Building a modern financial system
Subtitle: the Indonesian experience
By: David C. Cole, Betty F. Slade.
Contributors: Slade, Betty F.
Series: Trade and development; Trade and development (Cambridge, England)
Publisher: Cambridge University Press
Published: 1996
Place of publication: New York
Language: eng
Number of pages: 379
Subjects: Finance -- Indonesia.; Banks and banking -- Indonesia -- State supervision.; Financial services industry -- Indonesia.; Capital market -- Indonesia.
Description: This book provides penetrating insights into the kinds of policies that can lead to the development of a modern financial system in a large, relatively underdeveloped country. The study covers all facets of the financial system, emphasizing the role of the monetary authorities, the transition from a government-dominated to a predominantly private banking system, and the recent rapid expansion of the capital market.

Indonesia is a particularly interesting case because its economy and its financial system were in shambles in the mid-1960s owing to political adventurism and economic mismanagement. Over the next three decades, sensible macroeconomic policies and growth-promoting reforms in both the real and financial sectors produced high rates of economic growth, balanced expansion of agriculture and industry, and an increasingly vibrant, market-oriented financial system.

The authors, who served as advisors to the Indonesian Government, are well placed to provide a unique insider account of this story. They describe not only the policies adopted and their consequences for financial development, but also many of the alternatives that were considered and rejected and the major underlying political forces that shaped financial policymaking.
Notes: Includes bibliographical references (p. [358]-372) and index.