We have seen how the IMF dealt with crisis in Korea and Indonesia. Fund interventions had different political significance in each country. In Korea, the programme was largely about dismantling industrial policy and the associated close links between big business and sections of the political class. In Indonesia, it was designed to attack political patronage but doing so involved a radical restructuring of Indonesian political economy. Both examples showed programme implementation was politically highly charged and difficult to manage.
KeywordsIndustrial Policy Capital Control Market Discipline Private Finance Initiative Political Patronage
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