le fiscal and monetary policy. Concerns over foreign economic dominance, the limited national industrial base, and the need for pribumi (indigenous) economic development mandated increased government regulation during the 1970s. However, the economy continued to prosper throughout the decade in spite of this, with the GDP growing at an annual average rate of 8 percent. In the early 1980s, however, there was a precipitous drop in growth which pointed to limits in the industrialization strategy, and a new generation of reformers advocated a more limited role for the government (Frederick and Worden, 1992, 143-144).
Indonesia today is an economic success story. It was one of the world's poorest countries in 1967 when Suharto came to power when a per capita gross domestic product of $70 per person prevailed, then half that of India and Bangladesh. In 1994, the per capita GDP for Indonesia exceeded $875, triple that of Bangladesh and more than double that of India. Life expectancy had increased from 41 years
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