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Growing into Trouble: Indonesia After 1966

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  • Temple, Jonathan

Abstract

This paper analyses the remarkable growth experience of Indonesia since 1966. Over a thirty-year period, GDP per capita rose more than fourfold, despite unfavourable initial conditions, some weak institutions, and flawed microeconomic policies. The paper attributes this strong performance to a mutually reinforcing combination of political stability, competent macroeconomic policy, and some important instances of good fortune. It explores the origins of good policy and analyses three of the main external shocks. The paper also argues that rapid growth interacted with weak institutions in a way that contributed to the severity of the crisis of 1997-98.

Suggested Citation

  • Temple, Jonathan, 2001. "Growing into Trouble: Indonesia After 1966," CEPR Discussion Papers 2932, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:2932
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    References listed on IDEAS

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    Cited by:

    1. Skoufias, Emmanuel & Narayan, Ambar & Dasgupta, Basab & Kaiser, Kai, 2011. "Electoral accountability, fiscal decentralization and service delivery in Indonesia," Policy Research Working Paper Series 5614, The World Bank.
    2. Timmer, Peter C. & Hastuti, Hastuti & Sumarto, Sudarno, 2016. "Evolution and Implementation of the Rastra Program in Indonesia," MPRA Paper 81018, University Library of Munich, Germany, revised 30 Sep 2017.
    3. Dijk van, M., 2003. "Industry Evolution in Developing Countries: the Indonesian Pulp and Paper Industry," Working Papers 03.02, Eindhoven Center for Innovation Studies.
    4. Skoufias, Emmanuel & Narayan, Ambar & Dasgupta, Basab & Kaiser, Kai, 2014. "Electoral accountability and local government spending in Indonesia," Policy Research Working Paper Series 6782, The World Bank.
    5. Mullen, Kathleen & Sun, Dongsheng & Thomas, Marcelle & Orden, David & Gulati, Ashok, 2004. "Agricultural Policy Interventions In Developing Countries: Mapping The Nature, Degree And Progress Of Reforms," 2004 Annual meeting, August 1-4, Denver, CO 20081, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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    More about this item

    Keywords

    Indonesia; Growth; Structural change;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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