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Indonesia’s economic growth

Question

Indonesia’s economic growth has been hampered for decades, first because of the dictatorship of former President

Suharto and the massive debts that were accumulated during his regime, and, more recently, because of the country’s excessive red tape and corruption that make it difficult to start a business. Transparency International ranks Indonesia among the most corrupt nations in the world. Economic growth is also hindered by the country’s poor infrastructure and low level of labor productivity. You will probably agree that Indonesia’s problems are interrelated. For example, the red tape and corruption that scare off potential foreign investors also mean that the country loses the jobs and the capital that could improve its economy and infrastructure.

Respond to the following:

•  Read Chapter 3 from your textbook and explain why or why not you think the Indonesian economy grew despite or because of a totalitarian regime.
•  Discuss what might explain India’s relatively poor performance under a democratic political system.

Must be at least 1 page

 
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