Post-Crisis Economic Reform in Indonesia:Policy for Intervening in Ownership in Historical Perspective

Introduction : Economic reform in Indonesia after the Asian currency crisis is often discussed in parallel with Thailand and South Korea, which were alike hit by the crisis. It should however be noted that what happened in Indonesia was a change of political regime from authoritarianism to democracy, not just a change of government as seen in Thailand and South Korea. Indonesia’s post-crisis reform should be understood in the context of dismantling of the Soeharto regime to seek a new democratic state system. 　　　In the political sphere, dramatic institutional changes have occurred since the downfall of the Soeharto government in May 1998. In comparison, changes in the economic sphere are more complex than the political changes, as the former involve at least three aspects. The first is the continuity in the basic framework of capitalist system with policy orientation toward economic liberalization. In this framework, the policies to overcome the crisis are continued from the last period of the Soeharto rule, under the support system of IMF and CGI (Consultative Group on Indonesia). The second aspect is the impact of the political regime change on the economic structure. It is considered that the structure of economic vested interests of the Soeharto regime is being disintegrated as the regime breaks down. The third aspect is the impact of the political regime change on economic policy-making process. The process of formulating and implementing policies has changed drastically from the Soeharto time. With these three aspects simultaneously at work, it is not so easy to identify which of them is the main cause for a given specific economic phenomenon emerging in Indonesia today. 　　　Keeping this difficulty in mind, this paper attempts to situate the post-crisis economic reform in the broader context of the historical development of Indonesian economic policies and their achievements. We focus in particular on the reform policies for banking and corporate sectors and resulting structural changes in these sectors. This paper aims at understanding the significance of the changes in the economic ownership structure that are occurring in the post-Soeharto Indonesia. Economic policies here do not mean macro economic policies, such as fiscal, financial and trade policies, but refer to micro economic policies whereby the government intervenes in the economic ownership structure. In Section 1, we clarify why economic policies for intervening in the ownership structure are important in understanding Indonesia. Section 2 follows the historical development of Indonesia’s economic policies as specified above, throughout the four successive periods since Indonesia’s independence, namely, the parliamentary democracy period, the Guided Democracy period under Soekarno, the Soeharto-regime consolidation period, and the Soeharto-regime transfiguration period2. Then we observe what economic ownership structure was at work in the pre-crisis last days of the Soeharto rule as an outcome of the economic policies. In Section 3, we examine what structural changes have taken place in the banking and corporate sectors due to the reform policies in the post-crisis and post-Soeharto Indonesia. Lastly in Section 4, we interpret the current reorganization of the economic ownership in the context of the historical transition of the ownership structure, taking account of the changes in the policy-making processes under democratization.

Constitutional Review and Democratic Consolidation: A Literature Review

This paper reviews the literature on the prevalence of constitutional review across the world, and particularly in emerging democracies, during the last two decades. Two major questions should be addressed in this regard. First, why has the judiciary been empowered and what factors affect judicial activism? Second, does constitutional review ensure an effective self-enforcing function? In sum, the literature shows that constitutional review can make democracy self-enforcing if there is sufficient competition among political parties or between the legislature and the executive branch of government. In a more sophisticated case, political balance within the court can also ensure the observance of court decisions.

Separation of Control and Cash-Flow Rights of State Owned Listed Enterprises: Channels of Expropriation after the Discriminated Share Reform in China

Literature on agency problems arising between controlling and minority owners claim that separation of cash flow and control rights allows controllers to expropriate listed firms, and further that separation emerges when dual class shares or pyramiding corporate structures exist. Dual class share and pyramiding coexisted in listed companies of China until discriminated share reform was implemented in 2005. This paper presents a model of controller to expropriate behavior as well as empirical tests of expropriation via particular accounting items and pyramiding generated expropriation. Results show that expropriation is apparent for state controlled listed companies. While reforms have weakened the power to expropriate, separation remains and still generates expropriation. Size of expropriation is estimated to be 7 to 8 per cent of total asset at mean. If the "one share, one vote" principle were to be realized, asset inflation could be reduced by 13 percent.

Real exchange rate appreciation, resource boom, and policy reform in Myanmar

In the five-year period from 2006 to 2011, the real exchange rate of the Myanmar kyat appreciated 200 percent, signifying that the value of the US dollar in Myanmar diminished to one third of its previous level. While the resource boom is suspected as a source of the real exchange rate appreciation, its aggravation is related to administrative controls on foreign exchange and imports. First, foreign exchange controls prevented replacement of the negotiated transactions of foreign exchange with the bank intermediation. This hampered government interventions in the market. Second, import controls repressed imports, aggravating excess supply of foreign exchange. Relaxation of administrative controls is necessary for moderating currency appreciation.

Sources of fluctuations in parallel exchange rates and policy reform in Myanmar

Myanmar maintained a multiple exchange rate system, and the parallel market exchange rate was left untamed. In the last two decades, the Myanmar kyat exchange rate of the parallel market has exhibited the sharpest fluctuations among Southeast Asian currencies in real terms. Since the move to a managed float regime in April 2012, the question arises of whether exchange rate policies will be effective in stabilizing the real exchange rate. This paper investigates the sources of fluctuations in the real effective exchange rate using Blanchard and Quah’s (1989) structural vector autoregression model. As nominal shocks can be created by exchange rate policies, a persistent impact of a nominal shock implies more room for exchange rate policies. Decomposition of the fluctuations into nominal and real shocks indicates that the impact of nominal shocks is small and quickly diminishes, implying that complementary sterilization is necessary for effective foreign exchange market interventions.

Where does Philippine education go? : the "K to 12" program and reform of Philippine basic education

In 2012 the Philippines launched its "K to 12" Program, a comprehensive reform of its basic education. Through this reform, the Philippines is catching up with global standards in secondary education and is attaching a high value to kindergarten. The structure, curricula, and philosophy of the education system are undergoing reform and improvement. The key points of the new policy are "preparation" for higher education, "eligibility" for entering domestic and overseas higher educational institutions, and immediate "employability" on graduating, all leading toward a "holistically developed Filipino". This policy appears admirable and timely, but it faces some pedagogical and socioeconomic problems. The author wants to point out in particular that the policy needs to address gender problems and should be combined with demand-side approaches in order to promote poverty alleviation and human development in the Philippines.

Jurisdição constitucional e política : interpretativismo, não-interpretativismo e suas alternativas políticas e jurídicas : Teoria estética ? Estudo da obra Contemporary constitutional lawmaking de Lief H. Carter / Marcio Nunes Iorio Aranha Oliveira. --

Inclui notas bibliográficas.

Out of hours service in Denmark: evaluation five years after reform

Objective: Five years after its introduction, to evaluate the 1992 reform in the out of hours service in Denmark.

Reforma del estado como mecanismo de control en democracia delegativa: caso reforma judicial Ecuador 2007-2014

The object of this doctoral thesis is the analysis of the political and administrative purpose that is given to the reform process of a vital sector of State powers within the framework of delegate democracy, such as the administration of Justice. The object is also to analyze if State reform in a diminished or non-liberal surrounding increase or improve conditions of democracy in a given situation, based on the constitutional “what should be”, or if what occurs is a process of “seizure” of the functions of State, which becomes an institutional risk. Finally, we will examine the real and effective existence of a horizontal accountability process through the use of institutional resources, which would evidence the existence of an incomplete model of democracy. This analysis implies the relationship between two institutions within public administration: State Reform, as an act of change in State structure in order to improve qualitatively the outcomes and outputs of public policies, and in sum, to make the system work better. This, as it will be examined later, is the case of Latin America as a response of the State to three processes in crisis: fiscal, as in government intervention or in the form of bureaucratic administration. In that scheme of things, this thesis examines the present state of the art in public administration science of this process to prove that in delegate democracy, this type of instruments disregard the constitutive elements of democracy and serve, especially in critical areas of the administration, allowing for Power to dismiss Law. This research seeks to contribute towards an area seldom analyzed regarding public administration doctrine under the light of the theory of law, which is the connection between previous conditions or principal inputs of an execution process of a democracy and, on the other hand, regarding the effects of introducing a reform within models of a changing democracy and new concepts of the rule of law. While reviewing writings regarding State reform, it is clear that no approximations have been previously made in reference to prior conditions of the political system in order to begin operating a reform which respects fundamental rights as an object of this procedure. Furthermore, no analysis has been found regarding structural change of strategic areas in State services as to the effect caused on democratic exercise and the outcome in an open society...

Brief for Amici Curiae Scholars of the Constitutional Rights of Children in Support of Respondent Edith Windsor Addressing the Merits and Supporting Affirmance

This amicus brief filed by Scholars of the Constitutional Rights of Children turns the spotlight on children in same-sex families. The brief enumerates the ways Section 3 of DOMA impairs children's interests by denying federal recognition of their parents' marriages.

Brief of Amici Curiae Scholars of the Constitutional Rights of Children in Support of Petitioners in Obergefell v. Hodges

Supreme Court precedent establishes that the government may not punish children for matters beyond their control. Same-sex marriage bans and non-recognition laws (“marriage bans”) do precisely this. The states argue that marriage is good for children, yet marriage bans categorically exclude an entire class of children – children of same-sex couples – from the legal, economic and social benefits of marriage. This amicus brief recounts a powerful body of equal protection jurisprudence that prohibits punishing children to reflect moral disapproval of parental conduct or to incentivize adult behavior. We then explain that marriage bans punish children of same-sex couples because they: 1) foreclose their central legal route to family formation; 2) categorically void their existing legal parent-child relationships incident to out-of-state marriages; 3) deny them economic rights and benefits; and 4) inflict psychological and stigmatic harm. States cannot justify marriage bans as good for children and then exclude children of same-sex couples based on moral disapproval of their same-sex parents’ relationships or to incentivize opposite-sex couples to “procreate” within the bounds of marriage. To do so, severs the connection between legal burdens and individual responsibility and creates a permanent class or caste distinction.

Land Reform in South Africa in Light of Emerging Urbanization, Industrialization, and Globalization Trends

Black South Africans experienced centuries of mistreatment and land dispossessions, leaving their population in dire poverty and dependence. The 1994 democratization of South Africa birthed a three-fold land reform program dedicated to land restitution, land redistribution, and tenure reform. The first decade of implementation left government goals unmet. The relevance of land reform is examined given modern-day urbanization, industrialization, and globalization. This paper affirms land reform is still relevant socially and is therefore relevant politically and economically. Improvements to program implementation are suggested in the following areas: implementing agency support; rural representation; information management; land market stimulation; beneficiary support; and agrarian reform. Land reform limitations are discussed, and industrialization is briefly explored as the more likely solution to poverty issues.

Micronutrients and the Sahel: The Need for International Food Aid Reform

The 2012 Food Assistance Convention (FAsC) will replace the 1999 Food Aid Convention (FAC), shortly becoming the new document governing international food aid. This new convention will allow for culturally- and nutritionally-appropriate food purchases, but it lacks sufficient guidance and enforcement mechanisms to ensure the inclusion of micronutrients in food assistance. In conjunction with other United Nations-based programs, reforms focused on cooperation, measurement, and education in micronutrient interventions are recommended for the FAsC framework. These reforms stand to benefit the persistently hungry and micronutrient deficient Sahel region of Africa.

El gobierno económico de la Unión Europea y los principios de justicia del gasto público en una hacienda plural

A partir de 2011 se ha reforzado el gobierno económico de la UE a través de seis instrumentos legislativos, el llamado Six Pack, que supone fundamentalmente una reforma de la supervisión de la política presupuestaria de los Estados miembros. Más recientemente el Tratado de estabilidad, coordinación y gobernanza de UE de marzo de 2012 (TECGUE) establece un conjunto de normas destinadas a promover la disciplina presupuestaria a través de un pacto presupuestario; a reforzar la coordinación de sus políticas económicas; y a mejorar la gobernanza de la zona del euro. En el presente trabajo se analiza si este modelo basado en una estricta disciplina presupuestaria es compatible con los postulados del Estado social, y más concretamente con los principios de justicia del gasto público. En efecto, a partir de la reforma del art. 135 de la Constitución Española, el principio de estabilidad presupuestaria debe ser interpretado coordinadamente con otros principios constitucionales que en el momento presente están plenamente vigentes y pueden adquirir una nueva función: la de actuar como límite y medida del objetivo de estabilidad presupuestaria. Del mismo modo se analizan los principios de coordinación entre las políticas presupuestarias y de endeudamiento de los Estados miembros en un Estado con una pluralidad de Haciendas, como es el caso español.