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Resilience to economic shrinking in an emerging economy – the role of social capabilities in Indonesia 1950-2015

Andersson, Martin LU ; Axelsson, Tobias LU and Palacio, Andrés LU (2021) In Journal of Institutional Economics 17(3). p.509-526
Abstract
Economic history has recently emphasised the impact of economic shrinking on long-term economic growth, but economic theories do not provide explanations for how and why some countries avoid economic shrinking. In this case study of institutional change in post-independence Indonesia, we examine how the country managed to reduce the frequency of shrinking during the authoritarian regime and beyond. We
argue that the state’s autonomy, measured by macroeconomic policymaking, and accountability, measured by food security, were two key social capabilities that enabled Indonesia to reduce the frequency of economic shrinking. During this period, the ‘doorstep conditions’ for the transition into a democracy and stable economic
growth... (More)
Economic history has recently emphasised the impact of economic shrinking on long-term economic growth, but economic theories do not provide explanations for how and why some countries avoid economic shrinking. In this case study of institutional change in post-independence Indonesia, we examine how the country managed to reduce the frequency of shrinking during the authoritarian regime and beyond. We
argue that the state’s autonomy, measured by macroeconomic policymaking, and accountability, measured by food security, were two key social capabilities that enabled Indonesia to reduce the frequency of economic shrinking. During this period, the ‘doorstep conditions’ for the transition into a democracy and stable economic
growth emerged. More specifically, Indonesia managed to diversify its revenue base and make public resources more available for the broader common good. Loosening the connection between macroeconomic policymaking and elites opened up greater opportunities for the emergence of private enterprises. However, to date, the country is still far from a full-fledged open access society. (Less)
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author
; and
organization
publishing date
type
Contribution to journal
publication status
published
subject
in
Journal of Institutional Economics
volume
17
issue
3
pages
18 pages
publisher
Cambridge University Press
external identifiers
  • scopus:85099397874
ISSN
1744-1382
DOI
10.1017/S1744137420000624
project
Resilience to economic shrinking: A social capability approach to processes of catching up in the developing world since the 1950s
language
English
LU publication?
yes
id
c7064dc6-dd70-4363-b3a4-c1843b6d547f
date added to LUP
2020-12-02 09:40:40
date last changed
2024-05-15 22:20:41
@article{c7064dc6-dd70-4363-b3a4-c1843b6d547f,
  abstract     = {{Economic history has recently emphasised the impact of economic shrinking on long-term economic growth, but economic theories do not provide explanations for how and why some countries avoid economic shrinking. In this case study of institutional change in post-independence Indonesia, we examine how the country managed to reduce the frequency of shrinking during the authoritarian regime and beyond. We<br/>argue that the state’s autonomy, measured by macroeconomic policymaking, and accountability, measured by food security, were two key social capabilities that enabled Indonesia to reduce the frequency of economic shrinking. During this period, the ‘doorstep conditions’ for the transition into a democracy and stable economic<br/>growth emerged. More specifically, Indonesia managed to diversify its revenue base and make public resources more available for the broader common good. Loosening the connection between macroeconomic policymaking and elites opened up greater opportunities for the emergence of private enterprises. However, to date, the country is still far from a full-fledged open access society.}},
  author       = {{Andersson, Martin and Axelsson, Tobias and Palacio, Andrés}},
  issn         = {{1744-1382}},
  language     = {{eng}},
  month        = {{06}},
  number       = {{3}},
  pages        = {{509--526}},
  publisher    = {{Cambridge University Press}},
  series       = {{Journal of Institutional Economics}},
  title        = {{Resilience to economic shrinking in an emerging economy – the role of social capabilities in Indonesia 1950-2015}},
  url          = {{http://dx.doi.org/10.1017/S1744137420000624}},
  doi          = {{10.1017/S1744137420000624}},
  volume       = {{17}},
  year         = {{2021}},
}