Download 2.4 Indonesia from 1960 to present

A comparative historical analysis of the development of
the welfare state in the Netherlands and Indonesia 18502009.
By: Annet Wapenaar
Master thesis
Comparative History
University of Utrecht - November 2009
0419281
21,582 words
Supervised by: Prof. Dr. Lex Heerma van Voss, Prof. Dr. Maarten Prak
2
TABLE OF CONTENTS
Introduction ........................................................................................................................................... 4
Chapter one: Education ...................................................................................................................... 12
1.1 Education in the Netherlands from 1850 to 1960. .................................................................. 12
1.2 Education in the Netherlands from 1960 TO present ............................................................ 16
1.3 Education in Indonesia from 1850 to 1960 .............................................................................. 19
1.4 Education in Indonesia from 1960 to present ......................................................................... 21
1.5 Conclusion .................................................................................................................................. 25
1.1 The Netherlands from 1850 to 1960 ......................................................................................... 27
2.2 The Netherlands from 1960 to present .................................................................................... 31
2.3 Indonesia from 1850 to 1960..................................................................................................... 35
2.4 Indonesia from 1960 to present ................................................................................................ 37
2.4 Conclusion .................................................................................................................................. 39
Chapter three: Water Supplies .......................................................................................................... 41
3.1 The Netherlands from 1870 to 1960 ......................................................................................... 41
3.2 The Netherlands from 1960 to present .................................................................................... 46
3.3 Indonesia from 1960 to present ................................................................................................ 48
3.4 Conclusion .................................................................................................................................. 51
Chapter four: Conclusion ................................................................................................................... 54
4.1 The Netherlands from 1850 to 1960 ......................................................................................... 55
4.2 The Netherlands from 1960 to present .................................................................................... 56
4.3 Indonesia from 1850 to 1960.................................................................................................... 57
4.4 Indonesia 1960-present ............................................................................................................. 57
4.5 General analysis......................................................................................................................... 61
Bibliography ........................................................................................................................................ 61
3
INTRODUCTION
The welfare state is a concept that was first practiced in the second half of the nineteenth
century through arrangements made by Bismarck in Germany. These arrangements spread
through the rest of Western Europe and in the second half of the twentieth century the concept
was widely known as the welfare state. The welfare state takes primary responsibility for the
welfare of its citizens by providing welfare services such as education, social security and
water supplies. According to De Swaan ‘The contemporary welfare state has become a vast
conglomerate of nationwide, compulsory and collective arrangements to remedy and control
the external effects of adversity and deficiency. This collectivizing process occurred in the
course of the modern era against the background of state formation and the rise of capitalism
in the West.’1
The main impetus of collectivization came from an increasing interdependence between the
rich and the poor that resulted in a struggle between those groups. The poor represented both
danger and opportunities for society, danger because of the threat of violence and vagrancy
for the estates of the elite while on the other hand the poor provided a cheap and vast
workforce and an army for contesting elite.2
Cholera is a good example of the increasing interdependence between rich and poor. The
outbursts of mass epidemics were soon recognized as the consequence of living conditions
among the urban poor. The citizens who were better off could individually decide to move to
healthier quarters, which they did in great numbers. As a –largely unintended aggregate result
of individual moves, urban space was partitioned into socially more homogenous
neighbourhoods, ranging from residential areas to slums. But if the well-to-do wished to
prevent epidemics from spreading beyond the poverty areas and paralyzing the city in its
entirety, a collective effort at sanitation was still indispensable.3
Against the background of state formation the opportunities the poor offered were eventually
also recognized by the state itself and the government realized that in order to guarantee the
1
Abram de Swaan, In care of the state; Health Care, Education and Welfare in Europe and the USA in the
modern era (Oxford 1988) 218.
2
Ibidem.
3
Ibidem, 3.
4
reproduction of resources and military strength their citizens should be at least disease-free,
reasonably educated and properly fed.4
The collectivism within society increased as the individual user of collective arrangements
became more dependent on its benefits. Finally the arrangements were increasingly carried by
the state or some public body, thus providing them with the authority necessary to exact
compliance and the bureaucratic apparatus needed for their implementation.
The Netherlands is a perfect example of a welfare state. Collective arrangements started on a
local and regional scale and through the course of the nineteenth and twentieth century the
Dutch government slowly started to take responsibility over collectivizing processes such as
education, social security and water supplies.
The Netherlands is a constitutional parliamentary monarchy. In 1848 Thorbecke installed a
new constitution which turned the Netherlands into a constitutional monarchy. From then on
the Netherlands gradually became more democratic. In 1917 the parliamentary democracy
was official. The Netherlands had witnessed a particularly prosperous period in the
seventeenth century and were relatively rich. In the nineteenth century their prosperity mainly
came from colonies oversees, of which Indonesia was one. Due to this source of income the
Netherlands could afford to industrialize quite late in comparison with other Western
European countries. The industrialization caused a period of economic growth and a growth
of the working class. At the end of the nineteenth century a pillarization of society occurred
that lasted until the 1960s. In the First World War the Netherlands remained neutral. In the
1930s the Dutch suffered from an economic crisis followed by German occupation in the
Second World War. After the war Indonesia became independent, however a new period of
economic growth began. The Netherlands turned into a modern consumer society and the
period after the Second World War is characterized by the welfare state which radically
enhanced the standard of living and emphasis was put on increasing democratization.
Since 1945 Indonesia has been an independent republic after having been a Dutch colony for
350 years and after being under Japanese occupation for two and a half years during the
Second World War. On august 17, 1945 Sukarno and Hatta declared independence. Four
years of violent struggle followed before on December 27, 1949 the Dutch accepted
independence. In 2005 the Dutch finally accepted that august 17, 1945 is the official date of
Indonesian independence. Sukarno became Indonesia’s first president and the Indonesian
4
C.A.Bayly, The birth of the modern world, 1780-1914: global connections and comparisons (Oxford 2004)
271.
5
government became a constitutional democracy, however President Sukarno soon turned into
an authoritarian leader. The early years of Sukarno’s term were characterized by economic
decay, bureaucratic inefficiency and major political cleavages. The young state struggled and
failed to keep an elected government in office during this transition.5 In 1965 a coup was
attempted to overthrow the regime of President Sukarno. In 1967 General Suharto became
president and started the New Order. He led the country into a period of political stability and
substantial economic progress and development, especially after the oil crises of the 1970s.
The industrialization and the expansion of the government in the 1970s caused the demand for
skilled personnel to rise which led to a growing educational system and urbanization.6
However, the regime of Suharto is widely criticized because of corruption and the oppression
of political opponents. In 1998 an economic crisis hit Indonesia. Along with this crisis there
was political turmoil; critics of the New Order stood up and accused the regime of corruption,
collusion and nepotism. This caused the president to resign in 1998.7 After that a period of
‘reformasi’ commenced in Indonesia and the country became a democracy. Nonetheless, the
period before the democratization has left its mark on the political, economic and social
development of Indonesia. Collective arrangements have developed in Indonesia however it
has not yet become a welfare state.
This thesis is a comparison between the welfare states of the Netherlands and Indonesia. As
indicated above, the Netherlands and Indonesia have little in common and this thesis tries to
find out what the instigators are for the development of a welfare state. The main question this
study sets out to answer is: How and why did the Netherlands came to develop a modern
welfare state and did Indonesia not succeed in creating a modern welfare state?
This thesis is written according to the methodology of comparative history. Since this
methodology relies mainly on secondary sources an adequate body of literature is desirable. I
chose to examine the Netherlands as an example of a welfare state since I had relatively easy
access to the literature, being from the Netherlands myself. The developing country that
immediately came to mind is Indonesia for it has been colonized by the Netherlands during
350 years which adds an extra dimension to a comparison between these two countries. The
thesis follows both countries from the second half of the nineteenth century up until now. This
5
Iris N. Keasberry, Elder care, Old-Age Security and Social Change in Rural Yogyakarta, Indonesia (PhD thesis
University of Wageningen, Wageningen 2002) 18.
6
Ibidem.
7
Ibidem, 19.
6
is a long period of time and therefore the period is divided into two sections: the period from
1850 to1960 and the period after 1960. To make a clear-cut comparison the thesis focuses on
three basic elements of the welfare state. These three elements are education, disability
insurance and collective water supplies. They are chosen because all three elements are
inherent to the welfare state. By looking at the historical development of these elements a
broad overview will be given of the welfare state and eventually an attempt will be made to
answer the main question. The reasons to instigate collective arrangements will be explored
by means of six variables which will be explained later in the introduction.
As indicated above, this thesis follows the comparative approach. Its aim is to explain social
phenomena, in this case the emergence of a welfare state by analyzing the conditions and
causes of variation.8 In other words by using comparative history a comprehensive image will
be created in which the factors that influenced the rise of a welfare state will be researched.
Comparative history tries to achieve a better understanding of history by combining the
advantages of the case-oriented (qualitative) method and the variable-oriented method
(quantitative) method. Historical research is characterized by the case-oriented method. This
approach focuses on the uniqueness and heterogeneity of an individual case and treats it
holistically. Within the case-oriented method a single factor might result in a particular
outcome but that outcome can also be achieved by a combination of factors. A common goal
in this type of analysis is to interpret a common historical outcome or process across a limited
range of cases.9 Unfortunately, the limited amount of cases sometimes prevents the discovery
of a trend or pattern.
The variable-oriented strategy is looking at relations between variables. Cases are not seen
holistically and are divided into variables and distributions. The strategy is used for making
general statements about relations between aspects of cases considered collectively as
populations of comparable observations.10 The disadvantage of this method is that a
calculation of different variables sometimes can deviate from the actual case and misrepresent
historical reality.
In order to make a qualitative comparison between the cases a Boolean analysis will be made.
For that a table will be formulated. In the table, the first two columns on the left show the
8
Charles C. Ragin, The Comparative Method, Moving Beyond Qualitative and Quantitative Strategies,
(Berkeley, Los Angeles 1987) 2.
9
Ibidem, xiii.
10
Ibidem.
7
cases that are used in this comparison. The third column shows the periods in which a
variable becomes successful in one of the cases. The variables are represented in the columns
in the middle. The last column on the right represents the final outcome. Furthermore, there
are several 1’s and 0’s in the table. According to the Boolean rules the 1’s stand for a variable
to be ‘present’ while the 0’s stand for ‘absent’, this is the case in the table as well. When the
variables are being discussed it will be explained if and when the variable is present or not.
When a variable becomes present in the table the year it occurs in marks the division between
two periods and a 0 or a 1. For instance, a working democracy is the first variable. The
Netherlands became a working democracy in 1917. In the table, a 0 is filled in before 1917
and a 1 is put down after 1917. As stated before, the success (present) or failure (absent) of
the cases is tested by means of six different variables that can influence the development of a
welfare state. The variables are a working democracy, state efficiency, self-rule, a high GDP,
industrialization and urbanization. After this table is created, a Boolean truth table will be
formulated. Truth tables have as many rows as there are logically possible combinations of
values on the causal variables. 11 According to this set of variables there are 2^6 = 64 possible
rows. From the truth table containing all possible combinations a new truth table is distilled,
containing only the combinations that occur in the first table. From there, Boolean algebra
will be applied that will lead towards a conclusion. However, we are not there yet, first the
variables will be discussed.
A working democracy is important because of its values. The welfare state is a state which
takes responsibility for the whole population and within a democracy the people have the
power. There are different ways in which the democracy can be of influence. For instance,
education can lead to democracy and on the other hand once a democracy is installed every
citizen demands, and is entitled to education. No democracy can exist without an education
system. However, there can be a successful education system within a non-democratic
country, for example, in Russia and Indonesia before 1998. The democracy is considered a
working democracy when universal male suffrage is obtained. In the Netherlands this was
obtained in 1917 and in Indonesia in 1998. Therefore for the Boolean truth table the working
democracy is present in the Netherlands since 1917 and in Indonesia since 1998.
State efficiency is another very important variable. State efficiency means the implementation
of the rules of the state, the bureaucracy and the degree of efficiency of that bureaucracy. The
11
Ibidem, 87.
8
degree of state efficiency can differ with each case. The focus of the government can in a
certain period either be on education or disability or water supplies which means that the
variable has more influence on one case than on the other. State efficiency is difficult to
measure and therefore it remains to be measured impressionistically in the text. However, in
order to apply a Boolean analysis a line has to be drawn somewhere. The main question
concerning state efficiency is if the state is capable of implementing its rules on society. In the
Netherlands the state is considered capable of that in 1900 and in Indonesia it did not happen
yet.
Self-rule can oppose or instigate the development of the welfare state. The colonizer can
implement a system in the colonized country however colonization can also lead to nothing.
The Netherlands had implemented an education system in Indonesia but did not provide any
of the other collective services. Since the Netherlands have not been colonized by another
country for a period longer than five years during the period discussed, the variable self-rule
is only applicable in Indonesia and will therefore only be discussed in that part of the thesis.
The measure of self-rule for the Boolean analysis is the question if the state is independent or
not. In the Netherlands this is the case throughout the period that is discussed and Indonesia is
considered independent since 1945.
A high G.D.P. provides the means that are necessary for the implementation of collective
services. Through economic growth more money becomes available for the government to
spend on collective services, additionally the population becomes richer as well which
benefits the standard of living. When the GDP per capita grows above the amount of 2000
dollars per year it is considered successful in the Boolean analysis. The GDP is measured per
capita because it gives a more accurate representation of the GDP than a GDP per country
does. The GDP per capita in the Netherlands had been above 2000 dollars for a period in the
17th century and it has been above 2000 dollars since 1827 whereas in Indonesia the GDP per
capita surpassed the line of 2000 dollars in 1986. This shows the difference in prosperity of
the two countries. Concluding, in the truth table the GDP is present in the Netherlands during
the whole period and in Indonesia since 1986.
Industrialization is a very important cause for collective arrangements. First, it causes
economic growth. Secondly, it causes urbanization, and thirdly, it causes the emergence of the
working class who are, particularly in the beginning, the issue of the welfare state. Fourth,
industrialization lead to a change of lifestyle for the population, making them more dependent
of the services the welfare state has brought them. If at least 25% of the labour force is
9
working in industry it is considered a success for the Boolean truth table. In 1900 in the
Netherlands, more than 25 percent of the labour force was working in industry. In Indonesia
this has not yet occurred. In 2006, according to the World Fact book of the CIA 18, 8 percent
of the population was working in industry, 39, 3 percent was working in services and 42, 1
percent was working in agriculture.12
Cities consisted of a large concentration of people and problems that occurred as for instance
disability could not be resolved ad hoc by small local institutes as was done before large-scale
urbanization. Collective services had to be provided and regulated on a large scale, thus it was
necessary for the government to step in. In addition, the high population density made it
profitable to establish for example an education system or water supplies. If more than 30% of
the population is living in towns of more than 10.000 people the variable urbanization is
measured as present in the truth table. In the Netherlands the line of 30 percent urbanization
was exceeded between 1600 and 1650, henceforth the variable urbanization is continuously
present in the table.13 In Indonesia this line was reached in 1990.
In order to decide the outcome of the Boolean analysis there must be established whether the
three elements, education, disability insurance and water supplies are successful or not as
well. Education is considered successful when universal primary male enrolment is obtained
which was in the Netherlands in 1900 and in Indonesia in 1995.
Disability insurance is considered successful when the first national social security act is
established. In the Netherlands this was in 1901 and in Indonesia this was in 2004.
Water supplies are seen as successful when the majority of the population has access to
drinkable water. In the Netherlands this is reached in 1900 and in Indonesia in 1998.
The water supply system in Indonesia before 1960 will not be discussed because there was no
literature available about the water supply system in this period. This is probably due to the
fact that Indonesia did not have a water supply system in that period, or that it was
underdeveloped. A reason for the lack of water supplies is that the need for such a system was
relatively low. Indonesia was a rural society and because most people lived in the countryside
where there was a low population density they could use water from wells or streams which
were clean enough to drink. However this explanation shows a pretty picture, it does raise the
question what it was like in the few cities that were already established and if those wells and
streams were also used as a sewer. No literature is found to answer this question; however,
12
13
The World Fact book, https://www.cia.gov/library/publications/the-world-factbook/geos/id.html .
Jan de Vries, European urbanization 1500-1800, (London 1984) 39.
10
considering the situation in Indonesia in the second half of the twentieth century it can be
concluded that the situation in the last half of the nineteenth century and the first half of the
twentieth century was not very different. It was probably even better since the total population
was lower and urbanization was less than it was in the second half of the nineteenth century
which made it more probable that the need for a water supply system was also lower.
The thesis consists of three chapters, each representing a different part of the welfare state.
Chapter one is about education, chapter two discusses disability insurance and chapter three
will delve into water supplies. Each chapter will be divided in four paragraphs. These four
paragraphs are the Netherlands from 1850 to 1960, the Netherlands from 1960 to present,
Indonesia from 1850 to 1960 and Indonesia from 1960 to present.
In the chapters each of the listed causes will be discussed systematically with a small
conclusion at the end of the chapter. Finally, at the end of this thesis the Boolean analysis will
be applied and an answer to the main question will be given.
11
CHAPTER ONE: EDUCATION
Education is an important factor in the welfare state. An interaction exists between education
and important social, political and economic processes. For example, industrialization is one
of the most apparent reasons for the expansion of education, however on the other hand
education stimulated industrialization as well. Other economic processes that interact with
education are an increasing standard of living, the commercialization of agriculture and the
rise of the tertiary sector. Moreover, education interacts with political processes such as state
formation and nation development as well as religious development and enlightenment. It also
facilitated urbanization and revolutionized transport and communication.
This chapter is dedicated to exploring to what extent the six variables explained in the
introduction (a working democracy, state efficiency, self-rule, a high GDP, industrialization
and urbanization) have instigated the development of an education system in Indonesia and
the Netherlands. The chapter is built up in four parts, namely the Netherlands from 1870 to
1960, the Netherlands from 1960 to present, Indonesia from 1870 to 1960 and Indonesia from
1960 to present.
There are two dimensions of education that must be noted, a qualitative and a quantitative
dimension. The qualitative dimension encompasses the nature of education, whether the
teachers are qualified, who pays for schooling, the difference between private and public
schools, how the quality of the schools is controlled. For the quantity dimension the focus is
mainly on enrolment rates, the rates of absence and when universal primary or secondary
education was achieved. In this chapter both dimensions will be explored, yet for the Boolean
truth table the quantitative analysis will be used because more numbers are available for both
the Netherlands and Indonesia in this type of analysis so a more coherent picture can be
provided.
1.1 EDUCATION IN THE NETHERLANDS FROM 1850 TO 1960.
At the end of the eighteenth century the Dutch state started to play a role in educating Dutch
children. Before that time education had mostly been a matter of the church and local
government. Although the Netherlands had a relatively high level of education in the 17th and
18th century, there was no national regulated system. In 1784 the ‘Maatschappij tot het Nut
12
van ’t algemeen’ was founded. This enlightened society started to build schools, improve the
quality of the teachers and promoted educational reform. In 1794 the French invaded the
Dutch Republic and brought to power a pro-French movement aiming at a centralized state.
The new government, in combination with the efforts for educational reform from the
‘Maatschappij tot het Nut van’t Algemeen’ was the driving force behind the new national
education system. The success of the education movement was according to the Swaan due to
‘a singular combination of a strongly centralized government bureaucracy, capable of
enforcing its decisions, and a mass movement providing a program, an evangelical
inspiration and a corps of dedicated inspectors, teachers and voluntary board members’.14
Consequently, the regulation of education for the masses became an important topic for the
state. In the nineteenth century, enlightenment was the philosophy of policymakers and they
strove to increase social equality. Additionally, policy makers were seeking for ways to raise
the level of knowledge and civilization of the masses. There were two main reasons for the
government to educate the masses. Firstly, the government was afraid of moral deterioration
of Dutch society and education was thought to provide a way out of poverty and crime. The
elite benefited from the consequences of this regulation since it lowered the threats to their
own property. Secondly, a higher educated workforce could stimulate economic growth, trade
and industry. Contrary to the government, the local elites and the clergy were opposed to a
national education system because they resented central interference in local privileges. 15
In the nineteenth century the democracy and the national educational system developed
simultaneously. In 1848 a new constitution was introduced and the Netherlands became a
constitutional monarchy. The right to vote was obtained once a male citizen paid a certain
amount of taxes. In 1848 there were 80.000 citizens entitled to vote. Once more people
received education, more people had the chance to become economically independent and
thus be able to vote. More importantly, with the rise of the democracy the demand for
education grew and vice versa. When a working democracy is established in a country,
citizens demand education. The literacy rate of the population grew in the nineteenth century.
At the beginning of the century 75 percent of the male population and 60 percent of the
female population were able to write their own names. In 1890 this number had increased up
to 95 percent of the male population and 90 percent of the female population.16 In 1855 23
14
De Swaan, In Care of the State, 100.
Ibidem, 99.
16
H.Q. Roling, ‘Onderwijs in Nederland’, Geschiedenis van opvoeding en onderwijs (1982) 67.
15
13
percent of the young men who went into military service were illiterate, in 1875 this number
had decreased to 12.3 percent and in 1900 there were only 2.3 percent illiterate citizens.17 The
enrolment rates had also risen and when in 1900 compulsory education for children between 6
and 12 years was introduced, 90 percent of those children already attended school. The
number of the population that was entitled to vote had also risen from 80.000 in 1848 to
300.000 in 1894 and 600.000 in 1897.18 However, when looking at these numbers it has to be
considered that the total population also grew from three million in 1850 to five million in
1900.
The democratization was also visible in the school struggle. The school struggle existed of
two parts. The first part of the school struggle revolved around a conflict between the
Protestants and the Catholics. Until the constitution of 1848 was adopted only the Protestant
state could found schools. After 1848 the conflict was resolved by law. Freedom of education
was recognized. The freedom of education led to the founding of private schools for every
religion. However, private schools received less grants from the government than public
schools and this was the focus of the second part of the school struggle. After 1917 the
subsidies that were granted to private and public schools were equalized.
Nevertheless Dutch society was still divided along social class lines and so was its education.
In the countryside there were village schools where the social classes were taught separately,
but in the same building. In the cities, however, separate schools were available in four
different social classes. As the schools of the lowest class were free, school money became a
parameter of social distinction. In the 1920’s the division of schools per social class was
abolished.
As indicated by De Swaan the success of the Dutch education system was for a large part due
to state efficiency. Government officials carried out their tasks with energy and with a sense
of duty.19 Yet, the struggle between the monistic state and the familiarity of the community
continued. The education laws of 1801, 1803 and 1806 were a compromise on the topics of
religious education and regional autonomy, leaving much to be settled by the authorities of
the departments and by local agencies. Consequently, the various denominations in the
Netherlands started to form tightly controlled networks which impacted every aspect of social
17
N.L. Dodde, Een speurtocht naar samenhang:het rijksschooltoezicht van 1801 tot 2001 (Den Haag 2001)
285.
18
Remieg Aerts, Land van kleine gebaren: Een politieke geschiedenis van Nederland 1780-1990 (Nijmegen
2001) 153.
19
De Swaan, In Care of the State, 100.
14
life. It was the start of pillarization. The emphasis that lay on the separation between the
various denominations contributed to the efficiency of the system because it was important
for the denominations to gather as much followers as possible. The numbers of school
inspection officials also grew during the nineteenth century and the beginning of the twentieth
century. In 1860 there were 103 school inspection officials whereas in 1900 there were 133
and in 1920 there were 165 school inspection officials.
Logically, there was money needed for the development of the education system. There
existed an interaction between the GDP and education. Education stimulated economic
growth and increased trade and industry which resulted in a higher GDP. On the other hand, a
rise of the GDP caused the government to invest more in education and also encouraged the
parents to invest more in the education of their children. As a result of this interaction it
became easier for the next generation to improve their social-economic position. This created
an upwards spiral, and as education spread, more people contributed to a higher GDP, thus
more people became entitled to vote, which benefited the democracy and that consequently
benefited education.
Another variable contributing to the development of the education system was the industrial
revolution. As explained in the introduction of this chapter, industrialization was very
important to the Dutch education system. The Industrial Revolution in the Netherlands
commenced around 1870. In the beginning industrialization took place mainly in the west of
the Netherlands. More modern, new companies were set up and the working class emerged. In
1890 the industrialization had broken through in the whole of the Netherlands. This relatively
late industrialization did not mean that the Netherlands were poor, they were already very
wealthy before industrialization. As industrialization proceeded, more money was invested in
the education of local workers so they could be employed to operate more advanced
machinery. The workers had to have fundamental knowledge in reading and writing to be able
to read instruction notes and warning signs. In addition, as secondary education improved,
more advanced machinery could be developed. The reciprocity of industrialization and
education becomes apparent here. On the one hand industrialization stimulated education
since workers with a primary education made it possible to use more complicated machinery.
On the other hand, education influenced industrialization since the development of advanced
machines became possible through higher education. As more workers needed to be literate
industrialization contributed to a growth of enrolment rates.
15
Urbanization also influenced education. Cities served as a centre of knowledge and ideas
which could easily be exchanged and discussed. Furthermore, the distance between school
and home was smaller in cities, which benefited attendance, especially in winter. By 1870 20
percent of the children only went to school in the winter and in 1880 this number had declined
to 14 percent and in 1890 it was only 9 percent of the children.20 The Netherlands were
already relatively urbanized but around 1870 the population grew, mainly because of a
decrease in the number of deaths. In 1850 the population consisted of 3 million people and in
1900 there were more than 5 million people. This demographic growth primarily had
consequences for the cities for the employment rate was the highest there. Around 1870 cities
like Amsterdam, The Hague and Rotterdam experienced a sharp rise in population and the
‘Randstad’ started to form.21
In 1863 the ‘Hogere Burger School’ was founded. This new school laid the foundation for
secondary education although it was still only available to the higher classes. In 1900 only 7.9
percent of the children between 12 and 18 years received any education after primary school.
It was not until the Second World War that the government started to focus specifically on
secondary education for the masses.
1.2 EDUCATION IN THE NETHERLANDS FROM 1960 TO PRESENT
In the 1960’s the Netherlands had completely transformed into an industrial country and
education had made itself indispensable. The rise of the tertiary sector was followed by a
growing need of higher educated employees. After the Second World War the emphasis
mainly lay on the growth of secondary education. The costs of education had increased a great
deal because all children between 6 and 18 were going to school. The increase in school
attendance placed more much stress on the state treasury. In 1950 45.2 percent of the children
between 12 and 18 years old, received secondary education whereas in 1900 only 7.9 percent
attended secondary schools. 22
In addition, the divisions per social class had not disappeared completely because every kind
of school had its own curriculum. This meant that the children went to a certain school based
20
Hans Knippenberg, Deelname aan het lager onderwijs in Nederland gedurende de negentiende eeuw
(Amsterdam 1986) 29.
21
Aerts, Land van kleine gebaren, 127.
22
N.L.Dodde, J.M.G. Leune, Het Nederlandse schoolsysteem, (Groningen 1997) 97-98.
16
on their social background. A different and more extensive sort of education was required. In
1963 a new law on secondary education was passed called, the ‘Mammoetwet’, that went into
use in 1968. The law was an alteration of the existing educational system and therefore it took
a long time before the revisions could be taken. The existing education system was replaced
by a new schooling system that aimed to be clearly set out and accessible to all social classes,
both on a social and a financial level.23 The new Dutch education system consisted of primary
education for children from 4 to 12 years, followed by secondary basic education for children
aged 12 to 15 and then general secondary education and vocational education for students
from 15 to 18.24 In 1969 the ‘Leerplichtwet’ was extended. This law stated that education is
compulsory for every child between the age of 6 until the age of 15.
After the Second World War the Dutch government strongly believed that society could be
moulded according to their wishes. There was a new view on democracy which included
guaranteeing a certain standard of living for the citizens of the Netherlands.25 The revision of
the education system was a manifestation of the new view. Primary and secondary education
was now democratized to be financially and socially accessible to people from all different
backgrounds. However, the increase in enrolment rates in secondary education created the
need for a turn in the way the department of education was organized. Table 1.1 shows the
number of state officials working in the department of education from 1920 to 1990.
Table 1.1:Aantal ambtenaren werkzaam bij het Ministerie van Onderwijs van 1920-1990.
1920
99
1945
-
1970
1611
1925
135
1950
543
1975
2062
1930
156
1955
727
1980
2707
1935
176
1960
937
1985
2947
1940
180
1965
1239
1990
2621
Source: N.L. Dodde, J.M.G. Leune, Het Nederlandse school systeem (Groningen 1995) table
6.4, 165.
23
J.J.M. Reulen, P.H.W. Rosmalen, Het voortgezet onderwijs in Nederland, ontwikkelingen, structuur en
regelingen, (Tilburg 2000) 2.7.
24
Dodde, Leune, Het Nederlandse schoolsysteem, 97-98.
25
Aerts, Land van kleine gebaren, 268.
17
Nonetheless, next to the growth, the organizational structure had to be considerably adapted
to the new education system. The introduction and development of the ‘Mammoetwet’ from
1955 to 1968 was the main cause of an alteration in the department of education. After several
reorganizations since 1955 the department of education is well-organized with two
‘directoraat-generaals’, one for higher education and one for primary and secondary
education.26 The expansion and reorganization of the department of education benefited state
efficiency on the issue of education.
Between 1950 and 1970 the Netherlands experienced strong economic growth. The expenses
of the education system rose fast in absolute terms but in percentages of the GDP the growth
was smaller. In percentages of the GDP the government spent 1,5 percent on education in
1900, 2 percent in 1910, 4,1 percent in 1930, 3,3 percent in 1950, 5,2 percent in 1960, 7,7
percent in 1970, 8,5 percent in 1980 and 6,8 percent in 1990.27 The reason that the percentage
of 1990 was lower was because of an absolute increase of the GDP. The economic growth
was not the only reason for the rise in expenses on education, as indicated above, the rise in
enrolment rates also had put financial pressure on the state treasury. Between 1948 and 1962
the total production was doubled. Between 1963 and 1973 there was an decrease of
agriculture and an increase of jobs in the tertiary sector.28 In the 1960’s an increase in wages
caused the Dutch society to change into a modern consumption society. In the first place, this
meant that the industry made higher demands to the level of schooling. Between 1950 and
1968 the number of people between 3 and 25 years old that went to school grew from 54
percent to 68 percent.29 It also meant that the working population were working less in
industry and agriculture but found their jobs in the services sector. The Netherlands has
become a highly urbanized country and with 16 million inhabitants on an area of 16,033
square miles its population density is high. Primary and secondary schools has spread
throughout the country and the education system has national coverage. Only universities are
quite scarce, they exist only in certain cities. Although there is an important relationship
between urbanization and education it is not of major importance in this part of the thesis.
26
Dodde, Leune, Het Nederlandse schoolsysteem, 164-167.
Bert Erwich, 95 jaar statistiek in tijdreeksen, (Den Haag 1994) 254.
28
Ibidem, 43.
29
Aerts,Land van kleine gebaren, 294.
27
18
1.3 EDUCATION IN INDONESIA FROM 1850 TO 1960
At first colonized Indonesia was primarily exploited by the Dutch for economic purposes. The
Dutch Indies were very poor during the colonization period, mainly because of a growing
population that did not have enough resources due to Dutch exploitation. However, near the
end of the nineteenth century after the rise of mass education in the Netherlands and under the
influence of the enlightenment, a new idea came into fashion in the Netherlands. The socalled ethical obligation, a debt of honour, implied that the Dutch should not just exploit their
colony but look after the inhabitants and raise them, like a father raises his child. This notion
was made tangible in the ‘Ethical Policy’. In 1902 a commission had investigated the
situation in the Dutch Indies and they advised the government to improve ‘irrigation,
emigration and education’ besides improving agriculture and stimulating industry to
encourage economic growth.
Thus, at the beginning of the twentieth century the Dutch implemented an education system in
their colony out of a moralistic feeling of guilt resulting from the exploitation and out of selfinterest (for economic growth). Until the first half of the nineteenth century the education
system in Indonesia had been almost non-existent, most schools only provided education for
the European children living in Indonesia. There was a weak existing indigenous education
system which consisted largely of schools for Muslims who learned to read and write based
on the Koran.30 In 1892 the first primary class schools for the local elite and secondary class
schools for the other local children were set up. These second class schools were not very
popular; in 1904 the gross enrolment rate of local children attending primary education was
1.1 percent and in 1914 this had only risen to 2.1 percent.31 One of the major problems was
the financing of the schools. As illustrated above, Indonesia was very poor and the Dutch had
a limited amount of money that they wanted to spend on the education system. Around 1900 a
solution was found when the concept of desa schools was introduced. In these schools, also
known as village schools, primary education in writing, reading, arithmetic and simple
education in crafts was given in the local language. The quality of the desa schools was low
and the largest share of the expenses was paid by the local population. Nevertheless, in 1908
the desa schools started to spread out across Java and later to the rest of the country. In 1940
40 percent of the local children attended desa schools. Although these enrolment rates were
30
Bas van Leeuwen, Human Capital and Economic Growth in India, Indonesia and Japan: A quantitative
analysis, 1890-2000, (2007) 82.
31
Ibidem, 84.
19
considered moderately successful as opposed to second class schools, they were still low. For
this reason the number of indigenous people that were able to follow secondary education was
low as well. Furthermore, the language in which the lessons were given on secondary schools
was Dutch, while a lot of local children did not speak that language.32
Indonesia did not have a working democracy under Dutch rule. The Dutch controlled
education; the Indonesian state had no say in it. Because there was no democracy, the
Indonesian state could not formulate a demand for education. Nevertheless, the rise of ethical
policy can be traced back to the ideas that emerged during the rise of a working democracy in
the Netherlands and therefore a working democracy did have some influence on the
development of the Indonesian education system albeit not Indonesian working democracy.
In the Netherlands itself the Dutch state was very efficient in operating its education system.
In Indonesia this was not the case. The education system as well as the accompanying
bureaucracy was implemented upon them, enforced by the Dutch. For this reason the local
population lacked the means and the enthusiasm of the Dutch officials and education
inspectors had by executing the education system in their own country.
Obviously there was no self-rule in Indonesia during the period of colonialism. There is a
clear difference between the Indonesian education system during colonization and the period
after independence. However, before the Dutch invaded Indonesia there was a very weak
indigenous education system and the Dutch have introduced education on a large scale. Even
so, the Dutch system was of poor quality and in a foreign language to the indigenous people.
When looking at the development of the education system in the early stages, one can see that
having a high G.D.P. contributes greatly to the development of an educational system.
Because Indonesia was exploited by the Dutch in the nineteenth century it was very poor in
contrast with the situation in the Netherlands at the time. Graph 1 shows this contrast in GDP.
For instance, in 1930 the GDP in Indonesia was 1.141 dollars while the Netherlands had
already achieved this GDP in the seventeenth century.33
32
33
Ibidem, 86.
Maddison, Statistics on World Population, http://www.ggdc.net/maddison.
20
Graph 1.1: Per Capita GDP Growth in the Netherlands and Indonesia, 1850-1950.
Source: A. Maddison, “Statistics on World Population, GDP and Per Capita GDP, 1-2006 AD.” (2009),
http://www.ggdc.net/maddison.
As mentioned earlier, one of the biggest problems with the education system was financing it.
The limited amount that the Dutch put into the Indonesian education system enabled the low
quality desa schools to develop.
Industrialization did not take place until the 1970s and therefore that did not have a direct
effect on the development of education in this case. Indonesia was still a rural country relying
mainly on agriculture; therefore there were no factory workers who had to be able to read
warning signs and machine manuals in factories as was the case in the Netherlands during
industrialization. A conclusion can be drawn that the need for an elaborate education system
was less pressing as it was in the Netherlands.
The schools that were set up in Indonesia were mainly village schools. Because secondary
schools were mainly for the European population these schools were not widely spread out
over the villages and mainly situated in the towns.
1.4 EDUCATION IN INDONESIA FROM 1960 TO PRESENT
Since the 1940s primary education enrolment rates started to improve rapidly. The main
reason for this was the abolishment of European primary education by the Japanese who
replaced it, with a uniform six year primary education during Second World War. After the
war this uniform primary school system was kept in use and supplemented by a uniform
21
secondary school system after independence in 1948. As stated above, during the colonization
it was difficult for locals to attend secondary schools because lessons were taught in Dutch
and only a few people had completed their primary education in the first place, so not many
people were eligible for secondary education. After independence the demand for secondary
education started to rise. The closing of Dutch schools had an egalitarian effect on the
attendance of secondary schools. A uniform three years lower secondary school and a three
years higher secondary school was established in Bahasa Indonesia, the language that the
majority of the Indonesian population could understand. No distinction between the different
ethnicities was made anymore.34 Indonesia wanted to put in place a completely new education
system based on the needs of the Indonesian people. In the late 1960s 50 percent of the
children from age 7 to 12 were enrolled in primary schools, and enrolment rates in secondary
school were even lower. Around 1995 universal enrolment rates at primary level were
attained. In the early 1970s until the 1980s there was a 55 percent enrolment rate at junior
secondary schools. The goal of the Indonesian government in 2009 is a 100 percent enrolment
rate at primary level and 96 percent at secondary level. 35
There was a small decrease in the 1960s, but in the 1970s both primary and secondary
enrolment rates started to increase again. However, the government has favoured access over
quality, which is still low. In Indonesia serious difficulties exist in the areas of teacher
attendance, teacher salaries and teacher certification. Other problems are the deterioration of
classrooms and the availability of textbooks and other school equipment throughout the
archipelago.36
Meanwhile there was still no working democracy in Indonesia until 1998, after the rule of
General Suharto. Consequently in this case the democracy cannot have contributed a lot to the
education system. In a country an education system can exist with no working democracy but
it is impossible to have a working democracy without an education system.
The increase in enrolment rates at the end of the 1960’s shows signs of an improvement in
state efficiency. With the reorganization of the education system, the system had became
more accessible to the population; this, in combination with a rise in GDP, can explain the
34
Van Leeuwen, Human Capital and Economic Growth, 85.
Anne Booth, ‘Education and economic development in Southeast Asia’, ASEAN Economic Bulletin 16 (1999)
297-298.
36
F. Javier Arze del Granado, ‘Investing in Indonesia’s Education: Allocation, Equity and efficiency of public
expenditures’, World Bank Policy research working paper, (2007) 3-4.
35
22
rise in enrolment rates. Yet, the low quality of the schools indicates that the government still
lacked effective planning and suffered from state inefficiency. As mentioned in the previous
paragraph the education system changed after independence. In the period before 1960 the
colonizers instigated the development of an education system and the indigenous system that
existed before colonization was very weak. After colonization the Indonesian government
took over and wanted to implement a new education system. The improvement of enrolment
rates shows that the Indonesian government under self-rule could implement their own
education system.
Another important factor were the oil crises of 1970. Prior to the oil crises there had not been
much financial and political room to fundamentally change the educational system. However,
with the profits that Indonesia gained from their oil reserves, the country could be developed
on a social, political and economic level. After 1970 there was an increase in government
spending on education which can be explained by industrialization. Because of this rise, came
a higher need for factory workers who were able to read and write warning signs and
instruction manuals. This provides a motive for the rise in education expenditures of the
government. Industrialization caused a growth in GDP, which enabled the government to
spend more money on education. Enrolment rates climbed even more since the 1970s. At that
time 50% of the children between 7 an 12 years were enrolled in primary schools. In 1995
universal enrolment at primary level was obtained. Graph 2 shows primary and secondary
enrolment rates from 1960 until 2000.
Graph 1.2: Gross enrolment ratio per level of education in India, Indonesia, and Japan, 1880-2000.
Source: Bas van Leeuwen, Gross enrolment ratio per level of education in India, Indonesia, and
Japan, 1880-2000, (2007), http://basvanleeuwen.net/Data.htm.
23
It is clear that industrialization played a big part in the education process in Indonesia since
enrolment rates accelerated after the 1970s, when Indonesia started to industrialize. The rise
of industrialization enabled the government to spend more money on education which had
also a positive effect on the economic development of Indonesia. The rise of industrialization
and the rise of enrolment rates can be seen in graph 3.
Graph 1.3: Industry, value added in percentage of GDP and primary completion rates, in percentage of relevant
age group in Indonesia 1950-2000.
Source: World bank Quick Query,
http://ddp-ext.worldbank.org/ext/DDPQQ/member.do?method=getMembers&userid=1&queryId=135.
In Indonesia urbanization is an important factor for education. Indonesia is a widespread
country and as stated above before mostly rural. In large cities like Jakarta and Yogyakarta
enrolment rates are over 90 percent while in provinces with little urbanization the enrolment
rates fall under 80 percent. As mentioned earlier cities are centres of knowledge and the
distance between school and home is smaller in cities which benefits attendance.37 However,
urbanization is growing in Indonesia, showing in table 2.
37
Ibidem, 15.
24
Table 1.2: Urban population in percentage of total population in Indonesia, 1950-2015.
Year
Percentage
urban
1950
12.4
1955
13.5
1960
14.6
1965
15.8
1970
17.1
1975
19.3
1980
22.1
1985
26.1
1990
30.6
1995
35.6
2000
42.0
2005
48.1
2010
53.7
2015
58.5
Source: Population Division of the Department of Economic and Social Affairs of the United Nations
Secretariat, World Population Prospects: The 2006 Revision and World Urbanization Prospects: The 2007
Revision, http://esa.un.org/unup.
1.5 CONCLUSION
Firstly it may be noted that out of the five different variables not all variables had the same
amount of influence on the education system, nor was their influence present during the
whole period in both countries. Yet, in every case the variables all played a role in the
developments which occurred. The influence of all variables on the Netherlands and
Indonesia will now be discussed in order.
In the Netherlands the rise of the democracy and the rise of the education system happened
simultaneously. The democracy was very important, it worked as a moral driving force
behind the development of the education system. This, however, does not mean that without
such a democracy an education system is not possible. Indonesia only had a working
democracy since 1998 but the education system started to take shape as early as the 1960s and
1970s. This shows that a working democracy is thus not the only reason for a working
educational system. It has become clear that the presence of a strongly centralized
government bureaucracy is quite important in the execution of a collective education system.
In the Netherlands the education system was realized because of the centralized state and the
effort of the government officials. Indonesia lacked the efficient execution that was so
25
apparent in the Dutch bureaucracy and these severely undermined attempts to enhance the
quality of the Indonesian education system.
In colonization there is a paternalistic element or a desire to control the colony that instigated
the installation of an education system, which became visible in the case of Indonesia. The
Dutch had implemented the idea of education in Indonesia and when it was liberated from its
ruler, Indonesia started to concentrate on creating their own education system. As the
Indonesian elite learned about Western values such as the right to self determination and
democracy, the opposition towards their colonizer rose before independence.
Having a high G.D.P. is important since it provides the means for maintaining an educational
system. In both countries there is a positive relation between a rising G.D.P. and the
development of the education system. However, education is a necessary element of the
welfare state and once a country is on a certain level of welfare, developing an education
system becomes a priority for governments. This was the case in both the Netherlands and
Indonesia. In Indonesia in the 1960s and 1970s enrolment rates started to increase. A reason
for this increase was the oil crises in 1970. From then on the Indonesian economy started to
grow and the government was able to invest in education.
Industrialization has shown to be a stimulant for the development of education as well as a
result of education. Industrialization and education influence each other. With the rise of
industrialization the need for education rose. Secondly, with the arrival of industrialization the
financial means for maintaining an education system also improved.
Indonesia was a largely rural country and village schools were created for primary education.
Contrary to the Netherlands, the relation between urbanization and education is rather
important in Indonesia. First of all, the rise of urbanization and education developed
simultaneously. More importantly, higher enrolment rates were achieved in cities than in rural
provinces. In the Netherlands and Indonesia can be concluded that cities made education more
accessible, because the distance between school and home was smaller, and there was a high
concentration of people in cities, and because cities were centres of knowledge and ideas
which could be spread out easily.
26
CHAPTER TWO: DISABILITY INSURANCE
Just like education, disability insurance has become a central element of the modern welfare
state. Disability was one of the constant risks that threatened the life of workers. Disability
due to an accident on the work floor would cause problems between the employer and the
employee. In case of an accident the question of who was to blame immediately arose since
the guilty party had to pay for the medical expenses and loss of income. Employers sided with
employees to seek legal reform to overcome this problem. Compulsory employment insurance
was a solution because it provided a fund that could cover the medical costs. The
implementation of national disability insurance took a lot of effort. In the Netherlands the first
disability act was established thirty years after the start of industrialization whereas in
Indonesia the first social security act for all inhabitants was established in 2004, thirty-five
years after the start of Indonesian industrialization.
This chapter seeks to answer the question to what extent a working democracy, state
efficiency, self-rule, a high GDP, industrialization and urbanization have influenced the
development of disability insurance in the Netherlands and Indonesia. As explained in the
introduction of this thesis, the variable self-rule will be treated only in the case of Indonesia
because it is not applicable in the case of the Netherlands. The chapter will also focus on the
history of disability insurance programs in both countries, as well as the pros and cons of the
specific systems. It is divided in four parts, and just as in the previous chapter each part is one
of the cases presented in the Boolean scheme.
1.1 THE NETHERLANDS FROM 1850 TO 1960
The idea of the modern social security system originated during the social and industrial
revolution in the 18th and 19th century in the Netherlands. Before the mass rise of social
security there were all kinds of different sickness funds which originated from guilds. Within
the guilds there was money set aside in case a member became sick or disabled. As opposed
to these earlier arrangements the modern security system was nation-wide, collective and
compulsory.38
38
De Swaan, In care of the state, 152.
27
The need for a modern security system soon became apparent in the changing working
environment and the emergence of the working class. Due to industrialization the number of
factory workers increased and it had become more difficult for guilds to provide funds for
every worker. Workers in factories had to work long, exhausting days under terrible
circumstances for little money. In addition the work in factories was dangerous and accidents
were likely to occur. When a worker had lost his job due to disablement, he also lost his
income. Without insurance and no income to pay for medical expenses, food, housing and
clothing for the worker and his family, this could lead to painful situations, and sometimes
death. Disability insurance provided a solution. It would cover the costs of the accident and
associated legal problems, such as the question of who was the guilty party and who had to
pay for medical expenses, were out the way. This was beneficial for both employer and
worker. For the employer it was stimulating to invest in industrial safety when he was held
accountable and would have to pay for medical costs. The worker had the security that he
would receive medical treatment financed by a collective medical fund, and that he would
receive a compensation for his loss of income.
It became important for the government to step in because such a vast part of the population
was working in factories. The government wanted to establish an act in which disability
insurance was legalized. However, the execution of the disability act did not run smoothly.
The first steps of social security in the Netherlands were slow and niggardly.39
The first social acts were made mainly in favour of the employers. The worker had yet to gain
political power. In the beginning there was a relatively low level of party organization
between and among workers and employers.40 Disability applied mainly to the third class, the
workers, who carried the greatest risk of becoming disabled. Party organization proved to be a
continuation of the school struggle and parties and unions also developed among
denominational lines.
As indicated in chapter 1 Thorbecke installed a renewed constitution which changed the
Netherlands into a constitutional monarchy in 1848. From then it was a gradual process
towards a democracy. In 1885, the question of social security was asked in parliament for the
39
40
Ibidem, 210.
Ibidem.
28
first time but only from 1900 onwards it became imaginable that the government would
guarantee any kind of social security.41
Democracy influenced the development of the Dutch social security system in two ways.
First, in the 1870’s the working class emerged, because of democracy they could organize
themselves in trade unions and political parties and gained a stronger voice in society.
Second, the government had put the focus on the development of a healthy workers’ class,
this resulted from both moral and economic reasons. Morally, the government started to feel
responsible to provide its citizens with a certain standard of living and economically a healthy
worker performed better in his job.
A reliable bureaucracy was the foundation for the execution and control of legal measures
concerning disability insurance. Around 1850 there were no more than 100 civil servants in
service and in 1900 this number had only doubled.42 Specialization and professionalization
emerged slowly. In 1900, thirty years after the arrival of industrialization, the first social
security law was established, the Disability Act. Before social security legislation could be
executed in any way there had to be a change in administrative and official thinking. In 1901
the ‘Rijksverzekeringsbank’ was set up. It was responsible for the accurate implementation of
the disability act and to control the execution of the act.
When the economy started to grow because of industrialization this was beneficial for the
development of disability insurance, primarily because more money became available. For
example, the disability act of 1901 was initially meant for heavy industries. Agriculture, the
fishing industry and the shipping industry were not included.
Since 1919 the GDP grew and in 1921 the act was modified and made available for workers
in all industries, although workers who earned more than 1,200 guilders per month were
excluded from the law. Graph 2.1 shows this growth in per capita GDP.
41
G.M.J. Veldkamp, Inleiding tot de sociale zekerheid en de toepassing ervan in Nederland en Belgie,(Deventer
1978-1980) 62-63. Aerts, Land van kleine gebaren, 173.
42
Aerts, Land van kleine gebaren, 155.
29
Graph 2.1: Per Capita GDP growth in the Netherlands, 1895-1925.
Source: Maddison, “Statistics on World Population, GDP and Per Capita GDP, 1-2006 AD.” (2009),
http://www.ggdc.net/maddison.
Disability insurance was also good for the economy; it can be seen as an investment in the
worker and thus helped creating a healthy working class which was beneficial for the
economy. The sort of labour factory workers performed became more complex and therefore
the value of a worker rose. Education also influenced this rise in value. Because educated
workers were more valuable, and education became more and more accessible, the level of
workers in general went up and it became more worthwhile to invest for employers in
disability insurance.
Industrialization was very important in the development of disability insurance in the
Netherlands. Around 1870 the arrival of the industrial revolution changed the working
environment and increased the number of accidents on the work floor. The need for disability
insurance became clear through the rise of the masses and the terrible circumstances workers
had to work every day in the factories. On the other hand there was the rise of the working
class and labour unions that gained a louder voice and demanded disability insurance.
Furthermore, industrialization instigated the development of the social security system, it
caused economic growth, which generated financial support for the development of a social
security system and the more complex and expensive machines which in turn raised the value
of the worker.
Urbanization also had its influence on disability insurance. During the nineteenth century the
Netherlands were already relatively urbanized. Industrialization started in the most urbanized
part of the Netherlands, the west. Because of industrialization employment rates in cities rose
30
which caused migration towards the cities. This migration, combined with a demographic
growth in the 1870’s caused further urbanization of the Netherlands. The circumstances in
which the working class were living in urban areas were not as bad as in some other European
countries because the Netherlands had a relatively high national income before
industrialization. The fact that there was a relatively high national income and the high
population density in the Netherlands, especially in the cities made it possible, and profitable
to develop the foundation for a very extensive social security system. This program shall be
further discussed in the next paragraph
2.2 THE NETHERLANDS FROM 1960 TO PRESENT
After the Second World War the Dutch government developed a new view on the democracy
in which the state guaranteed a certain standard of living for its inhabitants. The government
officially declared that every citizen had the right to social security and that it was the duty of
the state to guarantee that right.43 In short, the social security system became an area of
special attention for the Dutch government. In the first place the unification of the social
security law system became one of the goals. In addition, with the growth of the economy
after the Second World War, the government had the opportunity to expand to all parts of
social security, namely the disability insurance, sickness funds, health care, old age insurance,
child allowance insurance and unemployment insurance. The secretary-general of the
department of social security, Mr. A.A. van Rhijn, was given the task to set up guidelines for
the development of social security in the future.44 During the 1960’s the Netherlands adopted
a minimum income norm designed to represent a reasonable standard of living. All disabled
individuals in the Netherlands were guaranteed this level of basic support.45
On July 1st 1967 the ‘Wet op de arbeidsongeschiktheid’ (WAO: General Disability Security
Act) took effect. This law covered all the privately employed individuals up to the age of 65.
The benefit it provided depended on previous earnings and the degree of disability after the
first year of illness, which was covered by the Ziektewet (Sickness Benefit Act).46 In the
43
Ibidem, 268.
Veldkamp, Inleiding tot de sociale zekerheid, 104.
45
Robert H. Haveman, Victor Halberstadt, Richard V. Burkhauser, ‘Public policy toward disabled workers’,
(London 1984) 131.
46
Haveman, Halberstadt, Burkhauser, Public policy, 403.
31
44
second half of the twentieth century the WAO was the main disability act. By the end of the
1970’s the share of social expenditure was the highest in the world. 47 The number of workers
who received welfare was twice as high as in surrounding countries and also the number of
sickness absence was very high. 1 out of 10 working-age individuals received a disability
benefit. If no measures were taken, that number would rise up to 6 out of 10 working-age
individuals who received a disability benefit and in 2020 every healthy person would be
paying the benefit for 1 disabled person. Graph 2.2 shows the number of people who received
disability insurance.
Graph 2.2: number of people who received disability insurance in the Netherlands, 1900-2008.
Source: CBS, tijdreeksen sociale zekerheid, 1900-2008,
http://statline.cbs.nl/StatWeb/publication/?DM=SLNL&PA=03763&D1=0-17&D2=0,2,4,6,12,22,32,42,52,62,(l6)-l&VW=T
From the 1970’s onwards the Netherlands suffered a surplus in workforce that emerged both
because of the coming of age of the baby boom generation and the increased labour force
participation of married women. This surplus in workforce caused an increase in
unemployment which enlarged the number of unemployment benefits, and the number of
disabled workers also augmented. Consequently, this exerted financial pressure on the state.
This situation could not last, and in the early 1980’s it became clear that something had to
change to limit the costs of welfare. These measures were taken during the first government
of Prime Minister Lubbers. Despite several measures, the number of disabled workers still
47
De Swaan, In care of the state, 210.
32
kept on rising. In 1993 still one out of ten Dutch citizens of working age (16-64) received
disability transfer benefits. Almost 40 percent of older workers (55-64) were out of the labour
force and receiving disability benefits, another 24 percent drew early retirement pensions or
unemployment benefits.48
The government kept trying to change the social system to decrease the number of welfare
participants but despite revisions of the system the number of disabled employees kept on
rising. In 1993 the ‘Wet terugdringing beroep op de arbeidsongeschiktheidsregelingen’ was
passed in parliament. This act caused the number of welfare participants finally to decrease.49
As mentioned before, the government spent a lot of attention to disability insurance and the
social security system in general in the second half of the twentieth century. The government
established the new view on democracy and had begun enthusiastically in providing benefits
for disabled workers. When the financial costs started to grow too high, the government
looked for a way to decrease the costs and still provide social security. Graph 2.2 shows that
at the end of the 1980s the number of people who receive disability insurance is declining. It
was very clear to see that the Netherlands was a working democracy at that time because the
ideals of the working democracy such as equality were very well represented in the social
security system. Everybody could be compensated for any sickness or disability and receive a
benefit payment. This was especially the case in the 1960 and 1970’s when the economy was
constantly expanding and there was an overload in workforce.
The high number of payment benefit receivers was not only proof that the Dutch democracy
was working; it mainly showed that the state was very efficient.
One of the reasons for the high state efficiency in the Netherlands was the emphasis
politicians put on direct regulation while making policy proposals and taking measures for
political change. As explained in the previous paragraph there was a special organ established
that executed disability insurance. De ‘Rijksverzekeringsbank’ changed into the ‘Sociale
Verzekeringsbank’ in 1956. The SVB was responsible for the accurate execution of the social
security system.
Another significant reason for the expansion of the system was the booming economy. A high
GDP appeared to be very important for the disability insurance. Giant amounts of money
were pushed into the social security system and this was possible because of the growth of the
48
Leo M.J. Aarts, Richard V. Burkhauser, Philip R. de Jong, Curing the Dutch Disease,(Gateshead 1996) 1.
Marjol Nikkels-Agema, Janthony Wielink, De WIA en haar gevolgen, nieuwe verzekeringsoplossingen voor
werkgevers en werknemers (Kluwer 2006) 14.
33
49
economy. However, in the 1970’s the system had become so extensive that more money was
going out than coming in. This shows that having a high GDP can have negative effects. Due
to the economic growth after the Second World War the Netherlands were able to expand the
social security system. However, at the end of the 1970s and the beginning of the 1980s the
percentage of annual GDP growth decreased while the expenditures on social security kept
increasing.
Measures were taken by the government to lower these expenses. Near the end of the 1980’s
these measures started to pay off as can be seen in graph 2.3.
Graph 2.3: Government spending on social security in percentage of national income, the Netherlands, 19451990.
Source: Bert Erwich, 1899-1994, Vijfennegentig jaar statistiek in tijdreeksen,Centraal Bureau voor de Statistiek
(Den Haag 1994).
In 1960 the Netherlands had been an industrial country for a long time. The type of work had
changed considerably. The factories had been mechanized and made safe. The rise of the
tertiary sector had lowered the amount of blue collar work and changed it into white collar
work. The reasons why workers became disabled had changed overtime. Other types of
diseases had arrived such as burn-out and RSI. This also held true for urbanization; the slums
in which people had been living at the end of the nineteenth century had changed into districts
with proper housing and the higher standard of production reduced the risk of accidents.
34
2.3 INDONESIA FROM 1850 TO 1960
Just as sickness, unemployment and disability was a constant fear and mortal danger for
Dutch workers, this also applied to Indonesian workers. Disability insurance was hardly
developed in Indonesia before 1960. The Dutch government had not implemented a national
social security system in Indonesia for the indigenous population. The only local people who
could receive reimbursement after disability or old age were local government officials and
civil servants. For the majority of the indigenous population the only form of disability
insurance was provided by the indigenous population themselves, by their families and
community. Many workers who lived in towns held a close tie with their home villages. They
would sent money back to their families and visit the villages on public holidays. If an urban
worker was struck from unemployment or disability, he could rely on the home village for
support. This provided some sort of social security net for the first generation of urban
workers. However, in the beginning of the twentieth century, urbanization rose and with each
generation more people were urban-born. These people did not have the security of their
home villages and thus had to find social security somewhere else. There were several
organizations to which the worker could turn to in times of need, such as local welfare
organizations, self-help groups and, increasingly, labour unions.50
Mutual aid organizations and social welfare funds were created by voluntary organizations
and by small groups of individuals banding together to tackle the problem by encouraging
cooperation among ordinary people. Ethnic, religious and regional differences were the most
important barriers for workers organization; the workers could not gain a broad coverage
because of these differences. The Dutch were reluctant to allow labour unions and
collaboration of Indonesians. However, the labour unions did exist and provided very
primitive social security. The main task of labour unions, and the most important reason for
joining a labour union, was providing social security.
By 1922 the Onderlinge
levensverzekeringsmaatschappij Boemi Poetera had agents throughout Java Bali, Madura,
Sumatra and Ambon who sold life insurance and sickness policies on a commission basis51.
In 1930 the depression hit Indonesia. The government provided limited unemployment relief
to Europeans but did nothing for the indigenous population; they believed that the communal
John Ingleson, ‘Labour unions and the provision of social security in colonial Java’, Asian studies review
4(2000) 472.
50
51
Ibidem, 486.
35
support structures were strong enough the cope with the depression.52 In 1936, the colony
started to recover from the depression. At the same time the lowest number of members of
labour unions was reached on Java. Thereafter the number started to rise again and gained a
steady growth.
The labour unions in Indonesia were modern organizations and the intellectual elite, which
directed them, were influenced largely by the European example of labour unions. The core
activities of every union in the late 1930’s remained to be social welfare and the development
of cooperatives, saving funds and other mutual benefit schemes.53
There was clearly no working democracy in Indonesia, consequently there was also no ‘moral
incentive’, from within the state to introduce a social security system. Because there was no
legislation from the government on social security, state efficiency was not very important in
this particular part of the thesis. The government felt no responsibility for providing social
security and the local population had to rely on family networks and labour unions.
The fact that the Dutch were in charge in Indonesia furthered the lack of ‘moral incentive’ and
responsibility for the Indonesian population because the colony was mostly there for
economic reasons and to enlarge the power of the Dutch in the world.
A higher G.D.P. or at least a growing economy has a positive influence on the development of
a social security system. When the depression was over in the colony, the number of members
of labour unions rose again. If there is more money going around there is consequently more
money available for social security.
Indonesia had not yet experienced an industrial revolution in the period before 1960 so the
Indonesian industry was very underdeveloped, however in the beginning of the twentieth
century the first small steps towards industrial society were made by the expanding printing
industry, railway industry and civil service.54 As was seen in the Netherlands industrialization
activated the need for disability insurance. From that can be concluded that the lack of
industrialization in Indonesia attributed to the underdeveloped state of disability insurance.
The limited social security that was provided through labour unions follows logically from the
little developed industry that existed before 1960.
Urbanization in Indonesia was a cause for the creation of a disability program. Where in the
beginning of urbanization workers would go to back to their home village when they were old
52
Ibidem, 493
Ibidem, 494.
54
Ibidem, 476.
53
36
or disabled, younger generations remained in the cities and therefore could not rely on their
home village anymore and thus had to rely on help from the government or from labour
unions.
2.4 INDONESIA FROM 1960 TO PRESENT
As discussed in the previous paragraph, during the Dutch reign there was a strong reliance on
the family and home village to form a social security net in case of illness and loss of income.
Only government officials and civil servants would receive payment benefits. During the
Post-independence reign of Sukarno(1945-1960) the economy was not doing very well and
the colonial system continued with a few revisions.
When Suharto came to power there was a period of economic growth that resulted in a new
social security system called JAMSOSTEK which was set-up in 1977. It was only available
for people in formal employment and who are obliged or entitled to participate in a variety of
social insurance schemes. Provisions were extended only to employees of military, civil
service and private companies above a prescribed staff size and salary. A division was made
between public and private sector workers in which public sector workers received far more
benefits than private sector workers in medium and large companies.55 The remainder of the
population employed in smaller enterprises, self employed or unemployed were forced to rely
on private insurance or support from immediate and extended families and local community.
However, JAMSOSTEK was not very efficient. The system has poor administration, low
returns on investment and high administration costs.56 Because Indonesia had no working
democracy the pressure on developing a social security system for everybody was absent.
In 2002 a task force was created to develop a bill to provide more effective social security for
everybody.
The law on the National Social Security system (SJSN) was introduced in 2004. This law
serves as an umbrella law for five social security programs, namely: public pension, national
health insurance, work injury and death benefit schemes.
55
M. Ramesh, ‘the State and Social Security in Indonesia and Thailand’ journal of contemporary Asia, 30,
(2000) 541.
56
Ramesh, ‘The state and social security’, 539.
37
The differences with Indonesia before 1960 clearly show some motives for the development
of the social security system. In 1977 the first official social security system was introduced,
JAMSOSTEK. Indonesia was not a working democracy yet which is visible because the
provisions were only extended to governmental and military employees. After the
introduction of the democracy in 1998, a new act was developed in 2002 which was supposed
to provide social security for all inhabitants.
This act (SJSN) was implemented in 2004. However, in 2007 there was still no national
security council established that will control if the law is in fact carried out, and though there
is a general recognition that SJSN law is a first major step to develop a comprehensive
national security system in Indonesia, so far it has failed to give meaningful impact except for
health insurance for the poor. The significant delay in the action to implement the law has
revealed seeming lack of coordination and real commitment. 57
In the Netherlands it took a change in bureaucratic thinking before the social security system
could be properly carried out. It is essential for a social security system to work that this kind
of change also has to take place in Indonesia because if no plans are carried out, inhabitants
do not receive social security.
As mentioned previously, in the years right after independence when Sukarno was in power
(1945-1960) there was little economic growth. In the 1970’s the GDP started to rise along
with industrialization, as can be seen in graph 1.3 in chapter 1.
Seven years after the rise of industrialization the first social security system was set up in
1977. This indicates that with the arrival of industrialization the need for social security rises
which can be easily explained because the work in factories is more dangerous.
Industrialization causes urbanization and in urban areas there was less of a rural family
network that served as a safety net. A new safety net was needed; the rise of industrialization
caused the rise of the working class. The local labour unions and family networks could not
provide social security for everybody and the government had to step in to provide national
social security.
As became clear in this chapter industrialization is an important factor in the development of
a social security system because it expands the need for one. Because of the difficult and
hazardous work in factories more accidents occur.
57
ILO, Indonesia: Implementation of the national social security system law, International labor organization,
http://www.ilo.org/public/english/region/asro/bangkok/events/sis/download/paper24.pdf 3.
38
Indonesia was not very urbanized and as is explained in this chapter urbanization creates the
need for disability insurance. In 1977 the first social security system was set up and around
that time (1980-1985) there was a large urbanization growth in Indonesia which can be seen
in table 2.1.
Table 2.1: Urban annual growth rate in percentage, in Indonesia, 1950-2010.
Year
Urban annual
growth rate
1950-1955
3.30
1955-1960
3.70
1960-1965
3.81
1965-1970
3.91
1970-1975
4.80
1975-1980
4.89
1980-1985
5.36
1985-1990
4.95
1990-1995
4.54
1995-2000
4.73
2000-2005
4.04
2005-2010
3.34
Source: Population Division of the Department of Economic and Social Affairs of the United Nations
Secretariat, World Population Prospects: The 2006 Revision and World Urbanization Prospects: The 2007
Revision, http://esa.un.org/unup.
The social security system was only available for governmental and military employees which
are professions mainly situated in urban areas.
2.4 CONCLUSION
The rise of the mass and increasing interference from the government started the new social
security system to rise. When looking at the development of the democracy in the Netherlands
and in Indonesia, it becomes clear that the democracy works as a ’moral incentive’ to
introduce a social security system for everybody. Next to the moral incentive the democracy
provides, the rise of the working class within a democracy is also important because the
working class eventually organized and receives a stronger voice in society demanding social
security. As is discussed above, the democracy in the Netherlands was gradually developing
and the growing idea that the state was responsible for providing social security for its
citizens around the turn of the century. In the 1960s there came a new view on the democracy
in which it became the duty of the state to provide a certain standard of living for all its
citizens and the government took a more active position to realize this responsibility. In
39
Indonesia there was no working democracy before 1998. The lack of a moral incentive, and
the pressure from the population of a democratic country to establish a social security system
appears to be of importance in the development of such a system. The fact that JAMSOSTEK
was only available for military and government officials shows the lack of moral incentive
and political pressure of the population. Once a democracy is established the citizens demand
the right to social security.
The biggest problem for the Indonesian social security system is state efficiency. As indicated
above JAMSOSTEK suffered from poor administration and after the democracy was installed
plans for a new social security system that covers the total population were made but not
executed up till now.
The Dutch did not implement a social security system in Indonesia. They did provide social
security for their own people but did not provide any for the local population. Moreover, they
were reluctant to allow labour unions and collaboration of the Indonesian population but the
labour unions did exist although the social security that was provided remained
underdeveloped. In this case the lack of self-rule negatively influences the development of a
social security system; nevertheless the first social security system was introduced in 1969
and has still not achieved total coverage.
Industrialization serves as an incentive for the development of social security. Before
industrialization there was no social security system and as is visible in Indonesia the workers
were able to rely on family ties and home villages. Due to further industrialization and
education the worker became more valuable and because of the terrible circumstances in
factories accidents were more likely to occur.
Another incentive for the development of the social security system was urbanization. The
population was packed together in cities which benefits party organization and labour unions.
What is visible in both countries is that economic growth, industrialization and urbanization
are incentives for the development of a social security system. Once these elements occur on a
national scale the government starts to introduce a national security system. The working
democracy, state efficiency and, again, a growing GDP enable the development of such a
system. Because of democracy everybody has the right to receive disability insurance,
because of state efficiency disabled workers actually receive their insurance and a growing
GDP covers the costs.
40
CHAPTER THREE : WATER SUPPLIES
Easy access to drinking water is something that is taken for granted in most Western
countries, especially in the Netherlands. In Holland, when one turns open the tap one expects
clean, fresh running water. Having a working system of water supplies is not that self-evident
in the rest of the world, especially in developing countries like Indonesia. And 150 years ago
it was not even self-evident in the Netherlands. Over the past 150 years, safe drinking water
has transformed into a basic human right. A lot of diseases like cholera and typhus
disappeared with the arrival of drinking water, which showed that it is essential for public
health. Yet providing drinking water is no easy feat, certainly today in the world, with
environmental pollution as its main nemesis. Although the differences in water supplies
between Indonesia and the Netherlands are huge; both countries suffer from problems
concerning water supplies. In Indonesia hundreds of people still drink water from the same
river that they use as their sewer, and water supply companies in the Netherlands also have to
cope with a lot of problems concerning purification of water and the growing water
consumption of its population.
In this chapter the history of drinking water in the Netherlands and Indonesia since the
second half of the nineteenth century will be discussed. As is explained in the introduction of
this thesis, Indonesia before 1960 will not be discussed. The chapter will begin with a
discussion of the situation in the Netherlands and then continue on Indonesia.
Just as in the previous chapters, the influence of five different variables that are quite familiar
by now, namely a working democracy, state efficiency, a high G.D.P., industrialization, levels
of urbanization, will be examined. As explained in the introduction of this thesis, self-rule
will not be discussed in this chapter.
3.1 THE NETHERLANDS FROM 1870 TO 1960
From the Middle Ages on there were three types of drinking water. Surface water, well water
and rainwater. Surface water and well water were the most common to drink from. People
that lived near the coast were privileged because the dune water that came from wells dug in
the dunes was of good quality caused by a natural filtering system through the sand. In most
41
cities tanks were placed which filled up when there was rain but these tanks were drained
quickly and the lead-covered roofs could poison the water.58
With the demographic growth in the second half of the nineteenth century these water sources
were soon not sufficient anymore. In addition to providing drinking water, surface water was
used for all kinds of activities such as disposal of faeces and dumping of the waste of
(bleaching) factories, which caused the water to be heavily polluted. Before the increasing
urbanization, if the surface water at their usual drinking place was polluted the urban
inhabitants would find another source for drinking water in the neighbourhood. That soon
became impossible because of the increasing need for water and the increasing amount of
waste.
In Amsterdam the population could get water from the canals until the 16th century. In the 16th
and 17th century a separation was made between sewage and drinking water. Since the
beginning of the 18th century the control on this separation reduced which caused several
epidemics to erupt in the nineteenth century. The diseases that had the most harmful effect
due to lack of hygiene were cholera and typhus. In the nineteenth century the need for urban
sanitation became clear. Collective arrangements concerning water supplies and measures to
control epidemics were carried out by city councils. For instance during a cholera epidemic in
Gouda in 1867, when clean water from outside the city was provided free of charge.59 After
the epidemic subsided, the local government sold the water for 1 cent a bucket, which was a
relatively high price in that period and so the population switched back to the polluted water
from the canals and wells.
After 1874 when a cholera epidemic cost the lives of 68 people, the government started to
distribute free canal water that was purged with iron-chloride which gave a distasteful flavour
to the water.60 This purification process occurred in cities throughout the country. The
population preferred the old water but after persistent warnings from the local governments
they started drinking the badly tasting purified water because it was healthier. This led to a
decrease in cholera and typhus victims which then encouraged the population even more to
drink the purified water.
In 1853 the first water pipe was established. It transported dune water from the dunes in
Haarlem to Amsterdam. The water was purified through sand filters before it entered the
58
Sacha Wijmer, Geert B. Vinke, Water om te drinken, (Rijswijk 1992) 43.
K.W.H. Leeflang, Ons drinkwater in de stroom van de tijd (Rijswijk 1974) 12.
60
Leeflang, Drinkwater in de stroom der tijd, 12.
59
42
pipes. The price of this water was 1 cent per bucket and as stated above, people would rather
drink the polluted water that was free.
Once the first pipe was constructed it was not long before water pipes were constructed in
other parts of the country. By 1900 there were 60 different water companies active in the
Netherlands who provided large parts of the Netherlands with drinking water.61
However, the production of the water supply companies was not as much as expected. In
Utrecht, less than half of the houses were connected to the water net in 1892 and in
Leeuwarden this number was even lower, especially in workers’ houses. 62
The process towards complete coverage was difficult because of three reasons. First, there
were a lot of technical problems concerning the varying taste, colour, and smell of the water
in the beginning which made the population hesitant to drink tap water. Second, in the higher
parts of the Netherlands there were deep natural wells which provided free water so in rural
areas the need for a water supply system was smaller than in urban areas. Third, poor people
had no connection to the water supplies in their homes but could receive tap water from
different communal water taps that were placed in several cities. This meant that they had to
walk far to get drinkable tap water and sometimes they had to pay for it too.
In the large cities in the west of the Netherlands the connection to the water supply system
came about a bit easier. This was to be expected because in the lower part of the Netherlands
the surface water was of a very bad quality and they did not have the same wells as in higher
parts of the Netherlands, making the development of a water supply system more urgent. Plus,
the amount of water that was being used was higher in the west because of a higher
population density than the rest of the Netherlands.
As stated above the Dutch democracy developed after 1848 and the Netherlands officially
became a parliamentary democracy in 1917. Until 1910 the water supply system was
regulated by local governments and water supply companies. The water supply companies
charged for the water from their water supply system. During this period there was still a lot
of opposition in the countryside towards a system of water supplies for which the people had
to pay. Both the local governments and the local villagers could not see the use of a water
supply system.63 Since 1910 the government took responsibility for the water supply system
after political pressure exerted by doctors. A committee was formed, called the
61
P.J. de Moel, J.Q.J.C. Verberk, J.C. van Dijk, Drinkwater: principes en praktijk (Den Haag 2004) 22.
Wijmer, Vinke, Water om te drinken, 79.
63
Wijmer, Vinke, Water om te drinken, 87.
62
43
‘Staatscommissie inzake het drinkwaterleidingvraagstuk’. The committee regulated water
supplies in the Netherlands, they controlled the construction of the water supply system,
investigated the way the water pipes were controlled and did hydrologic, geologic and
botanical research in several dune areas for new possibilities to gain water.64
Before the government took the responsibility over water supplies the quality of the water was
not controlled but after 1910 the government interfered which caused a rise in the quality of
the water.
Before the government started to occupy itself with water supplies the democracy was already
visible in the collective arrangements that were provided by city councils and local
governments. At first these arrangements were only available for rich citizens. Since the
1870’s the cities had a high population density caused by demographic growth and high
employment rates in towns. The negative effects of the lack of water supplies in the poorer
parts of town seeped through to the rest of the town and eventually these effects turned out to
be more important than the costs of an extension of the water system to the whole town. The
fact that water supplies were democratized and available for the poor came mainly out of
necessity because public health was in danger. In the large cities social issues like the cholera
and typhus epidemics, forced itself directly on the city councils and interference on a regional
scale was more clearly set out than on a national scale. Even though, just as with disability
insurance, administrative reform was necessary. In 1877 the state department of ‘Waterstaat,
handel en nijverheid’ became independent but on the subject of water supplies regional
interference came before national interference. In the 1890s the local governments and city
councils of big cities started to develop a great activity on the sewerage and the water supply
system.65
The ‘Staatscommissie inzake het drinkwaterleidingvraagstuk’ continued creating the water
supply system and on the eve of the Second World War 75 percent of the Dutch population
was connected to the water supply system.
In 1954 the ‘Commissie Rijkssteun Drinkwatervoorziening’ presented a ten-year-plan to
provide every part of the Netherlands of water supplies, with financial help from the
64
65
Ibidem, 85.
Aerts, Land van kleine gebaren, 155.
44
government.66 This plan was more or less achieved in 1963 when 96 percent of the population
was connected to the system.67
In the second half of the nineteenth century drinking water was costly (1 cent per bucket) and
the population rather drank the free, polluted water. With the growth of the GDP people were
able to pay for the purified water. As explained above the water from wells in rural parts of
the Netherlands was still drinkable and the fact that the water from the water supply system
cost money caused opposition in those rural parts. The economic growth after the Second
World War enabled the provision of clean drinking water for the whole population. In the first
place the high GDP enabled the expansion of the water supply system towards a connection to
the network of every household in the Netherlands and in the second place a high GDP
contributes to the purification of the water. Industrialization was also very important in
providing drinkable water. The rise of industrialization provided the techniques and
machinery to create a pipe system and continuing research helped improving those techniques
and also purification techniques. But because of industrialization pollution grows, because of
the industrial waste of factories particularly in the nineteenth century. A large part of the
population in the nineteenth century still drank from surface water that was used as a sewer
for factories.
The importance of urbanization in the development of water supplies is already highlighted in
this chapter. In the first place it created the need of a water supply system. The demographic
growth and the growing population density in cities caused the amount of waste as well as the
demand for water to grow. In the beginning the urban population used their surface water both
as to drink from and as a sewer. This caused cholera and typhus epidemics. The terrible
circumstances in the cities in the nineteenth century made the need for a working system of
water supplies more pressing. In 1963 the water supply system had been fully developed,
however there were several threats to the system. These threats will be discussed in the next
paragraph.
66
67
Wijmer, Vinke, Water om te drinken, 96.
Leeflang, Ons drinkwater in de stroom van de tijd, 148.
45
3.2 THE NETHERLANDS FROM 1960 TO PRESENT
After the water supply system was finished it was somewhat unclear what exactly the new
tasks of the water supply companies were. Soon pollution of the water appeared to be the
main problem for the water supply companies. It became their key focus.
Due to a growing population and the use of household machines water consumption was
increasing rapidly. An expansion of the capacity of the pipe system was necessary. In the
Netherlands there are two kinds of water supply companies, surface water supply companies
and groundwater supply companies. The former are situated in the West and near the coast
and the latter in the higher parts of the Netherlands. The water supplies that were not situated
near the coast could increase the amount of groundwater that was extracted from the ground,
but the dune water companies had to extract surface water which was more polluted and
therefore harder to purify.
About 70% of the water production exists of groundwater. In the 1960’s and 1970’s the main
pollution problem was the pollution of surface water. Since then the extraction of
groundwater has become difficult too. The extraction of this type of water causes the
groundwater level to decline which means the Netherlands is drying up. In addition there is an
ongoing pollution of groundwater. A famous example of pollution of the surface water is the
Rhine. In the early seventies the Rhine became known as the sewer of Europe. Consequently,
a committee (the Rijncommissie Waterleidingbedrijven, RIWA) that lobbied for international
cooperation to prevent pollution and waste-dumping in the Rhine and the Maas, was set up.68
The countries involved joined forces and appointed more committees to prevent pollution of
the Rhine. However, it did not have much effect until 1969. The public opinion changed after
the water supply companies saved the drinking water from possible pollution from the Rhine.
More campaigns were set up to purify the Rhine and prevent further pollution.
In 1964 the government made a ten-year plan to restrict the pollution of surface water and
control the amount of water that was extracted. The Netherlands was a highly efficient
country which expressed itself also in its water supply system. Around 1960 every household
was connected to the system, so in that area state efficiency had already done its job.
However, state efficiency is visible in the decreasing use of water in the 1990s which shows
68
Leeflang, Water in de stroom der tijd, 200.
46
in the following graph. In the second half of the twentieth century the amount of water that
was being used grew exponentially, especially in the 1960s this rise was huge. This growth
was mainly due to a growing population but the amount of water used per person also rose.
The reason for this growth was the developing consumer society and the use of household
equipments like showers and washing machines. Families could buy these products because
of the rise in GDP. The increasing use of water was a threat to the supply of surface and
groundwater. As is visible in graph 3.1, the amount of water used decreased in the 1990s, due
to water saving measures like water saving showers and the introduction of household water.
Graph 3.1: The use of drinking water in the Netherlands 1899-1998.
Source: CBS, Drinkwater, webmagazine, 18 januari 1999, http://www.cbs.nl/nl-NL/menu/themas/industrieenergie/publicaties/artikelen/archief/1999/1999-0163-wm.htm
The governmental policy to provide for clean drinking water stimulated the industry to find
more efficient and more effective ways to clean the water and because of that industry every
household is provided with clean drinking water and a water supply. The water supply system
inspires the industry to creating products and machines that use a lot of water such as showers
and washing machines. In addition, the rising pollution in combination with the growing
consumption of water threatens Dutch water reserves and it is unsure what will happen in the
future.
The pressure that urbanization exerts on the need for clean drinking water has proven to be a
stimulant for the development of that industry. In the second half of the twentieth century the
47
water supply system in the Netherlands was very reliable and the purifying industry was very
advanced. This relieved the pressure of urbanization on sanitation and water supply.
However, the urbanization with its traffic and growing population also causes a lot of
pollution nowadays.
3.3 INDONESIA FROM 1960 TO PRESENT
Clearly Indonesia is less developed than the Netherlands in some fields. This also counts for
water supplies. As explained in the introduction of this thesis the water supply system was
little developed before 1960. The standard of living of the Indonesian population was so low
that in 1969, when industry and GDP started to grow, the government began executing fiveyear-plans to enhance the standard of living of the Indonesian population. These plans were
called REPELLITAs. Since the condition of the water system was poor, the government put
extra emphasis on improving water supplies. In 1983, at the end of the third REPELITA,
about 40 percent of the urban and semi urban population had access to drinking water through
a pipe network and 23 percent of the rural population had access to drinking water, mainly
from hand pumped wells.69 It is assumed that pipe water and most water from pumps was
clean enough to drink without boiling.70 In 1990, 75 percent of the urban population had
access to drinking water through a pipe network as is evidenced in table 3.1. 71
Table 3.1: Water Supply coverage in Indonesia, 1970-1990.
Year
Urban
Rural
1970
10%
1%
1975
23%
5%
1980
35%
19%
1985
50%
30%
1990
75%
60%
SOURCE: UNDP, ‘ COUNTRY PROFILE: INDONESIA’, UNITED NATIONS DEVELOPMENT PROGRAMME (1990).
In 1980 the Indonesian government had set up a plan to solve all these problems, concerning a
‘mass’ approach. 72
69
Asian Development Bank, Indonesia water Supply and Sanitation sector profile (Manila 1984) x.
Ibidem, 5.
71
Ibidem, x.
72
UNDP, ‘Country profile: Indonesia’, United Nations Development programme (1990) 2.
70
48
This mass approach included five major components. First, the urban areas were classified in
different groups according to population size and minimum daily water requirements were
set. Second, low cost technologies were used. Third, the design types were standardized to
save engineering time, spare costs, ease logistic problems and maintain stocks. Fourth, to
include the private sector, semi-government water supply companies that were eventually
supposed to become self-supporting were created. Water use will be charged to provide
money for maintenance and operations. Fifth, the community had to be educated so that they
became more aware of water issues. 73
After eighteen years it became evident that the attempt of the government at sustainable
solutions had been unsuccessful. There was still a huge problem concerning water supplies in
Indonesia, especially in urban areas like Jakarta. The public water system in Jakarta is largely
dependable on surface water. Due to poor quality, low pressure and incomplete coverage of
the network most residents depend on a variety of water sources, including water vendors,
bottled water and groundwater from both deep and shallow wells. The prices of drinking
bottled water and water vendors had risen because the private sector was focused on making
profits. This left the poor population with two options, pay high prices for drinking water or
drink groundwater which was polluted. 74 Since 1998 the number of people who depend on
groundwater has risen from 5 million to 12 million which has seriously damaged the aquifer,
leading to pollution caused by saline or sewage. With the extraction of groundwater, seawater
intrudes into the soil making the groundwater salty. Improper sewage disposal makes the
aquifer polluted.75
In the short term the government has found ways to cope with the increasing pollution of the
soil and a shortage of water. First, a competitive water market reduces water prices and
ensures water quality. Second, public education on rainwater harvesting would help people to
cope with the water shortages. Third, contamination of groundwater can be reduced by
educating the people who are not connected to sewer systems about proper construction of
septic tanks and sewage disposal.
Water supplies have in some ways a different relation with a working democracy than
education and disability insurance have. This is due to the basic need for clean drinking water.
Of the three elements of the welfare state water supplies is the most elementary because a lack
73
Ibidem, 4.
M. Ramachandran, ‘Reversing the Race to the Bottom: Urban Groundwater Use in Development Countries’,
Environment 50 (2008) 55.
75
Ibidem, 54-55.
49
74
of drinking water and proper sanitation may cause several deathly diseases. Consequently,
clean drinking water is elementary for the prosperity of the inhabitants of a country. Until
1998 Indonesia was not a working democracy. It may be said that a working democracy does
not have an essential influence on the development of a water supply system. Since 1998
there still are a lot of problems with the water supply system to which the Indonesian
government does not have sustainable long-term solutions.
The main problems in the construction of a water supply system in Indonesia were the lack of
trained engineering staff, institutional and financial problems, and the organization of services
nationally and locally for the most effective utilization of the manpower available. Generally
the responsibility for water supply and sanitation is vested in the local governments, but
because of their lack of funds and staff the actual preparation and implementation of projects,
including funding of investments, is executed by central government departments.76 However,
the Indonesian government suffers from institutional problems such as corruption and a
proper state efficiency, which prevents or delays the realization of plans. The Indonesian state
lacks efficiency concerning water supplies. The plans that were made in 1984 are a good
example of that because after eighteen years, no progress was made. Especially in the long
term sustainable solutions appear to be impossible to successfully implement in the
Indonesian state.
Indonesia was independent since 1948 and only in 1969 the government started to make plans
for a water supply system. From this can be concluded that other reasons, like economic
growth and industrialization have a larger influence on the development of a water supply
system than self-rule.
In the 1970’s and 1980’s the GDP started the rise in Indonesia which provided more money to
improve the water supply system. As mentioned above there are still financial problems. The
REPELITA’S have tried to save costs by standardizing machines etc., but the biggest problem
is that the water supply system is not financially viable. Economic development is leading to
rapid population growth in Indonesia. A major part of the population is still very poor which
means that they cannot pay the high water prices and have to use groundwater which leads to
pollution of the aquifer, especially in urban areas.
Industrialization arrived in 1970. Industrialization has both a positive and a negative influence
on the Indonesian water supply system. On the positive side is the fact that the economy grew
76
Asian development bank, Indonesia water supply, xi.
50
after industrialization, providing more money for the system. Thanks to industrialization, the
water supply system could be industrialized itself. The pipe system could be standardized, just
as machines used for building a pipe system and new and better purifying techniques could be
developed and applied. On the negative side industrialization causes pollution which was very
unfortunate for the vulnerable Indonesian water supply system.
Throughout the twentieth century Indonesia has been a mostly rural country. In rural areas the
need for water supplies is less because there is a lower population density and less pollution.
In urban areas the need for water supplies is more pressing. In urban areas more water is
consumed and there is a higher grade of pollution. Most of the urban-poor live in kampongs.
These are high density villages where the canals and rivers nearby are used as a playground
for children as well as a sewer. The water comes from a communal tap which means some
people had to walk a long way to get water.
77
Still, urbanization is going at a good pace,
which puts the government in the difficult position to provide water supplies to the expanding
population. The need for water supplies in urban areas presses the government for the
development of a water supply system.
3.4 CONCLUSION
The water supply system in both countries did not arise without difficulties. In both countries
the same difficulties appeared, most importantly lack of clean drinking water caused by
pollution of the water and the rise of urbanization and industrialization.
The influence of the five variables will now be discussed in order. What has to be borne in
mind is that the main reason for the development of a water supply system is public health.
The working democracy probably has the least influence of all the five variables. In a way the
relation between water supplies and a working democracy can be compared with the relation
between education and a working democracy and disability insurance and a working
democracy. When a working democracy is present everybody wants clean drinking water.
However the difference between the two latter elements of the welfare state and water
supplies is the inevitable benefit water supplies brings to public health. In this chapter it
became clear that that is a very important difference. In Indonesia there was no working
democracy until 1998 and in the Netherlands the working democracy was official since 1917.
77
UNDP, ‘Country profile: Indonesia’, 2.
51
In both countries the government took the responsibility to develop a water supply system
after the dangers of non-drinking water and bad sanitation for public health became visible.
The main difference between the Netherlands and Indonesia lies in the state efficiency. As
became painfully apparent in Indonesia, institutional problems opposed the creation of a
working water supply system. Today Indonesia does not have a proper working water supply
system with total coverage. In the Netherlands it took half a century before every household
was connected to the network. Indonesia started to develop the water supply system in 1969
and therefore it is not developing slow in comparison with the Netherlands. However, the
system in Indonesia still suffers from a lot of difficulties and future prospects are not very
promising. A water supply system has become a basic and necessary facility of the state. It is
very important to solve the problems to create a working water supply system. The lack of
state efficiency increases the vulnerability of the system and creates other problems such as
the groundwater problem in Indonesia.
A high G.D.P. is, just as industrialization and urbanization, very influential in the beginning,
because it makes it possible to provide clean drinking water and a good sanitation system.
Especially in Indonesia there is a clear connection between the rise of the GDP at the end of
the 1960s and the plans the government made concerning water supplies in 1969. In
Indonesia, a big part of the population is still very poor and cannot pay the high water prices.
This also occurred in the second half of the nineteenth century in the Netherlands. In the
Netherlands the government started to provide water for the poor while in Indonesia this has
not yet happened.
Furthermore we have seen that industrialization can have negative effects in the sense that it
causes environmental pollution, pollution of the water which calls for enhanced purification
technologies. Urbanization also causes pollution of the water because of the large amount of
waste and the higher need for water in areas with a high population density. Especially in the
beginning of the water supply system of both countries the pollution concerns mainly
improper sanitation whereas later on it causes pollution problems such as traffic emissions.
Urbanization and industrialization are an incentive for the creation of a water supply system
in both cases. Yet it also challenges governments to provide drinking water, and it is
important for public health that the government succeeds in that.
As indicated before, Indonesia and the Netherlands suffer from some of the same problems
such as pollution. Indonesia in the second half of the twentieth century has met the same
problems as the Netherlands in the first half of the nineteenth century, urbanization and
52
industrialization. However, the Indonesian problem is the lack of state efficiency, which
causes an underdeveloped water supply system and serious environmental problems such as
pollution of the aquifer.
53
CHAPTER FOUR: CONCLUSION
In this conclusion an answer will be given to the thesis question. How and why did the
Netherlands came to develop a modern welfare state and did Indonesia not succeed in
creating a modern welfare state?
In the Netherlands the welfare state came up at the end of the nineteenth century. In Indonesia
collective arrangements are a late 20th century development.
Table 4.1 on page 59 gives a schematic overview of the results that have been established in
the previous chapters. The concept of this table and the following calculations is explained in
the introduction. It is difficult to determine uniform results because both the countries and the
periods differ greatly. As has become clear the cases of the Netherlands 1850-1960 and
Indonesia 1960-present can be compared the best. Each case is represented in table 4.1.
However, the time periods in the table differ from the time periods in which the chapters are
divided. This is because the variables become present in different years. The time periods in
the table define when a variable or an element (education, disability insurance and water
supplies) changed from absent to present. A reminder of these specific years will now be
given. In the Netherlands a democracy was not present until 1917, state efficiency was found
present since 1900. Self-rule was present during the whole period as was a sufficiently high
GDP and a high enough degree of urbanization, and industrialization had developed enough
to be considered present since 1900.
In Indonesia all the variables became present much later. Indonesia was a working democracy
since 1998, self-rule became present in 1945, the GDP had crossed the $ 2000 threshold by
1986, industrialization is absent during the whole period and urbanization became present
since 1900. State efficiency is absent during the whole period as well.
Of the three elements that are discussed it was determined in the introduction when they are
considered absent or present as well. Education in the Netherlands is considered present in
1900, in Indonesia since 1995. Disability insurance is considered present in the Netherlands in
1901 and in Indonesia in 2004 whereas water supplies is considered present in the
Netherlands in 1949 and in Indonesia in 1998. The variables have been chosen because they
are exceeded at a certain moment in time. However, it took time to realize the elements of the
welfare state, disability insurance is not installed overnight. Therefore some modification
54
have been made for disability insurance in Indonesia in the period 1998-present. The first
disability insurance act in Indonesia was actually established in 2004, however the average
sum of the years is taken and in most years disability insurance was present and therefore
disability insurance is considered present in that period. For education the same has been done
in the period 1990-1998 in Indonesia, since universal enrolment rates have been achieved in
1995. Education is considered absent in the period 1990-1998 since it was absent in most of
those years.
To hold on to the existing structure each case will now be analyzed in order.
4.1 THE NETHERLANDS FROM 1850 TO 1960
The Netherlands democracy developed gradually. The process began in 1848 and in 1917
universal male suffrage was established. The national education system was the first of the
three elements of the welfare state to develop both in the Netherlands and in Indonesia. In the
Netherlands the education system developed simultaneously with the democracy. More
educated people resulted in an increase of democracy which consequently led to more
education. Disability insurance and water supplies became quasi universal for all inhabitants
around the turn of the century. For those cases a change in the administrative system was
necessary before government plans were carried out. State efficiency was also very important
for the education system, but no change in the administrative system was necessary. ‘De
maatschappij tot nut van ´t algemeen’ carried out their tasks with great enthusiasm and the
number of school inspection officials kept on rising.
A high GDP enabled all three elements of the welfare state to develop. After the increase in
GDP because of industrialization the enrolment rates went up, and education also stimulated
economic growth by increasing trade and industry. When the work to be carried out by the
workers became more complex, the value of the worker rose which meant that disability
insurance was seen as an investment. More importantly, because of a rise in GDP more
money was available for disability insurance. Water supplies benefited from a higher GDP
because it enabled the population to afford clean water and as well enabled an expansion of
the water supply system and purification of the water.
Education made it possible for workers to use more complex machinery and because of
industrialization more money could be used for education. In the cases of disability insurance
and water supplies industrialization and urbanization have played the largest role. The growth
55
of industrialization in 1870 and continuous urbanization created the need for both water
supplies and a disability insurance. For disability insurance industrialization was the main
incentive. The changing work environment and the hazardous jobs increased the amount of
accidents. Next to that the demographic growth and the increasing urbanization created an
environment in which party organization and labour unions benefited. The need for a water
supply system emerged in the 1870s when industrialization and demographic growth caused
increasing urbanization. The need for water and the amount of waste was higher in cities.
4.2 THE NETHERLANDS FROM 1960 TO PRESENT
After the Second World War the government had a strong belief as to the extent to which
social change could be effected by government policies. In addition, there was a new view on
democracy which included that the government was responsible for its citizens and had to
provide them with a certain standard of living. This resulted in a revision of the education
system, making primary and secondary education accessible to all social classes. At the same
time an expansion of the social security system took place.
Every household had been connected to the water supply system and pollution became the
biggest problem for water supplies. According to the new view on democracy a high quality
of drinking water is required and the government made plans to restrict pollution. The
expansion and reorganization of the education system, social security system and water
supplies demanded an expansion and reorganization of the bureaucracy and the Netherlands
has become a highly efficient country.
The Dutch GDP started to rise in the years after the Second World War which facilitated the
expansion of the welfare state. Enrolment rates increased thanks to the new education system
and the amount of government expenditure on education grew. More importantly, the social
security system became very extensive and the costs of the system kept rising, which put a lot
of pressure on the state treasury. At the end of the 1980s measures that were taken to reduce
the costs started to work. The GDP growth also worked negatively on the water supplies.
Because the population kept getting richer and a consumer society emerged with products like
washing machines and showers the amount of water used kept rising which has negative
effects on the environment.
The Netherlands were very industrialized. In the period after 1960 the tertiary sector rose and
society changed into an consumer society. The demands for the level of schooling rose
56
because of the complexity of industry. The standard of living had increased a lot and more
people started to work in the tertiary sector. This caused a change in the types of causes of
disablement. For water supplies industrialization had a good side and a bad side. On the one
hand industrialization found ways to purify the water whereas on the other hand the industry
was an important factor that polluted the water. In addition, the industry invented products
like showers and washing machines which used a lot of water.
The Netherlands had become more and more urbanized. Secondary and primary schools were
established throughout the country. The relationship between urbanization and education is
not very important in this part of the thesis. The same can be said for disability insurance, the
slums of the nineteenth century had made way for clean and safe houses which were not
dangerous anymore for public health. The extended purifying industry and the reliable water
supply system had relieved the pressure of urbanization on the water supply system.
However, urbanization still caused a lot of pollution.
4.3 INDONESIA FROM 1850
TO 1960
Indonesia was, logically, the least developed in this period. None of the variables were found
present before 1945.
The education system the Dutch had set up was of poor quality and not accessible for the
whole indigenous population. Before 1900 Indonesia was exploited by the Dutch, and through
the idea of ‘ethical policy’ the Dutch set up an education system in order to stimulate
economic growth. Since the Indonesian GDP was so very low, there was no money to provide
for the system, therefore the Dutch spent a limited amount on building up the education
system. The variables are absent in the table. For water supplies and disability insurance the
reason for this absence is that the need for these elements was relatively low because
industrialization and urbanization had not yet begun. Disability insurance and water supplies
could be provided on a small scale, in towns or by family ties and the community.
4.4 INDONESIA 1960-PRESENT
Indonesia became a democracy in 1998. However, attempts had already been made to provide
collective arrangements for education, disability insurance and water supplies. The education
system was relatively successful in comparison with the other two elements. After
57
independence a uniform education system was implemented. In the 1970s and 1980s
government expenditure on education increased which led to universal primary education in
the 1990s. However, the education system still lacked quality. The education system was the
first of the three elements of the welfare state in which the Indonesian government took
collective action. For a national disability insurance program the democracy appeared to be of
great influence for Indonesia. Before the democracy was installed the program was only
available for public employees and private companies above a certain size and income. After
the democracy was introduced, plans for a national social security system were legislated.
Although the Indonesian population was in favour of enhancing the standard of living, water
supplies was so important for the health of the population that the goal of the government
already was enhancing the standard of living before it became a democracy.
In Indonesia a large problem lies in the execution of the state. There is a lack of state
efficiency for each element of the welfare state. Government plans and laws on the topics of
water supplies and disability insurance are made but little improvements can be seen, and
although universal primary enrolment is achieved, the quality of the education system is not
very good. In 1969 the GDP started to rise because of the oil crisis and the government tried
to enhance the standard of living for the poor by implementing a water supply system. This
took place gradually and in 1990 75 percent of the urban population was connected to the
network. However, the water supply system still suffered from unreliability, incomplete
coverage and low pressure which necessitates the poor to find other sources of water
including drinking from polluted groundwater, just as the Dutch population did before the
water supply system was fully implemented. The growth of the GDP, industrialization and
urbanization in the 1970s was the main incentive for collective arrangements for disability
insurance and water supplies. The initiative for an education system had already been taken
earlier. Industrialization and urbanization created the need for a disability insurance and water
supplies in similar ways as it did in the Netherlands. The rise of GDP enabled the Indonesian
government to establish disability insurance and water supplies and to enhance the education
system.
In sum, the working democracy was only present since 1998 and influenced disability
insurance a great deal because a law for a national social security system was established, the
other two elements were already available for the whole population.
58
State efficiency lacks in the Indonesian welfare state. It is absent in every element of the
welfare state. Self-rule benefited especially the education system but also disability insurance
and water supplies because the Dutch did not establish that during their reign.
A high GDP made collective arrangements possible. When the GDP started to rise in 1970s
the enrolment rates grow and a social security system and water supplies was implemented.
However the GDP was only considered present in the table since 1986. Industrialization and
urbanization created the need for disability insurance and water supplies.
59
Democracy
The
Netherlands
Education
Disability
insurance
Water
supplies
Indonesia
Education
Disability
insurance
Water
supplies
1850-1890
1890-1900
1900-1917
1917-present
1850-1890
1890-1900
1900-1917
1917-present
1850-1890
1890-1900
1900-1917
1917-present
1850-1945
1945-1986
1986-1990
1990-1998
1998-present
1850-1945
1945-1986
1986-1990
1990-1998
1998-present
1850-1945
1945-1986
1986-1990
1990-1998
1998-present
0
0
0
1
0
0
0
1
0
0
0
1
0
0
0
0
1
0
0
0
0
1
0
0
0
0
1
State
efficienc
y
0
1
1
1
0
1
1
1
0
1
1
1
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Selfrule
GDP
Industriali
zation
Urbanization
Outcome
1
1
1
1
1
1
1
1
1
1
1
1
0
1
1
1
1
0
1
1
1
1
0
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
0
0
1
1
1
0
0
1
1
1
0
0
1
1
1
0
0
1
1
0
0
1
1
0
0
1
1
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1
1
1
1
1
1
1
1
1
1
1
1
0
0
0
1
1
0
0
0
1
1
0
0
0
1
1
0
0
1
1
0
0
1
1
0
0
1
1
0
0
0
0
1
0
0
0
0
1
0
0
0
0
1
TABEL 4.1
60
4.5 GENERAL ANALYSIS
The table above (table 4.1) gives a schematic view of the variables and whether they are
present or not during a certain period. The following table (table 4.2) is, as explained in the
introduction of this thesis, distilled from the Boolean truth table. The truth table contains all
possible logical outcomes. Table 4.2. summarises those that actually appeared in table 4.1.
TABEL 4.1
D
E
S
G
0
0
0
0
0
0
1
0
0
0
1
1
0
0
1
1
0
1
1
1
0
1
1
1
1
0
1
1
1
1
1
1
D= democracy
E=State efficiency
S= Self-rule
G= GDP
I= Industrialization
U= Urbanization
N= number of total instances
O= number of instances of welfare state.
I
0
0
0
0
0
1
1
1
U
0
0
0
1
1
1
1
1
N
3
3
3
6
3
3
3
3
O
0
0
0
0
0
3
3
3
According to the Boolean analysis the following calculations can be drawn from table 2.
O= 011111+101111+111111
O=dESGIU+DeSGIU+DESGIU
O=ESGIU+DSGIU
O=SGIU (E+D)
And:
o= 000000+001000+001100+001101+011101
o= desgiu+deSgiu+deSGiu+deSGiU+dESGiU
o= degiu+desiu+deSGi+dSGiU
These calculations show that Self-rule, GDP, Industrialization and Urbanization, combined
with either State efficiency or Democracy lead to the development of a welfare state in the
Netherlands and Indonesia. A welfare state is not achieved when, obviously, none of the
variables are present, when only self-rule and GDP are present or when only GDP, Self-rule
and urbanization are present. Because self-rule is found present in both O and o, the variable
seems to be unimportant and can therefore be left out of the equation. Consequently the
equation becomes O=GIU (E+D). What seems contradictory to what might be expected is that
61
the next variable with the least importance is GDP. The reason that the GDP is prominently
visible in o is the way it is measured in the table. It is measured at $2000 per capita, if the
limit would be set higher for the Netherlands it is likely that the GDP is less prominent in o.
The final equation that O=GIU (E+D) is supported by the notion that in both countries the
variables GDP, industrialization and urbanization were present before state efficiency and
democracy became present. The Dutch welfare state developed around 1900. Since 1917 all
variables present in the equation were present in the Netherlands. Industrialization came up in
the 1870s and the country already had a relatively high GDP as well as a relatively high level
of urbanization. As shown in the thesis the level of state efficiency was sufficient since 1900
and after 1917 the Netherlands was considered a working democracy. Indonesia followed a
different pattern. In the 1970s in Indonesia industrialization grew as did the GDP and
urbanization. In 1998 Indonesia became a working democracy, however state efficiency is
still not present as is industrialization. Of the variables necessary to obtain O, according to
this thesis, state efficiency and industrialization are missing. Even though the elements
necessary for the development of the welfare state are ultimately present in Indonesia, the
question is whether Indonesia has developed a welfare state, and if so it is still very fragile.
This state of the welfare state can be explained by the lack of industrialization and state
efficiency of Indonesia. The final answer to the question why and how the Netherlands did
came to develop a welfare state and how and why Indonesia did not succeed in creating a
welfare state appears to be the previous sentence. After a Boolean analysis it became clear
that the equation towards developing a welfare state is O=GIU(E+D). Since both
industrialization, which is a necessary condition in the equation, and state efficiency, which is
a sufficient condition, are absent in Indonesia it cannot be concluded that Indonesia is indeed
ready to develop a welfare state.
62
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