pacific forum History of Pacific Forum

PacNet #37 – Will China Become Another Indonesia?

The fall of the Suharto regime in Indonesia in May 1998 was one of the swiftest reversals of national fortune in the developing world in this century. Although the immediate cause of its demise was the East Asian financial crisis, the deeper and more fundamental causes of the country’s economic collapse and subsequent political turmoil were the accumulated institutional decay and stresses within the Indonesian political system.