CRONY CAPITALISM AND POST-CRISIS ECONOMY IN INDONESIA AND THE PHILIPPINES
Abstract
Crony capitalism is one main feature of the ersatz capitalism. Indonesian and Philippines, two East-Asian countries which are categorized by scholars in the same group practicing the form of ersatz capitalism system, respectively had undergone a historical period of robust authoritarian regime. This fact has indeed influenced the emergence of the strong cronyism in both countries. Through this article, we are briefly revisiting the experiences of Indonesia and Philippines during the Asian financial crisis 1997-98, focusing on their respective political reforms and the impact on the cronyism and eventually on the ability of both countries to survive the crisis. It is apparent that to a certain degree, the political reforms were indeed the key factor for both Indonesia and Philippines to outlast the hit of the Asian financial crisis in 1997-98. In other word, it was undeniably through a motion toward a more genuine capitalism system that these countries with that of ersatz capitalism could carry on against economic crises.
Abstrak
Kapitalisme kroni merupakan salah satu fitur utama sistem kapitalisme semu. Sebagai negara Asia Tenggara yang dikenal memiliki sistem ekonomi yang disebut kapitalisme semu oleh para ahli, Indonesia dan Filipina sama-sama pernah mengalami periode sejarah kepemimpinan rezim otoriter yang turut membentuk kultur kapitalisme kroni yang kuat di kedua negara tersebut. Artikel ini memaparkan kembali secara singkat pengalaman Indonesia dan Filipina dalam menghadapi krisis moneter Asia tahun 1997-98, berfokus terutama pada reformasi politik dalam negeri masing-masing negara serta pengaruhnya terhadap kapitalisme kroni dan kemampuan negara mengatasi krisis. Tidak dapat dipungkiri bahwa reformasi politik di Indonesia dan di Filipina hingga taraf tertentu merupakan faktor kunci bagi kedua negara dalam mengatasi keterpurukan ekonomi akibat krisis keuangan Asia 1997-98 lalu. Dengan kata lain, Indonesia dan Filipina mampu mengatasi krisis ekonomi berkat langkah-langkah yang membawa sistem kapitalisme semu menjadi kapitalisme yang lebih murni.
Keywords
Full Text:
PDFReferences
Bolongaita, Emil P., Jr. (2000). ‘The Philippines in 1999: Balancing Restive Democracy and Recovering Economy,’ Asian Survey 40 (1), A Survey of Asia in 1999, pp. 67-77.
Bhaskaran, Manu. (2009). ‘The Asian Financial Crisis Ten Years Later—Lessons Learnt: The Private Sectors Perspective’, in Richard Carney (ed.) (2009). Lessons from the Asian Financial Crisis. New York: Routledge, Chapter 7: pp. 112-134.
Crone, Donald K. (1988). ‘State, Social Elites, and Government Capacity in Southeast Asia Domestic Political Structures and Regional Economic Co-operation by Harold Crouch; Southeast Asia: Essays in the Political Economy of Structural Change by Richard Higgot and Richard Robinson; Suharto and His Generals: Indonesian Military Politics 1975-1983 by David Jenkins; The Philippines after Marcos by R. J. May and Francisco Nemenzo; Thailand in Transition: The Role of Oppositional Forces by Ross Prizzia; Asian Political Instituzionalization by Robert Scalapino, Seizaburo Sato, and Jusuf Wanandi, eds.’, Review in World Politics, 40 (2), pp. 252-268.
Djiwandono, J. Soedradjad (2009), ‘Indonesian Financial Crisis Ten Years After: An Insider’s View,’ in Richard Carney (ed.)(2009). Lessons from the Asian Financial Crisis. New York: Routledge, Chapter 4: pp. 67-77.
Gourevitch, Peter (2008). ‘Containing the Oligarchs. The Politics of Corporate Governance Systems in East Asia,’ in Andrew MacIntyre, T. J. Pempel, and John Ravenhill (eds.)(2008). Crises as Catalyst: Asia’s Dynamic Political Economy. Ithaca and New York: Cornell University Press, Chapter 4: pp. 70-92.
Hicken, Allen (2008). ‘Politics of Economic Recovery in Thailand and the Philippines,’ in Andrew MacIntyre, T. J. Pempel, and John Ravenhill (eds.) (2008). Crises as Catalyst:
Asia’s Dynamic Political Economy. Ithaca and New York: Cornell University Press, Chapter 10: pp. 206-230.
Hutchcroft, Paul D. (1998). Booty Capitalism: The Politics of Banking in the Philippines. Ithaca and London: Cornell University Press.
Henderson, Jeffrey (1999). ‘Uneven Crises: Institutional Foundations of East Asian Economic Turmoil’, Economy and Society 28: 327-368.
Indrawati, Sri Mulyani (2008). ‘Reform at the Ministry of Finance of the Republic of Indonesia,’ Oxford Presentation Pre-Post Crisis ppt, Oxford University London (http://www.globaleconomicgovernance.org/sites/geg/files/documents/Oxford%20Presentation%20Pre-Post%20Crisis%20
Revised.pdf – Last accessed on 11 Feb 2016).
Kang, David C. (2002). Crony Capitalism: Corruption and Development in South Korea and the Philippines. Cambridge: Cambridge University Press.
Kunio, Yoshihara (1988). The Rise of Ersatz Capitalism in South-East Asia. Translated by Arief Budiman (1990). Kapitalisme Semu Asia Tenggara. Jakarta: LP3ES.
Manapat, Ricardo (1991). Some are Smarter than Others: The History of Marcos’ Crony Capitalism. New York: Aletheia Publications.
MacIntyre, Andrew, T. J. Pempel, and John Ravenhill. (2008). “East Asia in the Wake of the Financial Crisis,” in Andrew MacIntyre, T. J. Pempel, and John Ravenhill (eds.) (2008). Crises as Catalyst: Asia’s Dynamic Political Economy. Ithaca and New York: Cornell University Press, Chapter 1, pp. 1-24.
Noland, Marcus (2000). ‘The Philippines in the Asian Financial Crisis: How the Sick Man Avoided Pneumonia,’ Asian Survey, 40 (3), pp. 401-412.
Robertson-Snape, Fiona (1999). ‘Corruption, Collusion and Nepotism in Indonesia’, Third World Quarterly 20 (3), pp. 589-602.
Rodan, Garry and Kanishka Jayasuriya (2009). ‘Capitalist Development, Regime Transitions and New Forms of Authoritarianism in Asia’, The Pacific Review 22 (1), pp. 23-47.
Sheng, Andrew (2009). From Asian to Global Financial Crisis. Cambridge: Cambridge University Press. Ch. 5, ‘Washington Concensus and the IMF’, pp. 109-125.
Solingen, Etel (2004). ‘Southeast Asia in a New Era: Domestic Coalitions from Crisis to Recovery’, Asian Survey 44 (2), pp. 189-212.
Sundaram, Jomo Kwame (2001). ‘What’s Different about Southeast Asian Capitalism?’, PROSEA Research Paper No. 44. Department of Applied Economics University of Malaya,
Malaysia.
Tambunan, Tulus Tahi Hamonangan (2012). Economic Crisis and Vulnerability: The Story from Southeast Asia. New York: Nova Science Publishers, Inc.
Wade, Robert (1998). ‘The Asian Debt-anddevelopment
Crisis of 1997-?; Causes and Consequences’, World Development 26: 1535-1553.
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Refbacks
- There are currently no refbacks.
