By Francoise Gerard, Francois Ruf
Indonesia's financial and political situation is tested right here on the subject of its effect on Indonesia's agricultural region. The twelve essays that include this quantity take a micro-economic strategy and research is dependent upon saw proof and first-hand information accrued either earlier than and after the country's predicament. this can be a energetic, good illustrated and instructive booklet.
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Extra resources for Agriculture in Crisis: People, Commodities and Natural Resources in Indonesia, 1996-2000
Economic growth was drastically curtailed. The worst affected sectors were those that had grown strongly in the 5 years before the crisis, namely construction and trade. The manufacturing sector was also badly affected. Agriculture, however, appeared to be an exception. Indeed, the statistics suggest that agriculture was barely affected bythe crisis and was a haven of stability. In the 5 years before the crisis it grew more slowly than all other sectors, registering an increase in GDP of only 1% in the first quarter of 1997.
In this process rupiah were converted into dollars, placing further pressure on the currency. On 9 December 1997, following President Suharto’s cancellation of his trip to a meeting of the Association of South East Asian Nations (ASEAN) on the grounds of ill-health, the rupiah began depreciating much more rapidly than the currencies of other Southeast Asian countries. Its headlong fall reflects the important part played by political instability in the fate of Indonesia during the Asian crisis. 00.
Many banks were part of family conglomerates, to which they provided loans on easy terms, laying the basis for the bank failures of the crisis years. Foreign investors in Indonesia at this time were alleged to have to allow for an extra 20% on top of their normal costs in order to pay the bribes and kick-backs demanded by corrupt politicians, a burden that severely hampered the development of sectors such as mining and manufacturing. It became impossible to start a business in the country without sharing the profits with the president’s family.
Agriculture in Crisis: People, Commodities and Natural Resources in Indonesia, 1996-2000 by Francoise Gerard, Francois Ruf