Post-Crisis Economic Reform in Indonesia:Policy for Intervening in Ownership in Historical Pe rspective

Introduction : Economic reform in Indonesia after the Asian currency crisis is often discussed in parallel with Thailand and South Korea, which were alike hit by the crisis. It should however be noted that what happened in Indonesia was a change of political regime from authoritarianism to democracy, not just a change of government as seen in Thailand and South Korea. Indonesia' post-crisis reform should be understood in the context of dismantling of the Soeharto regime to seek a new democratic state system. In the political sphere, dramatic institutional changes have occurred since the downfall of the Soeharto government in May 1998. In comparison, changes in the economic sphere are more complex than the political changes, as the former involve at least three aspects. The first is the continuity in the basic framework of capitalist system with policy orientation toward economic liberalization. In this framework, the policies to overcome the crisis are continued from the last period of the Soeharto rule, under the support system of IMF and CGI (Consultative Group on Indonesia). The second aspect is the impact of the political regime change on the economic structure. It is considered that the structure of economic vested interests of the Soeharto regime is being disintegrated as the regime breaks down. The third aspect is the impact of the political regime change on economic policy-making process. The process of formulating and implementing policies has changed drastically from the Soeharto time. With these three aspects simultaneously at work, it is not so easy to identify which of them is the main cause for a given specific economic phenomenon emerging in Indonesia today. Keeping this difficulty in mind, this paper attempts to situate the post-crisis economic reform in the broader context of the historical development of Indonesian economic policies and their achievements. We focus in particular on the reform policies for banking and corporate sectors and resulting structural changes in these sectors. This paper aims at understanding the significance of the changes in the economic ownership structure that are occurring in the post-Soeharto Indonesia. Economic policies here do not mean macro economic policies, such as fiscal, financial and trade policies, but refer to micro economic policies whereby the government intervenes in the economic ownership structure. In Section 1, we clarify why economic policies for intervening in the ownership structure are important in understanding Indonesia. Section 2 follows the historical development of Indonesia' economic policies as specified above, throughout the four successive periods since Indonesia' independence, namely, the parliamentary democracy period, the Guided Democracy period under Soekarno, the Soeharto-regime consolidation period, and the Soeharto-regime transfiguration period2. Then we observe what economic ownership structure was at work in the pre-crisis last days of the Soeharto rule as an outcome of the economic policies. In Section 3, we examine what structural changes have taken place in the banking and corporate sectors due to the reform policies in the post-crisis and post-Soeharto Indonesia. Lastly in Section 4, we interpret the current reorganization of the economic ownership in the context of the historical transition of the ownership structure, taking account of the changes in the policy-making processes under democratization.Economic reform, Indonesia, Asian currency crisis, Economic liberalization, Economic polic y-making

Sugar policy and reform

Reviewing cross-country experience with sugar policies, and policy reform, the authors conclude that long-standing government interventions - rooted in historical trade arrangements, fear of shortages, and conflicting interests between growers, and sugar mills - often displace both the markets, and the institutions required to produce efficient outcomes. Arrangements rooted in colonial eras, still shape policies, and trade in the United States, the European Union (EU), and many developing countries. Once policies, and institutions are put in place, households, and the value of investments grow dependent on them, even as their usefulness fades. Firms and households make decisions that are costly to reverse. And the result is a legacy of path-dependent policies, in which approaches, and instruments are greatly influenced by past agreements, and previous interventions. The cumulative effects of these interventions are embodied in livelihoods, political institutions, capital stocks, and factor markets - which not only dictate the starting point for reform, but also determine which reform paths are feasible. Experiments with public ownership, common in many countries, have not succeeded. So most countries have initiated some measure of market reform. And events relating to NAFTA, Lome, and expansion of the EU, may bring about significant changes in the EU, and US sugar regimes, with cascading effects on other countries. Common problems in the sector include determining cane quality, finding methods for fairly sharing revenues from joint production, finding ways to take advantage of preferential trade arrangements with minimal negative consequences, finding ways to finance, and encourage research, and other activities with common benefits, identifying practices that facilitate equitable, sustainable privatization, and determining the relationship between sugar market reform, and markets in land, water, credit, and other inputs.Food&Beverage Industry,Environmental Economics&Policies,Agribusiness,Agribusiness&Markets,Economic Theory&Research,Environmental Economics&Policies,Agribusiness&Markets,Economic Theory&Research,Agribusiness,Agricultural Trade

How have Government Policies Driven Rural Credit in India: A Brief Empirical Analysis, 1969-2009

This paper makes a modest attempt to identify structural breaks in outstanding credit of rural branches of Scheduled Commercial Banks in India during the period of 1969 to 2009. With the use of endogenous method, we find three possible structural shifts in growth, i.e. 1981, 1989 and 1999 and thus four different regimes of growth and performance. These structural changes are analyzed with respect to branch licensing policy and priority sector lending by the Schedule Commercial Banks. Empirical evidence and growth performance shows that such policies have been instrumental in changing the off-take of rural credit in a significant way. The study also finds corroborative evidence of break dates and growth performance in evaluating the outcomes of the prevailing banking policies.

MANAGEMENT OF AFRICA’S RARE EARTH MINING SECTORS

Africa’s rare earth mining sectors are growing rapidly due to the international strategic significance of these minerals. Whether or not countries privatize or nationalize their rare earth sectors has important strategic implications for U.S. access to these minerals. At present, most African countries have adopted privatized models of rare earth mining. What motivations have prompted African countries not to nationalize their rare earth industries? This thesis examines five potential drivers of Africa’s rare earth management: international pressures, economic viability, weak state capacity, political/public pressures, and environmental concerns, and investigates these hypotheses using two case studies from South Africa and Zambia. In both countries, economic viability is the most important guiding factor, while political pressures have also influenced Zambia’s resource management model. The remaining three factors exhibited weak explanatory evidence. In order to diversify U.S. rare earth supply outside of China, the strength of the economic viability hypothesis suggests the U.S. must implement programs that support private investment in Africa’s rare earth projects to ensure sustainable production and supply of these strategic minerals. U.S. policy objectives should promote privatization by incentivizing investment in Africa’s rare earth industries to ensure operations remain economically viable for the host nation.Lieutenant, United States NavyApproved for public release. Distribution is unlimited

An enterprise map of Tanzania

In the first decade of the new millennium, Tanzania’s gross domestic product doubled in real terms, making it one of the handful of sub-Saharan economies that have shown strong and sustained growth in recent years. This growth was, moreover, broad based, with manufacturing output growing slightly faster than the economy as a whole. To maintain this rate of growth over the next decade, Tanzania’s industrial capabilities will need to advance in a quite substantial way. The foundations for this advance lie in the current capabilities of Tanzania’s industrial companies. The purpose of this volume is to set out a detailed description, industry by industry, of those capabilities. Along the way, we explore a series of questions. • Where did Tanzania’s current industrial capabilities originate? • To what extent are Tanzanian firms held back by problems of access to land? • Will it be possible to successfully integrate Tanzanian companies into the supply chains of the oil and gas sector

Production and productivity of Bulgarian agriculture in post war years

This study is a first attempt to clarify major trends and factors of changes in production and productivity in Post-Second World War Bulgarian agriculture. It incorporates an interdisciplinary approach and specifies crucial institutional, economic, organizational, technological etc. factors affecting development of agricultural production and productivity. Firstly, evolution of agricultural production and productivity is analyzed, and effect of labor, land and livestock productivity on different productions assessed. Secondly, evolution and impact of main technological factors (application of chemicals, mechanization, irrigation, introduction of new varieties etc.) are examined. Third, stages in property rights development and restructuring of farms are presented, and their effects on production and productivity evaluated. Forth, paces in modernization of public policy, its key elements (central planning, price and trade regulations, support programs etc.) and implications for agriculture are identified. Fifth, evolution and role of the demands for farm products is assessed. Next, changes in labor quantity and composition, and their impact on agricultural production and productivity are scrutinized. Finally, effects of climate changes and weather extremes on agriculture are underlined.evolution of agricultural production, productivity; political, institutional, economic, organizational, international, technological, natural factors; post-second world war agriculture; Bulgaria

Agricultural policies in Bulgaria in post Second World War years

This paper analyzes evolution, implementation and impacts of state agricultural policies in Bulgaria during post Second World War years now. Firstly, it presents agricultural policies development during 1950s and 1960s (post war nationalization, cooperation of peasants, central planning and price control, support to agriculture) and its impacts on farming modernization and improvement of peasants welfare. Second, it analyzes reforms in 1970s and 1980s (concentration of farming in large agro-industrial complexes, experimentations with “economic” mechanisms of governance) and their effects on agriculture. Third, it evaluates policies during post-communist transition and EU integration, and their consequences for agricultural development.State agricultural policies, impacts on agriculture, Post Second World War, Communist system, post-communist transition, Bulgaria

New Knowledge for Old Regions? The Case of the Software Park Hagenberg in the Traditional Industrial Region of Upper Austria

This paper seeks to enhance our understanding about the opportunities and limits of new path creation in traditional regional innovation systems. Due to their inherited historical legacies, such systems are usually thought of being ill-equipped to give rise to high-tech or knowledge intensive activities. Departing from recent insights on research concerned with the transformation of innovation systems and evolutionary economic geography we identify in a conceptual way enabling and constraining factors for the rise of new development paths in traditional regions. Empirically, we focus on the case of the “Software Park Hagenberg†(SPH) located in the old industrial region of Upper Austria. We examine key events triggering the emergence and subsequent evolution of the SPH and explore the role of the RIS in shaping the development trajectory of the SPH. Moreover, applying social network analysis tools, we investigate the pattern of networking between firms, research organisations and educational bodies within the SPH and we provide some evidence on the diffusion of knowledge and innovation generated though these interactions throughout the regional economy.

Reducing Customer Waiting Time of Commercial Banking Industry (A Case Study)

A Thesis Presented to the Faculty of the College of Business and Technology Morehead State University in Partial Fulfillment of the Requirements for the Degree Master of Science by Feng Gao April 26, 2016

Impact of Selected Banking System on Small Scale Industries with Special Reference to Gujarat

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