ABSTRACT
Despite the institutional building, the new institutions for the economic reform began to crumble easily in the face of the economic cost of liberalization and the political cost of economic stabilization. Along with the financial deregulation, the government was losing its financial control over big business and thus could not prevent big business dominance in the market. Labour disputes increased against tight wage restriction for economic stabilization. Opposition forces were reactivated against the repressive authoritarian regime. In the end, the government failed to reform the financial system, and the politicized institutions had brought the state-controlled disposals of financially ill-managed large firms in line with industrial adjustment.
