Inadequate budgets and salaries as instruments for institutionalizing public sector corruption in Indonesia
Description
Soeharto used the Indonesian bureaucracy to generate rents that could be harvested by 'insider' firms, while also encouraging it to extort money from 'outsider' firms and individuals. This necessitated incentives that would ensure strong loyalty and minimize internal opposition. Government entities were provided with insufficient budget funding to cover their costs, and their officials were expected to generate cash from illegal activities, making public sector employees financially dependent...[Show more]
dc.contributor.author | McLeod, Ross | |
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dc.date.accessioned | 2015-12-10T21:53:51Z | |
dc.identifier.issn | 0967-828X | |
dc.identifier.uri | http://hdl.handle.net/1885/38683 | |
dc.description.abstract | Soeharto used the Indonesian bureaucracy to generate rents that could be harvested by 'insider' firms, while also encouraging it to extort money from 'outsider' firms and individuals. This necessitated incentives that would ensure strong loyalty and minimize internal opposition. Government entities were provided with insufficient budget funding to cover their costs, and their officials were expected to generate cash from illegal activities, making public sector employees financially dependent on corruption. Any employee who opposed this system could expect to be restricted to earning no more than the pitifully low formal salary entitlement. The system therefore became strongly self-reinforcing. | |
dc.publisher | University of London | |
dc.rights | http://www.sherpa.ac.uk/romeo/issn/0967-828X/..."Author's post-print on author's personal website, departmental website, institutional website or institutional repository" from SHERPA/RoMEO site (as at 10/04/17). | |
dc.source | South East Asia Research | |
dc.subject | Keywords: bureaucracy; corruption; economic instrument; economic reform; government; institutional framework; monopoly; political economy; public sector; Asia; Eurasia; Indonesia; Southeast Asia Bureaucratic reform; Corruption; Indonesia; Political monopoly; Public choice | |
dc.title | Inadequate budgets and salaries as instruments for institutionalizing public sector corruption in Indonesia | |
dc.type | Journal article | |
local.description.notes | Imported from ARIES | |
local.identifier.citationvolume | 16 | |
dc.date.issued | 2008 | |
local.identifier.absfor | 140213 - Public Economics- Public Choice | |
local.identifier.ariespublication | u4002919xPUB165 | |
local.type.status | Accepted Version | |
local.contributor.affiliation | McLeod, Ross, College of Asia and the Pacific, ANU | |
local.bibliographicCitation.issue | 2 | |
local.bibliographicCitation.startpage | 199 | |
local.bibliographicCitation.lastpage | 223 | |
dc.date.updated | 2015-12-09T07:21:27Z | |
local.identifier.scopusID | 2-s2.0-50949098667 | |
dcterms.accessRights | Open Access | |
Collections | ANU Research Publications |
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01_McLeod_Inadequate_Budgets_2008.pdf | 101.41 kB | Adobe PDF |
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