The Indonesian Economy in Crisis: Causes, Consequences and Lessons

by NA NA

Overview

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.

Product Details

ISBN-13:	9781349626847
Publisher:	Palgrave Macmillan US
Publication date:	11/20/1999
Edition description:	1st ed. 1999
Pages:	153
Product dimensions:	5.51(w) x 8.50(h) x (d)

About the Author

Hal Hill is Professor of Economics and Head of the Southeast Asian Economies Program at the Australian National University, Canberra.

Table of Contents

	Tables	vii
	Figures	viii
	Acknowledgements	ix
I.	Introduction	1
II.	Prelude to the Crisis	5
III.	The Course of the Crisis	11
IV.	Socio-Economic Impacts	23
	Economic Indicators	23
	Financial Indicators	32
	Social Indicators	35
V.	Causes of the Crisis	47
	Pre-Crisis Vulnerability Factors	54
	External debt and capital mobility	54
	Poor macroeconomic management	58
	Poor financial regulation	61
	Corruption and governance	68
	Management of the Crisis	70
	A chronicle of policy errors	70
	KKN again	73
	The role of the IMF	78
	Additional adverse factors	81
	A Summing Up	82
VI.	The Way Ahead	85
	Monetary and exchange rate policy	91
	Fiscal policy	92
	Banking reform and corporate debt restructuring	94
	Microeconomic and sectoral reform	97
	Social Policy	101
VII.	Broader Analytical Issues	107
	Capital Controls (and Sequencing)?	108
	What Sort of Exchange Rate Policy?	110
	Financial Reform and Regulation	113
	Endnotes	117
	References	129
	Index	137
	About the Author	153

Editorial Reviews

Hill (economics, Australian National U.) analyzes the special problems of Indonesia since 1997 within the larger economic decline in southeast Asia. He considers the causes of the crisis, the measures taken to weather it, immediate policy challenges to overcome it, and some long-term problems it has revealed. He includes a chronology from February 1997 to March 1999. Annotation c. Book News, Inc., Portland, OR (booknews.com)

Booknews

The writing is clear, concisem and free of jargon. Hal Hill's Indonesian and economic expertise provide a depth that will hold the attention of specialists and generalists alike. Journal of Asian Studies

From the Publisher