How to do a reform in a 'second best world': the case of Indonesia

Venue: The Spot, Business and Economics

Presenters: Dr Muhamad Chatib Basri

The word of reform has become a mantra to solve many economic problems in developing countries. Nevertheless, only a few reforms have been successful. When economists are asked why, they usually blame on politics or institutional setup as the culprit. Many economic or institutional reforms often fail because the international best practices do not fit with the political or institutional setup in developing countries.

While we understand that reformers have to change the institutional set up, they are in reality often constrained with the dilemma that changing institutions requires a lot of time, whereas on the other hand politicians usually work within a limited term horizon. Economists do not have the luxury to work in an “empty space”. They have to live with political realities. Thus, the important question is how an effective reform can be produced under institutional and political constraints? This lecture will address this question and focus on Indonesia as a case study.

Dr. Muhamad Chatib Basri will present the David Finch Lecture 2016.

from
https://events.unimelb.edu.au/events/7131-how-to-do-a-reform-in-a-second-best-world