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The book focuses on the impact of the 1997-99 economic crisis on human development in Indonesia, especially in 1998, its worst year. Based on the definition used by the UNDP, human development is analysed as covering human capital (education and health) and purchasing power. In this book, the concept of human capital is broadened to include freedom from fear, health, education, and migration. The first part of the book discusses the economic situation in Indonesia. The second elaborates on what happened to human capital during the crisis and the third part examines its effects on purchasing power. Because human development does not occur in a vacuum, the fourth part discusses some emerging issues in Indonesia. The book concludes with some thoughts on people-centred development, which may contribute to more sustainable development than the development concept that simply pursues high economic growth. With this people-centred development, growth rates of about 3 to 4 per cent are adequate, as long as Indonesia achieves success in human development.
This book describes and analyses Indonesia's most serious economic crisis, against the general backdrop of economic decline in Southeast Asia. It also looks forward, considering Indonesia's immediate policy challenges to overcome the crisis, and dwelling on some of the longer-term policy challenges raised by the crisis.
Since the fall of President Suharto in May 1998, Indonesia, the third largest country in Asia, has been facing a political, economic and social crisis. Racial and religious clashes, culminating in riots, burning and chaos, have become a daily event throughout the country. There are signs that this multi-racial, multi-religious and multi-cultural country may disintegrate just as Yugoslavia and the Soviet Union. There are two major reasons why Indonesia is facing the crisis. First, Suharto failed to keep the balance of power between the armed forces and Islam, just as Sukarno had failed in his interplay of strength between Communism and the armed forces. When the balance was tilted, chaos and disasters followed. The second reason is that the Indonesian people, at least a section of them, have lost the spirit of tolerance -- symbolised in the Indonesian state crest, Bhenneka Tunggal Ika ('Unity in Diversity') -- which is so vital in a multi-religious and plural society. The mass killing of thousands of ethnic Chinese on 13 May 1998; the appearance of mysterious 'ninja' murders, the burning of churches and mosques, and the religious clashes between Christians and Muslims in Ambon have all indicated that this spirit of tolerance which was once so strongly imbedded in the Indonesian culture is fast evaporating. There seems to be no more rule of law in the country. The cry for 'jihad' among the Muslims in Jakarta, to take revenge on the Christians in Ambon, is making the more moderate religious leaders panicky. There is a tendency among the Indonesians to take the law into their own hands. Some extreme Muslims even hope to establish an Islamic State of Indonesia. Economically, Indonesia'scommerce and industries have been ruined, with foreign investors shunning the country. Millions of people are dying everyday from hunger. The economic situation is deteriorating everyday. The author of this book is the for
This book describes and analyses Indonesia's most serious economic crisis, against the general backdrop of economic decline in Southeast Asia. It also looks forward, considering Indonesia's immediate policy challenges to overcome the crisis, and dwelling on some of the longer-term policy challenges raised by the crisis.
As the 1998 annual World Bank assessment soberly observed: "No country in recent history, let alone one the size of Indonesia, has ever suffered such a dramatic reversal of fortune." Since the middle of 1997, we have witnessed momentous and tragic events in Indonesia. Nobody foresaw the events, and many ordinary Indonesians have experienced a substantial decline in their living standards. This book describes and analyzes Indonesia s most serious economic crisis against the general backdrop of economic decline in Southeast Asia. It also looks to the future, considering Indonesia's immediate policy challenges to overcome the crisis and dwelling on some of the key longer-term policy challenges raised by the crisis.
Few countries have experienced such sharply fluctuating fortunes as Indonesia. This book offers a balanced analysis, evaluation and explanation of Indonesia's economic performance, from 1967. Hal Hill highlights Indonesia's successes during this period - rapid industrialisation, major achievements in the food crop sector and the adoption, from the mid-1980s, of outward-looking policies. He also draws attention to the challenges facing the country, including the rocky path towards economic reform, the large external debt, regional and ethnic disparities, and the need for a transparent and predictable policy environment. In this second edition, an extended postscript takes the story through the dramatic turnaround and political and economic crises since 1997, including the downfall of Soeharto.
Here, published for the first time, is the story of Washington's role in one of the most significant turning points in Asian history - the turbulent transfer of power from President Sukarno to President Suharto in Indonesia, one of the world's largest and most important countries. After much speculation over covert U.S. action in the Indonesian drama, this book records with authority and candor precisely what the U.S. did and did not do. Beginning in 1965, as the Vietnam war intensified, a series of dramatic events occurred in Indonesia leading to the collapse of Indonesia's Communist Party (then the world's third largest), the removal of the flamboyant, pro-Communist President Sukarno, and his replacement by President Suharto who has provided over twenty-five years of sound leadership. The U.S. and its friends had an enormous stake in the outcome of the Indonesian crisis, but the U.S. wisely exercised restraint despite attacks on its Embassy and Consulates. This fast-paced, lucid account, written with humor and human concern by one of America's most talented and experienced diplomats and illustrated with photos of key moments, captures the drama and significance of these events. Former Assistant Secretary of State William Bundy's foreword testifies from the Washington perspective to the author's courage and wisdom in action.