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Inequality under dictatorship and democracy : longitudinal micro data, before and after the fall of general Soeharto

Nes, Per Bjarte Ulvedal
Master thesis
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URI
http://hdl.handle.net/11250/168549
Date
2010
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  • Master Thesis [3377]
Abstract
Economic growth justified the autocratic New Order government of

general Soeharto to the Indonesian public. The Asian financial crisis

stalled growth and ended the New Order administration in 1998, then

electoral democracy was instituted. This initiated a mass of policy

changes, importantly including a large decentralization of fiscal and

legislative power. This study explores the development of economic

inequality in the tumultuous periods before and after the fall of Soeharto.

The results show a decrease in inequality and converging provinces pre-

crisis and for the whole period. However, in the post-crisis democratic

period, income inequality increased, as did inequality between provinces.

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