Economic Crises and the Breakdown of Authoritarian Regimes: Indonesia and Malaysia in Comparative Perspective

Amazon.com Price: $24.84 (as of 11/10/2019 11:27 PST- Details)

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Why do a little authoritarian regimes topple all over financial crises, even as others steer through financial crises fairly unscathed? In this book, Thomas B. Pepinsky uses the experiences of Indonesia and Malaysia and the analytical tools of open economy macroeconomics to reply to this question. That specialize in the economic interests of authoritarian regimes’ supporters, Pepinsky shows that differences in cross-border asset specificity produce dramatically different outcomes in regimes facing financial crises. When asset specificity divides supporters, as in Indonesia, they desire mutually incompatible adjustment policies, yielding incoherent adjustment policy followed by regime collapse. When coalitions don’t seem to be divided by asset specificity, as in Malaysia, regimes adopt radical adjustment measures that enable them to live on financial crises. Combining wealthy qualitative evidence from Southeast Asia with cross-national time-series data and comparative case studies of Latin American autocracies, Pepinsky reveals the power of coalitions and capital mobility to give an explanation for how financial crises produce regime change.

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