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Development and Equality: Themes in Economic Thought about Indonesia

Published online by Cambridge University Press:  07 April 2011

Extract

The history of thought, as of everything else, in or about Indonesia naturally falls into two parts: before and after independence. The first half of this paper, therefore, will deal with thought, mainly Dutch thought, in the colonial period, the second with thought, mainly Indonesian thought, since independence.

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Articles
Copyright
Copyright © The National University of Singapore 1981

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References

1 Geertz, Clifford, Agricultural Involution (Berkeley and Los Angeles, 1971), p. 48.Google Scholar

2 Sukarno, “Marhaen, a Symbol of the Power of the Indonesian eople” (1957), reprinted in H. Feith and L. Castles, Indonesian Political Thinking, 1945–1965 (Ithaca, N. Y., 1970), p. 158.

3 , Geertz, op. cit., p. 49.Google Scholar

4 Higgins, Benjamin, Economic Development, 2nd ed. (London, 1968), p. 685.Google Scholar

5 , Geertz, op. cit., pp. 4950.Google Scholar

6 Ibid., p. 49.

7 Wertheim, W. F.et al. (eds.), Indonesian Economics: The Concept of Dualism in Theory and Practice (The Hague, 1966), p. 7.Google Scholar

8 See footnote 59.

9 Wertheim, W. F., Indonesian Society in Transition, 2nd ed. (Bandung, 1956), p. 272.Google Scholar

10 Ibid., p. 269.

11 Boeke, J. H., Oostere economie (1955)Google Scholar , quoted in , Wertheimetal., op. cit., p. 35Google Scholar.

12 Boeke, J. H., Tropical-Colonial Economics (1910), Chap. 1Google Scholar, reprinted in Wertheim et al., op. cit., pp. 69ff.

13 Boeke, J. H., The Structure of Netherlands Indian Economy (1942)Google Scholar, quoted in , Wertheimet al., op. cit., p. 19Google Scholar.

14 See Frankel, S. H., The Economic Impact on Under-Developed Societies (London, 1953)Google Scholar; Bauer, P. T., Economic Analysis and Policy in Underdeveloped Countries (Durham, N. C., 1957)Google Scholar.

15 , Wertheimetal., op. cit., p. 31.Google Scholar

16 See Wertheim et al., op. cit., “Introduction”; Higgins, B., “The ‘Dualistic Theory’ of Underdeveloped Areas”, Ekonomi dan Keuangan Indonesia, 1955.Google Scholar

17 Furnivall, J. S., Netherlands India: A Study of Plural Economy (Amsterdam, 1976), pp. 454, 456Google Scholar. Boeke's view still has adherents. D. H. Penny has sometimes taken a similar position. “In most of Indonesia, farmers do not attempt to maximise their incomes nor do they respond strongly to economic incentives.” In North Sumatra, for example, farmers preferred not to take up empty land because they believed that “no man should get more land then he needs to live satisfactorily” (“The Economics of Peasant Agriculture: The Indonesian Case”, Bulletin of Indonesian Economic Studies, Oct. 1966, pp. 27, 29Google Scholar). Again, in his joint study with M. Singarimbun of poverty in a Javanese village, he explained that “the Javanese peasantry, both its rich and its poor, has long had a concept of what constitutes ‘enough’. The word they use is cukupan. It is applied to what they see as being the reasonable needs of the ordinary peasantry” (Population and Poverty: Some Economic Arithmetic from Srihardjo, Cornell University, June 1973, p. 2Google Scholar). Such an attitude logically implies a backward-sloping supply curve. Penny, however, has also advanced an alternative explanation of what he calls the “non-developmental response” of Javanese peasants. He attributes it to an extremely high subjective risk premium, the cumulative effect of Dutch colonial policy, instability of markets, and capricious post-independence government intervention. “It is as if they associate commercial crops and new methods with calamity” (Bulletin of Indonesian Economic Studies, Oct. 1966, p. 37). This attitude, in contrast to the first, is consistent with the assumption of economic man.

18 , Higgins, Economic Development, op. cit., Chap. 31.Google Scholar

19 For an account of Boeke's intellectual Odyssey after his initial formulation of the theory of dualism, see , Wertheimet al., op. cit., p. 456Google Scholar.

20 , Fumivall, op. cit., p. 456.Google Scholar

21 , Geertz, op. cit., pp. 130 ff.Google Scholar

22 , Geertz, op. cit., p. 135.Google Scholar

23 , Higgins, Economic Development, op. cit., p. 683.Google Scholar

24 Ibid., p. 686.

25 Ibid., p. 687.

26 Ibid., p. 692.

27 , Higgins, Economic Development, op. cit., p. 693Google Scholar. And why was Indonesia unable to resist the Western onslaught and to undertake modernization under its own Meiji? Had the Portuguese arrived a century earlier, Higgins speculated, or the Dutch two centuries earlier, when there was still in Indonesia a powerful Majapahit empire, “the ‘response’ to the ‘challenge’ provided by the arrival of the Europeans might then have been similar to the Japanese response to the European challenge some 350 years later” (Ibid., p. 684). It might, or it might not.

28 , Sukarno, “The Promise of a Brightly Beckoning Future” (1930), inGoogle Scholar, Feith and , Castles, op. cit., p. 30Google Scholar.

30 , Sukarno, “The Pantja Sila” (1945)Google Scholar, in , Feith and , Castles, op. cit., p. 40Google Scholar.

31 “Political Manifesto of November 1945”, Ibid., p. 50.

32 Hatta, Moh., “Colonial Society and the Ideals of Social Democracy” (1956)Google Scholar, Ibid., p. 33.

33 Cf. , Higgins, Economic Development, p. 694.Google Scholar

34 , Wertheim, Indonesian Society in Transition, p. 138.Google Scholar

35 See footnote 23.

36 Sjafruddin Prawiranegara, “The Causes of Our Falling Production”, (1953), in Feith and Castles, op. cit., pp. 386ff.

37 , Soedjatmoko, “On Equivocating about Economic Advancement” (1954)Google Scholar, Ibid., pp. 391ff.

38 Nitisastro, Widjojo, “Raising Per Capita Income” (1955)Google Scholar , Ibid., p. 382.

39 , Sukarno, “The Economics of a Nation in Revolution” (1963)Google Scholar, in , Feith and , Castles, op. cit., p. 392Google Scholar.

41 , Wilopo, “The Principle of the Family Relationship” (1955)Google Scholar, in , Feith and , Castles, op. cit., p. 379Google Scholar.

42 Hatta, Moh., op. cit., p. 36.Google Scholar

43 Ibid., p. 35.

44 “s” “Our Nationalism and Its Substance” (1946), in Feith and , Castles, op. cit., p. 232Google Scholar.

45 Aidit, D. N., “A Semifeudal and Semicolonial Society” (1957)Google Scholar, Ibid., p. 249.

47 Aidit, D. N., “Mismanagement, Corruption and the Bureaucratic Capitalists” (1964)Google Scholar, in , Feith and , Castles, op. cit., p. 401Google Scholar.

48 Ibid., p. 402.

49 Castles, L., “Socialism and Private Business: The Latest Phase”, Bulletin of Indonesian Economic Studies, June 1965, p. 38.Google Scholar

50 See “Survey of Recent Developments”, Bulletin of Indonesian Economic Studies, June 1966. The speech was drafted by Soedjatmoko and Selo Soemardjan.

51 Penny, D. H. and Thalib, Dahlan, “Survey of Recent Developments”, Bulletin of Indonesian Economic Studies, Mar. 1969, p. 31.Google Scholar

52 “The Five Year Plan”, Bulletin of Indonesian Economic Studies, July 1969, p. 71.Google Scholar

53 See Grenville, S. A., “Survey of Recent Developments”, Bulletin of Indonesian Economic Studies, mar. 1974, pp. 9 ffGoogle Scholar.

54 Quoted in Ibid., p. 28.

55 See Booth, Anne, “Survey of Recent Developments”, Bulletin of Indonesian Economic Studies, July 1979, pp. 30, 37Google Scholar. “A characteristically cynical foreign comment is that the plan document is” disappointingly vague on specific policy measures and interesting “if for no other reason in that it shows the extent to which fashions in development economics emanating from such far away places as Washington, Sussex and Geneva have trickled down to the corridors of Bappenas” (Ibid., pp. 2, 37).

56 See Booth, Anne and Sundrum, R. M., “Income Distribution”, in Booth, Anne and McCawley, P., The Indonesian Economy in the Soeharto Era (London, 1980).Google Scholar

57 Mubyarto, quoted in Commercial News Letter, Data Search, Jakarta, 28 Aug. 1978.

58 , Soedjatmoko, “National Policy Implications of the Basic Needs Model”, Prisma, Mar. 1978.Google Scholar

59 Mortimer, R. (ed.), Showcase State: The Illusion of Indonesia's “Accelerated Modernisation” (Sydney, 1973), p. 65Google Scholar. For a critical examination of some of this literature, see Glassburner, B., “Political Economy and the Suharto Regime”, Bulletin of Indonesian Economic Studies, Nov. 1978Google Scholar.

60 “S”, op. cit., p. 231. According to Feith and Castles, the authorship of this article has been attributed to Dr. Sumitro Djojohadikusumo.

61 For Boeke's Gandhiist phase, see , Wertheimet al., op. cit., p. 43Google Scholar. Furnivall reached a somewhat similar view when he contemplated the wreckage of Burmese traditional community life; see Furnivall, J. S., An Introduction to the Political Economy of Burma (1931), 3rd ed. (Rangoon, 1957)Google Scholar.

62 See footnote 10.