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Whenever there is action, there will
always be reaction. And whenever there are problems, there will always be
answers or solutions to them. All of these processes — action-reaction,
problems-answers and the like — go along in a chain-shaped relation that
there will never be an end to repeating processes so long as mankind
exists.
As a matter of fact, the history of mankind is dominated by this
chain-shaped relation that all living creatures, including human beings,
cannot live in isolation but rather interdependently with one another. The
same concept is also valid in understanding social and/or political
movements in the world, including here in Indonesia.
Sociology, which includes the study of social and political movements,
recognizes three main pillars of the political-economy concept: Communism –
Socialism – Capitalism, in which the latter is an antidote or answer to
problems faced, but which cannot be solved, by the former two. When
capitalism alone cannot answer global problems, particularly the
increasingly wide gaps in income and prosperity worldwide, people look for
new “antidotes”, one of which is the “Welfare State” concept.
The idea of bringing this chain-shaped relation issue and the welfare state
concept into such an open forum has something to do with Joko “Jokowi”
Widodo. But no, it is not about his personal capacity as a sky-rocketing
politician who, having only recently been elected governor of Jakarta, is
being widely tipped as a potential presidential candidate either in the
2014 election or the subsequent election in 2019.
The issue relates to Jokowi’s populist and image-building campaign ahead of
Jakarta’s gubernatorial election, for which he was rewarded with the city’s
top executive post, and his immediate policies as elected governor — a
manifestation of his campaign promises. Definition-wise, they may not be
exactly the same, but Jokowi’s populist programs and policies are more or
less the same as the welfare state concept introduced in Europe in the 19th
century.
A welfare state, just to cite Wikipedia, is a “concept of government in
which the state plays a key role in the protection and promotion of the
economic and social well-being of its citizens. It is based on the
principles of equal opportunity, equitable distribution of wealth, and
public responsibility for those unable to avail themselves of the minimal
provisions for a good life”. British sociologist T.H. Marshall identified
the welfare state concept as a distinctive combination of democracy,
welfare and capitalism.
The welfare state, according to Wikipedia, is funded through
redistributionist taxation and is often referred to as a type of “mixed
economy”. Such taxation usually includes a larger income tax for people
with higher incomes, called a progressive tax. This helps to reduce the
income gap between the rich and poor. When income inequality is low,
aggregate demand will be relatively high, because more people who want
ordinary consumer goods and services will be able to afford them, while the
labor force will not be as relatively monopolized by the wealthy.
Success stories on the implementation of the welfare state concept can be
found in Nordic countries, such as Iceland, Sweden, Norway, Denmark and
Finland, which employ a system known as the Nordic model of welfare state
concept. The concept implemented involves a transfer of funds from the
state, to the services provided (i.e. healthcare, education) as well as
directly to individuals.
It remains unclear whether Jokowi has purposely adopted such a welfare
state concept, but one thing is certain, that his populist policies —
initially introduced during his seven-year stint as Surakarta mayor in
Central Java since 2005 and continuing after being elected Jakarta governor
last October — has made him not only a media darling, but also a favorite
among wong cilik (common people).
But the immediate policies introduced by Jokowi upon his inauguration as
governor, including the launch in November last year of the Jakarta Health
Card (KJS) program to help Jakartans — particularly those on low incomes —
enjoy wider access to services provided at all the city’s hospitals, and
the Jakarta Smart Card (KJP) program, which is basically a cash assistance
scheme for underprivileged students, as well as the allocation of low-cost
apartments for victims of the recent floods in the capital city, are in
fact similar to the ones implemented in Nordic countries.
Still, Jokowi’s populist programs and policies have been accompanied by
certain side effects. The implementation of the KJS program, for example,
has caused the inability of the city’s hospitals to provide adequate, let
alone comfortable, services to all the people who have sought free medical
services since the scheme’s introduction. As a result, patients have
started to complain of even longer queues for medical services, a rare
phenomenon in the past.
Worse were the recently reported cases of patients who failed to receive
proper medical treatment, resulting in loss of life; not because they were
denied access to the services they were seeking, but due to limited
equipment and facilities in the city’s hospitals.
The point here is that all of this has happened not because the policies
adopted by Jokowi are wrong, but because the implementation of such
pro-poor, populist programs has apparently failed to consider all the
aspects that are interdependent. The welfare state concept is successful in
Nordic countries because all the necessary prerequisites for its
implementation are met. This, however, is not the case in Indonesia.
Perhaps Jokowi needs to make a few adjustments to the concept or to look
for another concept that is more applicable here. ●
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