THE ECONOMIC EFFECT OF DEMOCRATIC SECURITY POLICY AGAINST INEQUITY: EMPIRICAL CASE FROM COLOMBIA, 2000-2006

Colombia was the 5th largest economic power in South America and 31st in the worldin 1990, with petroleum commodity making up almost half of the entire income. Despite the records and resources, the distribution was centralized in major metropolitan areas such as Bogota, Medellin and Cali. At its worst, during 2000-2006, Colombia experienced an increasing in GDP per Capita followed by an often fluctuate Gini Ratio higher than 0,5 which may fall into the category of high inequity. As part of President Alvaro Uribe’s democratic security policy, war against terrorism and illegal drug trading was implied by showing domination of the military between 2000-2004. Several operations and sieges were carried out all over the country to seize the objectives. Throughout the operation, the civil society was on the verge of political and social turmoil. Using a high quality dataset of wealth indicators over the period 2000-2006, this paper develops a correlation of the economic performance and socio-political condition. This model is parameterized by a dataset of graphs which describes the condition of wealth in Colombia. Having similarities in political and economical situation, the experience of Colombia could be a lesson, review or benchmark for the development progress of Indonesia. Keywords: Inequity, Income Inequality, Gini Ratio, GDP Per Capita, Democratic Security Polic