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BOOK REVIEWS
To cite this article: (2001) BOOK REVIEWS, Bulletin of Indonesian Economic Studies, 37:3, 387-403, DOI: 10.1080/00074910152669208
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ISSN00074918print/ISSN14727234online/01/03038717 ©2001IndonesiaProjectANU
The latest (October 2000) ‘Indonesia Update’conference volume has been pushed through to publication with commendable speedand efficiencyby two young Canberra researcher s, GraysonLloydandShannonSmith.Of its 25 mostly short chapters, several serve well the purpose of chronicling andanalysingtheimpactofSoeharto’s fallanddemocratisationbyassessingthe economy (KellyBird), theWahid gov
-ernment(MarcusMietzner),theparties andparliament(Greg Fealy), the mili
-tary (Atmadji Sumarkidjo),the media (Philip Kitley), political Islam (Greg Barton)andregionalresistance(Richard Chauvel). The story told by these au
-thors is downbeat and disenchanted, thoughlessradically sothanthemore free-rangingessaysthatmakeuptherest
ofthevolume.Perhapssurprisingly in aneraofdemocratisation,theeconomic story seems the most positive. Bird documentsthemodesteconomicrecov
-erythattookplacein2000,witha4–5%
GDPexpansionledbyconsumerspend
-ingand exportgrowth.And whilethe politicalparties andthemedia arenot given high marks by Mietzner and Kitley for the use they have made of their new freedoms, the writers ac
-knowledgethatthosefreedomsremain. Despitethemisleadingmaintitle,the specialthemeofthemillennium-ending
Update conference was history, and abouthalftheauthorsarehistorianstak
-ing a longer view of the issues. With manyoftheleadingIndonesiahistori
-ansonshowhere,oneofwhom(Elson) suggestedinhis1998InauguralLecture thatIndonesia’sRepublicanprojectwas flawed from thestart, this was anop
-portunitytore-examinemanyoftheas
-sumptions of national history. Some have picked up that challenge; most havenot.
Asubstantialsectionofthebookcom
-prisesthreesolideconomichistorychap
-ters. Thee Kia n Wie surveys the economic record of the now vilified Soehartoregime,andfindsitstilllook
-ing extremely positive in economic growthterms(over7%p.a.in1965–97),
andeveninrelativeeconomicequality, iflesssoinsocialindicators. Intheend, however, theregime faileddismallyto reform in the 1990s, which Thee at
-tributes to theabsence of the salutary ‘protective roleofpoliticaldemocracy’ thatAmartyaSenhashighlighted.Pierre vanderEngandHowardDickconsider therecordofthewhole20thcentury.Both
drawattention to thedrasticmid cen
-turycrisisofnegativegrowthin1931–66,
chiefly caused by global depression (1930–36), Japanese occupation and
revolution(1941–49),andthechaosand
mismanagementofthelateSoekarnoera (1957–66).Van derEng wantstoshow
thatdespite thisIndonesiadid wellin the 20thcentury with a growth rate of
1.7% p.a. overall (though cheating by
BOOK
REVIEWS
GraysonLloydandShannonSmith(eds)(2001),IndonesiaToday:ChallengesofHis
takingtheendpointas1997andignor
-ingthe 18% collapse in 1998), higher thantheaverageforAsiaminusJapan, and covering inone century a growth thattookEuropefour.Dickshareswith himthetroublingobservation thatboth periodsof growth (1900–30 and 1966–
97) were associated with ‘globalised, capitalist development’,and were fol
-lowedbysomedegreeofpopulistreac
-tion against that. For Dick the key questioniswhethertheIndonesianmid
-dle class now (like the Dutch elite in 1930)willonceagainacceptauthoritari
-anism as the price of maintaining its materialbenefits, or will takea longer viewbytoleratingthecontestationneeded tobuildviablepoliticalinstitutions.
Itisimpossibletobegintodojustice to all the 25 authors, many of whom haveavaluablepointtomake.Goena
-wan Mohamad, for example, appeals eloquentlyforhumilityasaprerequisite toreconciliation with the old Left and its memory. Iwill endby drawing at
-tentiontothemostradical critiquesof the Indonesian state itself, critiques whichadecadeagowereseldompub
-lished (though sometimes discussed) exceptbytheextremeLeftorRight.
Adrian Vickers presents a lively scatter-shot denunciation of the
Soehartoregimewhichrunsthroughall thelabels.Heevenexperimentswiththe ideaofa‘Stalinist state’,especiallyfor themiddlephase(1974–88),butendsby
trying to have it all ways—’the New
Orderwasa“rentier”orplunderstate, acriminalstate andanABS[whatever makesthe boss happy]state’. Lawyer Tim Lindseyismore focusedandcon
-vincinginarguingthatwhathecalls‘the criminalstate’haditsrootsintherevo
-lutionaryperiod(1945–49),butwasor
-ganised m ore effec tiv ely in the government interest under Soeharto. Thekeyleversofpower,heargues,op
-eratedoutside thelawortheconstitu
-tion.Notonlydidthemilitarykill,bru
-taliseandintimidatethousandsofpeo
-ple; a whole system of private preman
(gangsters) developed who extracted protection moneyfrom everyconceiv
-ableformofbusiness,andyieldedaper
-centage of it to their backer in the military,policeorbureaucracy.Reform, heargues,mustbeginbygettingridof the sacralised but authoritarian 1945 constitution.
HistorianMerleRicklefs,thoughcom
-plaining that the topic of ‘Indonesian ViewsoftheFuture’wasforcedonhim, developsaprofoundlydisenchantedhis
-tory ofvarious unsatisfactory or failed states on the one hand,and repeated messianicmovementsagainst them on theother. Bold if contradictory visions werefrequently espoused, but always endedinfailure.Hepreparesustoexpect morelongings,‘religiousincharacterand prepared to embraceviolence’. Finally, RobertCribbconfrontstheproblemthat Indonesiahassomeofthefeaturesofan empireaswellasanation,andunravel
-lingitmaybethepriceforeffectivede
-mocratisation and modernisation.As morecompactand homogeneous units begintoseemattractiveinademocratic age,hepointsout,thevitalquestionwill notsomuchbeAcehandPapua,which can be severed without affecting the wholeagreatdeal,butJava,theheartof the enterprise.IfJavaneseweary ofthe warsandconflictstowhichtheIndone
-sian ‘empire’ may appearto condemn them, nativist and populist forms of Javanismmayre-emerge.
In all, this is a set of historically informedinsightsonIndonesia’scontem
-porarydilemma,ratherthanarethinking ofhistoryinthelightofanalteredpresent. Itwillhavesomethingofinterestforevery Indonesianist.
AnthonyReid
Agricultural development has in re
-centyearsbeenre-emphasisedascriti
-cal to ec on om ic reco ver y and the future of economic development in Indonesia.Thereareatleasttworea
-sons for this. First, the agricultural sectorhas beenmore resistant to the impact of the economic crisis than non-agricultural sectors. Second, it
hasshownitselftobemoreprofitable and better adapted to present eco
-n o m ic c o n d it io n s. H o w ev er, t o achievesuccessfulagriculturaldevel
-opment,muchworkremainsforboth thegovernment andthepeople.This bookoffersforconsiderationbygov
-ernmentarangeofalternativepolicies andprogramsfor agriculturaldevel
-opment. They are not particula rly new,butarebasedontheauthor ’sex
-perienceovermanyyearsinthisarea. Thefirstofthesevenchapterspro
-videsa brief overview and mentions problemsfacingagriculturaldevelop
-ment,withparticularreferencetofood crops.Thisfocusonfoodcropproduc
-tionisthenusedas thebasis forfur
-ther generalisation by the autho r, leadingtothesuggestionthatagricul
-turalpoliciesneedtoberedirectedto realise future agricultural develop
-ment in Indonesia. The rem aining chaptersconsider how this might be done.
It is, of course, right to argue that ag r i c u l tu r al d e v e lo pm en t p o l ic y shouldbeinlinewithnationaldevel
-opmentpolicy.Itisalsoreasonableto statethatit shouldfocusnot only on shifting the agricultural production curve to the right, but, more impor
-tantly, on improving the quality of
human resources in the agricultural sector—on ‘people-centred develop
-ment’.Theimportanceofsuchpolicy liesnotonlyinitsdesignationoffarm
-ersasdevelopmentagents,butalsoin thefactthatitminimisesgovernment interventioninmanagingagricultural development programs. Though this development policy concept is men
-tioned in almost every part of each chapter,thenotionofpeople-centred
developmentisunfortunatelynotex
-plainedinaconcreteway.
Chapter 2 analysesthe direction of agricultural development policy inthe currentreformasiera,stressingtheneed toempowerfarmersandtheimportance ofstrengtheningagriculturalinstitutions toachievefoodsecurity.Thischapteris disappointingly general, offering little detail,andlargelycoveringissuesdealt withinthepreviouschapter.Chapter3 is muchmore satisfactory,providinga lengthydiscussionontheimportantrole offinancialinstitutions inagribusiness development,anareaofeconomicactiv
-itythathasexperienced apaucityoffi
-nancial sources. Although glo bal financial sources are available for the development ofagribusiness activities, domesticfinance,bothgovernmentand private, should be given first priority, provided itmeetscriteria ofefficiency andequity.
Chapters4and5areintendedtode
-tailmoreclearlytheareasofagricultural development whereimprovements are needed:qualityofhumanresources;or
-ganisation and management systems; infrastructure; andcommitmenttoag
-riculturaldevelopment (p.51).Ofthese, qualityofhumanresourcesisgiventhe Gunawan Sumodiningrat (2000), Pembangunan Ekonomi Melalui Pengembangan
Pertanian[EconomicDevelopment throughAgricultural Development],PTBina
strongestemphasisinthesetwochap
-ters.Inaddition,theauthorsuggeststhat the Bimas (Mass Guidance) program thatwasintroducedinthe1970scould be revitalised in amodified form.The roleofagriculturalfacilitators isconsid
-eredcritical toassisting farmersto in
-creaseagriculturaloutput,inadditionto thepresentsystemofagriculturalexten
-sion. The difference between agricul
-tural fac ilitato rs and agricult ural extensionworkers,accordingtotheau
-thor,isthattheformerhavegreaterex
-pertiseinagriculture.
Chapter6discussessomeofthema
-jorissues ofagricultural development. Given its importance today it would
havebeenusefuliftheauthorhaddis
-cussed local autonomyinthiscontext. Thediscussioninchapter7issobroad thatitisdifficulttodetermineitsactual subjectmatter.
Insum,thisbook isunlikely tosat
-isfypolicymakersandreaderswishing togainaclearerunderstandingofpre
-ciselywhatkindsofagricultural devel
-opment policies are needed in the currenteconomiccrisisorforfutureeco
-nomicdevelopment.
CaruniaMulyaFirdausy
NationalCentreforEconomicResearch,
IndonesianInstituteofSciences
(PEP–LIPI),Jakarta
Boediono(2001),IndonesiaMenghadapiEkonomiGlobal[IndonesiaFacestheGlobal Economy],Seri Perekonomian IndonesiaNo. 1, Fakultas Ekonomi, Universitas GajahMada,PTBPFE,Yogyakarta.
Thissmallbookisacollectionoflecture materialsusedtoteachundergraduate coursesintheFacultyofEconomicsof Gajah MadaUniversity, Yogyakarta.It discussesthedefinitionofglobalisation, possibleproblemscreatedbyit,its im
-plications, and possible economic re
-sponsestoglobalisation. Asintended,it providesabriefsketchofglobalisation infourchapters.
Thefirstchapteropenswithanover
-viewofsocialandeconomicindicators for Indonesia and for Thailand, the UnitedStatesand otherlow andmid
-dleincomecountries.Thisisthenused asabasisfortheauthortoconsiderthe Indonesianeconomyinaglobalcontext. ItisarguedthatIndonesiahasplayeda smallroleintheworldeconomytodate, despite its great economic potential. Thereareatleasttwokeystoreaching this potential: a clear and consistent strategy,andtheabilitytonegotiateand work with other countries that have similareconomicinterests.
Chapter2 provides historical back
-ground to the positive and negative effects of glo balisation o n peo ple throughouttheworld.Quotingapaper by A.K. Sen (2000), the author argues that the core question is not whether globalisation is benefitingthe people, but whetherthepeopleareabletohar
-nessitsbenefitstomaximisewelfare.For Indonesia, the key to maximising the benefitsandminimisingtherisksaswe move towards economic globalisation liesinempoweringboththeeconomic andnon-economicinstitutions thatsup
-portIndonesia’smarketsystems. Itis arguedinchapters3 and4that Indonesia’s national economic agenda asitmovestowardsglobalisation needs toinclude social,economic andpoliti
-calaswellaslegalandinstitutional de
-velopment.Atthesametime,thereisa greaterneedforthiscountrytoimple
assistanceandotherspheresofinterna
-tionalsocialcooperation.
Althoughthegovernmentisawareof thenationalandinternational agendas above,and has implementedthem to someextent,ithassofarneverbeenan easy task.The realchallenge faced by this country seems to lie not in what policyagendashouldbeestablished to participate in globalisation, or how it shouldbeestablished, butinhowpoli
-ciesandprogramscanbeimplemented
effectively andefficiently.Thesearethe sameproblemsthathavefacedIndone
-siaformanyyears.Thisbookisworth reading,becauseitoffersasoundanaly
-sisofglobalisation inrelation toIndo
-nesia,aswellasprovidingsomeuseful referencesinthisarea.
CaruniaMulyaFirdausy
NationalCentreforEconomicResearch,
IndonesianInstituteofSciences
(PEP–LIPI),Jakarta
EmilSalim(2000),KembalikeJalanLurus:Esai-Esai1966–99[BackontheRightTrack:
Essays1966–99],AlvaBet,Jakarta,pp.xvi+378.Rp36,500.
Thisbookconsistsof80essaysbyEmil Salim,a professorinthe University of Indonesia’sFacultyofEconomics who servedasaministerforfiveperiods(25 years)duringtheSoehartoera.Evenaf
-terSoehartosteppeddownin1998,Emil Salim was appointed chair of the Na
-tional Economic Council by President AbdurrahmanWahid,thoughonly for 10months.Hehasservedasvicechair of Bappenas (the National Planning Board),andasMinisteroftheStateAp
-paratus,MinisterofTransportation,Min
-ister of the Environment and finally MinisterofEnvironmentandPopulation. This book reflects EmilSalim’s var
-iedinterestsinareasrelatedtodevelop
-ment,inadditiontohisspecialisation of macroeconomics.Ithasthreeparts:eco
-nomicdevelopment (howtoanticipate globalchallenge), environmental devel
-opment(howtoavoiddoomsday),and socialdevelopment(howtoimprovethe qualityofhumanlife).Itcoversthepe
-riodfrom1966,whenSoehartotookover thepresidency,to1999,whenAbdurrah
-manWahidbeganhistwoyearsinpower. As an anthology, the book offers a wide-rangingapproach.Tounderstand
economicdevelopment inIndonesia it
isobviouslynotsufficienttolookateco
-nomicfactorsalone,withouttakinginto account political and social variables. Forinstance,itis impossibletounder
-stand the Indonesian economic crisis withoutanyknowledgeofwhymassive capitalflightoccurred.
In the first chapter, the authorex
-plores somefundamental issues inIn
-donesian economic development. He opensthischapterwithadiscussionof
the‘pancasila economicsystem’(sistem
ekonomi pancasila),a key philosophical
dimension of Indonesian economic thought.This article contains perhaps themostinfluentialideasinthebook.It isinterestingthatwhatEmilSalimwrote
inKompason30June1966becamethe
subjectofavigorousdebateintheearly 1980s,14yearslater,aboutthecharac
-teristicsofthissystem.
Mubyarto,oftheFacultyofEconom
-icsatGadjahMadaUniversity,together withhiscolleague,Boediono,whoisnow MinisterofFinanceinPresidentMegawa
-ti’scabinet,wereinvolvedinthisdebate in1980–83.Mubyartoarguedthatekonomi
pancasilais a system inwhich people’s
behaviourisinspiredbyamoralstimu
Inhis 1966 article, Emil Salim con
-tendedthatsistemekonomi pancasilare
-jectsnotonly‘freefight’liberalism, but
also ekonomi komando (the centrally
planned economy). However, he be
-lieved that the state should manage somestrategicsectors,assuggestedby the1945constitution, andthattheIndo
-nesianeconomyshouldbebuiltonthe basisofdemocracy.Theseideasarestill relevant35yearslater.
Giventheauthor’sexperienceover adecadeas Ministerof Environment and Population,it is understandable that two-thirds of this book should
dealwiththeenvironment(chapter2) andhumandevelopment (chapter3). EmilSalim writesfluently whendis
-cussing how serious environmental damage will affect the Indonesian economy.Hebelieves that‘goodeco
-nomicsis good ecology’, i.e. that the betterthecountrymanagesitsecology, themoretheeconomywillgrow.Ina short article in Kompas on 9 October 1978,hewarnedthatIndonesiain2000 wouldfaceseriousproblemsinterms of populationnumbers (206 million), population density, and consequent natural resource depletion. He was abso lu tely correct: the Indonesian economy is now facing these prob
-lems.
Ingeneral,theauthorsucceedsinar
-guingtheimportanceofecologyinIn
-donesian development. However, he omits atleast onesignificant aspectof environmental management.Manyen
-vironmentalists, economistsandstatis
-ticiansare nowgiving attentiontothe ‘green GDP’ method, a relatively new method of calculating (non-conven
-tional)grossdomesticproductsuchthat pollution, resource depletion,environ
-mentaldegradation and deforestation reducerealGDP.Ifthismethodis pro
-moted,mostcountries will be encour
-aged to protect their land, water and skies from environmental damage.Al
-though invited,theauthor was unfor
-tunatelyunabletoattendaninteresting conferenceonthissubject,entitled‘Tak
-ing Nature Into Account’, hosted by WWF(theWorldWideFund),theClub ofRomeandtheEuropeanParliamentin BrusselsinMay1995.Moreanalysisofthis issuewouldhaveenrichedthevolume.
Even thoughthis bookis justa col
-lectionofshortessays,theauthor—not
merelyaneyewitnessbutsomeonein
-volved asahistory makerintheIndo
-nesianeconomy—successfully delivers
hismessage:foracomprehensiveunder
-standingofthecomplexityoftheIndo
-nesian economy, environmental issues and social settings mustbe taken into account.
A.TonyPrasetiantono
GadjahMadaUniversity, Yogyakarta
HansGooszen (2000),ADemographic History ofthe IndonesianArchipelago, 1880–
1942,Instituteof SoutheastAsian Studies, Singapore,pp. 350. Paper: S$54.90/ US$32.90.
Thisbook isanextremely usefulrefer
-enceforthoseinterestedinbirths,deaths andmigrationataregionallevelinIn
-donesia in the period 1880–1942. The
authorhasbeen meticulous in search
-ing out the available contemporary
recordsandpresentingtheirresultsina systematicway. The bookcontains six chapters.
The first chapterprovidesa compre
century,witha specialemphasison the debateaboutrapidpopulationgrowthin Java—the stimulus to Geertz’sAgricul
-turalInvolution.Thechapterdescribesnot
onlythe numbersbutalso the theories and speculations thateach author has broughttothedebate.Gooszenidentifies akeythemeofthesestudiesasbeingthe impactof the colonial authority upon population growth.Shemaintains this themeinsubsequentchapterswhenshe discussesthelaterperiod.
Thesecondandthirdchapters,prob
-ablythemostuseful,coverinterregional andinternational migrationofIndone
-sians.Asahumangeographer,Gooszen hasan affinity for this analysis.Also, becausethe1930Censusprovidesarich sourceofinformation onmigration,the coverageofmigrationdataismorethor
-ough than the coverage of births and deathsthatfollowinthetwosubsequent chapters.Themigrationdataarelinked toeconomicandindustrialdevelopment andtourbanisation. Whilethedatapre
-sentedand these linkagesare interest
-ing and useful, the only theoretical frameworkthatisadducedis merantau
(thepracticeofleavingone’shomearea tomakeone’swayinlife),relevantfor someofthemovementsbutnotformost. Chapter4,dealingwith‘natalityand familyformation’,is theweakest. The methods used (stablepopulation esti
-mates)areunsophisticated andinappro
-priate. With the use of ‘variable r’ methods,theunlikelyassumption that thepopulationisstableisnotrequired. Moreusecouldalsohavebeenmadeof thewelldocumented differences inre
-gionalfertility rates forthelate 1960s, thatis, theregional ratesthat applied beforefertilitydeclinedinIndonesia.It isareasonableproposition thatthere
-gionaldifferencesinfertilitythatapplied inthe1960smayalsohaveappliedinthe earliertimeperiod.Eventhe1960slev
-elsoffertility maybe a usefulstarting
point to developan accounting of re
-gionalpopulationgrowthintheperiod understudy.Finally,reverseprojections fromthe1961Censusmayhavebeena usefulapproach.WrigleyandSchofield’s majorworkonthepopulationhistoryof Englandisbasedveryheavilyuponre
-verseprojectionmethods.
The chapterrelatingtodisease,mor
-talityandwesternhealthcare(chapter5) is a very usefuldiscussion of public health measures and epidemics and theirlikelyimpactuponmortality—re
-quiredreadingforanyoneinterestedin thistopic.
Themainstrategyofthebookisfirst tomeasurethelevelofmigrationfora region and then to measureits rate of population growth. The differencebe
-tweenthetwothenindicatestherateof naturalincreasefortheregion.However, asitisnotalways,orevenoften,possi
-ble to measure these rates, theauthor relie s upon an assum ption that if
outmigrationishigh,wecanexpectthe populationgrowthratetobelow,andif
inmigrationis high,wecanexpect the populationgrowthratetobehigh.Un
-derlyingthisapproachistheverydoubt
-ful proposition that rates of natural increasearesimilarineachregion.They certainly were not similar in the late 1960s.Inthe1966–71period,thecrude
birth rate rangedfrom 48per 1,000 in West Javato38 per1,000 inEastJava. Thisallleadstoaconclusionthatdiffer
-encesinfertilitybetweenregionswere notassignificant topopulationgrowth differencesasweredifferencesinmigra
-tion or mortality. Ihave not donethe researchmyselfbut,giventhelaterlarge impactsoffertilitydifferencesondiffer
-entialpopulationgrowthrates,Iwould expectthatGooszen’sconclusionismost unlikelytobetrue.
Thebookhasnoconclusionbutends withan‘epilogue’.Herewasanoppor
thenumbers to theory,but this is not done. Overall, however, the bookis a very usefulcontribution toknowledge ofIndonesia’sdemographic history,pri
-marily because ofits compilation and
documentationofprimaryandsecond
-arydatasources.
PeterMcDonald
ANU
Ndoen,MarthenL.(2000),MigrantsandEntrepreneurial ActivitiesinPeripheralIndo
-nesia: A Socio-economic Model of Profit-seeking Behaviour, Research Series, Vrije
Universiteit, Amsterdam.
Thisinteresting volumeisderivedfrom MarthenNdoen’sPhDdissertation, and focusesonanimportantbutfrequently neglected class of actors in societal change:migratingentrepreneurs. Itad
-dresses the question of ‘the roles of socio-economic factors in influencing
entrepreneurs’ decisionstostayintheir current place, and their decisions to movetoanotherplace’(p.5).
Followingreviewsoftheliteratureon interregional migration and entrepre
-neurshipanddiscussions of anappro
-priate model for the study, the book addressesactual migration flows, first inIndonesiaasawholeandtheninthe provinceofEastNusaTenggara(NTT). It shows somewhat surprisingly that therewasaslightpositiveinmigration tothis very poorprovince in 1971–95,
withmovementbeingfacilitated byim
-provementsinseatransport.
Civil servants, teachers and police officerswerethemainmigrantstoNTT in1995,cominglargelyfromNorthand West Sumatra, Southeast and North Sulawesi,andMaluku.Butthefocusin thebookisonthesmallminorityofmi
-grantsengagingin entrepreneurial ac
-tivities. The study explores in detail these people’s reasons for migration, andtheirattitudesaboutwhethertostay onormoveelsewhere.
ManypeoplecomingtolargelyChris
-tianNTT wereMuslims,andalthough
Ndoenobservedlittletensionduringthe earlypartofthestudy,thereweresevere difficulties inlate1998whichmeanthis research had to be suspended while somemigrantsdepartedtotheirplaces oforigin.Thisreviewercanvividly re
-membertheproblemsatthattimeand, indeed,beingpresentinlate2000atthe systematiclootingandburningdownin Kupangofasupermarket belongingto peoplefromWestSumatra.Notsurpris
-ingly, sucheventsled todifficulties in eliciting information whenthe study wasresumed,althoughthepersistence and patience of theinterviewers seem tohaveovercomemostsuchconstraints. The majority of entrepreneurial mi
-grantsinterviewed wereyoung,having farmingbackgroundsandlittlebusiness experience. Many weresponsored by relatives,andthishelpedgreatlyinthe establishment oftheirbusinesses. Peo
-plefromSulawesiconcentrated ontim
-ber and fisherie s, those from West Sumatra ongarments and thosefrom Java on trading. The ‘supporting net
-work’wasidentifiedasasignificant fa
-cilitatingfactorformigrants,alongwith ‘market accessibility’ (lackofcompeti
-tionandeasyaccesstothechosenmar
-ket)and‘localtolerance’(inthesenseof there being relatively little prejudice againstoutsiders)(pp.117–23).
Thelatterisinfactsomewhatsurpris
theperiodofthesurvey,whichalsoin
-cludedthealmostcompletedestruction ofBugistimberyardsandthesystem
-aticburningofsome50smallmosques inKupang,as wellasthe devastation ofanAsramaHaji(guesthouseforpeo
-plewhohavemadethepiligrimage to Mecca).Butdespitetheseproblems,the revieweralsoobservedthatmanyBugis and other migrants who leftafter the troubles subsequently returned, no doubtbecause they had few assets in their places of origin and judged that theirfuturewasbetterinNTTonceani
-mositieshaddieddown.This attitude appearstobeconfirmed bythestudy, whichshowedthatentrepreneurialmi
-grants,andespeciallythosefromSouth Sulawesi, had a strong propensity to stayonintheirchosenplace ofmigra
-tion.
Theemphasisonentrepreneurialmi
-grants inthis bookis a refreshingde
-parture,andthestudythrowslighton behaviourimportantinpromotingthe economicdevelopmentofreceivingre
-gions.Theworkisawelcomeaddition totheliterature, andshouldcertainlybe onthereadinglistofthose wishingto scrutinise therelation of migration to growth.
ColinBarlow
ANU
MyaThan(ed.)(2001),ASEAN BeyondtheRegional Crisis,Institute ofSoutheast AsianStudies,Singapore,pp.304.Paper:S$49.90/US$32.90.
Thiscollectionofthepaperspresented attheInstituteofSoutheastAsianStud
-ies(ISEAS)1999ASEANRoundtableis worthwhilereadingforthoseinterested inrecentdevelopments in,andthinking about,ASEAN.Itcontainsalotofuse
-fulinformationandup-to-datestatistics.
Almostalltheauthorsacknowledge thatthe main achievement ofASEAN hasbeentocreatearegionwhereneigh
-boursareatpeacewitheachother,mak
-ingeconomicdevelopment possible.As MyaThan’sownchapterconfirms,food securitynolongerloomslargeasanis
-sueinSoutheastAsia.However,thereis little furthercommenton thefutureof political cooperation in a new era of uncertainty.
Thereare onlypassingreferencesto thenewissuesraised bytherecentex
-pansionofASEANfromsixtotenmem
-bers, whic h greatly increases the difficultyofmaintainingcommoncause onanyparticularissue.Onlyatthevery
endof thebook are weremindedthat ASEAN’sfuturedependsvitallyonpo
-liticalstabilisation andeconomicrecov
-ery in Indonesia. The absence of Indonesia’s past leadership has weak
-enedboththecredibility andthecohe
-sionofASEAN.Oneillustration ofthat is Singapore’s intense efforts to forge economic partnership with relatively distanteconomies.Theseefforts,which are intended to promote integration deeperthanthatenvisagedforASEAN itself,wereundertakenwithoutconsul
-tationwithSingapore’sASEANpartners. Such issues arenot addressedin a bookthatdealsmostlywitheconomic questions. The authors seem largely convinced thatASEAN isrecovering vigorously from the economic crisis, andgive only a few hints of the vul
-nerabilitythatremains.Alburo’schap
-terremindsreadersthattherehasonly beenmodestprogressinreformingfi
-p o r ate g o v er n an c e . L an gh am m er notesthatASEANcooperationhasnot yieldedprogresstowardscommonap
-proaches to handling international capitaltransactions, or commonpru
-dentialregulationofthefinancialsec
-tor,orcommonaccountingstandards. Theseweaknesseswill needtobead
-dressedifASEANisseriousaboutcre
-ating an ASEAN Investm ent Area (AIA).
MuchofthediscussionoftheASEAN Free Trade Area (AFTA) takes it for granted thattimetables, once adopted, willbekept.Kartadjoemenaremindsus thatthereremainmanyexemptionsand exclusionsfor‘sensitivesectors’ofdiffer
-ent ASEAN economies. His excellent chapterstressesthatASEAN’seconomic cooperation must remain outward looking.ThegreatmajorityofASEAN’s tradeiswithothereconomies,sotheover
-ridinginterestofASEANeconomiesisin sustainingarules-basedmultilateraltrad
-ingsystem.TheireffortsintheWTOand APECwillbeimportanttodefendingthat interest.Kartadjoemena alsosets out a coherent strategy for intra-ASEAN
economiccooperation,focusedonfacili
-tatingtradeand investmenttocomple
-mentmembers’extra-regionaleconomic
cooperation.
ThechaptersdealingwithAFTAand theAIApointoutthattheseinitiatives areindeedoutwardlooking.Mostofthe reductionsintradebarriersbyASEAN governments haveappliedtoallecono
-mies,sothatAFTAisnotleadingtore
-gionalprotectionism. Correspondingly, theAIAprovidesfornationaltreatment ofallinvestmentby2020,followingna
-tionaltreatmentofASEANinvestment by2010.
Manychapters touchonthepossi
-bleneedforASEANtomovebeyond non-interferenceineachother ’saffairs
towards‘constructiveintervention’or ‘flexible engagement’.Such achange wouldbeneededifASEANistodeal moreeffectivelywithissueslike‘con
-tagion’ from macroeconomic prob
-l em s o f p ar ti c ul ar ec o n o m i es, o r cross-borderpollution.Butnoconsen
-sus emerges. There appears to be a realisticappreciationthatsuchatrans
-formation may cut across ASEAN’s comparativeadvantageoffosteringa closersenseofmutualunderstanding and confidence-building to preserve
peacefulrelationsamongthisverydi
-versegrouping.
AndrewElek
ANU
GeorgeFane(2000),CapitalMobility,ExchangeRatesandEconomicCrises,Edward Elgar,Cheltenham,pp.240.Cloth:£55.00.
IntheAsianexchangerateandfinan
-cialcrisis,between1997and1998In
-donesia’sGDPfellby14%,Thailand’s by10%,Korea’sby9%andMalaysia’s by8%.Fanesetsouttoassessthevari
-ous explanations and to suggest re
-forms that would help prevent or reducesuch crises and their adverse effects.Whilethequestionofthe role
ofcontrolsontheinternationalmobil
-ity of financial capital in containing thesecrisesis ostensiblyhismainfo
-cus, the book, of necessity must be concerned with wider issues. Infact, it is a significant addition to the un
-derstanding o f exchange rate and financialcrises generally, anditsrec
approachtopreventingormitigating them.
Letmeattempttostatehisrecommen
-dations and his arguments for them, withthequalificationthatabriefreview mustleaveoutmuchthatisimportant:
1 Adopt a flexible exchange ratesystem,
includingacrediblecommitmenttoamoney
growthoran inflationtarget, or,ifsucha
commitmentisdifficulttomakebecauseofa
poor record of suchdiscipline, establish a
currencyboardasthebestalternative.
Most types of fixed or managed ex
-changeratesystemscancollapsewhen the commitment to the exchange rate lackscredibility,forinstancebecauseof inconsistent government policies that rundownforeignexchangereserves.On theotherhand,acurrencyboardworks underrulesthatideallycurbtheexces
-sivecreationofdomesticcredit,which canundermineothermanagedorfixed exchangeratesystems.
Fane’sargumentforfloatingratesis basedon theproposition thatthissys
-temwillbebetterabletocopewiththe adverseeffects of shocks arising from capitalflows. The volatility of capital flowsisanimportantsourceofshocks tosmallopeneconomies,andtheeffect onaggregatedemandofanygivensuch shockisthoughttobemuchlargerun
-derfixedthanunderfloatingrates.Be
-cause it is then easier to stabilis e aggregate demand it is also easier to delivera credible commitmentto low inflation.
2 Openfinancialsectorstocapitalflows.
Fanesetsoutthetheoretical arguments againstcapitalcontrols,whichseethem asadetrimenttothedevelopment ofa sophisticated financial system that would enable physical and financial capitaltobeoptimallyallocatedacross countriesandtime.Aswell,hisstudies ofvarious countries’ experiences with
suchcontrolsinchapter3stronglysug
-gesttheymaynotbeparticularly effec
-tiveinpreventingcurrencyandfinancial crises.Veryrestrictive controls,suchas are operated by China and Vietnam, mayworkinthisway,butmildercon
-trolsdidnotpreventcrises inKoreain 1997andChilein1982.
3 Strengthenbankruptcyprocedures.
Thesectionontherealcosts ofdefault inchapter5 should beofconsiderable interest to studentsof theIndonesian economy andofthose withsimilarin
-stitutions. Itwasmentionedabovethat between1997and1998Indonesia’sGDP fellby14%.Fanenotes,inrelationtothe 1997crisis,that‘Indonesiahadtheleast effective bankruptcy system of all the Asiancountries….Thegreaterefficacy of bankruptcyproceduresin Malaysia thaninIndonesia,KoreaandThailand helps explain why Malaysia wasless severelyaffectedbytheAsiancrisisthan theotherthree countries.Theextreme inadequacy ofIndonesia’s bankruptcy procedures helps explain why it was moreseverelyaffectedbythecrisisthan anyothercountry’(p.96).
4 Require banks todouble thecurrently
accepted percentage of capital to risk
weightedassets(capitaladequacyratio)from
8%to16%.
It seems inevitable that governments willofferexplicitorimplicitdepositin
-surancetobanks,iffornootherreason thantheoverwhelmingneedforasound financial system. Theseguarantees re
-ducebanks’exposuretoriskandsoin
-creasetheirtendencytoholdriskyassets (moralhazard).However,thehigherthe capital, other things being equal,the greaterthelikelihood thatbankshare
-holdersratherthantheinsurerswillbear losses.Capitaladequacyratiosincoun
Aswellasthesepositiverecommen
-dations,Fanearguesagainstanumber of institutions and schemes,proposed andexisting,thataresupposedtoreduce orpreventcrises.Herearejustafew.
Centralbanks’lenderoflastresort facility to bail out banks should be usedtorescuethosethatinacrisisare illiquid,but solvent.However, much last resort lending has been to banks that are both illiquid and insolvent, partly because it may be difficult to distinguishthesecasesinacrisis,but partly because of the temptation to takeagambleon‘resurrection’.Inthe longer term the practice increases moralhazard.Internationallastresort lending by the IMF is criticised for analogousreasons.
Taxingflowsoffinancialcapitalinthe hopeofreducingvolatilityinshort-run
capitalflows(theTobintax)is rejected asbeinghardtoadminister,unlikelyto deter speculation at the proposed rate
and not supported by evidence from similartransactions taxes.
Readersofthisjournalwillbeparticu
-larly interested in theaccount of how BankIndonesiafailedtomakeacredible commitmenttolowmonetarygrowthor lowinflationaftertherupiahwasfloated inAugust1997,massivelastresortlend
-ingbeingoneofthereasons.
Thebookrequiresanddeservescare
-ful reading.However, those who may wishtoskipchapterstheyfindtechnical or less interesting are provided with overviews at the end of each chapter whichallowthistobedonewithoutlos
-ingthegistofthe argument.Those in
-terestedinthelessonsofexchangerate andfinancialcrises, thecase forlifting capital controls and/or the economic futureoftheIndonesianeconomyshould treatthebookascompulsoryreading.
JohnPitchford
ANU
MichaelL.Ross(2001),TimberBoomsandInstitutional BreakdowninSoutheastAsia, CambridgeUniversityPress,Cambridge,pp.237.US$49.95.
This bookprovides an interesting and original insightintothepolitics offor
-estdestruction inSoutheastAsia.Ross seeks to explain why thestates ofthe Philippines, M alaysia (specifically SarawakandSabah)andIndonesiahave mismanaged their forestresources, af
-tertimbercommodityboomsresultedin economicwindfalls.Ratherthan using income generated from commodity booms to facilitate economic develop
-mentandsustainably manageavalued commodity, Ross argues, politicians withinthesethreestateshaverecklessly
plunderedforestresourcesfortheirown personalenrichment.
Tofurtherourunderstandingofthis paradox, Ross draws on institutional economicsandthetheoryofrentseek
-ingtoarguethata boomintimberex
-ports helped cause a decline in the quality of state forestry institutions in thePhilippines, Malaysia and Indone
-sia.He also introduces theconcept of ‘rentseizure’—effortsbystateactorsto
gain the right to allocate rentsto oth
-ers—to explain institutional collapse
publicofficials seizedtherighttoallo
-caterentswhenitwasrealisedthatatim
-bercommodityboomwouldresultinan economicwindfall.
Ross successfully carries this argu
-ment through the book to provide a compelling account of the political economyofforestexploitation. Thefirst chapterprovidesanexcellentintroduc
-tiontothestudy,whilechapters2and3 developaframeworkforanalysis.Chap
-ter3explainsthepitfallsofcommodity windfallsand develops the theory of ‘rentseizing’.Itthengoesontoexplain howthethreecountrycasestudies,dis
-cussedinchapters 4to7, werechosen to explore thesetwo issues in further detail.
Rossargues thatIndonesia’stimber exportsbegantosoaraftertheSoeharto governmentoffered a range of incen
-tivesto potential investors inorder to promote commercial logging in the 1960s.By1973,Indonesiahad become theworld’sleadinghardwoodexporter, and timber had become the largest sourceofforeignexchangeinthenation afteroil.However,despitetheeconomic significance of timber resources, the Soehartogovernmentmismanagedfor
-estexploitationandfailedtouseincome generatedfromthetimberboom tofa
-cilitatedevelopment.
AccordingtoRoss,thisoccurredbe
-cause President Soeharto was able to dismantleadat(customarylaw)institu
-tionsinorderto gain exclusivetimber allocation rights and create ‘ransack rents’—rents created by speeding the
paceofnaturalresourceextractionand externalisinganyenvironmentalcosts—
for his own personal enrichment and that ofhis protégés. The state’s forest institutionconsequentlybecameincapa
-ble of sustainably managingforest re
-sources. While this is nota new argu
-ment,Rossdoesprovideanoriginalhis
-toryoftheeconomictriggersandstate policiesthatfacilitated thetimberboom duringtheSoehartoera.Hisanalysisof thepoliticsofforestdestructioncanalso beusedtofurtherourunderstandingof therecentincreaseinforestexploitation resultingfromthecurrentdecentralisa
-tionprocess.
SomeofRoss’sargumentscouldhave beendevelopedfurther.Forinstance,he argues that Indonesia’s timber boom wastriggeredprimarilybygovernment effortstolowerthecostsofcuttingand exportingtimber,ratherthanby rising international timber prices. Whilethe Soeharto government certainly facili
-tatedIndonesia’stimberboom,itcould nothaveoccurredwithoutinternational demandand favourable exportprices. TheroleofJapanincreatingvastmar
-ketsforIndonesiantimberisalsoplayed down: Ross arguesthat the ‘harmful role’ of this actorwas limited because ‘mostofIndonesia’stimberwaslogged by Indonesians’ (p. 188). Numerous otherscholarshavedemonstrated,how
-ever,thatJapanprovided vastandun
-regulatedmarketsforunprocessed logs fromIndonesia,particularly duringthe 1970s.
Nevertheless, Ross’soverallanalysis ofinstitutional breakdownandthepoli
-ticsofforestdestruction isenlightening andwellworthreading.Thebookpro
-vides anexcellentaccount of thedriv
-ing forces behind deforestation, and successfullyfurthersourunderstanding of why the governments of countries such as Indonesia have mismanaged forestresources.
AnneCasson
Thisextremelyinteresting collectionof papers about highland temperate vegetablefarmingcontains29chapters by32mainlyIndonesianandJapanese agronom ists, soil scientis ts, socio
-economists,marketing specialists and foodscientists, somewithyears ofex
-perienceinthesphereandwellknown inappropriate circlesfortheirprevious work. The collection focuses on the 1,090chieflyfarminghouseholdsofthe
desa of Candi Kuning, situated on mainly sloping land at an altitude of 1,200–2,100 metres above sea level on
theislandofBali.
Theworkisbasedontheresultsofa four-yearstudyinthelate1990s,spon
-soredbytheJapaneseMinistryofEdu
-cation,Science, SportandCulture and theJapanSociety forthePromotionof Science.Considerableeffortsappearto havebeenmadetosecureaholisticcov
-erage ofthe areastudied,in its socio
-logical, geographical, agronomic and marketingaspects,andthecollectionof frequentlyexcellentindividualchapters reflectsthiswell.
Thebookisdividedintofiveparts, with the first giving an overview of vegetablefarminginIndonesia,andin
desaCandi Kuningin particular,and the second examining the physical characteristicsof the study area.The third part comprehensively analyses local vegetable production technolo
-gies, and the fourth addresses alter
-n a tiv e te c h n o l o g i es su it ab l e to promotingsustainablevegetablepro
-duction in the study area. The fifth andfinalpartfocusesonpost-harvest
technologies, marketing and the de
-mandfortemperatevegetables.
The reviewer ’s main criticism of this volume isthat despite the holis
-tic coverage there is no attempt to draw together, analyse and compare thenumeroususefulresultsreported. Thus Fujimoto andAbdullah merely contributeabriefintroduction,largely summarisingthecontentsofchapters, whicharethenincludedasasetofin
-dependentcontributions,eachwithits ownsetofreferences.
Thisisagreatpity,sincemuchben
-efitcould havebeen securedfroman overarching dis cussion, extracting and pursuing thewiderimplications of the findings for official and non
-governmentassistancetoimprovethe livelihoods of the very poor farmers c on cer ned. Po ssible tech nic al im
-p ro v em en ts t o p ro d u c ti o n a n d marketingcouldalsohavebeenelabo
-rated beyondtheconfinesof the few single chapters about this aspect. Thereismuchthatcanbedonetoen
-hance both the livelihood of vegeta
-blefarmersandtheoutputandquality oftheir product,andthissetof stud
-ies isa good basisforsuggestingap
-propriateroutes.
The collection nevertheless remains ausefulrecordofthesubstantial efforts by researchers and their co-workers,
andahelpfulguidetothosesettingout tobetterIndonesianvegetablefarming. It is onlyto behoped that those who succeed thepresent authorsin study
-ingthisimportanttopicwillmakemore effort to draw out thewider implica
-tionsoftheirendeavours.
ColinBarlow
ANU
AkimiFujimotoandKamaruddinAbdullah(eds)(2001),HighlandVegetableCulti
-vationinIndonesia:AMulti-Disciplinary StudytowardEco-EcoFarming,WorldPlan
Thisinterestingandinformative bookis acompilation ofcontributions from18 distinguished French,Indonesian and Dutch researchers, most of whom are wellknowninIndonesiaandEuropefor theirvariedcontributions totheunder
-standingofIndonesianagricultural de
-velopment.Thebookessentiallyreviews theeffectofthe1997financialcrisison agriculture,although against a wider background.
Thepublication ofthisbookistimely, especially as it presentsa view some
-what different from that of observers wholookateventsfromtheperspective ofJakarta.AsM.BernardBachelier,Di
-rector-General of CIRAD (Centre de
coopérationinternationale enrecherche agronomique pour le développement) writesinhisexcellentintroduction, the observations of contributing scientists are‘basedonasolidgraspofthesitua
-tionontheground,asrevealedthrough surveysandinterviews’ (p.viii).Many ofthecircumstances analysedarethose inremoteparts of the vastIndonesian archipelago, with its huge 5,000 km length fromBandaAceh in thenorth
-westtoMeraukeinthesoutheast. Following a brief introduction pre
-sentingsomeaspectsofthefinancialcri
-sis,thebookisdividedintosectionson ‘TheInternational Context’,‘Smallhold
-ersandTreeCrops’,‘Smallholdersand Food Crops’, and a final ‘Synthesis’. Eachchapterusefullyendswithasum
-maryofitsbroadarguments.Themate
-rialspresentedemphasisethecontinued fluctuation(andcurrentrelativedepres
-sion)of prices for themaincommodi
-tiesofpalmoil,coffee,cocoa,timberand rice,theearlierandsometimespersist
-ingdistortions tomarketsarisingfrom stateinterventions, andtheneedinthe neweraofderegulationtobuildproduc
-ers’ associations andotherinstitutions tohelp negotiatemarkets onbehalfof farmers.Thematerialsalsostressthesig
-nificancetofutureprogressofintroduc
-ing appropriate new technologies and supportservicestosmallholders.
Thebookbringsoutotherkeyaspects ofagricultural development,including the socio-economic and political com
-plexitiesattendingeachseparatesphere. Thusthedangersofuntrammelled ex
-pansionoflandclearingbysmallhold
-ersandestates,whichhasbeengenerally facilitatedbyderegulation,areinstanced inthecasesofbothpalmoil(p.66)and cocoa (p.193). The resourcefulness of small farmers,and especiallyof trans
-migrants, in adapting to changing circum stances, is well illustrated (pp. 147–57). The importance of food
security,andtheimpactonthisofrecent changes, are extensively analysed (pp.269–300).
Withsomeexceptionsthetenorofthe book tendstowardspessimism,owing to worries over low prices, persisting distortionstomarketsandexpectedgov
-ernmentmismanagement.Thereviewer himselfwouldtakeamorepositiveview, basing this on the demonstrated re
-sourcefulness ofthoseengagedinagri
-cultureinadaptingtonewsituations,the new flexibility of government with
desentralisasi indealingwithlocalsitua
-tions,andthepersistingstrengthofthe real economy.Indeed,hehasthis year beenable toobserve personally, inex
-tended journeys through Sumatra,the strikingrecovery inmostregionsfrom FrançoiseGérardandFrançoisRuf(eds)(2001),Agriculture inCrisis:People,Com
-moditiesand Natural Resources in Indonesia, 1996–2000,CIRAD,Montpellier, and
adverseinitialeffectsofthecrisis,with citieslike Medan, Padangand Palem
-bang and their hinterlands appearing remarkablyprosperous, andwithsmall businesspeopleinvolved inagriculture takinganamazinglyoptimisticviewof futureprospects.Thiscontrastsdramati
-cally with the depressing scene in Ja
-kartaandsomepartsofJava,bedevilled by widespread unemployment, the machinationsofpoliticiansandcontinu
-ingdemonstrations.
Asmallbutunfortunatefeatureofthe volume isthat it has noindex, which wouldhelpthereadergreatlyintrack
-ing particular issues throughits broad subjectmatter.Thisisaminorcriticism, however,andareadingofthisambitious work isstrongly recommended to all interested in the past and future per
-formanceofIndonesianagriculture.
ColinBarlow
ANU
Thisbookistheresultofacomprehen
-sive study of the consequences of strongerlinkagesbetweenregionalde
-velopment,employmentandurbanisa
-tioninfive hinterlandcommunities of CentralJava.Thisreviewdoesnotaim todiscussthewholeofthebook,butfo
-cusesonlyonaspectsofitthatarecon
-sideredofinteresttoabroaderaudience. Thebookisdividedintothreeparts. Inthefirst,theauthorsindicatethatthe research areas have a similar socio
-economichistoryintermsofpopulation pressures,outmigration,absenceofnon
-farmemployment,andfragmentationof land.The‘greenrevolution’ duringthe 1970s encouraged monetisation of the ruraleconomy, commercialisation and mechanisation of agricultural produc
-tion,andgeographical differentiationin accesstoand capacity to takebenefits from agricultural modernisation. This resulted in increasing income gaps amongtheruralpopulationandgrow
-ingdifficultiesfortheruralpoor,encour
-agingthelattertomigratein response toemploymentopportunities inurban areas.Asaresult,morevillagersbecame involved in the non-formal economy
VincentL.Rotgé, with contributions by IdaBagoesMantraandRyanto Rijanta (2000),Rural–UrbanIntegration inJava:Consequences for RegionalDevelopment and
Employment,Ashgate,Aldershot,pp.342.£47.50.
andinrural–urbantradeinruralprod
-ucts.Thesetradingactivities benefited from improved communication and transport.
Inthesecondpart,thefivecasestud
-ies substantiate this premise.The case of Pendowoharjo and Putat villages demonstrates howtradingactivitiesen
-couraged the integration of the rural economy into the urban. In addition, increasedaccesstotheurbaneconomy fromruralareas(andviceversa)facili
-tated social and economictransforma
-tion, with diversification in economic structuresallowingmoreruralworkers tobeemployedinthenon-agricultural
sector;risesinruralincomes;increasing market orientation; and greater rural consumption of urbanfood products. Betterlinkages betweenthe ruraland urbaneconomiesresultedinincreasing urbanisation through the extension of urban-fringeandtransitareas,facilitat
-ing commuting and subcontracting work.InDIYogyakarta(theYogyakarta Special Region), subcontracting work was readily availablein production of sportsbags,bamboobaskets,golekpup
productionsystemsreducedpermanent outmigration from rural and urban
-fringeareas.
Withregard to population mobility, IdaBagoesMantraindicatesthatcom
-mutingandcirculationincreasedowing tobettertransport,lackofemployment in rural areas, and expectations of better income in urban areas. Non
-permanent migration facilitated the spread of new ideas, attitudes and knowledgeto otherruralpeople,con
-tributingtosocialchange.
ThecaseofKembangvillagedemon
-stratestheimportanceoftransport ac
-cessintheintegration oftheurbanand ruraleconomies.Theconstruction of a bridgereducedtransportcostsby50%, andmadethevillageastrategiclocation. Theexistenceofthebridgechangedcir
-cular migration (short-term migratory
movementto and fromthe city) into commuting.Ithelpedvillagersselltheir productsinthecityandthusencouraged regionaldevelopment.Diversificationof job opportunities outside the agricul
-turalsector raised household incomes (p.138).
VincentL. Rotgédiscusses regional development approachestosolvingthe problems of population pressure and lackofemploymentinruralareas,par
-ticularly in the context of integrating ruraland urban areas. Toraise thein
-comesofruralpeople,thegovernment can encourage the development of home industries and small-scale eco
-nomicactivitiesbyimprovingaccessto subsidisedloans.Intheimplementation ofcreditprograms,stepsmustbetaken topreventruralpeoplefromusingloans forconsumption purposes.Thegovern
-mentcan provide loans forvocational training,education and internship ac
-tivities.Thedevelopment ofsatellitecit
-ies, followed by policies to integrate thesecitieswithruralareas,canbeim
-plementedto create employment. The
governmentcanformulatepoliciesand programs to promote employment in various sectorsand facilitate develop
-mentofefficienttransport systemsbe
-tweenthetwoareas.
Thebookdemonstratesthatstronger linkagesbetweenruralandurbanareas haveenlargedtheurbanfringeandfos
-teredlinearurbandevelopment,withan increasing number of people living alongthemainroadsofYogyakarta.As aresult,thepriceoflandalongthemain and secondary roadsconnecting rural areas toYogyakarta city has increased significantly.
Thelastpartofthebookshowshow theempiricalfindingsdescribedbythe authors confirm earlier conclusions reached by Gavin Jones(1992), Anne Booth (1988; 1989), Chris Manning (1988), Jean-Luc Maurer (1986),Harry
Oshima (1983) and Jo an Hardjo no (1987).Fromatheoretical perspective,it demonstrates howkotadesasi—theproc
-essoftransforming agriculturalregions into rural–urban (desakota) zones—has
occurredinDIYogyakarta,withitschar
-acteristics ofincreased non-farm activ
-ity, higher population and product mobility,and greaterfemaleparticipa
-tionineconomicactivity.Thestudysuc
-cessfully describes growing linkages betweenruralandurbanareas,andthe interaction between changes in space and socio-econo mic activities in
Yogyakarta.
Thereisonlyverylimiteddiscussion ofrural–urbanlinkagesinthe1997eco
-nomiccrisis—promisedbytheauthorin
anearlychapter.Thisisnotsurprising, since the research results are derived from1991and1992data,withnorepeat studyin1997.Nonethelessthisbookwill beusefultoregionaldevelopment and urbanplannersandresearchers.
AgusDwiyantoandSetiadi
