Proposal penelitian doktoral pembangunan berkelanjutan di daerah-daerah Indonesia

The sustainable development rule identified by Hartwick (1977)
provides a working hypothesis to examine the roles of economic growth,
natural resource rents, human capital and financial capital in
maintaining sustainable path of development. Such rule
has been useful as one among many diagnostics to highlight paths of
development of countries in the world and their sustainability. The
rule however has never been used to examine and inform paths of
development and their sustainability of regions within a
country. Hundreds of regions or districts in Indonesia, due to the
process of decentralisation in the last decade, have some
flexibilities in formulating and pursuing paths of development. These
policies have implications on the extraction of natural resource
rents, human capital formation and financial capital accumulation at
the regional level. These essays will apply Hartwick's rule to examine
Indonesia's and the region's paths of development over the last
decade. These essays could inform interested policy makers and point
to sustainable paths of developments for this country and the regions.

Theory of weak sustainability
The main principles of Hartwick's rule can be seen in the simplest set
up of a closed economy (see Barbier 2005). There is an
exhaustible stock of natural resource, N, and social welfare is
determined solely by broad consumption, C. The main question is:
what is the criterion for weak sustainability or for non-declining
welfare/consumption over time when development entails depletion of
exhaustible natural resources? Crucial to this rule is the conversion
of exhaustible natural resource to other forms of capital such as
human capital and financial capital. Let natural resource extraction
rate be r, all other forms of capital K, its rate of depreciation
d, labour L, and social discount rate ...