Analyzing the Protests against Austerity and Inequality
UPSC Relevance
Prelims: International Relations (India and its neighborhood - Southeast Asia, ASEAN); Indian Economy (Gini co-efficient, Sovereign Credit Rating); Current events of international importance.
Mains:
General Studies Paper 1 (Society): Poverty and developmental issues; Effects of globalization on Indian society.
General Studies Paper 2 (International Relations): Effect of policies and politics of developing countries on India’s interests; Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests. (Instability in a key ASEAN nation like Indonesia affects the region and India's Act East Policy).
Key Highlights from the News
In Indonesia, anti-government protests turned violent.
Peaceful protests initiated by students and laborers against the high housing allowance for Members of Parliament escalated nationwide after a protester was fatally hit by a police vehicle.
The main reasons for public anger are the austerity measures implemented by President Prabowo Subianto's government, the growing income inequality, and corruption in the country.
Protesters attacked and set fire to government buildings and homes of political leaders.
While the government is open to discussions on one hand, it is also suppressing the protests by labeling them "terrorism" and "treason" and using the military and police to crack down on them.
International agencies like Fitch Ratings warn that this political instability could negatively impact the country's economic future and sovereign credit profile.
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