ABSTRACT
The Indonesian economic crisis cannot be attributed to a single cause. Yet if a case is to be made for the overwhelming contribution of poor governance to the unfolding of an economic crisis, the Indonesian experience provides a clear example. Poor governance was largely responsible for the building up of vulnerabilities in the economy that made it crisis-prone. Poor governance was equally responsible for the gross mishandling of the financial crisis that resulted in an even deeper economic crisis and a serious political crisis. Poor governance also explains why current reform and recovery efforts and programs have been slow and frustrating, which perhaps could become a major source for their failure.
