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Indonesian Social Development Papers

Since 1998, Indonesia has been undergoing a momentous political and economic transition. Political change has been radical: old authoritarian structures have been replaced—to differing extents and with mixed success—with democratic institutions; the decentralization process, with large swathes policy making autonomy ceded to local governments, has changed power dynamics within the state and between local actors. At the same time, the Asian Financial Crisis forced economic changes including the redevelopment of the financial system, an altered macro-economic policy, and the development of a new social safety net.

Together, these simultaneous transitions have had fundamental social impacts. Millions were swept into poverty with the Crisis, and many have not yet regained their previous standard of living. Forces of modernization and globalization have changed work patterns and sped population flows. Changes in incentives, and in the role of formal and informal institutions, has altered the ways in which individuals and groups relate to each other, and to the state. With power relations in flux, it is not surprising that recent years have seen both an increase in social conflict as well as “one step forward, another back” progress in terms of improving governance and reducing corruption.

The Indonesian Social Development Papers series aims to further discussion on a range of issues relating to the social dimensions of Indonesia’s transitions. The series will cover a range of issues including conflict, development, corruption, governance, the role of the security sector, and so on. Each paper presents research on a particular dimension of social development and offers pragmatic policy suggestions.

The papers in the series are works in progress. The emphasis is on generating debate amongst various stakeholders—including government, civil society, and international institutions—rather than offering absolute conclusions. It is hoped that they will stimulate further discussions of the questions they seek to answer, the hypotheses they test, and the recommendations they prescribe.

Luthfi Ashari and Patrick Barron (series editors)

lashari@wboj.or.id pbarron@worldbank.org