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JC History Tuition Bishan Singapore - What is New Order - Approaches to Governance JC History Essay Notes

What is New Order?

Topic of Study [For H2 History Students]:
Paper 2: Search for Political Stability
Section B: Essay Writing
Theme I Chapter 1: Approaches to Governance

Examine the historical developments of Indonesia under Suharto’s New Order – Video by PinterPolitik TV

Historical Context: The 30 September movement
After President Sukarno declared the start of the “Guided Democracy” in 1957, the Indonesian government consolidated political control to restore peace and stability in the nation. However, Sukarno encountered difficulties in managing two notable roles – the military and the Partai Kommunis Indonesia (PKI). As such, he sought to re-energise the Indonesian society through the campaign in West New Guinea and the Konfrontasi, declaring a revival of the Indonesian Revolution.

On 30 September 1965, an abortive coup had resulted in the deaths of six senior generals (later known as the Gerakan 30 September). As the leader of the KOSTRAD (Komando Strategis Angkatan Darat, also known as the Army Strategic Command), General Suharto investigated the incident. Subsequently, the PKI was accused of launching the coup.

The end of Guided Democracy: Supersemar
On 11 March 1966, President Sukarno signed a decree that granted Suharto full political authority to restore order in Indonesia. The transfer of executive power was known as Supersemar (Surat Perintah Sebelas Maret)

III. Memutuskan/Memerintahkan:

Kepada: LETNAN DJENDRAL SUHARTO MENTERI PANGLIMA ANGKATAN DARAT

Untuk: Atas nama Presiden/Panglima Tertinggi/Pemimpin Besar Revolusi:

1. Mengambil segala tindakan yang dianggap perlu untuk terdjaminnja keamanan dan ketenangan, serta kestabilan djalannja pemerintahan dan djalannja Revolusi, serta mendjamin keselamatan pribadi dan kewibawaan Pimpinan Presiden/Panglima Tertinggi/Pemimpin Besar Revolusi/Mandataris M.P.R.S. demi untuk keutuhan Bangsa dan Negara Republik Indonesia, dan melaksanakan dengan pasti segala adjaran Pemimpin Besar Revolusi.

Excerpt from Supersemar (Order of Eleventh March), 11 March 1966.

From the above extract, it states that General Suharto was granted the authority to take any necessary measures to guarantee the security, stability and progress of the Indonesian Revolution.

The New Order
After the Supersemar was signed, the PKI was banned. Between June to July 1966, the membership within the People’s Consultative Assembly (Majelis Permusyawaratan Rakyat Sementara), which operated as the legislative branch of the Indonesian political system, experienced a purge. Individuals that formerly supported Sukarno were removed on the basis of being involved in the 30 September Movement.

Agains the Cold War backdrop, the USA also made observations that the rise of Suharto was a notable development that ushered a period of political stability in Indonesia after Sukarno’s inability to manage the Communist threat in the 1950s and 1960s.

The regime of General Suharto has brought Indonesia to a stage of imposed political stability and the beginnings of economic revival. Although the army holds predominant and ultimate political power, civilian participation in government is considerable and effective.

The New Order sees its basic tasks as the restoration of the economy, the continued suppression of Communism, and the development of stable representative government which would include a substantial political role for the army.

An excerpt taken from the Weekly Summary Special Report: The New Order in Indonesia, Central Intelligence Agency, 11 August 1967.

After the New Order was established, Suharto granted the military a political role to maintain stability. The concept of dwifungsi (dual function) was implemented as a policy to legitimise its role.

Until the fall of Suharto, the military considered dwifungsi to be its function, reason and spirit. The missions of security and socio-political development were inseparable. By directing socio-political development, the military served to support the goals of development, political and social stability, defence and national integrity. Any deviant social or political movement that threatened the status quo was seen as a threat to national security.

An excerpt from “Power Politics and the Indonesian Military” by Damien Kingsbury

What can we learn from this article?
Consider the following question:
– Assess the significance of the military in maintaining political stability of Indonesia under the New Order regime.

Join our JC History Tuition and learn more about the history of Indonesia and other Southeast Asian states. We provide useful study notes, essay outlines and practices for source based case study questions. We conduct online learning programmes for H1 and H2 History students to prepare for the GCE A Level History examinations.

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JC History Tuition Bishan Singapore - What is Guided Democracy - Approaches to Governance JC History Essay Notes

What is Guided Democracy?

Topic of Study [For H2 History Students]:
Paper 2: Search for Political Stability
Section B: Essay Writing
Theme I Chapter 1: Approaches to Governance

Historical Context: Struggles of a Liberal Democracy
After independence was achieved in Indonesia, a democratic government was formed. Sukarno became the president, while Mohammed Hatta held the vice president position. The 1950 Constitution was drafted to establish a parliamentary system that supported the conduct of regular elections and diverse political representation.

However, the Indonesian government was hampered by political disunity, as observed by absence of a clear majority after the first general elections in 1955.

Furthermore, two competing entities vied for political roles in the government, namely the military and the Communist Party of Indonesia (Partai Kommunis Indonesia, PKI).

Soekarno stressed two themes in particular that had deep meaning for many to whom he spoke. One was the constant political, economic, social, and psychological strife which, though in fact endemic, liberal democracy was damned as having introduced. The continual tensions between Parliament and Cabinet had always brought down Governments before they could accomplish anything; the idea that a loyal opposition was necessary had led to simple obstructionism.

Excerpt from “The Transition to Guided Democracy: Indonesian Politics, 1957-1959” by Daniel S. Lev.

The Guided Democracy: The rise of authoritarianism
As Sukarno realised that the experimentation with liberal democracy was not viable, he introduced the “Guided Democracy“. In the process, he reverted to the 1945 Constitution, which allowed the president to use authoritarian measures and establish control. In 1959, Sukarno dissolved the parliament and personally appointed half of its members.

Also, Sukarno promoted the ‘Nasakom‘ (Nasionalisme, agama, komunisme) philosophy, which entailed nationalism, religion and communism. By doing so, the Nasakom legtimised the increased political involvement of both the PKI and the military.

In installing Guided Democracy in 1957-1959, Sukarno renewed his stress on the fundamental unity of the various ideological streams within Indonesia, and Nasakom became the grounds for including the Partai Kommunis Indonesia (PKI) in a broad range of government institutions from 1960 and including a few far left members in the cabinent from 1962.

Excerpt from “Historical Dictionary of Indonesia” by Robert Cribb and Audrey Kahin.

Third, Guided Democracy was a major step toward military domination of Indonesian politics. In March 1957, Sukarno responded to a series of regional military rebellions by declaring martial law, effectively ending parliamentary rule and legalizing those rebellions…

…Although martial law formally ended in 1963, Guided Democracy greatly expanded the military’s economic resources and established it as the clear leader of a broad coalition of anticommunist forces.

Excerpt from “Southeast Asia: A Historical Encyclopedia, from Angkor Wat to East Timor” by Keat Gin Ooi.

Indonesian Revolution Re-visited: Konfrontasi
A distinctive feature of the Guided Democracy involved the outright rejection of Western influences in the Southeast Asian region.

In December 1961, Indonesian launched Operation Trikora, which was a military campaign to seize the Dutch-controlled New Guinea. This was also known as the “West Irian dispute”.

Another notable incident involved its neighbouring countries, Malaya, Singapore and the Borneo Territories (Sabah and Sarawak). After the Tunku of Malaya announced the creation of the Federation of Malaysia, Sukarno protested by conducting the Confrontation (Konfrontasi).

Aftermath: The 30 September Movement
Although the Guided Democracy seemed to function more effectively than Sukarno’s pre-1957 efforts, the internal division between the PKI and the military persisted. The economic woes further destabilised the nation.

Eventually, the Guided Democracy came to an end when the PKI was accused of the assassination of army officers, which led to Suharto’s swift military intervention.

What can we learn from this article?
Consider the following question:
– Assess the reasons for the end of Sukarno’s Guided Democracy.

Join our JC History Tuition and learn more about the history of post-independent Indonesia as well as other Southeast Asian nations for the topic of Approaches to Governance. We also cover other relevant topics for students taking either H1 or H2 History. Join our online learning programme and receive study notes to kick-start your revision. We also support you by reviewing your writing and providing outlines for effective revision.

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JC History Tuition - What is the difference between World Bank and the IMF - Global Economy Notes

What is the difference between the World Bank and the IMF?

Topic of Study [For H2 History Students]: 
Paper 1: Understanding the Global Economy (1945-2000)
Section B: Essay Writing
Theme II Chapters 1: Reasons for growth of the global economy & Problems of economic liberalisation

Learn more about the differing functions of the World Bank and the IMF [Video by CNBC International]

A confusing perspective: The World Bank and IMF
It has become a common issue for people to ask what are the defining roles of the World Bank and the International Monetary Fund (IMF). In fact, during the inaugural meeting of the IMF, the British economist John Maynard Keynes was confused by the names. He added the the IMF should have been described as a ‘bank’, whereas the World Bank should be recognised as a ‘fund’.

Let’s recap on the roles of the IMF and the World Bank separately.

#1. The IMF
From 1945 to 1971, the IMF was established for two key purposes:

  • Currency stabilisation through a fixed exchange rate system
  • Provision of short-term loans to finance balance of payment deficits

Currency stabilisation was achieved through the US Dollar (USD) that was pegged to the gold. From 1958 to 1971, the USD was fixed in value to gold at $35 per ounce. Then, all other foreign currencies were pegged to the USD. In other words, USD became the international reserve currency. As such, stable currency values ascertain prices, thus encouraging greater trading and investment activities.

As for the second purpose, the IMF held a pool of funds that nations could borrow from to finance their debts. This pool of funds was to be contributed by member states, including the USA. The correction of balance of payment deficits is critical in maintaining exchange rate stability as well. These conditional loans were given to countries that agreed to correct their trade deficits through policy adjustments like austerity measures.

#2. The World Bank
As for the World Bank, its immediate role after World War Two was to provide long-term financing for devastated nations to rebuild their economies. Formerly known as the International Bank for Reconstruction and Development (IBRD), the institution was initially backed by the USA. For instance, the Marshall Aid was given to Europe for post-war reconstruction.

By the 1960s, the World Bank was more involved in financing the infrastructure projects in developing countries to realise their economic potential. Following the decolonisation of the Third World nations in Asia and Africa, many developing countries were in dire need of these loans.

Changes in the functions of the IMF and the World Bank: 1970s
After the US experienced the twin deficits in the 1960s and realised that a fixed exchange rate system was unsustainable, US President Nixon announced the abandonment of the fixed exchange rates regime on 15 August 1971. From 1973 onward, the IMF focused its efforts in providing short-terms to correct the balance of payment deficits of member nations.

Also, it was involved in managing the Third World Debt Crisis of the 1980s. In 1982, the Latin American nations negotiated with both banks and the IMF for debt repayments. As a result, the ‘bail-out loans’ were introduced. Should the debtor nation agree to accept the IMF loan, the government must agree to conduct policies to achieve macroeconomic stabilisation, such as reduction in government subsidies (part of the austerity measures).

However, the IMF bail-outs had disastrous impacts on the debtor nations. Without government subsidies, many households were unable to cope with the high cost of living. In Bolivia, the price of bread rose four times. Living standards deteriorated significantly. On separate but related note, the ‘IMF bail-out loans’ were introduced to Thailand and Indonesia during the Asian Financial Crisis.

As for the World Bank, it expanded its lending role to include “structural- and sector-adjustment loans” in the 1980s. These loans were meant to facilitate economic reforms to support the heavily indebted nations in Latin America and sub-Saharan Africa.

What can we learn from this article?
Consider the following question:
– Assess the significance of the IMF and World Bank in contributing to the growth of the global economy [to be discussed in class].

Sign up for our JC History Tuition and review your comprehension of the Global Economy as well as other topics like the United Nations to be ready for the GCE A Level History examinations. We also conduct classes for students taking H1 History, which covers contrasting topics such as Superpower Relations with China and the Cold War in Southeast Asia.

Besides, we have other JC tuition classes, such as GP TuitionEconomics Tuition, JC Chemistry Tuition, JC Math Tuition and China Studies in English Tuition. For Secondary Tuition, we provide Secondary English Tuition, Secondary Math tuition, Secondary Chemistry Tuition and Secondary Economics Tuition. Call 9689 0510 to find out more.