By Michael T. Rock
"An exam of ways dictators and democrats in Indonesia, Malaysia and Thailand equipped and sustained pro-growth political coalitions"--
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Additional info for Dictators, democrats, and development in Southeast Asia: implications for the rest
Throughout this period, the modern economy, exporting and importing, and the banking system remained in Dutch hands. This was simply unacceptable to most of the country’s political elites. While production was restored, the increases were simply not large enough to permit significant rises in living standards; this too was simply unacceptable. In addition, government policies to rationalize and retrench both the military and the civil service provoked open hostility and opposition from both groups (Feith 1962: 305), while an overvalued exchange rate, which favored import-dependent Java, angered leaders from the Outer Islands.
They vigorously used the repressive apparatus of the state to gain and sustain autonomy from popular groups in civil society and opposition political parties, enabling governments to attain and sustain autonomy from both popular groups and opposition political parties so they could focus attention on their nationalist and capitalist industrial development agenda. They adopted painful and sometimes costly trial-and-error searches for productive relationships (growth-and development-oriented relationship) between government and domestic capital, particularly industrial capital, 19 Getting Growth Going 19 in which mutually beneficial exchanges of governmental promotional privileges for bribes and kickbacks played a growth and investment-enhancing role.
4 To make matters worse, World War I, the Great Depression, and World War II deprived Indonesia of export markets and contributed to declining terms of trade (Booth 1990: 290). 1 and the decline in income between 1930 and 1950. 1 Exports as a share of GDP rose from roughly 10% in 1830 to 36% in 1925 (Booth 1990: 280). 4% of Indonesian national income; this was six times higher than the unrequited export surplus of India (Maddison 1990: 326). 4 As Booth (1990: 293–â•‰294) says, exports did not stimulate growth in Indonesia simply because the Dutch failed to make enough investments to make this happen.