How Significant and Effective Has Foreign Aid to Indonesia Been?

Aid and policy preference in oil-rich countries: Comparing Indonesia and Nigeria

“…At that period, the Indonesian development budget came mainly from foreign debt. Chowdhury and Sugema (2005) for instance, note that foreign aid financed nearly 80 per cent of the development budget in 1969 and about 70 per cent in 1971.…”

The World Bank and the post-Washington Consensus in Vietnam and Indonesia

“…The Bank's approach can be read in two main ways, a generous reading suggests the Bank has made a significant concession to country ownership in supporting a country operating on other than a market basis. 91 A more critical reading asks why the Bank would find it so difficult to accept the idea of a socialist-oriented market economy given the level of redistribution and public ownership in many of its (democratic) member states. 92 Of course, the situation is made more complex by the lack of a consensus on the meaning of a 'socialist-oriented market economy' within the government and party in Vietnam.…”

“…Subsequent loans were under the IMF's Extended Fund Facility (EFF), indicating its determination to pursue a program of structural adjustment for a now full-blown Crisis. 91 However, as Chowdhury and Sugema pointed out, Indonesia did not require the full SBA package. Despite paying interest and charges on the loan, Bank Indonesia only drew down 44 per cent of it.…”

“…KPD goes further aiming to make villagers efficient contributors and replicators of capitalism, via training in the "…habits of transparency, accountability, efficiency, and the rule of law." 91 Li described KDP in Foucauldian terms as a powerful example of a 'governance' or a 'conducting conduct' project. 92 In Gramscian terms, governance is a method of organising consent to create the 'common sense' of neoliberal hegemony.…”

“…90 Bello, Kinley and Elinson, Development Debacle, p. 15. 91 Li, "Government through Community: The World Bank in Indonesia," p. 17. 92 The theoretical framework is explained in ibid, pp.…”