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How to Build a Diverse Nation: Lessons from the Indonesian Experience

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  • Samuel Bazzi

Abstract

Building a cohesive nation-state amid deep ethnic, linguistic, and religious diversity is a central challenge for many governments. This paper examines the process of nation building, drawing lessons from the remarkable experience of Indonesia over the past century. I discuss conceptual perspectives on nation building and review Indonesia's historical nation-building trajectory. I then synthesize insights from four studies exploring distinct policy interventions in Indonesia---population resettlement, administrative unit proliferation, land reform, and mass schooling---to understand their effects on social cohesion and national integration. Together, these cases underscore the promise and pitfalls of nation-building efforts in diverse societies, offering guidance for future research and policymaking to support these endeavors in Indonesia and beyond.

Suggested Citation

  • Samuel Bazzi, 2025. "How to Build a Diverse Nation: Lessons from the Indonesian Experience," NBER Working Papers 34540, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:34540
    Note: DAE DEV PE POL
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    JEL classification:

    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • N35 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Asia including Middle East
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • P00 - Political Economy and Comparative Economic Systems - - General - - - General
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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