Main Article Content

Abstract

Developing countries implemented social policies after suffered by economic and financial crisis. Social policies, such as conditional cash transfer, non-contributory social insurance policy, and energy subsidy, were introduced to improve the well-being of the society. However, these policies potentially fail and prevent these countries to converge to be developed countries, due to low level of human capital formation, increased informal employment, unsustainable fiscal capabilities, the induction of “pork-barrel politics” in the policy planning and formulation process, and reduced incentive to work. This essay also provided recommendation on social policies improvement. Thus, policymakers able to increase the effectiveness of current social policies to maintain the country’s objective in reducing income inequality, without hampered the country’s productivity and economic growth.

Keywords

social policy human capital fiscal

Article Details

Author Biography

Dimas Suryo Sudarso, Kementerian Perencanaan Pembangunan Nasional (PPN)/BAPPENAS

Dimas Suryo Sudarso is a Planner Staff at Directorate of Higher Education, Science and Technology, and Culture, Ministry of National Development Planning/Bappenas Republic of Indonesia

How to Cite
Dimas Suryo Sudarso. (2019). An Inconvenient Truth: Why Social Policies Might Fail. Bappenas Working Papers, 2(2), 239-247. https://doi.org/10.47266/bwp.v2i2.43