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...
| Publicado en: | International Affairs Vol. 101; no. 5; pp. 1611 - 1633 |
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| Formato: | Artículo |
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Oxford University Press / USA
Sep2025
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=188027994&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 188027994 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00205850 INA jtl: International Affairs issn: 00205850 maglogo: N pubinfo: dt: Sep2025 vid: 101 iid: 5 pid: 622 pub: Oxford University Press / USA artinfo: ui: 188027994 10.1093/ia/iiaf142 ppf: 1611 ppct: 22 formats: fmt: – @attributes: type: T db: hlh ui: 188027994 – @attributes: type: P db: hlh ui: 188027994 tig: 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 doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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