Endnotes

¹ A useful summary is in a recent SMERU Working Paper by Sudarno, Asep and Arifianto (2004).

² Galbraith's essay on power (1983) is a useful outline of issues for economists.

³ Thee (2003) provides an excellent overview with an emphasis on economic issues.

⁴ The elaboration to the Constitution provided by the Department of Information at the time explained that Article 33 "is laid down on the basis of economic democracy, production for all by all, under the leadership or control of the members of the community. It is prosperity of the community which is stressed, not prosperity of the individual. For that reason, the economy is organized as a common effort, based on ways of working that accord with the family principle. The co-operative is the form of enterprise in harmony with this. … Only enterprises which do not affect the life of most people may be in the hands of individuals."

⁵ The debate about ekonomi Pancasila, for example, discussed relevant issues. See Mubyarto (1984) and comments by Boediono (2005).

⁶ Issues of rethinking the role of the state were discussed in detail in the 1997 World Development Review (World Bank 1997).

⁷ For useful graphs showing the changes between 1966 and 1991 see Hill (1994) p. 94.

⁸ The Financial Times (12 July 2005) recently editorialized about the balance of power between different parts of the political system in the Philippines under the heading of "A mess in Manila under Macapagal." "The current Philippine system is corrupt and ineffective. Presidents with good policies struggle to have them approved by self-serving members of Congress. The Supreme Court constantly interferes in politics when it should be interpreting the law. The army and the Catholic church also wield excessive influence.

⁹ The detailed discussion of the characteristics of hard and soft states in Gunnar Myrdal's classic study, Asian Drama, remains an extremely useful framework within which to consider these issues (Myrdal 1968).

¹⁰ The adjective "healthy" is important, especially in the Indonesian context. There are many examples of sharply competitive behaviour in Indonesian markets (artificial and misleading labeling, adulteration of products, failure to maintain health and safety standards, and so on) which are not generally considered desirable.

¹¹ See the surveys in the 2002 World Development Report (World Bank 2002) and McMillan's recent book on Reinventing the Bazaar: A Natural History of Markets (McMillan 2002). See also the comprehensive survey of the recent experience of institutional reform in Indonesia in the March 2005 issue of The Developing Economies and the overview by Sato (2005)."

¹² Rodrik (2003) has recently noted that in discussing economic policies, it is often the case that "universal principles are not self-executing" and has emphasized the importance of paying close attention to local conditions when implementing economic reforms.

¹³ For example, following the recent crash of the Mandala airlines in Medan in early September with the loss of over 150 lives some media commentators suggested that cut-throat competition in the Indonesian airlines industry was endangering safety standards.

¹⁴ There is a growing literature discussing the role of research institutions and think tanks in contributing to policy discussion in developing countries. See, for example, the survey by Hovland (2003).

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