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The Politics of Development Policy and Development Policy Reform in New Order Indonesia

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  • Michael T. Rock

Abstract

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.

Suggested Citation

  • Michael T. Rock, 2003. "The Politics of Development Policy and Development Policy Reform in New Order Indonesia," William Davidson Institute Working Papers Series 2003-632, William Davidson Institute at the University of Michigan.
    • Handle: RePEc:wdi:papers:2003-632
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    File URL: http://deepblue.lib.umich.edu/bitstream/2027.42/40018/3/wp632.pdf
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    Cited by:

    1. Jacob W. Musila, 2013. "Does Democracy Have a Different Impact on Corruption in Africa?," Journal of African Business, Taylor & Francis Journals, vol. 14(3), pages 162-170, December.
    2. Prayudhi Azwar & Rod Tyers, 2015. "Indonesian Macro Policy through Two Crises," CAMA Working Papers 2015-16, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
    3. Landiyanto, Erlangga Agustino, 2015. "Transformation of the national monitoring and evaluation arrangement in decentralized Indonesia," MPRA Paper 69073, University Library of Munich, Germany.
    4. Olalekan Charles Okunlola, 2019. "Political Regime Types and Economic Development in Nigeria: Significance of Conflict and Corruption," Journal of Interdisciplinary Economics, , vol. 31(2), pages 183-216, July.
    5. Saleem, Zahabia & Donaldson, John A., 2016. "Pathways to poverty reduction," LSE Research Online Documents on Economics 67523, London School of Economics and Political Science, LSE Library.
    6. Michael Rock, 2009. "Corruption and Democracy," Journal of Development Studies, Taylor & Francis Journals, vol. 45(1), pages 55-75.
    7. Michael T. Rock, 2007. "Corruption and Democracy," Working Papers 55, United Nations, Department of Economics and Social Affairs.
    8. Rock, Michael T., 2009. "Has Democracy Slowed Growth in Asia?," World Development, Elsevier, vol. 37(5), pages 941-952, May.

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    More about this item

    Keywords

    Suharto; New Order; corruption; Indonesia; development policy; economic reform;
    All these keywords.

    JEL classification:

    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • N15 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Asia including Middle East
    • N55 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - Asia including Middle East
    • N65 - Economic History - - Manufacturing and Construction - - - Asia including Middle East

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