FACTORS AFFECTING THE HUMAN DEVELOPMENT INDEX IN MUSI RAWAS REGENCY SOUTH SUMATERA PROVINCE

MAULANA

Postgraduate Programme at Tamansiswa University E-mail: [email protected]

Abstract— An achievement of economic development in a country is affected by the process of human development. That achievement essentially could not be separated from how much the human quality in a country. The indicator that is able to measure the human quality in a country is the Human Development Index (HDI). The HDI is an indicator used to measure one of essential aspects related to the quality of economic development, the degree in human development. The HDI has three elements comprising health, education received, and the standard of living or frequently known as economy. This research aims to observe and review factors affecting the HDI in Musi Rawas Regency South Sumatera in 2004-2010. Data was processed by the multivariate regression. The result of the research shows the R2 value of 0.878. This explains that the HDI improvement could be carried out by efforts to advance health facilities, opportunities to receive education, Gross Domestic Regional Product (GDRP) per capita, and opportunities to get a decent job.

Keywords— HDI, health, education, GDRP, job opportunities

I. INTRODUCTION accompanied with the adequate requisite which is the equity in development. The equity in development Nowadays issues regarding an achievement of human guarantees all population to benefit the products of development has been of concern to government development. administrators. Various measures of human Consideringthe experience of development in several development have been developed, however it is not countries, it is summarized that the acceleration in all of those that could be compared among countries human development may be conducted through two or states. Thus, the United Nations Organization set a ways comprisingthe equal distribution of incomes and standard of the human development called as the the adequate allocation of public spending for Human Development Index (HDI). education and health. This index is constructed on the basis of four indicators comprisingthe life expectancy index, th The improvement of public welfare could be carried literacy rate, mean years of schooling, and purchasing out in ways of the poverty alleviation, enhancement power. The indicator of life expentancy represents a of education and health qualities, enhancement of long and healthy life dimension. Furthermore, literacy rural area and settlement development, reduction of rate and mean years of schooling relect the output of inequality in development over areas and urban area knowledge dimension. Whereas, the purchasing development, enhancement of religious life, power indicator is used to measure the dimension of a enhancement of social protection and public welfare, decent standard of living. development of youth and sport population, and The broad scope of human development enables the advancement of sciences and technology as well as HDI increase as a manifestation of human employment. All of these are potentially able to development to be interpreted as a success in escalate the social competitiveness. improving capability in enlarging the choices of the The success of development particularly human people. As it is known, some necessary factors of development would be assessed partially with development that are extremely effective for the noticing how much the most fundamental issue in a human development are education and health. These community could be tackled. The issue includes two necessary factors constitute the basic needs of poverty, unemployment, illiteracy, food security, and people which could be obtained in order to enhance democratic strengthening. But the problem is that the their potential. Generally, as the basic capabilities of achievements of partial human development a nation are higher, the opportunities of a nation to extremely vary in which several particular improve its potential are also becoming higher. In this development aspects succeed and others fail. Then, escalation of global competition, demands for those how to assess the success of human development on basic capabilities are perceived higher. Otherwise, the the whole? nation would fail to compete with other more The determination of the human development index developed ones. To the end of improving the HDI, (HDI) is through four indicators comprisingthe life the focus is not only solelyon the economic growth expectancy index (LEI), the literacy rate (LR), mean since the new economic growth is a necessary years of schooling (the education index-EI), and requisite. In order that economic growth is in adjusted gross national income per capita (purchasing accordance with human development, it should be power parity-PPP).

Proceedings of Academics World 28th International Conference, Tokyo, Japan, 28th March 2016, ISBN: 978-93-85973-72-7 77 Factors Affecting the Human Development Index in Musi Rawas Regency South Sumatera Province South Sumatera constitutes one of provinces Those values describe that the opportunities owned possessing the relatively high economic potential in by societies in those three cities to access products of . This province which is described as the development were already relatively high. Thus, it fifth richest in Indonesia continuously carries out could be concluded that the equity in development in acceleration in development and equity in welfare for those three cities had been comparatively good. the community. The advancement of development in Furthermore, regarding the lowest HDI in South South Sumatera not only could be seen from the Sumatera, it was obtained by three regencies economic growth, but also the Human Development including Ogan Ilir, Empat Lawang, and Musi Rawas. Index (HDI). The value of the HDI in Ogan Ilir was at 69.91, followed by Empat Lawang at 68.92, then the The Human Development Index in South thoroughly lowest was Musi Rawas at 68.92. Those Sumatera Province in 2007-2011 values show that the three regencies remained left behind for a matter of equity in opportunities to benefit the products of development rather than other regencies/cities in the area of South Sumatera. In addition, the HDI in Musi Rawas Regency were still placed at the last rank among Regencies/ Cities in South Sumatera up to 2008. The value of HDI in Musi Rawas reached 75.49 as the data from Statistics Indonesia of South Sumatera Province. Seemingly, the value of the HDI in Musi Rawas (Muara) that is stil relatively low might be caused by ineffectiveness of the implementation of development projects managed by the local government.

II. RESEARCH PROBLEMS

Review Of Relevant Literature The Human Development Index (HDI) constitutes an indicator describing how population in an area has opportunities to access products of development as parts of its right in obtaining revenue, health, education, etc. The values of the HDI illustrate how According to the data from Statistics Indonesia, the far areas have reached targets already set making up percentage of economic growth in South Sumatera the life expectancy index of 85 years, basic education increasingly grewcompared with that in 2010, which for all walks of life (without exception), and the rate was6.98% in 2010 rising sharply to 8.03% in 2011. of spending and consumption having met a decent Therefore, that economic growth increased by standard of living. As the value of the HDI closely 86.92% rather than the previous year, while the meets the value of 100, the way taken to reach the average rate of economic growth was 6.7% in the targets is becoming closer (Zuhaifah, recent three years. http://bartimkab.bps.go.id). Still referring to the national data from Statistics Indonesia in 2010, the HDI of South Sumatera was The Human Development Index is a composite index placed at the 8th rank under North Sulawesi, calculated sketchily from the three indexes including Yogyakarta, East Kalimantan, Jakarta Capital City, the life expectancy index measured by life Central Kalimantan, North Sumatera, and West expectancy at birth, the education index measured by Sumatera. The HDI of South Sulawesi in 2010 was in a combination of adult literacy rate and mean years of the third category making up the upper-medium schooling, and a decent standard of living measured development which was as many as 72.95. That by spending per capita having been adjusted or called figure was higher than West Java, Central Java, East as purchasing power parity. Java, and Bali Provinces. Moreover, pursuant to the review of aspects of the Similarly, the values of the HDI indicate that all human development status, the low and high human regencies and districts in the area of South Sumatera development indexes by UNDP could de divided into were still positioned in the upper-medium three categories, those are: development at the values ranging from 68 to 76. 1. Low human development, if the HDI < 50. When it is detailed further, there were three big cities 2. Medium human development, if 50 < the having the highest values of the HDI which were HDI < 80. Palembang City with the the HDI value at 76.63, 3. High human development, if the HDI > 80. City at 74.81, and at 73.51.

Proceedings of Academics World 28th International Conference, Tokyo, Japan, 28th March 2016, ISBN: 978-93-85973-72-7 78 Factors Affecting the Human Development Index in Musi Rawas Regency South Sumatera Province Nevertheless, for the purpose of comparison among country has been able to achieve this for its citizens in regencies/cities in Indonesia, the second criteria that numerical qualitative is the medium human development is broken down evidence represented by a real number. The fact is into two categories so as the description of the that earlier indices of development such as percapita statuses would be changed as follows: income and its various derivatives have not been able 1. Low human development, if the HDI < 50. to establish this effectively, especially for 2. Lower-medium human development, if 50 < comparative purposes. HDI is an index fashioned out the HDI < 66. of education, life expectancy and income in 3. Upper-medium human development, if 66< purchasing power parity. the HDI < 80 4. High medium human development, if the Human Development Report HDI > 80. The first Human Development Report in 1990 opened with the simply stated premise that has guided all Concept of human development of more subsequent Reports: “People are the real wealth of a significance nation.” By backing up this assertion with an Human Development is a development paradigm that abundance of empirical data and a new way of is of more significance than the rise or fall of national thinking about and measuring development, the incomes. It is about creating an environment in which Human Development Report has had a profound people can develop their full potential and lead impact on development policies around the world. productive and creative lives in accord with their The 2010 Report continues the tradition of pushing needs and interests. People are the real wealth of the frontiers of development thinking. For the first nations. Development is thus about expanding the time since 1990, the Report looks back rigorously at choices people have to lead lives that they value. the past Therefore, much more than economic growth which several decades and identifies often surprising trends is only means of enlarging people’s choices (Mahbub and patterns with important lessons for the future. ul Haq, 1998). Human development is related to These varied pathways to human development show economics and standards of living. that there is no single formula for sustainable progress. In other words, no single index could ever Human capital refers to the stock of competences, completely capture such a complex concept—and that knowledge and personality attributes embodied in the impressive long-term gains can and have been ability to perform labour so as to produce economic achieved even without consistent economic growth. value. It is the attributes gained by a worker through Looking beyond 2010, this Report surveys critical education and experience. Many early economic aspects of human development, from political theories refer to it simply as workforce, one of three freedom and empowerment to sustainability and factors of production, and consider it to be a fungible human security, and outlines a broader agenda for resource – homogeneous and easily interchangeable. research and policies to respond to these challenges. Other conceptions of labour dispense with these The HDI is a composite measure of human assumptions. Human capital theory predicts that more development covering health and education as well as educated individuals are more productive. income. It was devised by the late Pakistani According to the theory, productivity of labour is economist Mahbub ul Haq for the first Human high with educated individuals and consequently they Development Report in 1990. The new 20th contribute far more to the level of national income Anniversary Edition of the Report revisits that and also earn higher income than their uneducated original analytical exercise, using new methodologies counterparts. Furthermore, education is a good and international data sources, also looking back to measure of human 1970. The HDI 2010 report combines three development and the relationship between human dimensions: Longevity (a long and healthy life): development and poverty level has asignificant effect measured by Life expectancy at birth; Knowledge on economic growth and development in some (access to knowledge): measured by Mean years of selected countries of the world. schooling and Expected years of schooling; and Standard of living (decent standard of living): Human development index measured by purchasing power based on GNI per Human Development (HD) and Human Development capita (PPP US$). Index (HDI) are powerful concepts. The former refers Human Development Index (HDI) 2013 ranks to the process of empowerment in the possession of Indonesia 110th position listed middle human the capacity to build up oneself development index. Human Development (HD) so as to be able to live a long life, be able to read and concept takes into account all the products of write and so participate in the societal affairs development including education, health etc. Hence, effectively and above all be gainfully employed to Policy makers and government must be reoriented earn a living. The latter merely establishes how far a and tutor to know the enormity of the combination of

Proceedings of Academics World 28th International Conference, Tokyo, Japan, 28th March 2016, ISBN: 978-93-85973-72-7 79 Factors Affecting the Human Development Index in Musi Rawas Regency South Sumatera Province HDI concept as a guide to development effort to public welfare, development of youth and sport achieve the concept itself. population, and advancement of sciences and technology as well as employment. III. RESEARCH HYPOTHESIS Obviously, the effort in the areas of public welfare and human resource development is conducted There is relationship between human development through advancement of access to education and index factors to Human Development index in health, productive resources and avaibility of District Of Musi Rawas facilities and infrastructures to increase the added values as well as social competitiveness. IV. METHODOLOGY Accordingly, these three elements are remarkably essential in determining the capability level of a This study is an empirical and exploratory analysis. province to improve its HDI. Each of those three The study employed regression models estimated via elements does not stand alone, yet they interplay one the ordinary least squares (OLS) techniques in another. Besides, the HDI is affected by other factors, assessing the relationship and effect of human such as the availability of job opportunities, that development in District Of Musi Rawas between eventually would be determined by economic growth, 2007 and 2011. Data for analysis were sourced from infrastructures, and government policies. In other the National Bureau of Statistics (NBS) 2011 and words, the HDI in an area would increase if the three some other issues, publications of National Planning elements are improved. The high value of the HDI Commission (NPC), Human Development Report indicates the success of economic development in one Official (HDRO). area.

Models Specification V. CONCLUDING REMARK AND For the purpose of this study, simple and linear RECOMMENDATION regression models are specified within the context of MDGs HDI parameters indicators. This is to enhance Conclusion the estimation and evaluation of the relationship The conclusions of this study are fairly straight between HDI (endogenous variable) and poverty forward. parameters (exogenous variables) within the context Data availability has not been a problem but it of MDGs in District Of Musi Rawas. Thus, Models 1 requires hard work to accomplish by locating and 2 are specified. them in statistical publications, reports produced by HDI is regressed on each of these human international development agencies and the development indices and poverty parameters as a web site of particular agencies. Sufficient time to simple regression model. accomplish this task is of essence. On the substantive issues of the relationship of HDI Y = α0 + α1X1+ α2X2+ α3X3+ e and poverty parameters the following MDGs should be noted: Where  In the main, government and the people Y = HDI – Human Development Index (individuals and agencies) taken the decisions X1 = POV – Proportion of population living below that give rise to what we have, but government $1 per day policies are critical; X2 = NEP – Net enrolment in primary education  So the data we have as evidence are a product X3 = GBERP – Ratio of boys to girls in primary, of , in the main, the decisions and policies of secondary and tertiary government; and it follows that the results of technically produced relationships come about Discussion in a large part as evidence of what has been The effort to raise the HDI of Musi Rawas in 2015 in taking place, and so without doubt accordance with the Long-Term Development Plan  The results must be interpreted as much; (JPJP) is that the HDI of Musi Rawas is encouraged consequently to be upper than 75 by means of implementing the  The issues within MDGs and the parameters of development strategies gradually, such as enhancing poverty come alive from government policies public welfare, enhancing regional economy, and and decisions, as we combine variables for enhancing public services. estimation, and as if government is taking to us The agenda of enhancing public welfare could be the following parameters of poverty came out carried out in ways of poverty alleviation, as those that have greatest influence on HDI: enhancement of education and health qualities, poverty as measured by those who earn less enhancement of rural area and settlement than US$2.00 per day, land are covered by development, reduction of inequality in development forest, women in parliament, growth rate of over areas and urban area development, enhancement GDP, gross national income (PPP) per capita, of religious life, enhancement of social protection and income index, net enrolment in primary

Proceedings of Academics World 28th International Conference, Tokyo, Japan, 28th March 2016, ISBN: 978-93-85973-72-7 80 Factors Affecting the Human Development Index in Musi Rawas Regency South Sumatera Province education, ratio of girls to boys enrolment in Commission for Africa (United Nations primary school, under five mortality rate, HIV Economic Commission for Africa Curb as adult prevalence rate, maternal mortality Corruption - UNECACC) should form a unit rate, sanitation in that order of importance; the that will partner with governments to monitor significance of these variable when HDI is its policy of anticorruption, proper report from regressed on them singly is encouraging some these countries on the achievement MDGs in and not for a few orders, the key ones are 7 or 2015, vision 2020 among other sustainable 8 in term of explaining the variation of HDI. development programmes.  However, we must not see this as explaining a  However, if other listed least developed large shunk of the variation of HDI. In most countries of the world can learn lessons from cases 60-70% of the variation has been left District Of Musi Rawas by focus on human unexplained, this means that further studies development, the sky will be there limit to need to be done to unearth the missing links; achieve Millennium Development Goals but  Significantly, the income variables are middle that is not to claim that District Of Musi performance in terms of relationship with HDI, Rawas is not having other problem of energy, by and large the socio economic variables selfishness of politician to disturb government (poverty, land area covered by forest, women plans and programmes of sustainable in parliament, girl boy enrolment ratio in development. primary education are still the issues that more  Conclusively, African economy have tendency influence HDI; the study will not continue. to be green economy and structurally  We could not have tackle all variables that are transformed if MDGs are given serious poverty parameters in MDGs; they are many consideration in the governments policies and and only some important ones were tackle transparent implementation. because time is of the essence as we search out the necessary data; and finally REFERENCES  The results have shown that government has not achieved most of the MGDs taken into [1] Aboyade O. 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