The Political Economy of Reform in Southeast Asia and the Impact of International Development on a Society
First of all, Professor Hill said: Today we are here to talk about The Political Economy of Reform in Southeast Asia focus on the impact of development on a society and for some reasons there are few economists that think that they know what to do or they think they know how to predict the economy of the countries but in reality there is not a magical formula to predict the future.
The Sustainable Global Development
Governments have to make significant reforms supported by durable public policies that enhance socio-economic welfare then analyze the outcomes and processes. In other words, they have to pursue clearly objectives. Moreover, create public policies that remove barriers in order to encourage companies, as well as businesspeople to invest in the country in order to create the sustainable global development. As a result we all have win-win effect among countries.
Ideas are crucial as well as a clear reform agenda which come from outside of the government, for instance the experience of technocrats that said “through technology and resources should be enough to get wealth.
There are two cases with significance advance like Vietnam in spite of the suffering of years of conflicts, weak technocracy and cessation of Soviet Union aid. But this country learnt through observing China that went through for the same situation. China has a strong Government that use protection of its market as well as enhance companies to invest in the country under special rules. The other case is Indonesia which got a reasonable development but the setback started after the Asian Crisis in the 1990s.
To continue Professor Hall dealt with trade liberalization in Philippines that has a relatively success because of deep crisis and bad administrations. Moreover, the country changed from authoritarian to democratic rule. Ramos adopted comprehensive reforms with a growth dividend supported by key players as economists. Another factor was the independence of the central bank, through the International Monetary Fund – IMF program.
The decentralization is the power of the government; the idea is trying to avoid incomplete reforms, mixed outcomes, setbacks that occurred because of bureaucratic resistance. Nevertheless, reformers can be force to second alternatives such as: ensure competition, impose hard budget constraint, and open subsides.
The economic crisis known as the Asian crisis (in Thailand, Malaysia, Indonesia, the Philippines and then Hong Kong, Taiwan and South Korea as well as Laos, China, India, Singapore and Vietnam) are related to economic and political issues that occur As of July 2, 1997 that for instance affected the Philippines and Indonesia due to the deep problem between the economy and politics between the institutions that create political vacuum and debilitated states due to the former Soviet Union. Some factors lead to that situation such as: unpredictable legislature, noisy and civil society, weakened executive, bureaucratic adjustment plus fiscal crisis, legal system underdeveloped, decentralization. In other words, Policy processes were too long as well as uncertain. Furthermore, technocrats had a limited role since they said that efficiency can be measure by energy rate based on real work .Yet, it was impossible because that definition represent the opposite way to work for bureaucrats.
After that I made this question to Professor Hill: It was beneficial in political or economical way that East Timor got independence from Indonesia?
Professor Hill said: The situation was difficult because Indonesia was colonized for different countries so that the issue affects either in political and economical way. In somehow was beneficial but this country keep going in order to catch up its economical status in Asian Countries.
In my view, based on theses experiences we understand that ideas would drive an intellectual agenda as well as a group of individuals so that they can transmit the message and we have to wait in the long run for consistently outcomes.
Lessons to Sustainable Global Development
We have to learn through the lessons and citizens have to fight for their rights and do not expect that governments create the solution of our standards of living. Remember in bad times we can create good policies and creates reform through lessons.
The role of government is to enhance and set up the environment not only to attract foreign direct investment but also to generate the confidence in their population to rely on in their institutions and authorities this is the way that gain respect of their people.