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Discussion
of Case Study Themes
At
a Glance
Both Indonesia and Malaysia are considered newly industrializing
economies and are making a transition from resource
extraction to manufacturing and industrial production.
For centuries, both countries have been connected to
distant lands through trade. Both Indonesia and Malaysia
are former colonies of European powers that gained independence
in the 1940s. The government of both countries plays
a vital role in fostering economic activity. While both
countries share the island of Borneo with Brunei, Malaysia
is connected to the mainland of Asia whereas Indonesia
is completely insular. Both countries are adjacent to
the equator. Agricultural production in Indonesia supplies
a variety of crops such as coffee, tea, tobacco, spices,
and rice. In Malaysia, the main crops are oil palms
and rubber. The majority of the population of both countries
is of Muslim faith. There are large populations of other
minority groups in both countries: ethnic Chinese and
Indians in Malaysia, and religious Hindus and tribal
people in Indonesia.
Case
Study 1 -- Indonesia: Tourist Invasion
Tourist
Development is Encouraged by Government
The Indonesian government has taken steps to foster
development in areas peripheral to the country's major
cities. One such step has been state-supported programs
to expand the Balinese economy through the tourist
industry. State-sponsored programs help obtain investment
capital, which is used to build tourist developments
like the Nusa Dua complex. Jobs created from these
developments help relieve the population pressures
on Jakarta by providing employment close to home for
the Balinese people and by luring people away from
the population centers of Java.
The
Shift from Subsistence Economy
Before the tourist invasion, Bali's primary economic
activity was fishing. Now the emphasis of the Balinese
economy has shifted from meeting the needs of local
residents to meeting the needs of temporary visitors.
Seventy percent of the locals depend on tourism for
their income. Low-wage, low-skill jobs predominate
in this industry, although training opportunities
are available since many hotels seek skilled local
managers. A village resident who, in an earlier era,
might have learned fishing techniques from the elders
now might learn computer techniques from a global
hospitality chain.
External Influences Disrupt Island Life
Tourist development is not without problems. The influx
of foreigners can erode local culture and lifestyles,
as witnessed in the city of Kuta, Bali's oldest tourist
area. Street hawkers, glowing neon signs, drugs, and
prostitution have transformed this surfer's paradise
from the quiet home of farmers and fishermen to what
some might call tourism gone rampant.
Translocation:
Balancing Population and Development
Bali has witnessed a large influx of Javanese. Java,
with a little over 100 million residents, is the most
populous of Indonesia's 13,000 islands. In fact, the
island of Java is among the world's most densely populated
areas and is home to Indonesia's power base, the capital
city of Jakarta. Jakarta seeks to relieve its urban
population pressures through a government policy encouraging
resettlement of Javanese to other Indonesian islands.
This process, called translocation, places those sympathetic
to the Jakarta government in distant positions of
power throughout this far-flung country.
Case
Study 2 -- Multicultural Malaysia
Multi-ethnic
Social Policy in Malaysia
The government of Malaysia developed the policy of
Bumiputera to help the country's different ethnic
groups coexist. The policy allows the Malays, Chinese,
and Indians that constitute Malaysia's population
to maintain their own customs and religious practices.
By implementing this policy across a range of social
relations, primarily in the educational system and
the workplace, the government has been able to close
economic gaps among the country's ethnic groups.
Business
owners are required to provide Muslim Malays with
opportunities to practice their religion during the
workday. In schools, courses in Malay language are
compulsory, while additional courses are designed
to foster interethnic understanding. The Bumiputera
policy, which encourages people to maintain their
own customs while accepting the customs of others,
has resulted in the creation of more opportunities
for ethnic Malays. As these opportunities increase,
Malays who historically have lived in rural areas
are beginning to migrate to towns and cities for jobs
available in the industrial and manufacturing sectors.
Economic Opportunity for All
Malaysia is a newly industrializing economy. The rapid
growth of the Malaysian economy has helped decrease
ethnic friction. It has afforded virtually the entire
population opportunities to increase their standard
of living and has fostered ties among ethnic groups
through business partnerships and transactions.
As
more ethnic Chinese develop business opportunities
in Malaysia, their growing economic power and land
holdings are changing the structure of the agricultural
and urban sectors. The resulting Chinese economic
dominance led to riots in 1969, pitting Malays against
Chinese. To reduce the economic gap among different
ethnic groups and to promote social harmony, the government
embarked on a policy of Bumiputera or "Malays
First." The policy begins with education and
employment and extends across the entire range of
social relations.
Rather
than allow economic forces to create disproportionate
power for one ethnic group over others, Malaysia's
policy of Bumiputera strives to balance customs, lifestyles,
and educational opportunities, even as preferences
for the Malay majority are promoted. The resulting
peaceful coexistence of Malaysia's different ethnic
and religious groups has contributed to the country's
booming economy and remarkable growth over the past
twenty-five years.
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