Globalization in Indonesia

922 Words Oct 21st, 2012 4 Pages
The 1997-1998 globalization effects in Indonesia

“In 1998 20% of the Indonesian population were below the poverty line. In 1999, 28% of the population was below the poverty line. Then in 2000, 22% of the population was below the poverty line” (Rukmana).

The International Monetary Fund (IMF) claims to help countries in poverty achieve macroeconomic stability to reduce poverty. Macroeconomic stability is the balance of healthy rates of: GDP, unemployment, and price indices (Gupya). Indonesia sought the aid of the IMF after their devastating finical crisis in 1998. Indonesia had a reported 700 million people in extreme poverty in 1998 (White Pages). Not only did the poverty rate increase after receiving aid from the IMF, but also more
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At that time Indonesia was the only country to get that high of a bid. The former finance minister Rizal Ramli stated ‘’with the IMF’s involvement 10 years ago the crisis plunged deeper than necessary.” (Markar-Macan) Rizal Ramli also stated ’Indonesians do not want to taste the same bitter pill again.’’(Markar-Macan) In conclusion, the damages and the set backs to the Indonesian economy have been monumental and scarring. The IMF’s intentions are disputable and available for speculation. But more importantly the Indonesian economy suffered more after the aid of the IMF. Many Indonesians feel as if they were on the right track before they had any interference with IMF. Nether the less, Indonesia is still currently rebuilding from the damage that the IMF caused hopefully countries in need will take note to the “Bitter Pill” that Indonesia had swallowed and refuse assistance from organizations like the IMF.

Works Cited

Feridhanusetyawan, Tubagus. " Preferential Trade Agreements in the Asia-Pacific Region” July 2005. Web. 7 Apr. 2012.

Gupya, Sanjeev. " Equity and Efficiency in the Reform of Price Subsidies"15 December 2001. Web. 7 Apr. 2012.

Lewis, Vanessa. " IMF demands price increase, mass protests follow" Web. 10 Apr. 2012. Markar-Macan, Marwaan. " Saying No, Thank you to the IMF Loans” Web. 10 Apr. 2012.

McLeod H. Ross. " Indonesia’s Monetary Muddle"9 February 2009. Web. 7 Apr. 2012.

Radelet, Steven.
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