This chapter analyses Suharto’s New Order regime, characterized by political repression and rapid economic growth. It focuses on macroeconomic stabilization, foreign investment, and technocratic governance, which delivered sustained growth and poverty reduction. The regime used oil revenues and infrastructure investment to modernise agriculture and promote export-oriented industrialization. However, the chapter also details the rise of crony capitalism, corruption, and regional inequality. The developmental gains of the New Order were undermined by authoritarianism, lack of accountability, and over-reliance on external debt and natural resources. These contradictions would explode during the Asian Financial Crisis.

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Guided Democracy and Economic Nationalism (1950–1965)

  • Sangaralingam Ramesh

摘要

This chapter analyses Suharto’s New Order regime, characterized by political repression and rapid economic growth. It focuses on macroeconomic stabilization, foreign investment, and technocratic governance, which delivered sustained growth and poverty reduction. The regime used oil revenues and infrastructure investment to modernise agriculture and promote export-oriented industrialization. However, the chapter also details the rise of crony capitalism, corruption, and regional inequality. The developmental gains of the New Order were undermined by authoritarianism, lack of accountability, and over-reliance on external debt and natural resources. These contradictions would explode during the Asian Financial Crisis.