespread reforms in judicial systems and police service can be suggested as the major policy options for alleviating the current situation. More focus needs to be given to the health and education needs of poor. These need assistance from international organizations like World Bank.
According to (Seers 1989, 485), development cannot be measured in terms of economic development alone. This is because for economic development Gross Domestic Product is used as the main indicator. This indicator is only an aggregation and hence in a country with significant poverty, a luxury item like car will be counted more than an essential commodity like food items. Hence, GDP can overestimate the level of development in a country (Seers 1989 486). Further, economic development need not always lead to human development. It involves development in terms of combination of social, economic and political development rather than economic development alone. Therefore, development needs to be measured in terms of a combination of economic and social terms.
Based on the above definition of development, the current level of development in Indonesia is assessed. The major indicators of development used are economic and social indicators. ...Show more