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Indonesia: From Showcase to Basket Case

  • Pincus, Jonathan
  • Ramli, Rizal
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    The repercussions of the East Asian financial crisis have been the most severe in Indonesia, a country long regarded as one of the developing world's greatest success stories. Although triggered by external factors, the roots of the economic collapse can be traced to a series of policy errors and to the nature of economic policymaking under Suharto. The article reviews the factors leading to the intensification of the crisis, including the attempt of a weak, 'patrimonial' Indonesian state to carry out a wide-ranging program of financial liberalization. The reforms failed to dismantle the patron-client system and increased the risks of financial crash. Copyright 1998 by Oxford University Press.

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    Article provided by Oxford University Press in its journal Cambridge Journal of Economics.

    Volume (Year): 22 (1998)
    Issue (Month): 6 (November)
    Pages: 723-34

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    Handle: RePEc:oup:cambje:v:22:y:1998:i:6:p:723-34
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