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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Length: 60 pages Date of creation: 01 Nov 2003 Date of revision: Handle: RePEc:wdi:papers:2003-632
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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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References listed on IDEAS 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.:
Shleifer, Andrei & Vishny, Robert W, 1993.
"Corruption,"
The Quarterly Journal of Economics,
MIT Press, vol. 108(3), pages 599-617, August.
[Downloadable!] (restricted)
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Andrei Shleifer & Robert W. Vishny, 1993.
"Corruption,"
NBER Working Papers
4372, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)