Indonesian economic development: political economy of an effective state

Richard Grabowski

Journal of the Asia Pacific Economy, 2011, vol. 16, issue 2, 241-253

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).

Date: 2011
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DOI: 10.1080/13547860.2011.564748

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