The Politics of Development Policy and Development Policy Reform in New Order Indonesia
60 Pages Posted: 19 Nov 2003
Date Written: November 2003
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.
Keywords: Suharto, New Order, corruption, Indonesia, development policy, economic reform
JEL Classification: O53, Q1, F14, N15, N55, N65
Suggested Citation: Suggested Citation
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By Peter Timmer