Indonesia question

kjkhoo at softhome.net kjkhoo at softhome.net
Mon May 27 19:46:24 PDT 2002


ChrisD(RJ) wrote:
>I'm having an argument with someone who claims that Indonesia, in the 90s,
>dod not implement any IMF programs. To what extent is the true, and to what
>extent is the horseshit?

I think your friend probably has Malaysia and Indonesia confused. Referring specifically and only to post onset of financial crisis, Malaysia initially attempted some mild self-administered IMF-type programmes, but increasingly retreated from that by end of 1st quarter 1998 and threw them overboard in the wake of the Russian crisis in Aug 1998, demonetised the currency outside the borders and instituted capital controls. Indonesia had to obtain IMF 'assistance' -- the picture of IMF chief Camdessus standing over a Suharto signing on an agreement with the IMF was the ultimate put down in the local/regional imagination -- and while they kind of dragged their feet over implementing IMF programmes, they did it all the same.

Pre-financial crisis, both countries had of course gone along with IMF/WB policies, specifically financial liberalisation; those were the days of much hubris.



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