AbdulRahmanEmbongandJurgenRudolpheds.

,SoutheastAsiaintotheTwentyFirst
CenturyCrisisandBeyond,PenerbituniversitiKebangasaan,MalaysiaBangi,2000
Chapter4:ThePoliticsofAsianCorporateandFinancialRestructuring,LindaLow:
DistributionofOwnershipandControlinCorporations:familyconcentrationisgenerally
high , but higher in Indonesia, Malaysia and Thailand. P102 In Thailand financial
institutionsown6%oflistedcompanies,whileindividuals/familiesownmorethan60%.
P104ThisissimilarinIndonesia,withconcentrationintheSuehartofamily.
Indonesia:formationoftheIBRAin1998(IndonesianBankRestructuringAgency):the
conglomeratescontinuetowonthecompaniesbytheIBRAwillexerciseshareholders
rightsuntildebtsowedtothegovernmentaresettled.P105Otheractionsincludeanti
monopolylaws,oneoftheIMFconditions.(ex:thisaffectsPertaminainoil,Telkomin
domestictelecommunication).P109Trialshavehappened,asonSuhartosson,andethnic
relationshavebeenalteredwiththeethnicChinesebadlyaffectedbythecrisis(group
Salim).Theauthorarguesthatdeficienciesinthecourtandlegalsystemareresponsiblefor
inefficientimplementationofreforminstitutions:toinstallafairandefficientcommercial
courtsystemisdifficultinacountrywherecorruptionisrife,andwherecasesinvolving
majorcompaniesarefewpoorunderstandingofmodernbusinesspractices lieatthe
heartoftheproblemP112[rather,interestscountertotransition/interestssimilartothose
promotedbytheIMF].
ComparativePoliticalAnalysis:
- politicalcommitmenttowardsrestructuringasinfluencingthepaceanddepthofefforts.
P124thetriangleofbankers,politiciansandbigbusiness,isobstructingsuchprogress.
P125
- contradictorylegitimacyconcerns:inthelongterm,restructuringmaybringeconomic
bettersandthusprovidebasisforlegitimacy,butintheshorttermitdestroysestablished

pattersofpowerandinterests,causingresentmentandthreateningthegovernment
there is a perverse situation that unless it is a strong authoritarian regime which is
assuredofsomelongstayingpoweringovernment,itisunlikelytohaveeitherthewillor
strengthtopushreformsthrough.P128
- foreignpenetration,lossofcontrol layoffsforefficiency resentmentofworkers
reflectedonthecurrentgovernment.
Conclusion:
- economiccrisisasalteringstatebusinessandethnicrelations.
- Crisisaffectingthemiddleclass:lostgenerationofintellectuals/technicians.
- Blameonglobalizationstrengtheningvs.IMFashelping:influencingtheperceptionof
globaleconomyandtheprobabilitiesofliberalization.Yet,theASEANpathseemsto
showthatthepathofliberalizationistaken,atleastonaregionalscope.P133
Chapter 6: The Political Dimensions of the Indonesian Economic Crisis: Ignatius Tri
Handoyo
Indonesia:1999stillnosignofrecoverywhenbothThailandandSouthKoreahavestarted
to show signs of growth again. Political crisis: students urging Suharto to step down,
enteringtheHabibietransitiongovernment.Thelattersadministrationwasmarkedby:
- somepositivepoliticaldecision:releaseofpoliticalprisoners,freedomofthepress
- socialriotsandprotests,increasedconflict,mainlyduetotheeconomicharshness,which
alsofosteredcompetitionforresourcesandinterethnicresentmentinthiscompetition.
Anotherproblemwasimbalanceindistribution.P154
- ProblemoflackofinternationalcredibilityofHabibie,vs.ChuanLeepkaiinThailand
- the former president Suharto was replaced by a transitional government which is
illegitimate,weakandineffective.lawandorderfallingapart.
- Strugglebetweentheremainingforcesoftheneworderandthereformasipower.P157
Presidentialelectionsin1999.

Chapter7:Thailand:RestructuringtheEconomyandtheRiseofNationalism,GilesJi
Ungpakorn.
Thai community looking for scapegoats just after the crisis: the business used the
opportunitytogetridoftheNAPled19967governmentunderChivalit.ChuanLeepkai
took over, following IMF conditions (nationalize private debt and close failed banks).
Largeamountsofpublicfundswereusedtosavebusiness,whilethesocialimpactofthe
crisis(health/education)wasatitsworthmoreeconomicdisparity.
- WhereastheChivalitgovernmentborethebruntofscapegoating,infactthebusinesses
themselves were largely responsible for overborrowing and using the loans for
speculation.P163
- UnlikeIndonesiaandMalaysia,thechangeingovernmentdidnotcausesocialdisorder.
TheauthorarguesthisisduetotheexistenceofparliamentarydemocracyinThailandand
grassroot democratic sentiment: This is due to the liberal parliamentary democracy
whichnowexistsinThailand,aproductofyearsofstrugglefrombelow.[asrevealedby
theearly80sstudentprotestanddemogov??Whataboutmoneypolitics?]
Political Consequences of Economic Restructuring in Thailand: Thai ruling class
restructuringtheeconomy:ideologicalconsequencesandclassconflict,whichcouldhave
impactsonpoliticalstability.P164
- working class: the post crisis businesses have harsher working conditions and lower
wages,inordertocompensateforthelackofinvestmentineducation/technologywhich
wouldbeanotherwaytobeatcompetition.
- IMF intervention: resented because it allows foreigners to take over large businesses
(telecommunication and banking), and because further liberalizations puts even more
pressureonsmall/localenterprises.nationalisticobjectionsP165
Left nationalism: IMF conditions seen as a threat to national independence. Yet left
commentatorsdonotseealternativestocapitalism,rathertheyseethecrisisasthefailure

ofonestyleofit.Thereisalsouseofthedependencetheory.Thisleftismisthemain
oppositionstream:Stateenterpriseunionpublicationsandacademicjournalsalikereferto
theIMFasseekingtoenslaveThailandtotheWest.P167Theseideas,ratherthanthoseof
theworkers,areintheinterestofsmallscalecapitalistsfacinginternationalcompetition.
PrivatizationandNationalism:[thisisin1998~Leepkaigov.]
Thegovernment,emphasizingnationalinterestratherthanworkersinterests,proceededto
the privatization of state enterprises, for reasons of efficiency. What this meant was
private restructuring and layoffs, with not government responsibility and lack of
unemploymentbenefits,whileusinganationalistthemetoavoidcriticism.P1689Thai
rulingclasshasstillmanagedtoshifttheburdenofpayingforthecrisisontothebacksof
ordinarypeoplebythenationalizationofsignificantamountsofprivatedbt,cutsinpublic
expenditureandincreasedunemployment.P170
Yet,resentmentoftheworkingclassisgrowing.[quickmovetoThaksin].
TheeffectofEconomicCrisisonClassStruggle:Contradictoryeffectsofthecrisison
workers:firstlyangerfordecliningconditionsandwagesagainstabackgroundofinflation.
Yet,nottoomuchoppositionduetothefearoflosingjob,declineofinflationin1999,and
predominantnationalistideologylinkingworkersandemployers.P171
the parliamentary system, coupled with certain weaknesses in working class
organization,hasallowedforadegreeofpoliticalstabilityintheseuncertaintimes.P172