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Making trade policy in a new democracy after a deep crisis: Indonesia (pdf 318kb)

When developing nations are affected by economic crises, traditional thinking states that economies tend to turn inward in an attempt to protect firms and employment, restore trade balances, and reduce the perceived negative impact of globalisation.

However, the behaviour of such nations over the last 20 years has proven otherwise. In this paper, how and why this shift in behavior has occurred is discussed with respect to Indonesia.

This paper examines the recent political economy of trade policy in Indonesia, against the backdrop of two key events - the economic crisis of 1997-98 and the associated political changes during and following this period.  Specifically, the paper examines the following:

- Both domestic and international trade policies
- The trade policy under former President Soeharto
- Trade policy, institutions and structures in the post-Soeharto period

 

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