Académique Documents
Professionnel Documents
Culture Documents
Regional Development:
Are We Going to Better Regional Policy
or Muddling Through?
By:
Prihadi Nugroho
Background
• The inception of industrial clustering policy by Indonesian
Government at both national and local levels has reached
growing recognition in recent developments
• The policy rationale is associated with:
– The internal capacity of (mostly) small and medium industries
clusters to face difficult times with less government support
– The benefits of clustering in generating economic growth
through local resources utilisation, new employment creation,
flexible specialisation, collective efficiency, and so forth
– Its usefulness to the strengthening of industrial linkages and the
creation of transition economy to peasant society
Background (contd)
COHERENCE RELIABILITY
• Clustering policy less essential • Policy ideals and practicalities
than other economic policies do not fit each other
• The policy contradictions and • Policy suitability to overcome
ambivalence over time local and global challenges
The Exercise of Urban Politics
Agriculture-based and
traditional sectors
Industrial
Clustering Policy
Tensions between larger and
smaller firms and between
urban and rural sectors
The Exercise of Urban Politics (contd)