Income Distr English

1

2 INCOME DISTRIBUTION UNDER IMPROVING WATER SUPPLY IN RURAL-URBAN DEVELOPMENT 1 (A case study in Kabupaten Tulungagung) DISTRIBUSI PENDAPATAN RUMAH TANGGA DENGAN FASILITAS AIR BERSIH DALAM PEMBANGUNAN WILAYAH PEDESAAN DAN PERKOTAAN (Studi Kasus Kabupaten Tulungagung) Iwan Nugroho and Wahyu Anny W ABSTRAK Penelitian bertujuan untuk mempelajari keadaan distribusi pendapatan rumah tangga dikaitkan dengan infrastruktur air bersih PDAM di wilayah pedesaan dan perkotaan di Kabupaten Tulungagung. Hasil penelitian menunjukkan bahwa distribusi pendapatan rumah tangga desa pelanggan PDAM lebih baik (dengan indeks Gini 0.323) dibanding rumah tangga lainnya. Distribusi pendapatan kategori rumah tangga 40 persen terendah dan sedang, serta 20 persen tertinggi masing-masing 25, 44 dan 31 persen. Sebaliknya infrastruktur air bersih di wilayah kota menyajikan distribusi pendapatan yang lebih buruk (indeks Gini 0.353) masing-masing 17, 47 dan 36 persen. Kata kunci: distribusi pendapatan, kurva Lorens, air bersih, desa-kota ABSTRACT The study aimed to analyze household’s income distribution in term of a water supply infrastructure in rural-urban area of kabupaten Tulungagung. The result showed a better income distribution in PDAM-connected household in rural area than other areas. A Gini index of such area was 0.323, with the household distribution of 40 percent lowest, 40 percent moderate and 20 percent highest were 25, 44 and 31 percent income respectively. On other side, the index of the PDAM household in urban area was 0.353; with the distribution were 17, 47 and 36 percent income respectively. Key words: income distribution, Lorens curve, water supply, rural-urban INTRODUCTION The broad-based development paradigm, which includes production, employment, income distribution, local participation and environmental conservation, are well known (Bar-el, 1984). The World Bank and UNDP developed that paradigm into a conception of diamond development (including water supply, school enrollment, life expectancy and income per capita) and Human Development Index. Its policy instrument is a various financial assistance

1

and transferring from rich to poor policy into widely infrastructure development (Auty, 1995). An empirical study of Chenery and Syrquin (1975) showed that the broad-based development could improve the income distribution. Development program on education and agriculture increased income of 40 percent lowest and 40 percent moderate population; and conversely decreased income of the 20 percent highest. In addition, export promoting of primary sectors worsened the income distribution. The export activity

Naskah telah terbit pada Jurnal WIDYA AGRIKA (Desember 2004) 2(3): 155-159. ISSN 1693-6981

3

indicate dualism model which involving a highly external investment and produce an economic return to modern sectors rather than resource base sectors. Water supply development is expected to perform such effect as education and agriculture. The development also show a broad based benefit, covers not only improving the income distribution but also increasing sanitation, promoting regional income, and raising environmental quality (United Nations, 1979). This research aimed to analyze household’s income distribution in term of a water supply infrastructure in rural-urban area of kabupaten Tulungagung. METHOD Survey have been conducted on household whose PDAM connection in rural and urban area, kabupaten Tulungagung. A randomized sampling is used to meet 35 households approximately. Tamanan village represented urban area, while rural area were Ringin Pitu and Rejoagung village (Iwan Nugroho dan Wahyu Anny Widayati, 2002). Income distribution analysis used a Lorens curve equation to determine household income of 40 percent lowest, 40 percent moderate and 20 percent highest. Gini index (GI) was counted as ratio value of area above the Lorens curve (A) to an isosceles triangle (B). 100 GI = ∫ (A/B) dx 0 Where A is a quadratic equation y = x – (a+bx+cx2) and B is a linear equation y = x. y and x are income and household proportion respectively. RESULT AND DISCUSSION Lorens curve equation; income distribution and Gini index are presented in Table 1 and 2. Lorens curves shows a high determination coefficient, those are above 99 percent. Such Lorens curves are illustrated as example RPDAM, presented by Figure 1. The Gini index in the research is in a range of National Gini index, i.e. 0.24 to 0.27 (rural

area) and 0.32 to 0.36 (urban) during 1987 to 1999 period (BPS, 2001). Therefore, it is convenient to comprehend the analysis. Table 1. Household’s Lorens Curve Equation in Kabupaten Tulungagung Categories

R2

Equation form

U-PDAM Y = 3.01 - 0.0646 x + 0.00977 99.6% R-PDAM Y = 1.63 + 0.136 x + 0.00763 99.2% U-NPDAM Y = 3.25 + 0.0081 x + 0.00907 99.5% R-NPDAM Y = 2.74 + 0.0010 x + 0.00915 99.5% Note: U-PDAM=Urban household who connect PDAM R-PDAM= Rural household who connect PDAM U-NPDAM= Urban household who not connect PDAM R-NPDAM= Rural household who not connect PDAM

Table 2 shows that household income average of 40 percent lowest is 25 percent excluding U-PDAM (17 percent). In the 40 percent moderate, on the whole household show the result in the range from 43 to 47 percent. While on the 20 percent highest shows a high-income proportion in the UPDAM. Those results indicate that the income distribution in the U-PDAM is worse than other categories, with the Gini index of 0.353. The Gini index of R-PDAM is presented by R-PDAM, i.e. 0.323. On the other side, the Gini index of the R-NPDAM is 0.334. Those results indicated that water supply development in rural areas were able to improve income distribution. The opposite manners in the urban areas is detected on the Gini index of 0.322 and 0.353, each are U-NPDAM and U-PDAM. This means that there is significant difference of household behavior between who connect and not connect PDAM. Table 2. The Household’s Income Distribution in Kabupaten Tulungagung Household

40 % lowest 40 % moderate 20 % highest Total Gini Index Note:

Income Distribution URU-PDAM R-PDAM NPDAM NPDAM 17 47 36 100 0,353

25 44 31 100 0,323

25 43 32 100 0,322

26 43 32 100 0,334

4

U-PDAM=Urban household who connect PDAM R-PDAM= Rural household who connect PDAM U-NPDAM= Urban household who not connect PDAM R-NPDAM= Rural household who not connect PDAM

Income (percent)

100 80 60 40

CONCLUSION The water supply development was able to improve income distribution in a different way among rural and urban areas. The income distribution of PDAM-connected household in rural area was relatively good, with the Gini index of 0.323. The household distribution of 40 percent lowest, 40 percent moderate and 20 percent highest were 25, 44 and 31 percent income respectively. On other side, the index of the PDAM household in urban area was 0.353, with the income distribution were 17, 47 and36 percent respectively.

20

LITERATURE CITE

0 0

20

40

60

80

100

Household (percent)

Figure 1. The Lorens curve of rural household who connect PDAM

The previous study (Iwan Nugroho dan Wahyu Anny Widayati, 2002) showed that willingness to choose PDAM water was higher in rural than urban area. Furthermore, this fundamentally implied that rural population has been able not only to access the water but also to obtain more benefit behind a public goods attribute of the infrastructure. It is well known that transportation, electricity, telecommunication, gas, and water supply are jointly to drive a vary economic activity. In the rural areas, those benefits can expand agricultural based activities, capture labor force vastly, and develop a household services economy. On the other hand, the benefit of infrastructure in urban areas is generally utilized by efficiency-oriented activities, with the high investment and technology. Thus, most of the economic return flow on the investor own crony.

Auty, R. M. 1995. Patterns of Development: Resource, policy and economic growth. Edward Arnold, London. 300p. Bar-el, R. 1984. Rural industrial objectives: The income-employment conflict. World Development. 2(12): 129-40. BPS. 2001. Consumption & Expenditure Statistics. www.bps.go.id. [25 September 2001] Chenery, H and M Syrquin. 1975. Patterns of Development 1950 – 1970. A World Bank Research Publication. Oxford University Press. 234p Iwan Nugroho dan Wahyu Anny Widayati. 2002. Permintaan Air Bersih Rumah Tangga (Studi Kasus di Kabupaten Tulungagung). Laporan Penelitian. LPPM Universitas Widya Gama Malang United Nations. 1979. Guidelines for Rural Centre Planning: Rural water supply and sanitation. United Nations, New York