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"Booming and prosperity. Joyful expectation of the future. And, suddenly, a crash, a dramatic crash. All were lost in such a short time. They were so unprepared for this event. Then, those who had used to talk about poverty, but did not really experience the poverty itself, were forced to get the feeling of much relative deprivation. They had not fallen to under poverty line, and, indeed, they might be still in a much higher economic situation than the poverty line; but their prospect had been very bleak. It was like the feeling of riding a roller coaster, but without knowing the end of the fast descending journey. They were, to mention a few, the academicians, politicians, bureaucrats, business people, people in NGOs and joui nalists. They had the political power, and some were involved in decision making to help the "poor" people."

"Indonesia is a diverse country with uneven resource endowment across its provinces. This study examines the effects of human capital investment policies on the promotion of more equitable income growth across provinces. First, the rate of return to education is estimated for each province using the 1976 and 1989 Indonesian National Labor Force Surveys (SAKERNAS). Then, regional economic indicators are used to explain differences in the rates of return to education among provinces and to develop and test hypotheses regarding the contribution of investment in education to personal income growth in different regions in Indonesia.The study finds large differences in the rates of return to education among provinces with the highest rates of return in the poorest provinces. A model of segmented regional labor markets is advanced to explain why wage differences across provinces may exist. The estimates suggest that labor market segmentation was more pronounced for un- or low-educated workers because inter-provincial differences in wages were greater among this group than among more educated workers. Education may reduce regional labor market segmentation. More educated workers may be better able to compete for jobs in other provinces, and therefore more mobile, because they possess the needed language and market skills.Thus, it appears that education not only enhances personal (and national) income, but also promotes greater equity across provinces. Equitable investment in education across provinces is compatible with both equity and efficiency goals in regional economic development."

"AbstrakThe development policy in Maluku Province cannot separate from the small islands that dominate the areas. Its central potentials are in the field of fisheries, agriculture, and mining. This research aims to analyze the potentials of the leading sector and to formulate policy priorities for regional development in Maluku Province. The research used in this research is Location Quotient (LQ), Growth-Ratio Model (MRP), Overlay, SWOT and Analytic Network Process (ANP). The results showed that in Maluku Province there are eight economic categories that have base sectors. The result of Growth-Ratio Model (MRP) shows that the sector with the highest average the ratio of growth in the study area (RPs) is mining and quarrying sector. Furthermore, Overlay analysis shows that government administration, defense, social security sectors are obliged to contribute to and the highest growth. The result of SWOT-ANP shows that policy priority in regional development is the acceleration of infrastructure development."

"Comparing the economic development in China and India has been interesting. While one has experienced an impressive economic growth performance, the other seemed to take a slower path. One popular argument says that the answer lies on China's success on attracting foreign capital. This argument is supported by some stylized facts related to the explanation for a country's attractiveness for foreign capital.The main idea of this essay is that China's relative success over India is a result of its unique characteristics. The purpose of this essay is to deliver supporting arguments for such hypothesis by analyzing the stylized facts. The readers should note that the scope of this essay is the internal determinants of the relatively different speeds of reforms, rather than the policy analysis.The essay is presented in three parts. The first part reviews the identical conditions which both countries shared in the beginning. The second part shows the different success stories. The third part is the comparison of some unique conditions which influenced the different outcomes of development. "

"AbstractEconomic development in the SouthEast Asia, which is at the stage of industrialization, has high dependency on energy consumption. This paper examines the relationship between energy consumption and economic development in the region. Using cross-sectional data, this study find the relationship between energy demand ­and per capita GDP, population and industrial share of output. Oil contributes 80% to energy consumption followed by electricity and natural gas. The result also shows no evidence of relationship between economic crisis and energy consumption. It suggest diversification of energy use and promoting more efficient alternative energy source to increase economic growth."