From dependency to development? Pursuing foreign capital in rising Asia's financial order.

The rise of Asia in the international financial order, exemplified by China's emergence as a source of foreign capital, has fundamentally changed the dynamics of foreign direct investment (FDI) in emerging nations. In light of this transformation, these nations have gained greater agency to develop...

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Publicado en:International Affairs Vol. 101; no. 5; pp. 1611 - 1633
Autor principal: Karim, Moch Faisal
Formato: Artículo
Publicado: Oxford University Press / USA Sep2025
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Acceso en línea:Ver este registro en EBSCOhost
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      dt: Sep2025
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      pub: Oxford University Press / USA
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        atl: From dependency to development? Pursuing foreign capital in rising Asia's financial order.
      aug:
        au: Karim, Moch Faisal
      su:
        Economic policy
        International competition
        Economic elites
        Foreign investments
        Developing countries
      sug:
        subj:
          Economic policy
          International competition
          Economic elites
          International Trade Financing
          Foreign investments
          Developing countries
      keyword:
        foreign capital
        foreign direct investment
        hybrid state activism
        Indonesia
        international political economy
        Resource nationalism
        foreign capital
        foreign direct investment
        hybrid state activism
        Indonesia
        international political economy
        Resource nationalism
      ab: The rise of Asia in the international financial order, exemplified by China's emergence as a source of foreign capital, has fundamentally changed the dynamics of foreign direct investment (FDI) in emerging nations. In light of this transformation, these nations have gained greater agency to develop their own strategies for attracting foreign capital. This study analyses Indonesia's pursuit of foreign capital through hybrid state activism, a strategic blend of economic nationalism and liberal policies aimed at promoting domestic industrialization. The article argues that, through hybrid state activism, the Indonesian state has effectively directed transnational capital to support the downstreaming of its natural resources, a process commonly referred to in Indonesian as hilirisasi. This approach highlights Indonesia's ability to negotiate its own terms with international capital, thereby bolstering the political legitimacy of its elites. It also represents a form of developmentalism that explicitly favours the ongoing symbiotic relations between state and non-state corporate elites who are politically connected. However, the quest for Chinese investments reveals challenges, such as where the benefits from this hybrid state activism disproportionately favour both transnational and domestic elites, potentially harming the broader economic and social fabric of the host country. This argument is illustrated through the case of the downstreaming policy for nickel, as evidenced by the operations of the Indonesia Morowali Industrial Park.
      pubtype: Academic Journal
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      src: R
    language: English
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