MODERNIZATION IN INDONESIA.   Term Paper ID:25063 Click to get this paper

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Paper Abstract: Overview of economics & politics, development of democracy since 1950, leadership, military, elites. Paper Introduction: POLITICAL DEVELOPMENT OF INDONESIA AND MODERNIZATION THEORY Introduction This research paper traces the political modernization of Indonesia through different stages in its economic and political development. Political and economic theorists have attempted to explain the process through which nations become modernized. Their theories can be roughly grouped among dependency theory and various schools of political modernization theory, some stressing the inevitability of democratization Western style and others suggesting that authoritarian models might be more suitable for East Asian cultures such as Indonesia. Despite its recent economic difficulties, Indonesia has made substantial economic progress in recent decades. However, for various historical and other reasons, political maturation has lagged behind economic Text of the Paper: The entire text of the paper is shown below. However, the text is somewhat scrambled. We want to give you as much information as we possibly can about our papers and essays, but we cannot give them away for free. In the text below you will find that while disordered, many of the phrases are essentially intact. From this text you will be able to get a solid sense of the writing style, the concepts addressed, and the sources used in the research paper. 26-37). Indonesia has made remarkable progress in only a half-century,lifting itself out of poverty, and it may soon be regarded as a self-sustaining, rising, increasingly modernized economy, a long-term trendwhich will justify the predictions of the modernizationist theorists thatpolitical democracy follows economic development. In D. Boomtime. NewYork: St. Despite this progress, Dunung (1995) says that Indonesiaremains "a very poor country with low levels of education" (p. Boulder: WestviewPress. Nineteenth and twentiethcentury Indonesia. Crouch, H. S9). Their theories can be roughlygrouped among dependency theory and various schools of politicalmodernization theory, some stressing the inevitability of democratizationWestern style and others suggesting that authoritarian models might be moresuitable for East Asian cultures such as Indonesia. Blessed with rich natural resources, such asoil, natural gas, textile fibers, timber and rubber, Indonesia in 1967launched a state-sponsored program of economic and industrial developmentwhich has resulted in an economy which has expanded since then at the rateof nearly 7 per cent per annum, placing it according to the World Bankamong the 1 fastest-growing economies in the world (Kraar, 1993, September2 , pp. (2) Indonesia cultural roots run counter to democratic traditions.The Economist says that, even before the Dutch came, the Javanese "had ahistory of fratricide; their kings were not good at founding dynasties, norat peaceful transfers of sovereignty" ("Suharto's", 1997, July 26, p. They urged less-developed countries (LDCs) such asIndonesia to beware of foreign investment because it encouraged continueddependency, and advised them to develop more nationalistically-orientedeconomic development policies, the development of import substitutionindustries protected by tariffs and other forms of protectionism, centralstate planning and the creation of state-owned enterprises to promotedomestic investment in infrastructure, communications, transportation andnatural resources. Martin's Press. The government introduced reforms that eliminated pervasive state controls, and produced one of most open economies in the world . (1993, September 2 ). Singapore: Institute of SoutheastAsian Studies. Fortune, 112-113, 116. Economist, 37-38. Initial Failure of Democracy in Indonesia (195 -1967)Parliamentary Rule (195 -1957). S7).Liddle (1994) says that throughout Indonesian history "almost allsignificant changes that have occurred have been of a drastic and an abruptkind" (p. Dunung, S. D. (1998, February 21). Clayton, VIC: Monash University Press. 5). Martin's Press. Clayton,VIC: Monash University Press. 3 5). . Mackie, J. By the time the Army took power by itscoup d'etat in 1965, the nation was bankrupt and had an annual inflationrate of 65 percent. (Eds.). In the meantime, its political stabilitywill become unravelled, which could lead to a period of chaos, which inturn would ensure a continuation in some form of authoritarian governmentfor the foreseeable future. Its mostentrepreneurial citizens tend to be of Chinese origin and have beenexcluded effectively from politics, as have Muslim parties until recently,under Suharto's rule. 3 2) suggests that more now unites the educatedelites in Indonesia than was true in the 195 s: belief in national unity, acommon stake in economic progress, combined with a commitment to freemarkets and their universal detestation of the nepotic family enterprisesprotected by the Suharto regime. Is culture destiny?Foreign Affairs, 73, 189-194. 41-56). 39).Bouchier & Legge (1994) say that during the 195 s "none of the four majorparties had a strong commitment to democratic institutions, and there weredeep differences among them as to how to achieve economic growth andnational unity" (p. 24). . and its tendency to generate a relativelycompetitive democratic system" and that "a successful [economic] takeoffbegins to bring about some of the conditions that make possible theemergence of a stable democratic practice" (pp. Simanjuntak says the power of these groupsis growing with every step taken under the New Order toward deregulation,de-bureaucratization and decentralization in the economy. During this period, greatly expanded oil revenues financedsubstantial state investments in basic infrastructure and education. . Sanger, D. 164).Assuming that the Suharto regime appears to be on its last legs andprobably cannot long endure economic crises as deep and serious as thecurrent one, the question is whether the various elites who will be calledupon to fill the resulting vacuum can achieve sufficient unity to run thecountry while maintaining democratic values. (1998, March 8). P. Washington, DC: Library of Congress. . According to the Commission on Transnational Corporations of the U.N.Economic and Social Council (1978), which was strongly influenced by thethinking of developmental theorists, the aim of such LDC policies was toensure "that their developmental goals, as well as national identity andpurpose are not distorted by the global strategies of transnationalcorporations, and to obtain a better share of the benefits" (p. Despite its recenteconomic difficulties, Indonesia has made substantial economic progress inrecent decades. (1993, September). General's performance. New York: LexingtonBooks. 344). 295). . (1994, November/December). Rostow, W. Ricketts, Nineteenth and twentiethcentury Indonesia (pp. 286-3 1). The development of Indonesia. 37; Sanger, 1998, March 8, p. Interpretations of thecollapse of parliamentary democracy. Ricketts(Eds.), Nineteenth and twentieth century Indonesia (pp. Economist, S3. A., & Verba, S. 213). Modernization economists argued that LDCswould be best advised to organize their economies in such a manner as tointegrate them with the global economy--i.e they should adopt free-marketoriented trade policies and welcome foreign investment on reasonable terms.Rostow (1988) said in one of his speeches to leaders of LDCs in 1963 that"there does appear to be some relationship between the degree ofmodernization of society . Bouchier & J. Sinceit must implement financial austerity measures to restore its internationalsolvency, Indonesia faces the possibility, at least in the short term, of adeclining economy and rising mass discontent, all of which are coming at atime when the 3 +-year military rule of Suharto is probably nearing itsend. (1978). C. Whatever transpires, the results will take on adistinctly Indonesian form and style. The civic virtue. However, Grandjean(1993) says the following: The collapse of crude-oil prices in the mid-198 s provided Indonesia . As Indonesianears the end of a long period of political stability achieved under themilitary rule of GeneralSuharto and his New Order, some of the bases for an eventual transition tomore democratic rule have been established; however, this transition islikely to be painful in the near term and may be accompanied by substantialpolitical instability and a continuation of military rule in some form forthe indefinite future. 4(1)). indigenous peoples" (p. According to Frederick and Worden (1993),"there was little in the diverse cultures of Indonesia or their historicalexperience to prepare Indonesians for democracy" (p. The Economist says that, except for Sukarno'sdaughter, Megawati Sukarnoputri, who has been banned from engaging inpolitics, "no opposition group personality has a truly national following"("Divided", 1997, July 26, p. Aveling, H. W. thestate]" (Zakaria, 1994, p. (198 ). Clayton, VIC:Centre of Southeast Asia Studies. . C. 112, 113). By the mid-195 s there was a widespread feeling that the parliamentary system had failed (Crouch, 198 , p. (1994). Inglehart(1997) goes so far as to say that "by the 196 s, the tendency to equateModernization with Westernization had been abandoned by most Modernizationtheorists" (p. Indonesianfaceoff: Drawing blood without bombs. Indonesia has manyelements in society which have a stake in greater freedom in the economicas well as the political sphere, including the modern technocrats and othercivil servants, who have largely fashioned the nation's successful market-oriented economic strategy. (1993, April 17). Since197 , its GDP per capita per annum has risen from $8 to $1,3 , animpressive achievement but still less than half of that in other newlyindustrializing countries (NICs) of East Asia, such as South Korea andTaiwan. (1) Indonesia is significantly below the level of economicdevelopment in East Asian countries which have dispensed with militaryregimes. During these same decades, modernization political theorists such asWalt Rostow, Seymour Lipset and Robert Dahl argued that economicdevelopment led to democracy. Other Modernizationist theorists argue that, while this may be trueduring a transitional period, in the long run, "economic development isconducive to democracy not only because it mobilizes mass publics, but alsobecause it tends to give rise to supportive cultural orientation" (Zaharia,1994, p. E. Crouch, H. NewburyPark: Sage. The Economist says that "thebest hope lies in a 'transplacement,' a combination of elite-led reform andpopular pressure in which the powers-that-be negotiate a peacefulsettlement with the forces of change, as they did in Chile" ("Divided",1997, July 26, p. 1 1). In D. Legge(Eds.). Suharto's New Order (1967-Present) Suharto established an authoritarian regime in which the military, inalliance with conservative forces, consolidated and expanded its controlover the nation. Modernization and post modernization.Princeton: Princeton University Press. . 21). (1986). 51). 174). (1995). The missing bourgeoisie: approaches to Indonesia'sNew Order. 41. Genesis of power. Inglehart (1997), based on his study of political maturationprocesses in 43 societies around the world, says that "the fall ofauthoritarian regimes may be precipitated by economic collapse" (p. . Thepetty principalities of Java and Sumatra, often involved in internecinewarfare, were no match for the Portuguese, Dutch and other traders who cameto the archipelago after the 15th century in search of its spices and otherriches. 95, 98). Ethnic clashes erupted between the Chinesesettler minority, and the dominant (87 percent Muslim) Javanese majority.Frederick and Worden (1993) say that "conditions were exacerbated byeconomic disruption, the wartime and postwar disruption of vitalindustries, unabated population growth, and resultant food shortages" (p.48).Guided Democracy and Political Turmoil (1957-1965). I5). S4). (1986). Can all good things go together? P. Under the aegis of nationalist leaders Sukarno and Muhammad Hatta,Indonesia adopted Western forms of parliamentary rule, including freeelections and a free press. Economist, S8. C. (1997, July 26). New York: United Nations. References Almond, G. Essays on a half-century. (198 ). Aveling (Ed.), The development of Indonesia (pp. W. (3) Indonesia suffered from severe domestic stresses. (1993). Crouch (1978) says that"Indonesian army officers have always concerned themselves with politicalissues and for most of the period actively played important politicalroles" (p. 36). Doing business in Asia. In H. (Eds.) (1994). (1986). 161). Indonesia: A countrystudy. Rostow (1988)uttered one of the great understatements of the century when he said in1963 that "the management of a democratic political system in thetransition to modernization is difficult" (p. 192). 29). . (1997, July 26). A key factor, theysay, is the development of the political culture, the growth of civicvirtue and a willingness among the key groups in society to resolveconflicts peacefully in an atmosphere of mutual trust. New York Times, pp. Chandler, D. Although it improved its relations with the West and madeovertures toward foreign investors, including the enactment of a moreliberal foreign investment regime, the Suharto regime at first continuedsome dependency theory style policies and built a huge complex of state-owned enterprises. Said, S. Conclusion With the movement of governments in the LDCs toward economicmodernization along free-market lines, the predictions and policyprescriptions of the dependency theorists have been relegated to the ashbinof history. Economist, I5. with the jolt necessary to move onto the path of industrialization . In the economic sphere, he engaged in grandiosepublic works projects and carried the recommendations of the dependencytheorists to ridiculous extremes. World PressReview, p. (1978). Clayton, VIC: Centre of Southeast Asian Studies. (199 ). (1988). Bouchier, D., & Legge, J. Liddle(1994) says the New Order essentially involved a "trading of economic goodsand services to many large and politically important civilian groups inreturn for the acceptance of military rule" (p. S 9). Transnational corporations in world development: a re-examination. Democracy,growth and unity in post-Suharto Indonesia. Because of its inability to pay its foreign debt of $7 billion, thefailure of 16 of its banks, an annual domestic inflation of 4 percent-5 percent, a decline of about 35 percent in the foreign exchange value ofthe rupiah in less than a year, growing unemployment and food shortages,Indonesia has recently been forced to appeal to the International MonetaryFund (IMF) for a large ($43 billion plus) financial bailout package("Once", 1998, February 21, p. Inglehart, R. (2) Said (199 ) says "that elite bickering has been a conspicuouscharacteristic of Indonesian political life from the dawn of thenationalist movement early in the century till the present day" (p. According to him, the best solution is acombination of authoritarian rule and free market capitalism because "inthe East the main object is to have a well-ordered society" . The army and politics in Indonesia.Ithaca: Cornell University Press. Divided and ruled. 4(1), 4(18). Democracy in Indonesia 195 sand 199 s. The Economist reported that, between 1985 and199 , Indonesia's output of manufactured goods more than doubled in value("Boomtime", 1993, April 17, p. 41).The slack in the economy was picked up by the growth ofexport-oriented industries. However, Indonesia,because of its history, its cultural and religious divisions and itsrelatively slow political maturation, is likely to go through anotherpainful transition and have to endure authoritarian rule for theforeseeable future. Ultra-modern Indonesia. 295). Democracy in Indonesia 195 s and 199 s (pp. Indonesian nationalism accelerated under the period of Japanese rule(1941-1945). Current President Kim Dae Jung (1994) of South Korea arguesthat "Asia has no practical alternative to democracy; it is a matter ofsurvival in an age of intensifying global economic competition," and pointsto the gradual replacement of bureaucratic-authoritarian regimes first inJapan and, more recently, in South Korea and Taiwan by more democraticsystems (p. (Ed.). As a result, the economy diversified to the point where, in 1991, oil accounted for no more than one third of exports, down from 82 percent in 1981 (p. Liddle, R. After Dutch colonial rule, 1816-1949, Crouch (198 ) says that"political activity was largely limited to a small, educated elite in urbancenters", and anti-Dutch nationalism was severely suppressed (p. Jung, K. 47). 166-2 4).New York: St. Once again. Pre-modernization and Developmental Theory According to Frederick and Worden (1993), "the modern state ofIndonesia is in a real sense a nineteenth-century creation" (p. P., & Ricketts, M. Inglehart (1997) says that politicalmodernizationists now recognize that "democracy remains very rare in low-income countries" (p. S8). The political modernizationists are correct that Indonesia, like mostof its neighbors, provided it does not sink into a deep depression as aresult of its recent difficulties, will eventually move in the direction ofgreater political democratization. In 1957, Sukarno ended democratic rule and installed an authoritariansystem which depended on an uneasy and unstable coalition amongnationalists, the Army and the Communist Party (PKI) which was gainingsupport among the masses. Where does Indonesia stand along this continuum? It has a substantial, but still small middle and professional class,which the Economist estimates is, however, only 15 million, or only about7.5 percent of the population ("General's", July 26, 1997, p. A conversation with Lee Kuan. According to Crouch (1986), during the 197 s, "Foreigninvestment, aid [from abroad], and the oil boom helped to transform themodern sector of the Indonesian economy and in the process the governmentleadership pursued policies which strengthened both the state and thedomestic capitalists" (p. In D. The Economist said in 1997, "Some sort of systemic change isinevitable. Living dangerously. The army sees itself as practically the only unifyingforce in what otherwise has the earmarks of a practically ungovernablenation. . 16 ). Inevitable or avoidable? Suharto's end-game. What do Indonesia's history and developmental theories suggest willbe its likely direction? The trend toward authoritarianism: the post-1945period. H., & Worden, R. Crouch, H. . (1989). Kaar, L. (1997). The fledging Indonesiandemocracy of the 195 s fell apart at the seams for several reasons: (1) The most striking characteristic of the politics of the parliamentary period was the inability of the rival parties in parliament to work out stable co-operative arrangements among themselves, with the result that coalitions of rival parties rose and fell in quick succession . However, Mackie (1986) says that in Indonesia in recent decades "alarger and more self-conscious urban middle class is slowly emerging,increasingly like the new middle classes in South Korea, Taiwan andThailand which have spearheaded the drive for democratization there inrecent years" (p. 16 ). P. Economic and Social Council, Commission on TransnationalCorporations. (4) Almond and Yerba (1989) say that, where democratic governmentshave succeeded, they did so only after a long period of gestation andadaptation, "a gradual political development" (p. During the Indonesian Revolution and War of Liberation (1945-1949), Indonesian nationalism exploded after the Dutch attempted but failedto reassert control over their former colony. Indonesia on the move. Thecolonial economy which emerged was one in which the Netherlands exploitedthe natural resources of its Dutch East Indies colony, which served as acheap source of labor and as a market for the manufactured goods of themother country. ForeignAffairs, 69, 1 9-127.----------------------- 9 Grandjean, P. . Current Conditions Indonesia, the fourth most populous country in the world, has apopulation of nearly 2 million people in its 13,677 islands spread overits vast tropical archipelago. . Frederick, W. However, for various historical and other reasons,political maturation has lagged behind economic development. (March/April 1995). . [onewhich preserves traditional Asian values], such as "the belief in thrift,hard work, filial piety and loyalty to the extended family [i.e. Zakaria, F. According to Inglehart(1997), developmental theorists of the 195 s, 196 s and 197 s argued that"development was more likely to lead to bureaucratic authoritarianism thandemocracy" (p. Direction of Political Modernization Some political modernizationists reject the notion that economicdevelopment necessarily leads to Western-style democracy and, in fact,suggest that authoritarian government is more suitable in East Asiansocieties and more likely to generate sustained economic growth. One related tocontinuing separatist movements, including a major revolt in Sumatra whichthe Army quelled in 1957-1958. A leading current advocate of this school of thought is Lee Kuan Yew,the former prime minister of Singapore, who argues that Western-styledemocracy is unsuitable in the East Asian region because of cultural andsocial conditions there. (3) The Indonesian armed forces occupy a unique place in Indonesiansociety and are unlikely to cede power gracefully. The years 1966 and 1967 were a period of greatinstability, during which the Army consolidated its power and effectivelydestroyed PKI, killing hundreds of thousands of communists in the process.However, national unity had been achieved, albeit at a terrible cost, amajor step along the road to modernization. Economist, S9-12. 368). Industrialization requires higher levels of education andleads to corresponding demands for broader participation of various groupsin politics. Simanjuntak (1994, p. (1997, July 26). 167).Nevertheless, Frederick and Worden (1993) say that "rapid economicdevelopment during the late nineteenth and early twentieth centuriesprofoundly changed the lives of . Chandler & M. Clayton, VIC: Monash University Press. POLITICAL DEVELOPMENT OF INDONESIA AND MODERNIZATION THEORY Introduction This research paper traces the political modernization of Indonesiathrough different stages in its economic and political development.Political and economic theorists have attempted to explain the processthrough which nations become modernized. Campbell & M. 114). That is likely to mean a power struggle among the elite,heightened social tensions and more violence" ("Suharto's", 1997, July 26,p. If this paper is not what you are looking for, you can search again: Search for: or Click here to request an essay written just for you.

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