The role of the state during the economic growth process in Indonesia
Author
Schilling, Eva
Term
4. term
Publication year
2017
Pages
53
Abstract
I konteksten af Sydøstasiens hurtige industrialisering er Indonesien forblevet i den lavere middelindkomstgruppe trods tidligere høj vækst. Dette speciale undersøger statens rolle i Indonesiens vækstproces og hvorfor landet risikerer at blive fanget i middelindkomstfælden. Med en deduktiv enkeltcasestudie-tilgang analyseres kvantitative indikatorer fra Verdensbanken og sekundær litteratur for at vurdere industripolitik, udvikling af humankapital og statens indlejrede autonomi. Studiet gennemgår politiske instrumenter, skift i produktionsstrukturen og uddannelsesresultater for at identificere svagheder i industrialiseringsprocessen. Resultaterne peger på tre hovedhindringer for vedvarende vækst: udbredt korruption, der undergraver statsapparatet; overlappende og uigennemsigtige bureaukratiske strukturer, der forsinker sagsbehandling og svækker informationsflow; samt utilstrækkelige investeringer i humankapital, især i tertiær uddannelse. Desuden understøtter de observerede kvantitative indikatorer ikke den forventede positive rolle af indlejret autonomi for at fremme vækst. Resultaterne tydeliggør, hvordan institutionel kvalitet og humankapital begrænser Indonesiens evne til at bevæge sig op ad indkomststigen.
Against the backdrop of Southeast Asia’s rapid industrialization, Indonesia has remained in the lower-middle-income tier despite earlier high growth. This thesis examines the state’s role in Indonesia’s growth process and why the country risks becoming trapped at middle income. Using a deductive single-case study design, it analyzes quantitative indicators from the World Bank and secondary literature to assess industrial policy, human capital development, and the state’s embedded autonomy. The study reviews policy instruments, shifts in the production structure, and education outcomes to identify weaknesses in Indonesia’s industrialization. The findings indicate three main constraints on sustained growth: pervasive corruption that undermines the state system; overlapping, opaque bureaucratic structures that slow administration and erode information flows; and insufficient investment in human capital, especially tertiary education. Moreover, the observed quantitative indicators do not support the expected positive role of embedded autonomy in promoting growth. The results clarify how institutional quality and human capital limit Indonesia’s ability to move up the income ladder.
[This summary has been generated with the help of AI directly from the project (PDF)]
Documents