ABSTRACT
Pursuing' Guided Democracy', political economy focused on greater self-reliance, diversified foreign trade, land reform, and support for peasant and trade unions, Sukarno endeavored realignment of the patron-client model. Indonesia was integrated under the patron-client model by Holland, western Europe, the United States and Japan. By the end of the decade Indonesia was the second largest debtor in the Third World, carrying official foreign debt of $ 100 billion and debt-service ratio of about 35 percent. Nor did the end of colonialism entail the end of economic imperialism for Nigeria any more than for the rest of the Third World operating under the patron-client model. Nigeria offers an excellent case study of decapitalization that reflects the Third World's financial dependence. A State Department report analyzing the structure of Peru's economy acknowledged that lack of regional integration was part of its structural weakness along with concentration of wealth along the coastal region.
