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Indonesian economic development: political economy of an effective state

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  • Richard Grabowski

Abstract

Over the last four decades, the Indonesian state has effectively combined rapid economic growth with significant reductions in poverty, i.e. pro-poor growth. This paper argues that the effective reduction of poverty resulted from rapid agricultural growth. This in turn was the result of a strategy of development involving significant agricultural investment. It will be argued that the ruling elite chose this path because it was dependent on agriculture for its political survival and a backlog of agricultural technology was readily available. Without the latter, Indonesia would likely have followed an extractive strategy with respect to agriculture (similar to Africa).

Suggested Citation

  • Richard Grabowski, 2011. "Indonesian economic development: political economy of an effective state," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 16(2), pages 241-253.
    • Handle: RePEc:taf:rjapxx:v:16:y:2011:i:2:p:241-253
    DOI: 10.1080/13547860.2011.564748
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    References listed on IDEAS

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    1. Peter Warr, 2002. "Poverty Incidence and Sectoral Growth: Evidence from Southeast Asia," WIDER Working Paper Series DP2002-20, World Institute for Development Economic Research (UNU-WIDER).
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