| Summary: | 碩士 === 國立成功大學 === 政治經濟研究所 === 89 === In search of the source of crises coming up in a developing country, we must find out the causes of the crises and the following interaction between the changing political and economic conditions, which serve to realize the overall dynamic evolution. Thus, the logic of democracy is adopted here to describe the connection between the public political participation and the legitimacy of the governors. Combined with the logic of capitalism and neo-institutionalism to analyze the economic adjustments with the market fluctuation, this paper is aiming to seek out the relevance between political and economic crises through analyzing them.
Magnificently affected by the geographical and historical factors, Indonesia shows its complicated and unique structures in religion, ethnics and language. Also, compared with the other developing countries, Indonesia’s political and economic dramatic change before and during the financial crisis makes it a good study case to observe the potential questions hiding in some similar countries. This paper focuse on the time from the former president Suharto, who failed his people in 1996, to the new president Wahid, who set up his regime in the late 1999. This paper also looks into the empirical evidence and figures out the reason of political and economic crises and their interaction in a chronolohical order.
By observing how Indonesia’s political and economic crises take their course and make this country change, some points are worthy of notice in this paper. First, Indonesia is pushed to change from an authoritarian developing country into a more democratic one. The pressure of the reform originally comes from the people suffering from the economic crisis, and then contributes to the reshuffle of existing upper elites. Second, the political intervention regarded as the dominating source of rapidly and highly economic growth in Indonesia before is now considered as improper interference with the market. That is, the state and bureaucracy with little supervisory mechanism inside makes Indonesia’s vulnerable ecomomic conditions and leads to the sharp economic contraction .
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