The Politics of Development Policy and Development Policy Reform in New Order Indonesia
Michael T. Rock
Hood College - Department of Economics and Management
William Davidson Institute Working Paper No. 632
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.
Number of Pages in PDF File: 60
Keywords: Suharto, New Order, corruption, Indonesia, development policy, economic reform
JEL Classification: O53, Q1, F14, N15, N55, N65working papers series
Date posted: November 19, 2003
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