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The Politics of Development Policy and Development Policy Reform in New Order Indonesia

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Author Info
Michael T. Rock
Abstract

How can we account for Indonesia’s astonishing development performance between 1965 and 1997—rapid growth, massive reduction in the incidence of poverty, low income-inequality and substantial diversification of the economy—in the face of extremely dirigiste microeconomic policies, even by developing country standards, and massive, systemic and endemic rent-seeking and corruption? This question is answered by demonstrating that Suharto, the leader of Indonesia’s New Order government, was extremely successful in building and sustaining a procapitalist, pro-integration with the world economy, and pro-growth with equity political coalition in which corruption played a central role.

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Publisher Info
Paper provided by William Davidson Institute at the University of Michigan Stephen M. Ross Business School in its series William Davidson Institute Working Papers Series with number 2003-632.

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Length: 60 pages
Date of creation: 01 Nov 2003
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Handle: RePEc:wdi:papers:2003-632

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Related research
Keywords: Suharto; New Order; corruption; Indonesia; development policy; economic reform;

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Find related papers by JEL classification:
O53 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
F14 - International Economics - - Trade - - - Country and Industry Studies of Trade
N15 - Economic History - - Macroeconomics and Monetary Economics; Growth and Fluctuations - - - Asia including Middle East
N55 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - Asia including Middle East
N65 - Economic History - - Manufacturing and Construction - - - Asia including Middle East

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Booth, Anne, 1999. "Initial Conditions and Miraculous Growth: Why is South East Asia Different From Taiwan and South Korea?," World Development, Elsevier, vol. 27(2), pages 301-321, February. [Downloadable!] (restricted)
  2. Rock, Michael T., 1999. "Reassessing the Effectiveness of Industrial Policy in Indonesia: Can the Neoliberals be Wrong?," World Development, Elsevier, vol. 27(4), pages 691-704, April. [Downloadable!] (restricted)
  3. Prema-Chandra Athukorala, 2002. "Survey Of Recent Developments," Bulletin of Indonesian Economic Studies, Taylor and Francis Journals, vol. 38(2), pages 141-162, August. [Downloadable!] (restricted)
  4. Kaufmann, Daniel & Kraay, Aart & Zoido-Lobaton, Pablo, 1999. "Governance matters," Policy Research Working Paper Series 2196, The World Bank. [Downloadable!]
  5. Natasha Hamilton-Hart, 2001. "Anti-Corruption Strategies In Indonesia," Bulletin of Indonesian Economic Studies, Taylor and Francis Journals, vol. 37(1), pages 65-82, April. [Downloadable!] (restricted)
  6. Thee Kian Wie, 2002. "Competition Policy in Indonesia and the New Anti-Monopoly and Fair Competition Law," Bulletin of Indonesian Economic Studies, Taylor and Francis Journals, vol. 38(3), pages 331-342, December. [Downloadable!] (restricted)
  7. Armida S. Alisjahbana & Chris Manning, 2002. "Survey of Recent Developments," Bulletin of Indonesian Economic Studies, Taylor and Francis Journals, vol. 38(3), pages 277-305, December. [Downloadable!] (restricted)
  8. Pincus, Jonathan & Ramli, Rizal, 1998. "Indonesia: From Showcase to Basket Case," Cambridge Journal of Economics, Oxford University Press, vol. 22(6), pages 723-34, November.
  9. Michael T. Rock, 2002. "Exploring the impact of selective interventions in agriculture on the growth of manufactures in Indonesia, Malaysia, and Thailand," Journal of International Development, John Wiley & Sons, Ltd., vol. 14(4), pages 485-510. [Downloadable!]
  10. Haryo Aswicahyono, 2000. "How Not to Industrialise? Indonesia's Automotive Industry," Bulletin of Indonesian Economic Studies, Taylor and Francis Journals, vol. 36(1), pages 209-241, April. [Downloadable!] (restricted)
  11. Nicole Mellington & Lisa Cameron, 1999. "Female Education and Child Mortality in Indonesia," Bulletin of Indonesian Economic Studies, Taylor and Francis Journals, vol. 35(3), pages 115-144, December. [Downloadable!] (restricted)
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  12. Hill, Hal, 1996. "Indonesia's Industrial Policy and Performance: "Orthodoxy" Vindicated," Economic Development and Cultural Change, University of Chicago Press, vol. 45(1), pages 147-74, October.
  13. Howard Dick, 2001. "Survey Of Recent Developments," Bulletin of Indonesian Economic Studies, Taylor and Francis Journals, vol. 37(1), pages 7-41, April. [Downloadable!] (restricted)
  14. Jake Redway, 2002. "An Assessment Of The Asset Management Company Model In The Reform Of Indonesia'S Banking Sector," Bulletin of Indonesian Economic Studies, Taylor and Francis Journals, vol. 38(2), pages 241-250, August. [Downloadable!] (restricted)
  15. Shleifer, Andrei & Vishny, Robert W, 1993. "Corruption," The Quarterly Journal of Economics, MIT Press, vol. 108(3), pages 599-617, August. [Downloadable!] (restricted)
    Other versions:
    • Andrei Shleifer & Robert W. Vishny, 1993. "Corruption," NBER Working Papers 4372, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  16. Paul R. Deuster, 2002. "Survey Of Recent Developments," Bulletin of Indonesian Economic Studies, Taylor and Francis Journals, vol. 38(1), pages 5-37, April. [Downloadable!] (restricted)
  17. Anne Booth, 2000. "Poverty and Inequality in The Soeharto Era: An Assessment," Bulletin of Indonesian Economic Studies, Taylor and Francis Journals, vol. 36(1), pages 73-104, April. [Downloadable!] (restricted)
  18. Sato, Yuri, 1993. "The Salim Group in Indonesia: the development and behavior of the largest conglomerate in Southeast Asia," The Developing Economies, Institute of Developing Economies, Japan External Trade Organization(JETRO), vol. 31(4), pages 408-441, December. [Downloadable!]
  19. Reza Y. Siregar, 2001. "Survey Of Recent Developments," Bulletin of Indonesian Economic Studies, Taylor and Francis Journals, vol. 37(3), pages 277-303, December. [Downloadable!] (restricted)
    Other versions:
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