Indonesia, Malaysia, and Thailand: New Administrations, New Policies, New Performance?

The administrations in Indonesia, Malaysia, and Thailand have all put in place economic policies designed to increase growth, reduce poverty, and improve governance. In Thailand, the government is taking a more activist role, a change from the previous, more hands-off approach. In both Indonesia and Malaysia, new policies reduce the activist role of the state, creating greater predictability and transparency. Better governance remains a key to growth, with many reforms within governments' reach. While many of the policies focus on the medium term, there is an acceptance of the need for prudent short-term management. The open question is whether progress on structural changes can persist when the short-term macroeconomic picture becomes more challenging. (c) 2007 The Earth Institute at Columbia University and the Massachusetts Institute of Technology.