To fight inequality, Indonesia should learn from China and India in combating digital illiteracy

Primatia Romana Wulandari, University of Melbourne

To mark the CAUSINDY (Conference of Australian and Indonesian Youth) held in Melbourne this week, The Conversation presents analysis from academics at the conference.


Indonesia shares similar characteristics with China and India as Asian countries that have more people between the ages of 15 and 64 than young children and the elderly.

Analysts call this surplus of people of productive working age a “demographic bonus”, which can contribute to the rise of China, India and Indonesia as leading economies.

The young populations of these countries are entering a shifting jobs landscape propelled by innovation in digital technology. China and India are moving to prepare their populations to take advantage of the digital era.


Read more: The robots are coming for your job! Why digital literacy is so important for the jobs of the future


But Indonesia has a lot of catching up to do to provide its people with skills including digital literacy, to be able to find employment in a world where the ability to use the internet via digital mediums, such as personal computers, smartphones, tablets and others, will be a necessary skill.

Changing jobs landscape

Before there was the internet, around 30 years ago, more than half of Indonesia’s population (54.7% in 1985) worked the land as farmers.

By 2016 only 34% were still working in the agriculture industry. Some 44.8% work in the services sector and 19.7% in manufacturing.

Data from Indonesia’s Statistics Agency show more than half of Indonesian workers (51.5%) are underqualified or lack the right skills to do the job. This occupational mismatch is often associated with low levels of education. Some 40% of workers’ skills and employment are well matched. And 8.5% are overqualified for their occupations.

The data show Indonesia is facing a skills shortage. One of the skills Indonesians lack is digital literacy.

What China and India are doing

China provides us with a good example of how to take advantage of an internet-enabled digital economy. It accounted for 30.6% of China’s GDP in 2016.

Even though China restricted its citizens’ internet access, by blocking certain websites and applications since 1997 (“the great firewall of China”), it has, on the other hand, driven the development of its native platforms such as WeChat, Weibo, QQ, Renren, Alibaba, JD.com and many others.

With its restrictions, China has reoriented internet adoption and online behaviours by maximising its market potential within the country.

For example, WeChat has grown rapidly since 2011 to rival Facebook and become the nation’s most-used social media app. It has radically changed the Chinese lifestyle and way of doing business. WeChat will potentially overtake Facebook in the future.

WeChat.
from http://www.shutterstock.com

It offers features such as instant messaging, commerce and mobile payment services. It makes a virtual workplace possible by offering components that enable and improve important business functions such as task co-ordination. It provides a convenient virtual wallet that can be used for almost every transaction, from paying utility bills to a coffee.

The Chinese diaspora has spread the use of WeChat worldwide. This is an example of China using its demographic bonus to create opportunities and a competitive environment that allow its citizens to redefine the global economic balance of power.

Meanwhile, India made a serious move to combat digital illiteracy by establishing the National Digital Literacy Mission (NDLM) in August 2014.

With the objective of “making one person in every family digitally literate by 2020”, India has pledged to provide 147 million people in rural India with the necessary skill to use the technology.

This can be seen as a positive move towards a more digital-savvy India that recognises the need of digital literacy for development.

What about Indonesia?

Indonesia currently focuses on traditional infrastructure development, such as roads, ports and a subway system, to improve physical connectivity and mobility. But the government should not lose sight of the importance of providing the population with the infrastructure to access information and technology.

A survey by the Association of Indonesian Internet Providers (APJII) pointed out that people living in the urban areas in Java, Sumatra and Bali enjoy internet access, whereas the rest of Indonesia is still struggling to connect.

According to Akamai, as of March 2017, the internet penetration rate in Indonesia is 50.4%. This is lower than neighbouring countries such as Australia (85.9%), Singapore (81.2%), Malaysia (67.7%), Philippines (52%), Vietnam (52.1%), and Thailand (60%).

The average speed of internet connection in Indonesia (7.2 Mbps) is also slower compared to Singapore (20.3 Mbps), Thailand (16.0 Mbps), Vietnam (9.5 Mbps) and Malaysia (8.9 Mbps).

Despite high smartphone sales (55.4 million users in 2015 with 4.5 million smartphones sold annually), Indonesia remains “a marketplace” rather than a rising power in the global competition. Indonesia is the third-largest smartphone market in the Asia-Pacific rgion, after India and China.

Indonesians can use social media such as Facebook and WhatsApp, but they do not have fast and reliable internet access to browse and research online, let alone create business opportunities.

Research by Edwin Jurriens and Ross Tapsell recommends that the Indonesian government start paying attention to the digital divide if Indonesia is serious about its objective to combat inequality.

Start with simple but necessary steps

Indonesia needs to develop policies with clear objectives to spur internet adoption and digital literacy.

If President Jokowi is serious about creating “1000 technopreneurs by 2020”, the government should start by:

  • working with the private sector to provide internet access and telecommunication services for rural areas

  • training citizens to use digital technology via formal and informal education programs nationwide

  • promoting and providing incentives to develop native online platforms.

This could involve, for example, holding hackathons to solve the real issues that Indonesians face daily, such as traffic jams, floods, finding markets for local products, access to health services and referral, options for different service providers, a channel to provide feedback to improve services, etc.

Instead of leaping towards the objective of creating “technopreneurs”, Indonesia could begin with a simple objective to start a nationwide movement to combat digital illiteracy, a hidden inequality that persists in Indonesia.


Read more: Researchers find Indonesia needs more digital literacy education


Indonesia should also provide an environment where tech startups can thrive, through tax rebates and investments, to really benefit the Indonesian economy.

For example, Gojek, one of the most successful local startups, was founded and is led by Nadine Makarim, an Indonesian. However, it could only succeed after receiving backing and investment from Warburg Pincus, KKR and Farallon Capital – all American-based equity firms.

The ConversationWe may celebrate Gojek as a successful Indonesian example of a startup that has helped to solve local issues by allowing access to convenient services. But, if we fail to understand who are “the real owners” of the business, Indonesia will only be “a marketplace”, not an emerging economy.

Primatia Romana Wulandari, PhD Candidate School of Social and Political Science, University of Melbourne

This article was originally published on The Conversation. Read the original article.

Investing in warmer housing could save the NHS billions

File 20171004 32388 1np1bld
Bitterly cold.
Ruslan Guzov/Shutterstock

Dr Nathan Bray, Bangor University; Eira Winrow, Bangor University, and Rhiannon Tudor Edwards, Bangor University

British weather isn’t much to write home about. The temperate maritime climate makes for summers which are relatively warm and winters which are relatively cold. But despite rarely experiencing extremely cold weather, the UK has a problem with significantly more people dying during the winter compared to the rest of the year. In fact, 2.6m excess winter deaths have occurred since records began in 1950 – that’s equivalent to the entire population of Manchester.

Although the government has been collecting data on excess winter deaths – that is, the difference between the number of deaths that occur from December to March compared to the rest of the year – for almost 70 years, the annual statistics are still shocking. In the winter of 2014/15, there were a staggering 43,900 excess deaths, the highest recorded figure since 1999/2000. In the last 10 years, there has only been one winter where less than 20,000 excess deaths occurred: 2013/14. Although excess winter deaths have been steadily declining since records began, in the winter of 2015/16 there were still 24,300.

According to official statistics, respiratory disease is the underlying cause for over a third of excess winter deaths, predominantly due to pneumonia and influenza. About three-quarters of these excess respiratory deaths occur in people aged 75 or over. Unsurprisingly, cold homes (particularly those below 16°C) cause a substantially increased risk of respiratory disease and older people are significantly more likely to have difficulty heating their homes.

Health and homes

The UK is currently in the midst of a housing crisis – and not just due to a lack of homes. According to a 2017 government report, a fifth of all homes in England fail to meet the Decent Homes Standard – which is aimed at bringing all council and housing association homes up to a minimum level. Despite the explicit guidelines, an astonishing 16% of private rented homes and 12% of housing association homes still have no form of central heating.

Even when people have adequate housing, the cost of energy and fuel can be a major issue. Government schemes, such as the affordable warmth grant, have been implemented to help low income households increase indoor warmth and energy efficiency. However, approximately 2.5m households in England (about one in nine) are still in fuel poverty – struggling to keep their homes adequately warm due to the cost of energy and fuel – and this figure is rising.

Poor housing costs the NHS a whopping £1.4 billion every year. Reports indicate that the health impact of poor housing is almost on a par with that of smoking and alcohol. Clearly, significant public health gains could be made through high quality, cost-effective home improvements, particulalrly for social housing. Take insulation, for example: evidence shows that properly fitted and safe insulation can increase indoor warmth, reduce damp, and improve respiratory health, which in turn reduces work and school absenteeism, and use of health services.

Warmth on prescription

In our recent research, we examined whether warmer social housing could improve population health and reduce use of NHS services in the northeast of England. To do this, we analysed the costs and outcomes associated with retrofitting social housing with new combi-boilers and double glazed windows.

After the housing improvements had been installed, NHS service use costs reduced by 16% per household – equating to an estimated NHS cost reduction of over £20,000 in just six months for the full cohort of 228 households. This reduction was offset by the initial expense of the housing improvements (around £3,725 per household), but if these results could be replicated and sustained, the NHS could eventually save millions of pounds over the lifetime of the new boilers and windows.

The benefits were not confined to NHS savings. We also found that the overall health status and financial satisfaction of main tenants significantly improved. Furthermore, over a third of households were no longer exhibiting signs of fuel poverty – households were subsequently able to heat all rooms in the home, where previously most had left one room unheated due to energy costs.

Perhaps it is time to think beyond medicines and surgery when we consider the remit of the NHS for improving health, and start looking into more projects like this. NHS-provided “boilers on prescription” have already been trialled in Sunderland with positive results. This sort of cross-government thinking promotes a nuanced approach to health and social care.

The ConversationWe don’t need to assume that the NHS should foot the bill entirely for ill health related to housing, for instance the Treasury could establish a cross-government approach by investing in housing to simultaneously save NHS money. A £10 billion investment into better housing could pay for itself in just seven years through NHS cost savings. With a growing need to prevent ill health and avoidable death, maybe it’s time for the government to think creatively right across the public sector, and adopt a new slogan: improving health by any means necessary.

Dr Nathan Bray, Research Officer in Health Economics, Bangor University; Eira Winrow, PhD Research Candidate and Research Project Support Officer, Bangor University, and Rhiannon Tudor Edwards, Professor of Health Economics, Bangor University

This article was originally published on The Conversation. Read the original article.

Underpaid, overworked and drowning in debt: you wonder why young people are voting again?

Paul Whiteley, University of Essex

The 2017 general election was highly unusual as far as the youth vote was concerned. The Labour party won 65% – the lion’s share – of the youth vote. The nearest comparisons are with 1964 and 1997. In both those years, Labour took 53% of the youth vote. In the 2015 election, just two years earlier, the party had won just 38% of the youth vote.

How the under-30s vote

Tracking the youth vote between 1964 and 2017.
Paul Whiteley, Author provided

The contrast between the youth vote in the 2010 and 2017 shows how radically youth voting patterns have changed. During this period, their turnout rose by 19%. This change in youth participation, combined with a massive swing to Labour, has unsurprisingly led some to talk of a “youthquake”.

What could have brought this about? Political and cultural drivers are clearly at work. That includes youth support for remaining in the EU and their preference for Jeremy Corbyn over Theresa May. Only a quarter of 18-to-25s voted to leave in the EU referendum compared with two-thirds of those over 65.

But economic drivers also played a crucial role. Young people, put simply, have lost out both in the economy and government policy making. Since 2010 the British government has been preoccupied with shoring up its political support among middle aged and retired voters. It has largely ignored the concerns of the young, very often dismissing them because, in the past, most young people did not vote. That all changed in 2017.

Paying for education

One obvious driver of youth voting is the rapid increase in student debt imposed by a government which sought to privatise higher education during the austerity years. Tuition fees were originally introduced in 1998 and had reached £3,000 per year by 2006-7. At the time, it was widely accepted that the considerable graduate premium which existed in lifetime earnings justified a contribution to the costs of higher education by the beneficiaries.

But things radically changed in 2010 when the coalition government introduced a fees cap of £9,000. Ironically, this increased privatisation of the costs of higher education was accompanied by ever-increasing regulation, so that the less the state supports higher education the more it wants to control it. This trend culminated in a 2016 proposal to scrap maintenance grants and raise fees to £9,250 while at the same time charging interest rates of 6.1% on student loans at a time when the Bank of England base rate was 0.25%.

Such a reckless disregard for the interests of more than 40% of the under-25s is quite hard to understand, particularly in light of the fate of the Liberal Democrats following their u-turn on tuition fees after they joined the coalition in 2010.

The bias against youth was not confined to university students. In April 2016, the minimum wage was raised to £7.50 an hour, but this change only applied to employed workers over the age of 25. The minimum wage for apprentices under the age of 19 was a meagre £3.50 and hour and this did not change. Young people were essentially ignored.

Another aspect of the same issue relates to the self-employed, none of whom receive the minimum wage. Historically, self-employed workers have been older than the workforce average age – but, in recent years, self-employment has grown faster among the under 25s than any other group with the exception of 40-year-olds. Between 2008 and 2015 the number of self-employed people in the UK increased from 3.8 million to 4.6 million people with part-time self-employment, often synonymous with under-employment, increasing by 88%. Thus young people have lost out on the increases in minimum wages, with many of them being underemployed and working part-time for wages that are well below average.

Are you even listening?

It was, therefore, no surprise that when the pollsters YouGov recently asked citizens to rank their priorities for the country, 46% of 18-24 year olds selected increasing the minimum wage to approximately £9 per hour. That compared to a national figure of 28% (and 19% among pensioners).

In our panel survey of the electorate conducted immediately before the 2017 general election, we asked respondents if they agreed or disagreed with the following statement: “The government treats people like yourself fairly”. We found that 18% of the under-25s agreed with this statement compared with 28% of the over-65s. In contrast, 49% of the under-25s disagreed with it compared with 32% of the over-65s. Youth have not only been left behind but many of them are aware of this fact and have a sense of grievance arising from it. The stark difference in the responses of youth and pensioners to this statement is related to the differences in the government’s treatment of them.

The so called “triple lock” on pensions was introduced by the coalition government in 2010. It was a guarantee to increase the state pension every year by the rate of inflation, average earnings or by a minimum of 2.5% whichever was the highest. By 2016 it produced a situation in which retired people had average incomes £2,500 higher than in 2007/8, while those who were not retired earned an average of £300 less over this period. The latter reflects the fact that real wages have been flat-lining for more than a decade.

Given all this it is no surprise that the 2017 election was a case of youth striking back.

The ConversationThis article is based on research by Paul Whiteley, Harold Clarke, Matthew Goodwin and Marianne Stewart. Paul Whiteley is speaking at Youthquake 2017! Can young voters transform the UK’s political landscape? a joint event between The Conversation and The British Academy on October 9, 2017.

Paul Whiteley, Professor, Department of Government, University of Essex

This article was originally published on The Conversation. Read the original article.

Bare cupboards and nobody to help buy food: the forgotten welfare gap in older age


File 20171004 6697 1e4gzfi
Poverty and isolation is leading to nutritional problems for older people.
via shutterstock.com

Kingsley Purdam, University of Manchester

Welfare reform and austerity in the UK has led to reductions in public spending on services that support older people. Age UK has highlighted how nearly one million older people have unmet social care needs. This is of particular concern as the winter months approach.

In ongoing research on food insecurity in older age, my colleagues and I have analysed survey data and interviewed older people who use foodbanks. We’re finding that many older people are at risk of under-nutrition because of poverty, or because they don’t get the support they need to shop, cook and eat.

While many older people have been less affected by the recent recession than other age groups, in part because of the triple lock protection for pensions, poverty can persist in old age. Data from 2015 shows that 1.6m pensioners live below the relative poverty line, and 8% of pensioners are in persistent poverty – defined as having spent three years out of any four-year period in a household with below 60% of median income.

Poverty and social isolation

Around 20% of older people have little or no private pension, housing or material wealth and retiring with debt is also a growing problem. There are 3.8m people aged 65 and older living alone in the UK and evidence from Age UK suggests that nearly one million people in this age group always or often feel lonely.

Older people living alone tend to eat less. This can lead to under-nutrition – a major cause of functional decline among older people. It can lead to poorer health outcomes, falls, delays in recovery from illness and longer periods in hospital, including delayed operations.

Evidence from the National Nutrition Screening Survey suggests that an estimated 1.3m people aged over 65 in the UK are not getting adequate protein or energy in their diet. On admission to hospital, 33% of people in this age group are identified as being at risk of under-nutrition.


Read more: Huge cuts have made elder care today look like a relic of the Poor Law


Data we are analysing from the 2014 English Longitudinal Study of Ageing suggests that for around 10% of people aged 50 and over “too little money stops them buying their first choice of food items” and this has increased consistently since 2004. Evidence from the Poverty and Social Exclusion Survey in 2012 found that 12% of people aged over 65 had often or sometimes: “skimped on food so others in the household would have enough to eat”.

Embarrassment and stigma

The Health Survey of England consistently highlights the issue of unmet need among some older people. For example, 6% of people aged over 65 reported that they had not received help from anyone with shopping for food in the last month. In addition, 19% of this age group reported needing help to leave their home.

Evidence suggests that as food insecurity has increased in the UK, many older people have become reliant on food banks. In 2016, the food redistribution charity FareShare said that 13% of its clients were aged over 65.

Our interviews with older people using food banks have highlighted the challenges many older people can face. Some were having food parcels delivered by the food banks as they were unable to go themselves or did not want to be seen going.

Embarrassment and stigma were also a concern for one 69-year-old man who told us how he preferred coming to the food bank than asking family or friends for help. “I don’t believe in asking others, I don’t want to upset people,” he said. Another 65-year-old man told us: “My family would help but I don’t like to ask them, they have their own families to look after.” Others, however are either unable or too embarrassed to visit a food bank.

Food or warmth

One 54-year-old man said: “I can go for a couple of days without food… the gas is cut off and I get hot water from the kettle to wash.” There was also evidence that some older people were not fully recognising their nutritional needs. As one 60-year-old woman said: “When you are on your own… sometimes I don’t cook, depends how I feel.” Another 65-year-old man revealed his poor diet, stating how when he had no food he would: “Just eat cornflakes.”

Counting the pennies.
Kingsley Purdam, Author provided

Other people chose to cut back on food during the winter due to the costs of heating their home – suffering the cold as a result. As one 72-year-old woman stated: “Sometimes I just go without putting the heating on.”

An increasing number of older people are constrained in their spending on food, many are skipping meals and are not getting the social care support they need. Emergency food parcels are an inadequate and unsustainable way of addressing the issue of food insecurity.

There are currently 10m people in the UK aged over 65, but this is expected to increase to 19m by 2050 – that’s one in every four people.

The ConversationAs the size of the older population continues to grow, the reductions in local authority spending on social care raise concerns about their long-term welfare. Given the follow-on costs to the public purse, including in terms of healthcare, the government must do more to combat food insecurity amongst older people.

Kingsley Purdam, Senior Lecturer, University of Manchester

This article was originally published on The Conversation. Read the original article.

Poverty is (not) a personality defect

“Poverty is a personality defect.”
– Margaret Thatcher

I think that one thing dear Maggie was in denial about is that it’s generally easier to get money if you already have money. It’s easier for a person with a job to get money for something he or she does not need than it is for a person without money to get money for bare necessities.

Pervasive myths such as Margaret Thatcher’s statement help maintain that imbalance.

I realized when I heard about a donation someone I know had made to another person I know.

Factors like gender (sex) and skin tone can play a role too. Men, for example, generally don’t like the idea of empowering women. Something primitive in them wants them to enslave women instead, tether them, keep them small and under control. Own them. And break them, if the women can’t be controlled. If it happens in everyday life, it also happens in many professional relationships. And we all know this, but most of us rarely think about it.

Yes, what I have written here will anger or upset some men, but for every man who does not recognize himself in it at all – bless him – there is another one who will readily admit that it’s true.

“Free & impartial money advice, set up by government”

You can get that from the Money Advice Service. On 7 August 2014, it headlined:
“One in 11 Britons has less than £10 a month disposable income”

It elaborated:

One in 11 people, or 4.5 million British adults, have less than £10 a month left over once they have paid their essential bills, research from thinkmoney has found.

You’ve probably already seen that in the news in August, but if you missed it and are curious about the rest of the article, you can read it here.

If that bit of news escaped you, then you may be unaware of the results of this other study too (reported by The Independent).

British apartheid

While reading three of Nelson Mandela’s (auto)biographies, I noticed some similarities with how the UK treats (oppresses) a large group of its population. I was not sure what to think of it, and a bit hesitant, held back by not wishing to offend anyone who’s endured apartheid in South Africa, to dare compare the situations.

Now this turns up.

Apartheid in the UK is a reality (article in the Independent). Here is the link to the initial article in the Guardian.

Note the sharp contrast between the US and the UK. On paper, Britain and the US may have similar degrees of inequality, but in reality, very little is similar about it.

This appalling craziness has got to stop. We badly need more equality in the UK. Real equality.

As the main driver for this inequality appears to be the urge to accumulate more money by those who already have plenty, there have to be financial motives behind the UK’s inequality. So, is the UK deliberately – habitually – keeping a large group of people poor enough so that it has a buffer of powerless people it can milk and starve whenever the economy tanks, or what? (The answer to that is “yes”.)

There is money in these “poor doors”, a lot of money.

There is nothing wrong with money. The problem is the feudal thinking. The service charges argument is bullshit. That can be solved some other way.

Someone might consider sueing London over this. Its planning committee made this possible, and signed off on it.

(This is not the “pepperpotting” Ken Livingstone had in mind!)

A better step? Reverse the situation! Make the entire building affordable living on the condition that a few rich folks get to live in it as well.

Food bank row

This morning, the first news today’s papers informed me of was a row over food banks.

fruitApparently, someone – an aide to the current Secretary of State for Work and Pensions – threatened to have food banks shut down if they continued to raise awareness about their activities and about food poverty in the UK. This aide has the wrong idea.

Only a few years ago, in 2011, I noticed a major discrepancy in this area. The Trussell Trust – which runs the food banks in the UK – wasn’t accomplishing even 10% of what Dutch food banks were doing.

  • UK food banks handed out 40,000 parcels per year.
  • 900,000 per year were handed out by Dutch food banks.
  • The population of England & Wales on 27 March 2011 was 56,075,912. The population of Scotland on that day was 5,295,000.
  • On 1 January 2011, the population of the Netherlands was around 16,700,000 persons. That’s almost 45 million people less!

So, while British food banks were handing out 0.00065 parcel per person per year, Dutch food banks handed out 0.054 parcel per person per year. Or did my calculator trip me up badly?

cheeseAround 83 times more food parcels were being handed out in a tiny country with much greater equality and almost none of the appallingly deep poverty of the UK!

That is not the Trussell Trust’s fault.

While the number of food parcels handed out in the UK has gone up substantially since then, it still is nowhere near enough. The Trussell Trust gave emergency food to 913,138 people in the UK in 2013-2014. Presumably, that means ‘once’.

According to the Trussell Trust, 13,000,000 people in the UK live below the poverty threshold. (That’s what it also said three years ago.)

Addressing the UK’s persistent poverty problems would improve the lives of everyone here, not just the lives of the poor. When UK scientists Richard Wilkinson and Kate Pickett investigated the impact of inequality on society, they had to conclude that a higher degree of equality would lead to overall improvements for everyone, not just for the so-called vulnerable.

Conquering poverty would also benefit the nation’s budget, as the estimated cost of child poverty alone in the UK is £25 billion per year in terms of costs to business, the police, courts and health and education services.

Inhabitants of the Netherlands rank among the happiest people on the planet, year after year after year. Dutch children consider themselves very happy children, regardless of their socioeconomic background. The same cannot be said for British children.

At the end of 2010, UNICEF research into child inequality in 24 developed countries showed that income poverty has the greatest impact on child inequality in the UK. The UK ranks alongside countries such as Hungary, Slovakia and the Czech Republic. There is little inequality in the Netherlands, however, and the lives of children from the richest families differ little from the lives of the poorest Dutch children.

UNICEF UK commented that addressing income poverty is the crucial factor. ‘David Bull, Executive Director UNICEF UK said:

‘We must not lose sight of the importance of family income to eradicating child poverty in this country. We must ensure that no family with children has to live on an income which cannot provide the warmth, shelter and food they need.’

We need to hand out many more food parcels. There is no shame in handing out food, and none in accepting it either. The embarrassment is in not handing it out.