We cannot verify your location
Browse Book and Journal Content on Project MUSE

Growing Apart

Oil, Politics, and Economic Change in Indonesia and Nigeria

Peter M. Lewis

Publication Year: 2007

Growing Apart is an important and distinguished contribution to the literature on the political economy of development. Indonesia and Nigeria have long presented one of the most natural opportunities for comparative study. Peter Lewis, one of America's best scholars of Nigeria, has produced the definitive treatment of their divergent development paths. In the process, he tells us much theoretically about when, why, and how political institutions shape economic growth. —Larry Diamond, Senior Fellow, Hoover Institution "Growing Apart is a careful and sophisticated analysis of the political factors that have shaped the economic fortunes of Indonesia and Nigeria. Both scholars and policymakers will benefit from this book's valuable insights." —Michael L. Ross, Associate Professor of Political Science, Chair of International Development Studies, UCLA "Lewis presents an extraordinarily well-documented comparative case study of two countries with a great deal in common, and yet with remarkably different postcolonial histories. His approach is a welcome departure from currently fashionable attempts to explain development using large, multi-country databases packed with often dubious measures of various aspects of 'governance.'" —Ross H. McLeod, Editor, Bulletin of Indonesian Economic Studies "This is a highly readable and important book. Peter Lewis provides us with both a compelling institutionalist analysis of economic development performance and a very insightful comparative account of the political economies of two highly complex developing countries, Nigeria and Indonesia. His well-informed account generates interesting findings by focusing on the ability of leaders in both countries to make credible commitments to the private sector and assemble pro-growth coalitions. This kind of cross-regional political economy is often advocated in the profession but actually quite rare because it is so hard to do well. Lewis's book will set the standard for a long time." —Nicolas van de Walle, John S. Knight Professor of International Studies, Cornell University Peter M. Lewis is Associate Professor and Director of the African Studies Program, Johns Hopkins University, School of Advanced International Studies.

Published by: University of Michigan Press

Series: Interests, Identities, and Institutions


pdf iconDownload PDF (25.3 KB)
pp. vii


pdf iconDownload PDF (26.6 KB)
pp. ix-xi

read more

Chapter 1. Introduction

pdf iconDownload PDF (94.8 KB)
pp. 1-27

What types of institutional arrangements are essential for economic growth in poor countries? What are the political conditions that foster the development of growth-inducing institutions? Although there is a good deal of consensus about the institutions generally needed for prosperity over the long term, we have much less certainty about the conditions for economic progress in poorly performing states, or in circumstances...

read more

Chapter 2. The Political Economy of Development

pdf iconDownload PDF (96.4 KB)
pp. 28-53

This study is concerned with the effects of institutional arrangements on economic growth and the political factors leading to institutional change. The central argument is that differences in long-term economic performance are determined by variations in the ability of states to make credible commitments to market participants. Such commitments include policy stability, secure property rights...

read more

Chapter 3. Growing Apart Divergent Political Economies

pdf iconDownload PDF (110.4 KB)
pp. 54-85

Indonesia and Nigeria offer natural comparisons as well as marked contrasts. With populations currently estimated at 242 million and 134 million, respectively, they are large countries with crucial positions in their subregions. Indonesia encompasses an archipelago of some 16,000 islands stretching over 3,000 miles from the Pacific to the Indian Oceans. The country accounts for about 40 percent of the total population among...

read more

Chapter 4. Indonesia Crisis, Reform, and Growth

pdf iconDownload PDF (126.5 KB)
pp. 86-124

Between 1966 and 1996 a widening gap appeared in the relative economic performance of Indonesia and Nigeria. Much of the variation can be explained by distinct economic policies that evolved in different political and institutional settings. This chapter and the next one summarize the critical periods of political and economic change for each state. After providing a brief historical prelude for each country...

read more

Chapter 5. Nigeria Division, Distribution, and Decline

pdf iconDownload PDF (164.4 KB)
pp. 125-179

Nigeria’s policy regime and the country’s evolution within the global economy differed substantially from those of Indonesia. Nigerian elites responded to different incentives, exacerbating the weaknesses of the rentier economy and avoiding needed adjustments in response to exogenous shocks. With the arrival of the initial petroleum windfall, Nigerian leaders pursued a set of policies that intensified the macroeconomic distortions...

read more

Chapter 6. Comparing Economic Performance

pdf iconDownload PDF (224.5 KB)
pp. 180-202

In the preceding analysis, I have drawn the linkages between institutional choice, policy selection, economic performance, and structural change, which affect the path of development over time. The empirical record of comparative economic performance in Indonesia and Nigeria helps to clarify and underscore these factors. In this chapter I assess relative performance in growth, income, the structure of the economy...

read more

Chapter 7. After the Fall The Dynamics of Attempted Reform in Indonesia

pdf iconDownload PDF (115.4 KB)
pp. 203-237

The diverging paths of Indonesia and Nigeria abruptly changed course on the eve of the millennium. In the throes of the Asian financial crisis, Soeharto’s regime collapsed in May 1998, and with it the growth coalition forged by the New Order over a period of decades. Political reforms led to a fledgling democratic regime the following year, against a backdrop of economic decline, social turmoil, and institutional disarray. Almost simultaneously, Nigeria experienced momentous political change...

read more

Chapter 8. Predatory Rule, Transition, and Malaise in Nigeria

pdf iconDownload PDF (103.9 KB)
pp. 238-267

Nigeria’s political and economic conditions in the late 1990s differed substantially from those of Indonesia. In marked contrast to Indonesia’s decades of growth and economic diversification, Nigeria developed an oil monoculture in which virtually all foreign exchange, and the preponderance of government revenues, were derived from crude oil exports.1 In consequence, the political economy was overwhelmingly concentrated on the distribution of rents...

read more

Chapter 9. Conclusion Indonesia and Nigeria in Comparative Perspective

pdf iconDownload PDF (98.3 KB)
pp. 268-296

This book offers a perspective on the political challenges of economic development. The problems of uneven development among regions and states have given rise to many questions about the conditions needed for sustained growth and competitiveness. Analyses of economic growth have increasingly centered on institutional factors, including the character of markets and the qualities of states in providing economic governance...


pdf iconDownload PDF (105.6 KB)
pp. 297-326


pdf iconDownload PDF (60.2 KB)
pp. 327-345

E-ISBN-13: 9780472024742
E-ISBN-10: 0472024744
Print-ISBN-13: 9780472069804
Print-ISBN-10: 0472069802

Page Count: 360
Illustrations: 18 Tables & 8 Figures
Publication Year: 2007

Series Title: Interests, Identities, and Institutions