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The struggle to regain effective government under democracy in Indonesia

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  • Ross Mcleod

Abstract

With Soeharto's demise, Indonesia gained democracy but lost effective government. A return to sustained, rapid economic growth will require an overhaul of Indonesia's bureaucracy and judiciary which, along with the legislatures, the military and the state-owned enterprises, had been co-opted by the former president into his economy-wide 'franchise'—a system of government designed to redistribute income and wealth from the weak to the strong while maintaining rapid growth. This franchise has disintegrated, its various component parts now working at cross-purposes rather than in mutually reinforcing fashion. The result has been a significant decline in the security of property rights and, in turn, the continued postponement of a sustained economic rebound. To reform the civil service it will be necessary to undertake a radical overhaul of its personnel management practices and salary structures, so as to provide strong incentives for officials to work in the public interest.

Suggested Citation

  • Ross Mcleod, 2005. "The struggle to regain effective government under democracy in Indonesia," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 41(3), pages 367-386.
    • Handle: RePEc:taf:bindes:v:41:y:2005:i:3:p:367-386
    DOI: 10.1080/00074910500117289
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    References listed on IDEAS

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    Cited by:

    1. Sjahrir, Bambang Suharnoko & Kis-Katos, Krisztina & Schulze, Günther G., 2014. "Administrative Overspending in Indonesian Districts: The Role of Local Politics," World Development, Elsevier, vol. 59(C), pages 166-183.
    2. Marleen Dieleman & Wladimir M. Sachs, 2008. "Coevolution of Institutions and Corporations in Emerging Economies: How the Salim Group Morphed into an Institution of Suharto's Crony Regime," Journal of Management Studies, Wiley Blackwell, vol. 45(7), pages 1274-1300, November.
    3. Dutta, Nabamita & Roy, Sanjukta, 2016. "The interactive impact of press freedom and media reach on corruption," Economic Modelling, Elsevier, vol. 58(C), pages 227-236.
    4. Muhammad Tariq Majeed & Ronald MacDonald, 2010. "Corruption and the military in politics: theory and evidence from around the world," Working Papers 2010_34, Business School - Economics, University of Glasgow.
    5. Ross H Mcledo, 2008. "The Soeharto Era: From Beginning to End," Departmental Working Papers 2008-03, The Australian National University, Arndt-Corden Department of Economics.
    6. Gema Satria Mayang Sedyadi & Hans Antlov & Ishkak Fatonie & Rudy Sabri & Ajoy Datta & Rachma Indah Nurbani, "undated". "Kebijakan, Perubahan, dan Paradoks di Indonesia: Implikasi terhadap Penggunaan Pengetahuan," Working Papers 3788, Publications Department.
    7. Kelly Bird & Hal Hill & Sandy Cuthbertson, 2008. "Making Trade Policy in a New Democracy after a Deep Crisis: Indonesia," The World Economy, Wiley Blackwell, vol. 31(7), pages 947-968, July.
    8. Krisztina Kis-Katos & Günther G. Schulze, 2013. "Corruption in Southeast Asia: a survey of recent research," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 27(1), pages 79-109, May.
    9. Sohn, Kitae, 2015. "The height premium in Indonesia," Economics & Human Biology, Elsevier, vol. 16(C), pages 1-15.
    10. Michael T. Rock, 2007. "Corruption and Democracy," Working Papers 55, United Nations, Department of Economics and Social Affairs.
    11. Ross H. McLeod, 2006. "Doing Business in Indonesia: Legal and Bureaucratic Constraints," Departmental Working Papers 2006-12, The Australian National University, Arndt-Corden Department of Economics.
    12. Meričková Beáta Mikušová & Bašteková Andrea & Stejskal Jan & Pekár Bernard, 2017. "Economic, Political, Social Factor of Corruption in the Slovak Republic," NISPAcee Journal of Public Administration and Policy, Sciendo, vol. 10(1), pages 99-120, June.
    13. Khoirul Aswar & Siti Zabedah Saidin, 2018. "Accrual Accounting Adoption In Java Municipalities: An Empirical Investigation," International Journal of Business and Economic Sciences Applied Research (IJBESAR), Democritus University of Thrace (DUTH), Kavala Campus, Greece, vol. 11(3), pages 24-30, December.
    14. Ryan Edwards, 2015. "Is plantation agriculture good for the poor? Evidence from Indonesia's palm oil expansion," Departmental Working Papers 2015-12, The Australian National University, Arndt-Corden Department of Economics.
    15. Prema-Chandra Athukorala, 2006. "Post-crisis export performance: The Indonesian experience in regional perspective," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 42(2), pages 177-211.
    16. M A B Siddique & Heru Wibowo & Yanrui Wu, 2014. "Fiscal Decentralisation and Inequality in Indonesia: 1999-2008," Economics Discussion / Working Papers 14-22, The University of Western Australia, Department of Economics.
    17. Ajoy Datta & Rachma Indah Nurbani & Gema Satria Mayang Sedyadi & Hans Antlov & Ishkak Fatonie & Rudy Sabri, "undated". "Policy, Change and Paradox in Indonesia: Implications for the Use of Knowledge," Working Papers 1751, Publications Department.
    18. Kyunghoon Kim, 2018. "Matchmaking: Establishment of state†owned holding companies in Indonesia," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 5(2), pages 313-330, May.
    19. Haryo Aswicahyono & Hal Hill, 2015. "Is Indonesia Trapped in the Middle?," Discussion Paper Series 31, Department of International Economic Policy, University of Freiburg, revised Aug 2015.
    20. Rock, Michael T., 2009. "Has Democracy Slowed Growth in Asia?," World Development, Elsevier, vol. 37(5), pages 941-952, May.
    21. Hal Hill, 2018. "Asia's Third Giant: A Survey of the Indonesian Economy," The Economic Record, The Economic Society of Australia, vol. 94(307), pages 469-499, December.
    22. Eungkyoon Lee, 2010. "Information disclosure and environmental regulation: Green lights and gray areas," Regulation & Governance, John Wiley & Sons, vol. 4(3), pages 303-328, September.

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