Economic and Social Change in Indonesia
Topic 1: European economic and political expansion in Southeast Asia in the last quarter of the 20th century resulted in the greater integration of the region into the international economy. Six ‘new’ states emerged – Indonesia, Malaya, Burma, the Philippines, Indochina and Thailand.
Discuss economic and social change in the region with reference to ONE Southeast Asian state.
Economic and social change within Indonesia
Introduction
After over a quarter century of sustained economic growth, Indonesia was struck by a major economic crisis at the end of the 20th Century. This paper examines the impact of the crisis on economic and social change within the region. (Cameron 1999) The crisis, which worked its way through many of the South East Asian countries, was signified by the collapse of the Thai baht in the middle of 1997. During the second half of the year, the Indonesian central bank attempted to hold off pressure on its currency, the rupiah. Interest rates quadrupled and the rupiah depreciated by about 60%. In January 1998, the rupiah collapsed. It lost about 75% of its value in a matter of a few days. The collapse of the rupiah was followed by spiraling prices; annual inflation was estimated to be about 80% for 1998. (Fallon 1999)
The impact of the crisis in Indonesia was not confined to the financial sector. The economy went into a tailspin. Real output in 1998 was estimated to have been about 12% below its 1997 level and economic growth turned positive only in the year 2000. The crisis was accompanied by dramatic and influential political change.
This paper will describe some prominent dimensions of the social, demographic and economic changes that have been taking place in Indonesia both over the long-term and during the economic decline of the late 1990s. (Corsetti 1998)
The Indonesian economy
Indonesia, the fourth most populated nation in the world, is an archipelago whose 13,000 islands are home to many different ethnic groups.
Discuss economic and social change in the region with reference to ONE Southeast Asian state.
Economic and social change within Indonesia
Introduction
After over a quarter century of sustained economic growth, Indonesia was struck by a major economic crisis at the end of the 20th Century. This paper examines the impact of the crisis on economic and social change within the region. (Cameron 1999) The crisis, which worked its way through many of the South East Asian countries, was signified by the collapse of the Thai baht in the middle of 1997. During the second half of the year, the Indonesian central bank attempted to hold off pressure on its currency, the rupiah. Interest rates quadrupled and the rupiah depreciated by about 60%. In January 1998, the rupiah collapsed. It lost about 75% of its value in a matter of a few days. The collapse of the rupiah was followed by spiraling prices; annual inflation was estimated to be about 80% for 1998. (Fallon 1999)
The impact of the crisis in Indonesia was not confined to the financial sector. The economy went into a tailspin. Real output in 1998 was estimated to have been about 12% below its 1997 level and economic growth turned positive only in the year 2000. The crisis was accompanied by dramatic and influential political change.
This paper will describe some prominent dimensions of the social, demographic and economic changes that have been taking place in Indonesia both over the long-term and during the economic decline of the late 1990s. (Corsetti 1998)
The Indonesian economy
Indonesia, the fourth most populated nation in the world, is an archipelago whose 13,000 islands are home to many different ethnic groups.
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