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===Old Order: Liberal Democracy and Guided Democracy=== {{further|Liberal democracy period in Indonesia|Guided Democracy in Indonesia}} The '''"Old Order"''' (1950β1965) in Indonesia has long been understood to be a period of turmoil and crisis, characterized by rebellions and political unrest. The weakness of Indonesia's democracy and its gradual transition to authoritarianism during the Old Order can be attributed to conventional modernization theory, which suggests that without strong socioeconomic structures, successful transitions to democracy are unlikely.<ref>{{Cite web | url=https://digitallibrary.tsu.ge/book/2019/feb/reader/Jorjoliani-Principles-of-Comparative-Politics.pdf | title=Principles of comparative politics | archive-url=https://web.archive.org/web/20230120034128/https://digitallibrary.tsu.ge/book/2019/feb/reader/Jorjoliani-Principles-of-Comparative-Politics.pdf | archive-date=2023-01-20 }}</ref> Indeed, it was not until the late 1960s when urbanization took place that the Indonesian government began to build a stronger democracy.<ref name="rba.gov.au">{{Cite web | url=https://www.rba.gov.au/publications/bulletin/2011/dec/pdf/bu-1211-4.pdf | title=The Growth and Development of the Indonesian Economy | archive-url=https://web.archive.org/web/20230304023725/https://www.rba.gov.au/publications/bulletin/2011/dec/pdf/bu-1211-4.pdf | archive-date=4 March 2023 }}</ref> During the '''"Liberal Democracy"''' period (1950β1957), Indonesia aspired to renew its global status and achieve modernity as a newly independent country.<ref>{{cite journal | url=https://www.jstor.org/stable/pdf/41329000.pdf | jstor=41329000 | title=Indonesia in the 1950s: Nation, modernity, and the post-colonial state | last1=Nordholt | first1=Henk Schulte | journal=Bijdragen tot de Taal-, Land- en Volkenkunde | year=2011 | volume=167 | issue=4 | pages=386β404 | doi=10.1163/22134379-90003577 }}</ref> In line with this vision, it sought to establish a democratic parliamentary system, bringing forth a "multi-party system, cabinet government under a prime minister, and a ceremonial president".<ref name="academic.oup.com">{{cite book | chapter-url=https://academic.oup.com/book/3541/chapter/144797452 | doi=10.1093/0199246467.003.0014 | chapter=Indonesia's Democratic Transition: Playing by the Rules | title=The Architecture of Democracy | date=2002 | last1=Liddle | first1=R. William | pages=373β399 | isbn=0-19-924646-7 }}</ref> However, the economic instability inherited from colonial rule significantly hindered their democratic nation-building vision: the Indonesian economy struggled to recover from the hardships of colonial occupation, with economic growth being stagnant and inflation reaching over 600% between the 1950s-1960s.<ref>{{cite journal | url=https://www.jstor.org/stable/pdf/422154.pdf | jstor=422154 | title=Indonesia's Democratic Past and Future | last1=Liddle | first1=R. William | journal=Comparative Politics | year=1992 | volume=24 | issue=4 | pages=443β462 | doi=10.2307/422154 | access-date=4 March 2023 | archive-date=24 March 2020 | archive-url=https://web.archive.org/web/20200324081800/https://www.jstor.org/stable/pdf/422154.pdf | url-status=live }}</ref> Indonesia's economy heavily relied on the agricultural sector, but without diversification and industrialization, the government became vulnerable to polarization and instability.<ref name="rba.gov.au"/> Moreover, Indonesia's abundance of natural resources, such as coffee, rubber, and cocoa, made it susceptible to the political resource curse:<ref name="assets.publishing.service.gov.uk">{{Cite web | url=https://assets.publishing.service.gov.uk/media/57a08c05ed915d3cfd001100/wp35.pdf | title=A future resource curse in Indonesia: The political economy of natural resources, conflict and development | archive-url=https://web.archive.org/web/20230304023738/https://assets.publishing.service.gov.uk/media/57a08c05ed915d3cfd001100/wp35.pdf | archive-date=2023-03-04|date=4 March 2023 }}</ref> Indonesia's resource wealth led to corruption, inequality, and political instability, hindering economic and social progress; the concentration of wealth and power in the hands of a few elites with a monopoly over these resources worsened the country's economic and political problems. This ultimately led to rising political tensions and the government's loss of control.<ref name="assets.publishing.service.gov.uk"/> '''"Guided Democracy"''', which was in place from 1957 to 1966, aimed to bring about political stability, modernization, and development under the leadership of President Sukarno.<ref name="Brill">{{cite book | chapter-url=https://brill.com/display/book/9789004437722/BP000001.xml | doi=10.1163/9789004437722_002 | chapter=Introduction | title=Authoritarian Modernization in Indonesia's Early Independence Period | year=2020 | pages=1β17 | publisher=Brill | isbn=9789004437722 | s2cid=242813604 | last1=Fakih | first1=Farabi | access-date=4 March 2023 | archive-date=4 March 2023 | archive-url=https://web.archive.org/web/20230304023731/https://brill.com/display/book/9789004437722/BP000001.xml | url-status=live }}</ref> Initially, Sukarno sought to build political institutions to bolster representation and resolve conflicts of regionalism, social class, and religion that plagued the Parliament during the Liberal Democracy era.<ref name="academic.oup.com"/> However, power became increasingly centralized to the executive branch in the latter half of Guided Democracy, with Sukarno assuming a dictator-like role in the government.<ref name="Brill"/> Indonesia's gradual transition to authoritarianism during the Guided Democracy period exemplifies the failure of the democratic project in the country due to weak socio-economic structures and the political resource curse that undermined its democratic development.
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