While Thailand's king remains an immensely popular and powerful figure, he has refused to play a public role, preferring to work behind the scenes to restore stability. The result is likely to be continuing leadership instability and a significant delay in the country's economic recovery. Since President Suharto stepped down from power in May, Indonesia's political stability has dropped considerably. The threat of a coup or a revolution is significant. Indonesia remains a poor and socially threatened country.
Social investment is abysmal.
Investment in primary education is still low. Poverty, poor sanitation, and a lack of access to clean water ensure that infants die at an alarming rate. Indonesia tends to lavish government spending on its rich, not the poor who need the state's help. These facts point to institutional weaknesses that will hinder long-term development. The technocratic excellence that has fostered a stable macroeconomy is not backed up by a competent bureaucracy independent of politics.