The Political Economy Of Development: A Critical Analysis of Government’s Poverty Reduction Policies, Programs And Strategies In Indonesia

Malik, Asmiati Abdul (2023) The Political Economy Of Development: A Critical Analysis of Government’s Poverty Reduction Policies, Programs And Strategies In Indonesia. Project Report. Universitas Bakrie, Jakarta. (Unpublished)

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Abstract

This thesis uses the analogy and approaches of institutional economics in political economy to understand the role of government interventions in the market and to analyse its effects on economic development in Indonesia. The study will focus on four things: first, poverty as the negative unintended result of government failure in protecting the national economy and, second; poverty as the result of government failure in understanding what cause and effects of poverty and its linkage with their failure in forming and design strategies, approaches and policies to increase economic development in rural and urban area and also to eradicate poverty and third; linkage between poverty, food security and human development, and fourth; poverty as moral hazard. Therefore, this study will use policy study analysis to gain deep understanding of the weakness of government policy and dynamic legislation framework in Indonesia that is started from planning, drafting, deliberating process, validating and enactment. In the broader scope, there are top-down policy, which mean the policy is made from central government without any involvement from the local government, thus policies are related with: 1). International trade such as: quota, tax and tariff, import restriction, and investment, 2). Central Bank with its monetary policy including: inflation, interest rate, and money value. Another type of policy is down-top policies or autonomic policy, a policy that is made on local government and it is approved with central government, those policies are specially related with the local wisdom and local economic development. However, this type of policy more likely tend to create new type of corruption, nepotism and collusion, since there is a lack of monitoring from the central government itself. In the top-down policies, it is argued that the policies are made as a trade-off between certain politician and big cartel players, and foreign stakeholders that will be analysed by using dependency theories. And in down-top policies, it is argued that the policies are made to give economic and political benefits just for certain clans and business players. And consequently, it gives negative impact on economic development and social welfare that can be seen on the number of poverty and the low of human development in Indonesia. And it will become a big threat for Indonesia especially in facing ASEAN economic Community (AEC), and also challenges if Indonesia wants to take a part in BRIC or even forming new emerging countries such as MINT. Based on that, the hypothesis of this research are: 1) Poverty in Indonesia is structural poverty and 2) Poverty and Inequality has a strong correlation with poor public policies, lack of government will on economic development and human development in Indonesia and moral hazard of Indonesian elites and politician.

Item Type: Monograph (Project Report)
Uncontrolled Keywords: Poverty, Inequality, Economic Development, Political Economy, institutional Economy, BRICs, MINT.
Subjects: Political Science > Economic Politics
Science Paper > Research Report
Divisions: Fakultas Ekonomi dan Ilmu Sosial > Program Studi Ilmu Politik
Depositing User: Ahmad Yani
Date Deposited: 26 Jul 2023 04:31
Last Modified: 26 Jul 2023 04:31
URI: http://repository.bakrie.ac.id/id/eprint/7803

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