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Asian Development Strategies: China And Indonesia Compared

Author

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  • Bert Hofman
  • Min Zhao
  • Yoichiro Ishihara

Abstract

China's and Indonesia's development strategies have been compared with others, but rarely with each other. Radically different political contexts have produced both similar and distinctly different development patterns. Each using formal planning, Indonesia spurred radical reforms to promote growth, whereas China opted for incremental reforms to 'grow out of the Plan', as a political device and to discover what policies and institutions worked. Both strategies produced environments largely conducive to rapid development. Indonesia relied on a few economic technocrats to oversee development; China used decentralisation and party reforms to create a credible environment for non-state investment. Both shared concern for agricultural reform and food security; both opted to open up for trade—China gradually, Indonesia radically. Both did well in growth and poverty reduction following reform. China's growth performance is in a league of its own, especially since Indonesia's Asian crisis setback, but Indonesia had more equitable growth and survived a difficult political transition with, in hindsight, modest costs.

Suggested Citation

  • Bert Hofman & Min Zhao & Yoichiro Ishihara, 2007. "Asian Development Strategies: China And Indonesia Compared," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 43(2), pages 171-200.
    • Handle: RePEc:taf:bindes:v:43:y:2007:i:2:p:171-200
    DOI: 10.1080/00074910701408057
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    References listed on IDEAS

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    4. Hill,Hal, 2000. "The Indonesian Economy," Cambridge Books, Cambridge University Press, number 9780521663670, September.
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    6. Permani Risti, 2011. "The Impacts of Trade Liberalisation and Technological Change on GDP Growth in Indonesia: A Meta Regression Analysis," Global Economy Journal, De Gruyter, vol. 11(4), pages 1-30, December.

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