Singapore

History

According to legend Singapore was founded centuries ago when a prince from Sumatra landed on the
island and saw a lion. He took it as a good omen and founded a city called Singapura, which means lion
city. The legend may or may not be true. In fact the name Singapura was not recorded until the 16th
century and Singapore was really only a trading post with a small population not a city.

Modern Singapore was founded in 1819 by Sir Stamford Raffles (1781-1826). Raffles became a clerk for
the British East India Company in 1795. He rose rapidly in the company. In 1805 he was sent to Penang
and in 1811 he was made Lieutenant Governor of Java.

In 1818 Raffles was made governor of Bencoolen on the island of Sumatra. Raffles believed the British
should establish a base on the Straits of Melaka and in 1819 he landed on the island of Singapore. The
island consisted of swamps and jungle with a small population but Raffles realised it could be made into
a useful port.

At that time two men were vying to become Sultan of the Empire of Johor, which controlled Singapore.
In 1812 the Sultan died and his two sons quarrelled over the succession. Raffles supported the older
brother Hussein and recognised him as Sultan. Raffles made a deal with him. The British East India
Company was given Singapore in return for an annual payment. In 1824 the Company was given the
island in return for a lump sum.

The British established a new trading post at Singapore and it grew very rapidly. As well as Europeans,
Malays, Chinese, Indians and Arabs came to live and work there. By 1824 the population had risen to
10,000.

In 1826 Singapore was joined with Melaka and Pelang to form the Straits Settlements. In 1867 Singapore
became a Crown Colony ruled directly by the British government rather than the East India Company. By
1870 the population of Singapore had risen to 100,000.

Many grand buildings were erected in Singapore in the 19th and early 20th centuries. Among them was
the Victoria Theatre & Concert Hall, which was built in 1862.

Several temples were built at that time including the Thian Hock Keng Temple, which was built in 1842.
The Sri Marimman Temple was first built in 1823 but it was rebuilt in 1843. The Sri Srinivasa Perumal
Temple was built in 1855. The Leong San See Temple was built in 1917. The Sakaya Muni Buddha Gaya
Temple was built in 1927.

When the Suez canal was built in 1869 Singapore became even more important as a 'gateway' between
Europe and eastern Asia.

In the early 20th century Singapore continued to prosper. Huge amounts of rubber and tin from the
region were exported from Singapore. Meanwhile Chinese immigrants continued to arrive.
Then in January 1942 the Japanese conquered Malaysia. On 15 February 1942 Singapore was forced to
surrender. The Japanese called Singapore Yonan, which means Light of the South but their rule was
tyrannical. Thousands of Chinese Singaporeans were executed.

However Japan surrendered in August 1945 and on 5 September 1945 the British re-occupied Singapore.

However after 1945 Singapore slowly moved towards independence. In 1946 the Strait Settlements
were dissolved and Singapore was separated from Malaysia. The People's Action Party was formed in
1954 and it proved to be a major force in Singaporean politics. In 1955 a new constitution was
introduced. Under it 25 out of 32 members of the legislature were elected. In 1957 it was replaced by an
elected 51 member legislature. The Peoples Action Party led by Lee Kuan Yew won 43 out of 51 seats.
Self government was granted in 1959. Lee Kuan Yew became prime minister.

In 1963 Singapore joined with Malaysia. However the union was short lived. Singapore left in 1965 and
became completely independent.

From 1965 to the 1990s Singapore enjoyed rapid economic growth. By the 1990s it was an NIC (newly
industrialised country) and the people had a high standard of living. However the government was
authoritarian and society was strictly controlled.

In 1990 Lee Kuan Yew resigned as prime minister. He was replaced by Goh Chok Tong. He introduced a
more liberal regime. Today Singapore is a prosperous nation and in the early years of the 21st century
its economy grew strongly. Singapore is also a very busy port. Today the population of Singapore is 4.6
million.

Religion

Religious Demography

According to an official survey, 85 percent of citizens and permanent residents profess some religious
faith or belief. Of this group, slightly more than one-half (51 percent) practice Buddhism, Taoism,
ancestor worship, or other faiths traditionally associated with the ethnic Chinese. Approximately 15
percent of the population are Muslim, 15 percent are Christian, and 4 percent are Hindu. The remainder
are agnostics or atheists. Among Christians, the majority of whom are Chinese, Protestants outnumber
Roman Catholics by slightly more than two to one. There are also small Sikh, Jewish, Zoroastrian, and
Jain communities.

Approximately 77 percent of the population are Chinese, 14 percent are ethnic Malay, and 8 percent are
ethnic Indian.

Virtually all ethnic Malays are Muslim and most Indians are Hindu. The ethnic Chinese population is
divided among Buddhism, Taoism, and Christianity, or are agnostic or atheist.

Foreign missionaries are active in the country and include Catholics, Mormons, and Baptists.
Temples and Festivals

Singapore's immigrants commonly made their religious congregations a form of social organization.
From the foundation of the city, colonial authorities had avoided interfering with the religious affairs of
the ethnic communities, fostering an atmosphere of religious tolerance. It was characteristic of colonial
Singapore that South Bridge Street, a major thoroughfare in the old Chinatown, should also be the site
of the Sri Mariamman Temple, a south Indian Hindu temple, and of the Jamae or Masjid Chulia Mosque,
which served Chulia Muslims from India's Coromandel Coast. The major religions were Chinese popular
religion, commonly although inaccurately referred to as Daoism or Buddhism; Hinduism; Islam;
Buddhism; and Christianity. Other religions included smaller communities of Sikhs and of Jains from
India; Parsis, Indians of Iranian descent who followed the ancient Iranian Zoroastrian religion; and Jews,
originally from the Middle East, who supported two synagogues.

The Chinese practiced Chinese popular religion, a distinctive and complex syncretic religion that
incorporates some elements from canonical Buddhism and Daoism but focuses on the worship of gods,
ghosts, and ancestors. It emphasizes ritual and practice over doctrine and belief, has no commonly
recognized name, and is so closely entwined with Chinese culture and social organization that it cannot
proselytize. In Singapore its public manifestations included large temples housing images of deities
believed to respond to human appeals for guidance or relief from affliction and use of the common
Chinese cycle of calendrical festivals. These occasions included the lunar New Year (in January or
February), a festival of renewal and family solidarity; Qing Ming (Ching Ming in Wade-Giles
romanization), celebrated by the solar calender on April 5th (105 days after the winter solstice), to
remember the ancestors and worship at their graves; the fifteenth of the fifth lunar month (April or
May), in Singapore known as Vesak Day and celebrated as marking the birth of the Buddha; the festival
of the hungry ghosts in the seventh lunar month, a major Hokkien holiday, marked by domestic feasting
and elaborate public rituals to feed and placate the potentially dangerous souls of those with no
descendants to worship them; and the mid-autumn festival on the fifteenth of the eighth lunar month,
an occasion for exchanging gifts of sweet round mooncakes and admiring the full moon. All Chinese
temples held one or more annual festivals, marked by street processions, performances of Chinese
traditional operas, and domestic banquets to which those who supported the temple, either because of
residential propinquity, subethnic affiliation with a particular temple and its deity, or personal devotion
to the god, invited their friends and business associates. To prevent the disruption of traffic and
preserve public order, the government limited the length and route of street processions and prohibited
the use of the long strings of firecrackers that had previously been a component of all Chinese religious
display. Some festivals or customs that had little religious significance or were not practiced by the
southeastern Chinese migrants were promoted by the government's Singapore Tourist Promotion Board
for their spectacular and innocuous content. These included the summer dragon boat races, originally
held only in China's Chang Jiang (Yangtze) River Valley, and the lantern festival in which paper lanterns in
the shape of animals or other objects are carried through the streets by children or, if especially
impressive, displayed in parks and temples. In China the lantern festival is celebrated in the first lunar
month at the end of the New Year season, but in Singapore it is combined with the mid-autumn festival.

Canonical Buddhism was represented in Singapore as Sinhalese Theravada Buddhism. This form of
Buddhism prevails in Sri Lanka and mainland Southeast Asia and differs from the Mahayana Buddhism of
China, Korea, and Japan in both doctrine and organization. Theravada Buddhism was brought by
Sinhalese migrants from Ceylon (contemporary Sri Lanka), who also influenced the architectural style of
Thai and Vietnamese Theravada temples. These latter were staffed by Thai or Vietnamese monks, some
of whom were originally members of the overseas Chinese communities of those countries and served a
predominantly Chinese laity, using Hokkien, Teochiu, Cantonese, or English. Singapore was also home to
a number of Chinese sects and syncretic cults that called themselves Buddhist but taught their own
particular doctrines and lacked properly ordained Buddhist monks.

Hindus have been part of Singapore's population since its foundation in 1819, and some of the old Hindu
temples, such as the Sri Mariamman Temple, were declared national historical sites in the 1980s and so
preserved from demolition. Singapore's Hindus adapted their religion to their minority status in two
primary ways--compartmentalization and ritual reinterpretation. Compartmentalization referred to the
Hindus tendency to distinguish between the home, in which they maintained a nearly completely
orthodox Hindu pattern of diet and ritual observance, and the secular outer world of work, school, and
public life, where they did not apply categories of purity and pollution. Singapore lacked the tightly
organized caste groups of communities found in India but replaced them in large-scale temple festivals
with groups representing those of the same occupation or place of employment. The major Hindu
holidays were the Hindu New Year, in April or May; Thaipusam, a festival during which penitents fulfilled
vows to the deity Lord Subramanya by participating in a procession while carrying kavadi, heavy
decorated frameworks holding offerings of milk, fruit, and flowers; and Deepavali, the Festival of Lights.
Deepavali, a celebration of the victory of light over darkness and hence of good over evil, was a national
holiday.

Seven of the ten national holidays were religious festivals; two of them were Chinese, two Muslim, two
Christian, and one Hindu. The festivals were the Chinese New Year; Vesak Day; Hari Raya Haji, the
Muslim pilgrimage festival; Hari Raya Pusa, which marked the end of the fasting month of Ramadan and
was a time of renewal; Christmas; Good Friday; and Deepavali. Citizens were encouraged to learn about
the festivals of other religious and ethnic groups and to invite members of other groups to their own
celebrations and feasts. Public ceremonies such as National Day or the commissioning of military officers
were marked by joint religious services conducted by the Inter-Religious Organization, an ecumenical
body founded in 1949 to promote understanding and goodwill among the followers of different
religions.

Religion and Ethnicity

In the 1980s, members of all ethnic groups lived and worked together, dressed similarly, and shared
equal access to all public institutions and services. Religion, therefore, provided one of the major
markers of ethnic boundaries. Malays, for instance, would not eat at Chinese restaurants or food stalls
for fear of contamination by pork, and a Chinese, in this case, could not invite a Malay colleague to a
festive banquet. Funerals of a traditional and ethnically distinctive style were usually held even by
families that were not otherwise very religiously observant. The Community Associations and the
Singapore Tourist Promotion Board encouraged the public celebration of such ethnically distinctive and
appropriately colorful and noncontroversial festivals as the Chinese lantern festival and the dragon boat
races.

The marriages, divorces, and inheritances of members of religious communities and the management of
properties and endowments dedicated to religious purposes were of concern to the government, which
interacted with some religious bodies through advisory boards dating back to the colonial period. The
Hindu Advisory Board, established in 1917, advised the government on Hindu religion and customs and
on any matters concerning the general welfare of the Hindu community. It assisted the Hindu
Endowments Board, which administered the four major Hindu temples and their property, in organizing
the annual festivals at the temples. The Sikh Advisory Board acted in the same way for the Sikhs.

The Singapore Muslim Religious Council (Majlis Ugama Islam Singapura) played a very important role in
the organization of Islamic affairs and therefore of the Malay community. Authorized by the 1966
Administration of Muslim Law Act, the council, composed of members nominated by Muslim societies
but appointed by the president of Singapore, was formally a statutory board that advised the president
on all matters relating to the Muslim religion. It acted to centralize and standardize the practice of Islam.
The council administered all Muslim trusts (wafs); organized a computerized and centralized collection
of tithes and obligatory gifts (zakat harta and zakat fitrah); and managed all aspects of the pilgrimage to
Mecca, including registering pilgrims, obtaining Saudi Arabian visas, and making airline reservations. The
council also helped the government reorganize the mosque system after redevelopment. Before the
massive redevelopment and rehousing of the 1970s and 1980s, Singapore's Muslims were served by
about ninety mosques, many of which had been built and were funded and managed by local,
sometimes ethnically based, communities. Redevelopment destroyed both the mosques and the
communities that had supported them, scattering the people through new housing estates. The council,
in consultation with the government, decided not to rebuild the small mosques but to replace them with
large central mosques. Construction funds came from a formally voluntary contribution collected along
with the Central Provident Fund deduction paid by all employed Muslims. The new central mosques
could accommodate 1,000 to 2,000 persons and provided such services as kindergartens, religious
classes, family counseling, leadership and community development classes, tuition and remedial
instruction for school children, and Arabic language instruction.

The government had regulated Muslim marriages and divorces since 1880, and the 1957 Muslim
Ordinance authorized the establishment of the centralized Sharia Court, with jurisdiction over divorce
and inheritance cases. The court, under the Ministry of Community Development, replaced a set of
government-licensed but otherwise unsupervised kathi (Islamic judges) who had previously decided
questions of divorce and inheritance, following either the traditions of particular ethnic groups or their
own interpretations of Muslim law. The court attempted to consistently enforce sharia law, standard
Islamic law as set out in the Quran and the decisions of early Muslim rulers and jurists, and to reduce the
high rate of divorce among Malays. In 1989 the Singapore Muslim Religious Council took direct control
of the subjects taught in Islamic schools and of the Friday sermons given at all mosques.

Religious Change

Modernization and improved education levels brought changes in religious practice. The inflexible work
schedules of industrialism, which tended to restrict communal ritual to evenings and Sundays, and the
lack of opportunity or inclination to devote years to mastering ceremonial and esoteric knowledge, both
contributed to a general tendency toward ritual simplification and abbreviation. At the same time,
prosperous citizens contributed large sums to building funds, and in the 1980s a wave of rebuilding and
refurbishing renewed the city's mosques, churches, Chinese temples, Buddhist monasteries, and Hindu
temples. Ethnic affiliation was demonstrated by public participation in such annual rituals as
processions, which did not require elaborate training or study.

Immigrants tended to drop or modify religious and ritual practices characteristic of and peculiar to the
villages they had come from. Hindu temples founded in the nineteenth century to serve migrants of
specific castes and to house deities worshipped only in small regions of southeastern India became the
temples patronized by all Hindu residents of nearby apartment complexes. They offered a generic South
Indian Hinduism focused on major deities and festivals. Many Chinese became more self-consciously
Buddhist or joined syncretic cults that promoted ethics and were far removed from the exorcism and
sacrificial rituals of the villages of Fujian and Guangdong. The movement away from village practices was
most clearly seen and most articulated among the Malays, where Islamic reformers acted to replace the
customary practices (adat) of the various Malay-speaking societies of Java, Sumatra, and Malaya with
the precepts of classical Islamic law--sharia.

In 1988 the Ministry of Community Development reported the religious distribution to be 28.3 percent
Buddhist, 18.7 percent Christian, 17.6 percent no religion, 16 percent Islam, 13.4 percent Daoist, 9
percent Hindu, and 1.1 percent other religions (Sikhs, Parsis, Jews). The Christian proportion of the
population nearly doubled between 1980 and 1988, growing from 10 percent to nearly 19 percent. The
growth of Christianity and of those professing no religion was greatest in the Chinese community, with
most of the Christian converts being young, well-educated people in secure white-collar and
professional jobs. Most converts joined evangelical and charismatic Protestant churches worshiping in
English. About one-third of the members of Parliament were Christians, as were many cabinet ministers
and members of the ruling party, which was dominated by well-educated, Englishspeaking Chinese. The
association of Christianity with elite social and political status may have helped attract some converts.

By the late 1980s, some Buddhist organizations were winning converts by following the Protestant
churches in offering services, hymnbooks, and counseling in English and Mandarin. A Buddhist Society at
the National University of Singapore offered lectures and social activities similar to those of the popular
Christian Fellowship. Some Chinese secondary students chose Buddhism as their compulsory religious
studies subject, regarding Confucianism as too distant and abstract and Bible study as too Western and
too difficult. They then were likely to join Buddhist organizations, which offered congenial groups, use of
English, and a link with Asian cultural traditions. In the late 1980s, other Chinese whitecollar and skilled
workers were joining the Japan-based Soka Gakkai (Value Creation Society, an organization based on
Nichiren Buddhism), which provided a simple, direct style of worship featuring chanting of a few texts
and formulas and a wide range of social activities. The more successful religious groups, Christian and
Buddhist, offered directly accessible religious practice with no elaborate ritual or difficult doctrine and a
supportive social group.

In the 1980s, the government regarded religion in general as a positive social force that could serve as a
bulwark against the perceived threat of Westernization and the associated trends of excessive
individualism and lack of discipline. It made religious education a compulsory subject in all secondary
schools in the 1980s. The government, although secular, was concerned, however, with the social
consequences of religiously motivated social action and therefore monitored and sometimes prohibited
the activities of religious groups. The authorities feared that religion could sometimes lead to social and
implicitly political action or to contention between ethnic groups. Islamic fundamentalism, for example,
was a very sensitive topic that was seldom publicly discussed. Throughout the 1980s, the authorities
were reported to have made unpublicized arrests and expulsions of Islamic activists. The government
restricted the activities of some Christian groups, such as the Jehovah's Witnesses who opposed military
service, and in 1987 the government detained a group of Roman Catholic social activists, accusing them
of using church organizations as cover for a Marxist plot. The charismatic and fundamentalist Protestant
groups, though generally apolitical and focused on individuals, aroused official anxiety through their
drive for more converts. Authorities feared that Christian proselytization directed at the Malays would
generate resentment, tensions, and possible communal conflict. As early as 1974 the government had
"advised" the Bible Society of Singapore to stop publishing materials in Malay. In late 1988 and early
1989, a series of leaders, including Prime Minister Lee Kuan Yew, condemned "insensitive
evangelization" as a serious threat to racial harmony. Official restatements of the virtue of and necessity
for religious tolerance were mixed with threats of detention without trial for religious extremists.

Government

Form of Government

The Republic of Singapore is a city-state with a governing structure patterned on the British system of
parliamentary government. In 1989 legislative power was vested in a unicameral Parliament with eighty-
one members who were elected for five-year terms (or less if the Parliament was dissolved
prematurely). Members of Parliament were elected by universal adult suffrage from forty-two single-
member constituencies and thirteen group representation constituencies. Voting was compulsory for all
citizens above the age of twenty-one. The group representation constituencies elected a team of three
members, at least one of the whom had to be Malay, Indian, or a member of one of Singapore's other
minorities. The group representation constituencies, introduced in the 1988 general election, were
intended to ensure multiracial parliamentary representation to reflect Singapore's multiracial society. In
another departure from the British model, members of Parliament elected on a party ticket had to
resign if they changed parties. A 1984 amendment to the Parliamentary Elections Act provided for the
appointment to Parliament of up to three nonconstituency members if the opposition parties failed to
win at least three seats in the general election. The nonconstituency members were chosen from the
opposition candidates who had polled the highest percentage of votes. The seventh Parliament, elected
on September 3, 1988, and meeting for the first time on January 9, 1989, included one elected
opposition member and one nonconstituency member.

Singapore had only one level of government--national government and local government were one and
the same. The form of the government reflected the country's unusually small area and modest total
population of 2.6 million. Below the national level, the only recognized territorial divisions were the
fifty-five parliamentary constituencies. Members of Parliament thus performed some of the same
functions as municipal aldermen in foreign cities and often won political support by helping to find jobs
for constituents or doing other favors requiring intercession with the powerful civil bureaucracy. The
single-member constituencies varied in population from 11,000 electors to as many as 55,000; some of
the variability reflected population movement away from the old urban core and out to new housing
developments.

As in all British-style polities, the government was headed by a prime minister who led a cabinet of
ministers of state selected from the ranks of the members of Parliament. The cabinet was the policy-
making body, and its members directed the work of the permanent civil servants in the ministries they
headed. In 1989, the cabinet comprised fifteen members. Below the prime minister were a first deputy
prime minister and a second deputy prime minister. They were followed by the ministers in charge of
such functional departments as the Ministry of Finance or the Ministry of Defence and by two ministers
without portfolio. The prime minister could reassign his cabinet members to new portfolios or drop
them from the cabinet, and successful ministers headed several progressively more significant ministries
in their careers. There were thirteen ministerial portfolios in 1989: defence, law, foreign affairs, national
development, education, environment, communications and information, home affairs, finance, labour,
community development, trade and industry, and health. Some portfolios were split between different
ministers. The first deputy prime minister (Goh Chok Tong) was also first minister for defence. The
minister for communications and information (Yeo Ning Hong) also served as second minister for
defence (policy). The minister for trade and industry (Brigadier General (Reserve) Lee Hsien Loong) was
concurrently second minister for defence (services). The foreign affairs and law portfolios were similarly
divided.

The cabinet met once or twice a week; its meetings were private and confidential. Administrative and
staff support to the prime minister and cabinet was provided by the Office of the Prime Minister, the
officials of which included a senior minister of state, a political secretary, a secretary to the prime
minister, and a secretary to the cabinet. The Office of the Prime Minister coordinated and monitored
the activities of all ministries and government bodies and also directly supervised the Corrupt Practices
Investigation Bureau and the Elections Department. Each minister was assisted by two secretaries, one
for parliamentary or political affairs and the other for administrative affairs. The latter, the permanent
secretary, was the highest ranking career civil servant of the ministry.

The constitutional head of state was the president, who occupied a largely powerless and ceremonial
role. The president was elected by the Parliament for a four-year term. He could be reelected without
limit and removed from office by a two-thirds vote of Parliament. In turn, the president formally
appointed as prime minister the member of Parliament who had the support of the majority of
Parliament. On the advice of the prime minister, the president then appointed the rest of the ministers
from the ranks of the members of Parliament. The president, acting on the advice of the prime minister,
also appointed a wide range of government officials, including judges, and members of advisory boards
and councils.

In 1988 the government discussed amending the Constitution to increase the power of the president. A
white paper introduced in Parliament in July 1988 recommended that the president be directly elected
by the people for a six-year term and have veto power over government spending as well as over key
appointments. It also proposed an elected vice president with a six-year term of office. The proposed
changes originated as a device intended to permit Prime Minister Lee Kuan Yew, who had been prime
minister since 1959, to retain some power should he retire, as he had hinted, and assume the
presidency. No specific dates for the proposed constitutional change were given in the white paper. As
of late 1989, no action had been taken.

Constitutional Framework

Singapore became an autonomous state within Malaysia, with its own constitution, on September 16,
1963. It separated from Malaysia on August 9, 1965. On December 22, 1965, the Legislative Assembly
passed a Singapore Independence Bill and a Constitutional Amendment. The Constitutional Amendment
provided for a parliamentary system of government, with a president, whose duties were largely
ceremonial, elected every four years by the Parliament.

The Constitution can be amended by a two-thirds vote of Parliament. A 1966 amendment allowed
appeal from the Court of Appeal in Singapore to the Judicial Committee of Her Majesty's Privy Council in
Britain. In 1968 an amendment created the office of vice president and liberalized the requirements of
citizenship. A 1969 amendment established the Supreme Court in place of the High Court and Court of
Appeal as the highest appeal tribunal. A 1972 amendment entitled "Protection of the Sovereignty of the
Republic of Singapore," introduced a measure to ensure the sovereignty of the city-state. It prohibited
any merger or incorporation with another sovereign state, unless approved in a national referendum by
a two-thirds majority. Under the same terms, it also prohibited the relinquishment of control over
Singapore police forces and armed forces. In 1978 the Fundamental Liberties section of the Constitution
(Part IV, Articles 9-16) was amended; the amendment extended government powers by establishing that
arrests to preserve public safety and good order and laws on drug abuse would not be inconsistent with
liberties set forth in that section of the Constitution.

Economy

PATTERNS OF DEVELOPMENT

Modern Singapore, founded as a trading post of the British East India Company in 1819, achieved its
initial economic success as an entrept because of the island's location, harbor, and free port status.
Although Singapore at first served only as a center for trade and transshipment, by the early twentieth
century, primary goods, mainly rubber and tin from the neighboring Malay Peninsula, were being
imported for processing. Singapore also became a regional center for the distribution of European
manufactured goods. After World War I, when the British established a naval base on the island,
Singapore became a key element of the British Commonwealth of Nations military defense east of India,
thus adding the naval support industry to the island's economy.

In the period immediately after World War II, Singapore faced enormous problems, including labor and
social unrest, a decaying, war-ravaged infrastructure, inadequate housing and community facilities, a
slow economic growth rate, low wages, and high unemployment made worse by a rapidly expanding
population. As late as 1959, the unemployment rate was estimated at 13.5 percent. The struggle for
survival in the postwar period deeply affected the economic decision making of Singapore's first
generation leaders.

Mounting political pressure for independence from Britain culminated in 1963 in the merger of Malaya,
Singapore, and the British northern Borneo territories of Sabah and Sarawak into the new nation of
Malaysia. A combination of political and ethnic differences between Singapore and the national
government, however, led in 1965 to Singapore's separation from Malaysia and establishment as an
independent nation. The economic prospects of the new city-state at first appeared bleak. Upon
separation from Malaysia, Singapore lost its economic hinterland and jeopardized its hopes for an
enlarged domestic market to absorb the goods produced by a small but growing manufacturing sector.
Moreover, Indonesia's policy of Confrontation (Konfrontasi) with Malaysia between 1963 and 1966 had
substantially reduced Singapore's entrept trade.

Britain's announcement in 1968 of its intention to withdraw military forces from Singapore by the early
1970s marked the beginning of a greatly expanded, more intrusive role for the government in the
economy. From then on, the government no longer confined itself to such traditional economic pursuits
as improving the infrastructure, but instead began to engage in activities that were or could have been
the domain of private enterprise. Britain's departure meant the loss, directly or indirectly, of 38,000 jobs
(20 percent of the work force) at a time of already rising unemployment and rapid population growth; a
consequent reduction in the GDP; and an increase in Singapore's own budgetary defense allocation to
compensate for the British withdrawal. Even so, the S$1,616 per capita income of Singapore in 1965
already was quite high by developing country standards, an indication that subsequent high growth
rates were not merely a result of beginning at a low base.

The period from 1965 to 1973 witnessed unprecedented economic growth for the island nation, during
which the average annual growth of real GDP was 12.7 percent. Major credit for this development must
be given to the effective implementation of soundly conceived government policies, which from the
outset took full account of Singapore's strengths and weaknesses. Furthermore, the time was right for
structural change in the economy. Enough capital had been accumulated to permit the domestic
production of goods that were more capital intensive. The government's economic response to
separation from Malaysia and the withdrawal of British military forces included efforts to increase
industrial growth and solve the domestic problems of unemployment, population growth, and housing.
Growth was achieved because workers were added to the payroll and provided with better machinery
with which to work. Even more remarkable, this growth was accomplished with an outstanding record
of price stability. Inflation was kept low by the government's conservative fiscal policies, which included
the maintenance of strict control over the money supply.

Industrialization promised the most economic progress. The strategic question was whether to rely
principally on domestic entrepreneurs or to make a conscious effort to attract foreign direct investment.
The decision to encourage the latter resulted both in a large share of Singaporean manufacturing being
foreignowned and a high degree of export-led growth. Singapore's reliance on multinational
corporations of the world to provide the necessary investment meant less dependence on the Southeast
Asian region generally and neighboring countries particularly.

The 1973 oil shock with the collapse of prices and the worldwide recession it triggered brought the end
of the super growth period. Even so, Singapore's growth rate averaged 8.7 percent from 1973 to 1979,
which was high compared with other countries during that same period. Manufacturing continued to
grow as did transportation and communications. Although the second worldwide oil crisis, beginning in
1979, set off the longest and deepest recession in the industrialized countries since the Great
Depression of the 1930s, Singapore was seemingly untouched. If anything, its economy grew in 1980-81
while the world economy was contracting. The real average GDP growth rate between 1979 and 1981
was 8.5 percent. Financial and business services joined manufacturing as the major economic engines.
During this period, Singapore's function as a petroleum-servicing entrept made it more like an oil
producer than an oil consumer.

For the first two decades of its independence, Singapore enjoyed continuous high economic growth,
largely outperforming the world economy. Its GDP growth rate never fell below 5 percent and rose as
high as 15 percent. At the same time, Singapore managed to maintain an inflation rate below world
averages.

Given Singapore's dependence on the world economy, however, the consequences of declining foreign
demand were inevitable. The 1985 recession was the worst in the nation's history. Singapore staggered
under a year of negative growth (-1.5 percent), then recovered slightly in 1986 (+1.9 percent). The
causes lay both outside and within the country. Externally, worldwide slumps in petroleum-related and
marine-related sectors were reflected in reduced demand for Singapore's goods and services and raised
the specter of worldwide overcapacity in shipbuilding and shiprepairing . Furthermore, the slowdown in
demand for semiconductors and electronics in the United States sharply reduced demand for
Singaporean components and parts.
Internally, the construction boom--which had produced a glut of hotels, shopping centers, and
apartments--began to be reversed. Domestic demand also weakened as a result of a rise in domestic
savings, which was not matched by a rise in productive domestic investment. The situation was
complicated by a loss of international competitiveness and a profit squeeze attributed to labor costs
rising faster than productivity.

The government responded promptly and firmly by lowering employer contributions to the Central
Provident Fund, freezing overall wage levels for 1986 and 1987, reducing corporate income taxes from
40 to 30 percent, reducing personal income taxes in line with corporate taxes, and introducing an
across-the-board investment allowance of 30 percent to encourage greater investment in equipment
and machinery. These measures were highly successful; costs dropped 30 percent and productivity
climbed. By 1988 Singapore's economy had rebounded.

Tourist spots

Singapore Zoo

Singapore Zoo is a forty hectares of lush greenery. It houses more than 2000 animals of which 25% are
endangered species. Due to its clever open-concept architecture, the animals are not caged up but free
roaming. It uses natural barriers such as rock walls and streams to create an impression that the animals
are in their natural habitat. One of the highlights in Singapore Zoo that one should not miss is the exotic
Jungle Breakfast, where you get to dine with some friendly residents of the Zoo.

Night Safari

Adjacent to the Day Zoo, is the Singapores renowned Night Safari. It is first of its kind in the world
where you get a chance to view nocturnal animals at close range that you dont usual see in the day with
the help of special moonlight lights illumination. Visitors can also take walk along illuminated trails
through the jungle into the territory of tigers, rhino and sloths. Visitors can also emjoy Night Safari Fire
show.

Jurong Bird Park

The Jurong Bird Park is the largest aviary of its kind in Asia Pacific, where over 8000 birds of 600
different species from all over the world call it home. The park is beautifully landscaped with the tallest
man-made waterfall in the world to enhance the beauty of the habitat. Enjoy a firsthand experience of
free-flying birds from Africa to South American in the largest walk-in aviary.

Sentosa Island

Just off the mainland of Singapore, the Sentosa Island is one spot that stands out from the rest of
Singapore tourist attractions. This island is a mega theme-park with many tourist attractions such as the
Underwater World, a gigantic marine life oceanarium with 2500 marine species, Dolphin Lagoon, a
water show with pink dolphins.

Asian Civilization Museum

The Asian Civilisation Museum is a form of the three museums of the National Museums of Singapore.
This is the most established museum in the region to focus exhibits and origins in Asia's cultures and
evolutions.

Sir Stamford Raffles Statue

Sir Stamford Raffles was the founder of the modern Singapore. The Lieutenant-Governor of Java and
Bencoolen. First landed in Singapore on 29 January 1819, he believed that Singapore was a great place
for the British to start a trading settlement.

He was responsible of the Raffles Plan of Singapore, dividing Singapore into different ethnic functional
sub divisions which were segregated into four trading areas and the city was on its way to become the
largest trading port in the world. Although, this concept was abandoned, the effect of the plan such as
the layout of the streets and each of the districts still has present day effects.

Located at the north bank of the Singapore River, this is the Singapore's second of Sir Stamford Raffles.
The first was cast in bronze and was located originally in front of the Victoria Theatre and Concert Hall in
1919.

He was a great man and numerous places and institutions have been named after him, such as the
Raffles College, Raffles Institution, Raffles Hotel, Stamford House, Raffles City and Raffles place.

Palau Ubin

A small island, shaped like a boomerang, this island is off the northeastern coast of Singapore main
island. This could be the very last kampung in or village Singapore.

Famous for

Changi Water Reclamation Plant, Changi, Singapore

Changi Water Reclamation Plant (CWRP), located at the eastern end of Singapore, is one of the largest
and most advanced reclamation facilities in the world.

Singapore Esplanade

The Esplanade is a waterfront location just north of the mouth of the Singapore River in downtown
Singapore. It is primarily occupied by the Esplanade Park, and was the venue where one of Singapore's
largest congregation of satay outlets until their relocation to Clarke Quay as a result of the construction
of a major performance arts venue, the Esplanade - Theatres on the Bay, which took its name from this
location.

Mustafa Centre
Mustafa Centre is one of Singapore's 24-hour shopping malls, which is located on Syed Alwi Road in
Little India. Rarely seen without a bustling crowd of customers, Mustafa Centre is set in the Little India
district. A cult favourite in the Singaporean shopping scene, its the best place to go if youre after a
bargain or enjoy shopping late into the twilight hours.

Singapore Botanic Garden Rainforest

The Rain Forest is a national treasure, not only because of its rich biodiversity but also because its
historic records stretch back to the last century when Ridley collected herbarium specimens from it. The
rain forest is part of the original site of the Botanic Gardens founded in 1859 and it was recorded then as
primaeval forest and covered 11 acres (4.45 ha). It is one of two cities in the world that has a tropical
rainforest.

Satay

Satay is a dish consisting of bite-sized pieces of meat grilled on skewers. They come in chicken, mutton,
pork and beef. It is served with a flavourful spicy peanut sauce, slices of cucumbers and onions.

Sports

Badminton in Singapore

Badminton in Singapore is a very popular game and is played by a vast number of people. During
competitions, Badminton is always played as an Outdoor game. Badminton in Singapore has a long
history and is admired across the world. It has a large number of fans and the players take great pride in
the game. Game with shuttlecock emerged in ancient Greece about 2000 years ago. It was previously
used as a Children's Game and then the game gradually became very popular and was played by
everybody alike. Gradually it became a widely played game with lots of fans all over the world.

Basketball in Singapore

Basketball in Singapore is going places. The Singapore Slingers proves that. The Singapore Slingers has
done Singapore proud by being the first Asian club to be part of Australian National Basketball League.
Established in 2006/07, the Singapore Slingers are a great team, though they haven't won a major
championship yet. The team and its management have set high standards for themselves.

Football in Singapore

In Singapore like many Europeans nation, Football is more serious than life and death. Such is the love of
Singaporeans for the game. Football was introduced in Singapore during the British Rule.

Bowling in Singapore

Bowling is an operation of rolling a ball on a level ground so that the ball knocks down articles called
pins and makes its way for the goal. It is very popular game and the earliest form of this game originated
in Egypt. The renowned Bowling at America is known as North American Ten Pin Bowling. Singapore
Bowling includes 20 Bowling Centers, each Bowling offers more than 20 lanes. Being a very popular
game, this attracts numerous tourists from across the globe.

Golf in Singapore

A sunny weather all year round, lush greenery and world class golfing facilities make Singapore a hot
destination for golf lovers all over the world. You have a choice of large and state-of-the-art public
courses or the more intimate courses of country clubs and hotels.

Sepak Takraw in Singapore

Sepak Takraw is also known as a Kick Volleyball Game in Singapore. Singapore holds a special position in
the history of Asian Games for this sport. It is a Kick Volleyball game which is being played on a
Badminton Double sized court and is one of the reputed games in Asia. Bossaball, Footbag Net,
Footvolley, Jianzi and Sipa are some other important games of this category.
 Indonesia
History

The first people in Indonesia arrived about 40,000 years ago when sea level was lower and it was joined
to Asia by a land bridge. Then at the end of the last ice age about 10,000 BC a new wave of people came.
At first they hunted animals, collected shellfish and gathered plants for food. By about 2,500 BC they
learned to grow crops such as taro, bananas, millet and rice. The early farmers also made pottery but all
their tools were made of stone.

However by 700 BC the Indonesians had learned to make bronze and iron. Furthermore at that time wet
rice cultivation was introduced. Indonesian villages were forced to co-operate to regulate the supply of
water to their fields. In time organized kingdoms emerged.

From about 400 BC Indonesians traded with other nations such as China and India.

Hinduism and Buddhism were also introduced to Indonesia and they took route.

By the 8th century AD Indonesian civilization was flourishing. Among the kingdoms was a Hindu kingdom
in central Java called Sailandra. There was also the great Buddhist kingdom of Sriwijaya in south
Sumatra. From the 7th century to the 13th century Sriwijaya prospered and it became a maritime
empire controlling western Java and part of the Malay Peninsula. It was also a centre of Buddhist
learning.

However in the 13th century the Sriwijaya Empire broke up into separate states.

Meanwhile Islam was brought to Indonesia by Indian merchants. It first gained a toehold in Aceh in
north Sumatra and in following centuries it spread through the rest of Indonesia.

However in the 13th and 14th centuries a Hindu kingdom flourished. It was called the Majapahit Empire.
It was founded in 1292 and soon rose to dominate most of Indonesia. However in the early 15th century
the Majapahit Empire went into a rapid decline.

In the early 16th century the Portuguese arrived in Indonesia. at that time there was a huge demand in
Europe for spices such as nutmeg, ginger, cinnamon, cloves and mace. Huge profits could be made by
transporting them to Europe and selling them. The Portuguese therefore decided to seize the Moluccas,
the chief source of spices. In 1511 they captured Melaka, an important port. They also captured the
Moluccas.

However in the early 17th century the Portuguese lost their position to the Dutch. The first Dutch fleet
sailed from Holland in 1595 under Cornelis de Houtman. In 1602 the Dutch East India Company was
formed to control trade with Indonesia. In 1605 they took Tidore and Ambon from the Dutch. In 1619
the company captured Batavia. In 1641 they took Melaka. During the 17th century the Dutch gradually
extended their power of Java and the Moluccas. However they had little influence in the rest of
Indonesia.
Moreover during the 18th century the Dutch East India Company slipped into debt. Finally in 1799 the
Dutch government took over its territories.

In 1806 the British and Dutch went to war. In 1811 the British under Lord Minto sailed to Batavia. The
British soon captured all the Dutch possessions in Indonesia. The British abolished slavery and they also
divided the country into areas called residencies for administration. However in 1816 the British handed
Indonesia back to the Dutch.

Many Indonesians resisted the return of the Dutch. However the Dutch eventually defeated them and
regained control.

However in 1825 the Javanese War, in central Java, began. It was led by Prince Disponegoro. However
the war ended with Dutch victory in 1830. Disponegoro went into exile and died in 1855.

Furthermore during the 19th century the Dutch extended their control over other parts of Indonesia. In
1825 they took Pelambang in Sumatra. They also fought wars with the Balinese in 1848, 1849, 1858 and
1868. However Bali was not finally conquered until 1906.

In 1873 the Dutch went to war with Aceh. The war went on until 1908. Meanwhile in 1894 the Dutch
captured Lombok and in 1905 they captured the whole of Sulawesi.

Meanwhile the Dutch shamelessly exploited the Indonesians. In 1830 the Dutch introduced the
Kultuurstelsel (cultural system). Indonesian farmers were forced to put aside 20% of their land to grow
crops for export. They were paid only a nominal sum by the Dutch government for them. Indonesians
were forced to grow coffee, indigo, tea, pepper, cinnamon and sugar. As a result of this measure rice
production was reduced.

However in 1870 the Dutch switched to a free market system. The Dutch governments monopoly on
sugar and other commodities was ended. Private plantations were created. However the Indonesians
were not necessarily better off. Now they were employed as coolies on the great plantations.

In the early 20th century the Dutch decided to treat the Indonesians more fairly. They introduced what
they called the ethical policy. This meant building schools and spending money on health care,
sanitation and irrigation. However the new policy had little effect on the lives of most Indonesians.

It did however mean that a least some Indonesians became highly educated and familiar with western
ideas such as liberalism and socialism. As a result in the early 20th century nationalist movements were
formed in Indonesia. They began clamouring for independence.

Then in 1940 the Germans occupied Holland. In 1942 the Japanese invaded Indonesia. The last Dutch
troops surrendered on 8 March 1942. At first the Indonesians welcomed the Japanese as liberators.
However they soon grew disillusioned. The Japanese were brutal and they ruthlessly exploited
Indonesia's resources.

Yet when the Japanese were losing the war they started to favour Indonesian independence, hoping to
make the Indonesians their allies.
Japan surrendered on 15 August 1945. Young Indonesian nationalists were determined to assert the
countries independence before the Dutch could return. A group of them kidnapped two nationalist
leaders Sukarno and Hatta. On 17 August Sukarno declared Indonesian independence. He became the
first president and Hatta became vice-president.

However the Dutch were not willing to let Indonesia go so easily. At first British troops landed in
Indonesia. They tried to remain neutral although there were armed clashes between the British and
Indonesians in places.

However by November 1946 the British were gone and the Dutch had landed many men in Indonesia. In
November the Indonesians and Dutch signed the Linggajati agreement. The Dutch recognised the new
republic, but only in Java and Sumatra. They still claimed the rest of Indonesia. Furthermore the
agreement stated that the republic would join a federal union with Holland in 1949.

Not surprisingly neither side were happy with the agreement. The Dutch built up their strength in an
attempt to retake all of Indonesia. In the summer of 1947 they invaded the independent areas. However
they were forced to withdraw, partly because of Indonesian resistance and partly because of strong
international condemnation (especially by the USA).

In December 1948 the Dutch tried to retake Indonesia. This time the Indonesians turned to guerrilla
warfare and they were successful. The Dutch faced strong condemnation from powers like the USA and
they realised they could not win the war. Finally on 2 November 1949 the Dutch agreed to recognise
Indonesian independence. Their troops withdrew in December 1949.

At first independent Indonesia was a parliamentary democracy. However in February 1957 President
Sukarno introduced a new political system, which he called 'Guided Democracy'. The power of
parliament was reduced and his own power was greatly increased. His opponents formed a separate
'parliament' called the PRRC (the Revolutionary Government of the Republic of Indonesia). However the
army remained loyal to Sukarno and he stayed in power.

Meanwhile in October 1957 the army took over the remaining Dutch companies in Indonesia. As a result
the army grew wealthy.

Then in the early 1960s the economy faltered. There was very rapid inflation.

In September 1965 the Communists attempted a coup in Indonesia. They murdered a number of
generals. They also seized strategic points in Jakarta. However General Suharto quickly took action. The
coup was crushed. Suharto was granted powers by President Sukarno to restore order. After the coup
Suharto arrested and executed a large number of communists.

However Sukarno lost support and on 11 March 1966 he signed over his presidential powers to Suharto.
From 1966 Suharto ruled as a dictator (although there were elections held every five years democracy
was a facade). However Suharto brought stability and under him the economy of Indonesia recovered.

From the 1960s reserves of oil in Indonesia were exploited. After 1973 Indonesians benefited from the
high price of oil. Agriculture also became far more productive.
However most Indonesians remained poor and in 1997 Indonesia was hit by a financial crisis. As a result
the economy contracted. Indonesia was hit by riots and Suharto resigned in May 1998. Democracy
returned to Indonesia with elections, which were held in 1999.

In 2004 Susilo Bambang Yudhoyno was elected President of Indonesia.

At the beginning of the 21st century the Indonesian economy began to recover and by 2007 it was
growing by as much as 6% a year. Even in 2009 when most of the world was mired in recession the
Indonesian economy still grew. There is every reason to be optimistic about the future of Indonesia.

Today the population of Indonesia is 245 million.

Religion

RELIGION

Religion in Indonesia was a complex and volatile issue in the early 1990s, one not easily analyzed in
terms of social class, region, or ethnic group. Although Islam, Christianity, Hinduism, Buddhism, and
other religions influenced many aspects of life, the government generally discouraged religious groups
from playing a political role. The state guaranteed tolerance for certain religions (agama) regarded as
monotheistic by the government, including Islam, Christianity, Hinduism, and Buddhism, but only as long
as these creeds remained outside of politics.

Islam

Islam was the dominant religion by far in Indonesia, with the greatest number of religious adherents:
around 143 million people or 86.9 percent of the population in 1985, which when adjusted for 1992
estimates represents between 160 million and 170 million adherents. This high percentage of Muslims
made Indonesia the largest Islamic country in the world in the early 1990s. Within the nation, most
provinces and islands had majority populations of Islamic adherents (ranging from just above 50 percent
in Kalimantan Barat and Maluku provinces to as much as 97.8 percent in the Special Region of Aceh).

According to orthodox practice, Islam is a strictly monotheistic religion in which God (Allah or Tuhan) is a
pervasive, if somewhat distant, figure. The Prophet Muhammad is not deified, but is regarded as a
human who was selected by God to spread the word to others through the Quran, Islam's holiest book,
the revealed word of God. Islam is a religion based on high moral principles, and an important part of
being a Muslim is commitment to these principles. Islamic law (sharia; in Indonesian, syariah) is based
on the Quran; the sunna, Islamic tradition, which includes the hadith (hadis in Indonesian), the actions
and sayings of Muhammad; ijma, the consensus of a local group of Islamic jurisprudents and,
sometimes, the whole Muslim community; and qiyas or reasoning through analogy. Islam is universalist,
and, in theory, there are no national, racial, or ethnic criteria for conversion. The major branches of
Islam are those adhered to by the Sunni and Shia Muslims.

To a significant degree, the striking variations in the practice and interpretation of Islam--in a much less
austere form than that practiced in the Middle East--in various parts of Indonesia reflect its complex
history. Introduced piecemeal by various traders and wandering mystics from India, Islam first gained a
foothold between the twelfth and fifteenth centuries in coastal regions of Sumatra, northern Java, and
Kalimantan. Islam probably came to these regions in the form of mystical Sufi tradition. Sufism easily
gained local acceptance and became synthesized with local customs. The introduction of Islam to the
islands was not always peaceful, however. As Islamized port towns undermined the waning power of the
East Javanese HinduBuddhist Majapahit kingdom in the sixteenth century, Javanese elites fled to Bali,
where over 2.5 million people kept their own version of Hinduism alive. Unlike coastal Sumatra, where
Islam was adopted by elites and masses alike, partly as a way to counter the economic and political
power of the Hindu-Buddhist kingdoms, in the interior of Java the elites only gradually accepted Islam,
and then only as a formal legal and religious context for Javanese spiritual culture.

These historical processes gave rise to enduring tensions between orthodox Muslims and more
syncretistic, locally based religion--tensions that were still visible in the early 1990s. On Java, for
instance, this tension was expressed in a contrast between santri and abangan, an indigenous blend of
native and Hindu-Buddhist beliefs with Islamic practices sometimes also called Javanism, kejawen,
agama Jawa, or kebatinan. The terms and precise nature of this opposition were still in dispute in the
early 1990s, but on Java santri not only referred to a person who was consciously and exclusively
Muslim, santri also described persons who had removed themselves from the secular world to
concentrate on devotional activities in Islamic schools called pesantren--literally the place of the santri.

In contrast to the Mecca-oriented philosophy of most santri, there was the current of kebatinan, which
is an amalgam of animism, Hindu-Buddhist, and Islamic--especially Sufi--beliefs. This loosely organized
current of thought and practice, was legitimized in the 1945 constitution and, in 1973, when it was
recognized as one of the agama, President Suharto counted himself as one of its adherents. Kebatinan is
generally characterized as mystical, and some varieties were concerned with spiritual self-control.
Although there were many varieties circulating in 1992, kebatinan often implies pantheistic worship
because it encourages sacrifices and devotions to local and ancestral spirits. These spirits are believed to
inhabit natural objects, human beings, artifacts, and grave sites of important wali (Muslim saints). Illness
and other misfortunes are traced to such spirits, and if sacrifices or pilgrimages fail to placate angry
deities, the advice of a dukun or healer is sought. Kebatinan, while it connotes a turning away from the
militant universalism of orthodox Islam, moves toward a more internalized universalism. In this way,
kebatinan moves toward eliminating the distinction between the universal and the local, the communal
and the individual.

Another important tension dividing Indonesian Muslims was the conflict between traditionalism and
modernism. The nature of these differences was complex, confusing, and a matter of considerable
debate in the early 1990s, but traditionalists generally rejected the modernists' interest in absorbing
educational and organizational principles from the West. Specifically, traditionalists were suspicious of
modernists' support of the urban madrasa, a reformist school that included the teaching of secular
topics. The modernists' goal of taking Islam out of the pesantren and carrying it to the people was
opposed by the traditionalists because it threatened to undermine the authority of the kyai (religious
leaders). Traditionalists also sought, unsuccessfully, to add a clause to the first tenet of the Pancasila
state ideology requiring that, in effect, all Muslims adhere to the sharia. On the other hand, modernists
accused traditionalists of escapist unrealism in the face of change; some even hinted that santri
harbored greater loyalty towards the ummah (congregation of believers) of Islam than to the secular
Indonesian state.

Despite these differences, the traditionalist Nahdlatul Ulama (literally, Revival of the Religious Scholars,
also known as the Muslim Scholars' League), the progressive Consultative Council of Indonesian Muslims
(Masyumi), and two other parties were forcibly streamlined into a single Islamic political party in 1973--
the Unity Development Party (PPP). Such cleavages may have weakened Islam as an organized political
entity, as demonstrated by the withdrawal of the Nahdlatul Ulama from active political competition, but
as a popular religious force Islam showed signs of good health and a capacity to frame national debates
in the 1990s.

Christianity

Although Christianity--Roman Catholicism and Protestantism--was the most rapidly growing religion in
Indonesia in the 1980s, its numbers were small compared to Islam (9 percent of the population
compared to 86.9 percent Muslim in 1985). Christianity had a long history in the islands, with
Portuguese Jesuits and Dominicans operating in the Malukus, southern Sulawesi, and Timor in the
sixteenth century. When the Dutch defeated Portugal in 1605, however, Catholic missionaries were
expelled and the Calvinist Dutch Reformed Church was virtually the only Christian influence in the region
for 300 years. Whereas the United East Indies Company (VOC) was primarily a secular and not a religious
enterprise, and because Calvinism was a strict, austere, and intellectually uncompromising variety of
Christianity that demanded a thorough understanding of what, for Indonesians, were foreign scriptures,
Christianity advanced little in Indonesia until the nineteenth century. Only a few small communities
endured in Java, Maluku, northern Sulawesi, and Nusa Tenggara (primarily Roti and Timor). After the
dissolution of the VOC in 1799, and the adoption of a more comprehensive view of their mission in the
archipelago, the Dutch permitted proselytizing in the territory. This evangelical freedom was put to use
by the more tolerant German Lutherans, who began work among the Batak of Sumatra in 1861, and by
the Dutch Rhenish Mission in central Kalimantan and central Sulawesi. In addition, Jesuits established
successful missions, schools, and hospitals throughout the islands of Flores, Timor, and Alor.

The twentieth century witnessed the influx of many new Protestant missionary groups, as well as the
continued growth of Catholicism and of large regional and reformed Lutheran churches. Following the
1965 coup attempt, all nonreligious persons were labelled atheists and hence were vulnerable to
accusations of harboring communist sympathies. At that time, Christian churches of all varieties
experienced explosive growth in membership, particularly among those people who felt uncomfortable
with the political aspirations of Islamic parties.

In the 1990s, the majority of Christians in Indonesia were Protestants of one affiliation or another, with
particularly large concentrations found in Sumatra Utara, Irian Jaya, Maluku, Kalimantan Tengah,
Sulawesi Tengah, and Sulawesi Utara. Catholic congregations grew less rapidly in the 1980s, in part
because of the church's heavy reliance on European personnel. These Europeans experienced increasing
restrictions on their missionary activities imposed by the Muslim-dominated Department of Religious
Affairs. Large concentrations of Roman Catholics were located in Kalimantan Barat, Irian Jaya, Nusa
Tenggara Timur, and Timor Timur provinces.

Hinduism

Hinduism is an amalgam of related traditions and cults that seeks to explain cosmology in primarily
deistic terms. The religion has countless gods but no exclusive creed. One of Hinduism's primary ethical
concerns is the concept of ritual purity. Another important distinguishing feature, which helps maintain
the ritual purity, is the division of society into the traditional occupational groups, or varna (literally,
color) of Hinduism: Brahmans (priests, brahmana in Indonesian), Kshatriya (ruler-warriors, satriya in
Indonesian), Vaishya (merchants-farmers, waisya in Indonesian), and Shudra (commoners-servants,
sudra in Indonesian).

Like Islam and Buddhism, Hinduism was greatly modified when adapted to Indonesian society. The caste
system, although present in form, was never rigidly applied. The Hindu religious epics, the Mahabharata
(Great Battle of the Descendants of Bharata) and the Ramayana (The Travels of Rama), became
enduring traditions among Indonesian believers, expressed in shadow puppet (wayang) and dance
performances.

Hinduism in Indonesia is primarily associated with Bali. Hindu believers in the early 1990s were relatively
few outside of Bali, where they made up more than 93 percent of the population. Others were scattered
throughout the other twenty-six provincial-level units. Among these non-Bali communities were groups
labeled as Hindu by the government--for example, the adherents of the Kaharingan religion in
Kalimantan Tengah, where government statistics counted Hindus as 15.8 percent of the population.
Nationally, Hindus represented only around 2 percent of the populaiton in the early 1990s.

It is difficult to describe the Balinese version of Hinduism in the same doctrinal terms as Islam and
Christianity, since this unique form of religious expression is deeply interwoven with art and ritual, and is
less closely preoccupied with scripture, law, and belief. Balinese Hinduism lacks the traditional Hindu
emphasis on cycles of rebirth and reincarnation, but instead is concerned with a myriad of local and
ancestral spirits. As with kebatinan, these deities are thought to be capable of harm. Balinese place
great emphasis on dramatic and aesthetically satisfying acts of ritual propitiation of these spirits at
temple sites scattered throughout villages and in the countryside. Each of these temples has a more or
less fixed membership; every Balinese belongs to a temple by virtue of descent, residence, or some
mystical revelation of affiliation. Some temples are associated with the family house compound, others
are associated with rice fields, and still others with key geographic sites. Ritualized states of self-control
(or lack thereof) are a notable feature of religious expression among the people, famous for their
graceful and decorous behavior. One key ceremony at a village temple, for instance, features a special
performance of a dance-drama (a battle between the mythical characters Rangda the witch and Barong
the dragon), in which performers fall into a trance and attempt to stab themselves with sharp knives.

Rituals of the life cycle are also important occasions for religious expression and artistic display.
Ceremonies at puberty, marriage, and, most notably, cremation at death provide opportunities for
Balinese to communicate their ideas about community, status, and the afterlife. (The tourist industry
has not only supported spectacular cremation ceremonies among Balinese of modest means, but also
has created a greater demand for them.)

Balinese religion is hierarchically organized, with one small segment of the aristocracy--the Brahman, or
priestly, class--being the most prestigious. A Brahman priest is not affiliated with any temple but acts as
a spiritual leader and adviser to individual families in various villages scattered over the island. These
priests are consulted when ceremonies requiring holy water are conducted. On other occasions, folk
healers or curers may be hired.

Buddhism

Indonesian Buddhism in the early 1990s was the unstable product of complex accommodations among
religious ideology, Chinese ethnic identification, and political policy. Traditionally, Chinese Daoism (or
Taoism), Confucianism, (agama Konghucu in Indonesian) and Buddhism, as well as the more nativist
Buddhist Perbuddhi, all had adherents in the ethnic Chinese community. Following the attempted coup
of 1965, any hint of deviation from the monotheistic tenets of the Pancasila was regarded as treason,
and the founder of Perbuddhi, Bhikku Ashin Jinarakkhita, proposed that there was a single supreme
deity, Sang Hyang Adi Buddha. He sought confirmation for this uniquely Indonesian version of Buddhism
in ancient Javanese texts, and even the shape of the Buddhist temple complex at Borobudur in Jawa
Tengah Province. In the years following the 1965 abortive coup, when all citizens were required to
register with a specific religious denomination or be suspected of communist sympathies, the number of
Buddhists swelled; some ninety new monasteries were built. In 1987 there were seven schools of
Buddhism affiliated with the Perwalian Umat Buddha Indonesia (Walubi): Theravada, Buddhayana,
Mahayana, Tridharma, Kasogatan, Maitreya, and Nichiren. According to a 1987 estimate, there were
roughly 2.5 million followers of Buddhism, with 1 million of these affiliated with Theravada Buddhism
and roughly 0.5 million belonging to the Buddhayana sect founded by Jinarakkhita. Other estimates
placed Buddhists at around only 1 percent of the population, or less than 2 million. Buddhism was
gaining in numbers because of the uncertain status of Confucianism. Confucianism was officially
tolerated by the government, but since it was regarded as a system of ethical relations rather than a
religion per se, it was not represented in the Department of Religious Affairs.

Although various sects approach Buddhist doctrine in different ways, a central feature of the religion is
acknowledgment of the Four Noble Truths and the Eightfold Path. The Four Noble Truths involve the
recognition that all existence is full of suffering; the origin of suffering is the craving for worldly objects;
suffering ceases when craving ceases; and the Eightfold Path leads to enlightenment. The Eightfold Path
invokes perfect views, resolve, speech, conduct, livelihood, effort, mindfulness, and concentration.

Buddhism originally was an intellectual creed, and only marginally concerned with the supernatural.
However, political necessity, and the personal emotional desire to be shielded from the terrors of the
world by a powerful deity, have led to modifications. In many ways, Buddhism is highly individualistic,
with each man and woman held responsible for his or her own self. Anyone can meditate alone; no
temple is required, and no clergy is needed to act as intermediary. The community provides pagodas
and temples to inspire the proper frame of mind to assist the worshippers in their devotion and self-
awareness.

Government

THE CONSTITUTION

The legal basis of the Indonesian state is the 1945 constitution, promulgated the day after the August
17, 1945, proclamation of independence. The constitution was essentially a draft instrument hurriedly
crafted by the Independence Preparatory Committee in the last weeks before the Japanese surrender.
According to George McTurnan Kahin, whose 1952 book Nationalism and Revolution in Indonesia was
the pioneering study of modern Indonesian politics, the constitution was considered "definitely
provisional." Provisional or not, the constitution provided structural continuity in a period of political
discontinuity. Beginning with the preamble, which invokes the principles of the Pancasila, the thirty-
seven articles of the constitution--ambiguous though they are--set forth the boundaries of both
Sukarno's Old Order and Suharto's New Order.
The 1945 constitution was the product of a unitary republic struggling to emerge in the face of Dutch
efforts to reestablish sovereignty and Islamic appeals for a religion-centered state. The constitution was
not fully implemented when the transfer of sovereignty from the Netherlands went into effect on
December 27, 1949. The 1949 agreement called for the establishment of the federal Republic of the
United States of Indonesia (RUSI). Subsequently, a provisional constitution adopted in February 1950
provided for the election of a Constituent Assembly to write a permanent constitution. A rising tide of
more radical nationalism, driven partly by perceptions that the RUSI was a Dutch scheme to divide and
conquer, rapidly moved controlling political elites in the direction of a unitary republic. A Committee for
the Preparation of the Constitution of the Unitary State was established on May 19, 1950, and on August
14 a new constitution (technically an amendment to the RUSI constitution) was ratified, to be in force
until an elected Constituent Assembly completed its work. The new, interim constitution provided for a
cabinet system of government with the cabinet and prime minister being responsible to a unicameral
legislature. The president was to be head of state but without real executive power except as a cabinet
formateur.

As the political parties wrestled ineffectually in the parliamentary forum, dissident ethnic politicians and
army officers joined in resisting central authority and even engaged in armed rebellions, such as those
occurring in 1950, 1956, and 1958-59. Sukarno assumed an extraconstitutional position from which he
wielded paramount authority in imposing his concept of Guided Democracy in 1959. This move was
backed by the senior military leaders whose revolutionary experiences had already made them
suspicious, even contemptuous, of civilian politicians, and who were now dismayed by the disintegrative
forces at work in the nation. The military moved to the political forefront, where they remained in 1992.

Sukarno sought to legitimize his authority by returning to the 1945 constitution. He would have
preferred to accomplish this goal constitutionally by having the 402-member Constituent Assembly
formally adopt the 1945 constitution. However, the Constituent Assembly, elected in 1955 and divided
along secular and religious lines, could not muster the required two-thirds majority necessary to
approve new constitutional provisions. According to political scientist Daniel S. Lev, the body deadlocked
on two fundamental issues: the role of Islam in the state and the question of federalism. Furthermore,
division on these issues meant that ideological consensus among the anticommunist parties could not
be translated into effective political cooperation. As long as the Constituent Assembly failed to agree on
a new constitutional form, the interim constitution with its weak presidency continued in force. Backed
by ABRI and a large part of the public, which was impatient with the political impasse and failure to
implement the promises of independence, Sukarno decreed on July 5, 1959, the dissolution of the
Constituent Assembly and the return to the 1945 constitution. Martial law had already been proclaimed
on March 14, 1957, and Sukarno claimed that under martial law his legal authority stemmed from his
position as supreme commander of ABRI.

As a provisional legal framework for a modern state, the 1945 constitution has proved to be extremely
elastic, subject to broad interpretation depending upon the constellation of political forces in control at
any given time. Other than outlining the major state structures, the document contains few specifics
about relations between the citizen and the government, and leaves open basic questions about rights
and responsibilities of citizen and state. For example, Article 29 states that "Freedom of assembly and
the right to form unions, freedom of speech and of the press, and similar freedoms shall be provided by
law." Subsequent laws enacted, however, did not fully carry out the fundamental rights of the individual
citizen stipulated by the constitution. On the other hand, the document is an expression of revolutionary
expectations about social and economic justice. Article 33 states that the economy shall be organized
cooperatively, that important branches of production affecting the lives of most people shall be
controlled by the state, and that the state shall control natural resources for exploitation for the general
welfare of the people.

The political struggle from 1945 to 1959 over the constitutional framework of the state stemmed not
from the ambiguities of the 1945 document or its heavy weighing of executive power, but over deep
disagreements about the nature of the state itself, particularly the issue of federalism and the role of
Islam. Once the common battle against Dutch imperialism had been won, the passionate differences
dividing various nationalist groups about the future of Indonesia surfaced. The possibility of a federation
of loosely knit regions was denied by the use of force--first in the crushing of the Republic of South
Maluku (RMS) in 1950 and then the Revolutionary Government of the Indonesian Republic (PRRI)--
Universal Struggle Charter (Permesta) regional rebellions of 1957 to 1962. Although in subsequent
decades the government was almost always sensitive to the issue of separatism, the existence of a
unitary republic, expressed through a primary "Indonesian" national identity, seemed secure. However,
the difficulty of integrating an Islamic political identity with the Indonesian Pancasila identity remained
in force in the early 1990s.

THE STRUCTURE OF GOVERNMENT

According to the constitution, there are six organs of state. Sovereignty in Indonesia is vested in the
people, who exercise their will through the People's Consultative Assembly (MPR). Full executive
authority is vested in the president, who is elected by and responsible to the MPR. Legislative power is
shared with the House of People's Representatives (DPR). The president is advised by the Supreme
Advisory Council, whereas the State Audit Board exercises financial oversight. At the apex of the judicial
system is the Supreme Court.

Legislative Bodies

People's Consultative Assembly (MPR)

The highest constitutional body is the People's Consultative Assembly (MPR), which meets every five
years in the year following the elections to the parliament--the House of People's Representatives (DPR).
The MPR has 1,000 seats, 500 of which are assigned to the members of the DPR. Of the other 500 seats,
100 are reserved for representatives of professional groups, including ABRI, appointed by the president
and, as of 1992, 147 seats were held by delegates elected by provincial-level legislative assemblies. The
balance of seats--253 in 1992--were assigned after the 1987 DPR elections on a proportional basis to
representatives of the political parties, depending on their respective membership in the DPR. Golkar
took the largest number of these seats based on its 1987 winning of 299 of the 400 elected DPR seats.
This election resulted in a total of 540 Golkar seats in the MPR, an absolute majority even without
counting the ABRI faction and the provincial-level representatives. The Muslim-based PPP only had sixty-
one DPR seats and ninety-three MPR seats, whereas the PDI, with its forty DPR seats, was at the bottom
of the MPR list.

The principal legislative task of the MPR is to approve the Broad Outlines of State Policy, a document
that theoretically establishes policy guidelines for the next five years. The draft is prepared by a
government task force and is expected to be approved by consensus. In 1988, however, the PPP forced a
recorded vote on two amendments to the Broad Outlines of State Policy, which, although the
government won overwhelmingly, was taken by some observers as an indication that automatic
adherence to the requirement for consensus was no longer a given in Indonesian politics. The first issue
advanced by the PPP had to do with the legal status of Javanese mysticism (aliran kepercayaan) as a
recognized religion. Aliran kepercayaan is the formal expression of kebatinan or religiously syncretic
Javanism, a set of religious practices that the PPP rejected as heterodoxy. The second amendment had
to do with a commitment to cleaner and fairer elections. This issue reflected the PPP's experiences in
the 1987 general election. In 1992, in response to the perception that the MPR was no longer satisfied
with a rubber-stamp role, Suharto declared that the 1993 MPR would have greater input into the initial
stages of drafting the Broad Outlines of State Policy.

House of People's Representatives (DPR)

Legislative authority is constitutionally vested in the House of People's Representatives (often shortened
to House of Representatives or DPR). This 500-member body meets annually, opening on August 16, the
eve of National Day when the president delivers his National Day speech. Four hundred of the DPR seats
are electorally contested by the three political parties (Golkar, PPP, and PDI) in provincial constituencies,
which in the 1987 general election were based on a population ratio of approximately 1 representative
per 400,000 people. Each administrative territorial district (kabupaten) is guaranteed at least one
representative no matter what its population. A further 100 seats are allocated to military
representatives who are appointed on the recommendation of ABRI. The justification for the ABRI
faction is that since members of the armed forces cannot take part in elections, their political rights as a
sociopolitical and defense force were served through guaranteed DPR seats. Faced with civilian
resentment about the privileged position of ABRI in the parliamentary bodies, Suharto warned that
denying the military legitimate input into the legislative process could lead to a coup. However, in his
1992 National Day speech, Suharto conceded that the number of guaranteed ABRI seats could be
adjusted.

The DPR is led by a speaker elected from the membership. From 1988 to 1992, this position was filled by
Lieutenant General (retired) Kharis Suhud, who in the previous session was leader of the ABRI faction.
Work is organized through eleven permanent committees, each with a specific functional area of
governmental affairs. The legislative process begins with the submission by the government of a bill to
the DPR. Although members can initiate a bill, it must be accompanied by an explanatory memorandum
signed by at least thirty legislators. Before a bill is approved, it must have four readings unless excepted
by the DPR Steering Committee. The first reading is its introduction in an open plenary session. This
reading is followed by a general debate in open plenary session with the government's right of reply.
The bill is then discussed in committee with the government or initiating members. The final discussion
of the draft legislation takes place in open plenary session, after which the DPR makes its decision. The
deliberations of the DPR are designed to produce consensus. It is the political preference of the
leadership to avoid overt expressions of less than complete support. This position is justified by the
claim of a cultural predisposition to avoid, if possible, votes in which majority-minority opposing
positions are recorded. If votes are necessary, however, a quorum requires a two-thirds majority. On
issues of nomination and appointment voting is by secret ballot but on all other matters by show of
hands.

With the built-in Golkar-ABRI faction absolute majority, the DPR has routinely approved government
legislation. During Suharto's fifth term (1988-93), however, with the appearance of many younger DPR
members, there was a new willingness to use the forum for fuller and more forthright discussions of
public issues and policies, even by Golkar members. This openness paralleled a similar trend toward
greater openness in nonlegislative elite circles that seemingly had received government encouragement.
Part of the discussion inside and outside of the DPR had to do with increasing the role and institutional
capability of the parliament in order to enhance political participation.

The Executive

The President

Indonesia's government is a strong presidential system. The president is elected for a five-year term by a
majority vote of the MPR, and he may be reelected when his term expires. The only constitutional
qualification for office is that the president be a native-born Indonesian citizen. In carrying out his
duties, the president is the Mandatory of the MPR, responsible to the MPR for the execution of state
policy. In addition to his executive authority, the president is vested with legislative power, acting in
concurrence with the DPR. The president also serves as the supreme commander of ABRI. He is aided in
his executive role by a presidentially appointed cabinet.

Between 1945 and 1992, Indonesia had two presidents: Sukarno from 1945 to 1967, and Suharto from
1967. Suharto became president in a process that, while ostensibly claiming to be constitutional, had as
its main instrument ABRI's coercive force. The drama of Indonesia's first presidential succession was
angrily played out against the dangers and murders of the months following the abortive 1965 coup
d'tat as the military and their civilian allies rooted out the PKI and began the dismantling of Sukarno's
Guided Democracy. On March 11, 1966, under great pressure, Sukarno signed an order popularly known
as Supersemar (Executive Order of March 11, 1966), that de facto transferred presidential authority,
although not the office, to then General Suharto. A year later, on March 12, 1967, a special session of
the Provisional People's Consultative Assembly (MPR(S)) unanimously lifted its mandate from Sukarno
and named Suharto acting president. At its March 1968 regular session, the MPR confirmed Suharto as
its Mandatory, electing him Indonesia's second president. He was unanimously reelected in 1973, 1978,
1983, and 1988. Toward the end of Suharto's fourth term of office, the question of possible term
limitation was raised and became an issue in the political dialogue of the fifth term. Although he
remained uncommitted about accepting a sixth term (1993-98). Suharto responded directly to the issue,
repeatedly stating that the right to determine who would be president resided in the MPR.

The term limitation question was embedded in the larger question of presidential succession in the
event that Suharto chose to step down or declined to accept reelection. The term limitation question
also had the effect of refocusing attention on the vice presidential office. Constitutionally, the president
is to be assisted in his duties by a vice president, who succeeds in the event of the president's death,
removal, or inability to exercise official duties. Although not constitutionally prescribed, it has been
accepted that the president would present his own nominee for vice president to be elected by the
MPR. Although only vaguely defined, the office diminished in importance since it was first held by
revolutionary hero and federalist Mohammad Hatta from 1945 to 1956. Hatta's status was parallel to
that of Sukarno, representing the concept of a duumvirate of authority (dwitunggal). After Hatta's
resignation in 1956, the office remained vacant until 1973 when it was filled by Hamengkubuwono IX,
the Sultan of Yogyakarta. The sultan's arrival in office symbolically expanded the militarybacked power
base of the New Order, conferring on it the nonmilitary legitimacy of the traditional Javanese political
culture. Hamengkubuwono's decision not to seek reelection in 1978 was interpreted partly as
disenchantment with the military, which was unwilling to share authority with civilians. Adam Malik, a
former minister of foreign affairs, was the last civilian vice president (1978-83). He was replaced in 1983
by low-profile General Umar Wirahadikusumah. In 1988 Golkar chairman Lieutenant General (retired)
Sudharmono was elected vice president in an MPR session roiled by behind-the-scenes military politics
of presidential succession. In the prelude to the 1993 MPR session, expectations about a sixth term for
Suharto fueled new speculation about the vice-presidential selection. By early 1992, the PDI had
preemptively announced its support for ABRI commander General Try Sutrisno.

Succession politics intervened in the 1988 elections when it appeared that in selecting a vice president
the president might be signalling a successor, especially because he had hinted that he might step down
before the fifth term ended in 1993. Important elements in ABRI's leadership were dissatisfied with the
possibility that Sudharmono, an army lawyer and career bureaucrat, might be tapped, and the ABRI
faction in the MPR refused to join Golkar and the regional delegates in nominating him. Furthermore,
PPP leader Jailani (Johnny) Naro declared his own candidacy. The president was forced to make explicit
his support for Sudharmono and his intention to serve out his term. Faced with this direct challenge by
the president, Naro backed away from forcing a vote and Sudharmono became vice president by
acclamation. The political drama of the 1988 vice presidential election foreshadowed the role succession
politics would play throughout Suharto's fifth term.

The Cabinet

The president is assisted by state ministers appointed by him. In 1988 Suharto named his Fifth
Development Cabinet, paralleling Repelita V (the fifth five-year development plan, fiscal year 1989-93.
Twenty-one departments were headed by ministers in 1992. These departments were grouped under
three coordinating ministers: politics and security; economics, finance, industry, and development
supervision; and public welfare. There were eight ministers of state and six junior ministers. In addition
to the cabinet members, three high-ranking state officials were accorded ministerial rank: the
commander in chief of ABRI (in the Fifth Development Cabinet, General Try Sutrisno); the attorney
general; and the governor of Bank Indonesia, the central bank. Of the thirty-eight members of the Fifth
Development Cabinet, ten held the same positions in the Fourth Development Cabinet, nine continued
in the cabinet but with different posts, and nineteen were new ministers--a balance of continuity and
renewal.

Specialized agencies and boards at the central government level are numerous and diverse. They include
the National Development Board (Bappenas), the National Family Planning Coordinating Agency
(BKKBN), the Investment Coordinating Board (BKPM), and the Agency for Regional Development
(BAPEDA). At lower levels there are regional planing agencies, investment boards, and development
banks under the aegis of the central government.

The Supreme Advisory Council and the State Audit Board

Two other constitutionally mandated quasi-independent bodies exist to support the executive and the
government. The Supreme Advisory Council is mandated by Article 16 of the constitution. A forty-five-
member group nominated by the DPR and appointed by the president, the council responds to any
presidential question regarding affairs of state. It is organized into four permanent committees: political;
economic, financial, and industrial; people's welfare; and defense and security. The council was chaired
from 1988 to 1992 by General Mardean Panggabean, a former ABRI commander. The State Audit Board
is specified in Article 23 of the constitution to conduct official examinations of the government's
finances. It reports to the DPR, which approves the government's budget requests. The chairman of the
State Audit Board during the Fifth Development Cabinet was General Muhammad Jusuf, another former
ABRI commander.

The Judiciary

The Indonesian legal system is extraordinarily complex, the independent state having inherited three
sources of law: customary or adat law, traditionally the basis for resolving interpersonal disputes in the
traditional village environment; Islamic law (sharia, or, in Indonesian, syariah), often applied to disputes
between Muslims; and Dutch colonial law. Adat courts were abolished in 1951, although customary
means of dispute resolution were still used in villages in 1992. The return to the 1945 constitution in
1959 meant that Dutch laws remained in force except as subsequently altered or found to be
inconsistent with the constitution. An improved criminal code enacted in 1981 expanded the legal rights
of criminal defendants. The government in 1992 was still reviewing its legacy of Dutch civil and
commercial laws in an effort to codify them in Indonesian terms. The types of national law recognized in
MPR(S) Decree XX, (July 5, 1966), include, in addition to the constitution, MPR decrees, statutes passed
by the DPR and ratified by the president, government regulations promulgated by the president to
implement a statute, presidential decisions to implement the constitution or government regulations,
and other implementing regulations such as ministerial regulations and instructions. Obviously, the
executive enjoys enormous discretion in determining what is law.

With respect to the administration of justice, Article 24 of the constitution states that judicial power
shall be vested in a Supreme Court and subordinate courts established by law, and that the organization
and competence of courts shall be established by law. In Sukarno's Guided Democracy, the justice
system became a tool of the revolution, and any pretense of an independent judiciary was abandoned.
One of the goals of the New Order was to restore the rule of law. A major step in that direction was the
enactment of the Basic Law on the Judiciary Number 14 of 1970, which defined an independent status
for the Supreme Court and emphasized noninterference in judicial matters by persons outside the
judiciary. Theoretically, the Supreme Court stands coequal with the executive and legislative branches.
The president, vice president, and justices of the Supreme Court are nominated by the DPR and
appointed by the president. The Supreme Court has exclusive jurisdiction in disputes between courts of
the different court systems and between courts located in different regions. It can annul decisions of
high courts on points of law, not fact. On request it can give advisory opinions to the government and
guidance to lower courts. It is not part of a system of checks and balances, however, since it does not
have the power of judicial review of the constitutionality of laws passed by the DPR. Its jurisdiction is
limited to whether or not implementing administrative regulations conforms to the laws as passed.
Moreover, the Supreme Court has no control over the integrity of the lower courts, which are under the
supervision of the Department of Justice.

Below the Supreme Court four different court systems can be distinguished. First, there are courts of
general civil and criminal jurisdiction. District courts are the courts of first instance. The high courts are
appellate courts. The administration of these courts is under the minister of justice, who controls judicial
appointments, promotion, transfer, and pay. Despite protestations of independence, the lower courts
had, as of the early 1990s, shown themselves reluctant to challenge the government, particularly in
cases with political overtones. In the view of some observers, these courts routinely allowed egregious
breaches of fundamental civil rights. There were also regular allegations of corruption in the lower court
system in both civil and criminal cases.
Second, there are religious courts, under the Department of Religious Affairs, which exist to resolve
specific kinds of disputes between Muslims in matters of marriage, divorce, inheritance, and gifts. These
courts base their decision on Islamic law. To be legally enforceable, however, the religious court's
decisions must be approved by a corresponding secular district court. The Directorate of Religious
Justice within the Department of Religious Affairs has ultimate appellate jurisdiction. One of the
persistent tensions between Islam and the state arises from Muslim efforts to expand the jurisdiction
and autonomy of the sharia courts.

Third, in 1992 there was a Taxation Review Board that adjudicated taxation disputes. Other
administrative courts had been eliminated as part of government's effort to simplify and standardize the
court system.

Fourth, there are the military courts, which have jurisdiction over members of ABRI or persons declared
to be of a similar status. After the 1965 coup attempt, special military courts were given authority to try
military personnel and civilians alleged to be involved in the abortive coup. Hundreds of sentences
ranging from twenty years' imprisonment to death were meted out by the special military courts, with
executions continuing more than two decades after the event.

Local Government

Government administration is processed through descending levels of administrative subunits.

Indonesia is made up of twenty-seven provincial-level units. In 1992 there actually were only twenty-
four provinces (propinsi), two special regions (daerah istimewa)--Aceh and Yogyakarta--and a special
capital city region (daerah khusus ibukota)--Jakarta. The provinces in turn were subdivided into districts
(kabupaten), and below that into subdistricts (kecamatan). There were forty municipalities or city
governments (kotamadya) that were at the same administrative level as a kabupaten. At the lowest tier
of the administrative hierarchy was the village (desa). According to 1991 statistics, Indonesia had 241
districts, 3,625 subdistricts, 56 cities, and 66,979 villages.

Since independence the nation has been centrally governed from Jakarta in a system in which the lines
of authority, budget, and personnel appointment run outward and downward. Regional and local
governments enjoy little autonomy. Their role is largely administrative: implementing policies, rules, and
regulations. Regional officialdom is an extension of the Jakarta bureaucracy. The political goal is to
maintain the command framework of the unitary state, even at the cost of developmental efficiency.
Governments below the national level, therefore, serve essentially as subordinate administrative units
through which the functional activities of Jakarta-based departments and agencies reach out into the
country.

In the early 1990s, there was neither real power sharing nor upward political communication through
representative feedback. Real feedback occurred through bureaucratic channels or informal lines of
communication. Elected people's regional representative councils (DPRD) at the provincial and district
levels had been restored in 1966, after operating as appointive bodies during the period of Guided
Democracy. However, the DPRDs' participation in the early 1990s governing was extremely
circumscribed because the councils lacked control over the use of resources and official appointments.
Even though 1974 legislation gave provincial DPRDs some voice in selecting their governors--DPRDs
could recommend appointments from a list of potential candidates submitted by the minister of home
affairs--provincial governors were still appointed by the president. District heads were designated by the
Department of Home Affairs.

The structure of provincial-level and local government in Indonesia is best understood in terms of the
overriding goals of national political integration and political stability. At the governmental level,
integration means control by the central government, a policy that was in part conditioned by historical
experience. At independence Indonesia consisted of the shortlived federal RUSI (1949-50). The RUSI was
viewed as a Dutch plot to deny authority over the entire country to the triumphant Indonesian
nationalists. Regional rebellions in the late 1950s confirmed the national government's view that
Indonesia's cultural and ethnic diversity required tight central government control to maintain the
integrity of the state. Political stability was equated with centralization and instability with
decentralization. Civil control was maintained through a hierarchy of the army's territorial commands,
each level of which parallelled a political subdivision--from the highest regional command levels down to
noncommissioned officers stationed in the desa for "village guidance." Lateral coordination of civilian
administration, police, justice, and military affairs was provided at each provincial, district, and
subdistrict level by a Regional Security Council (Muspida). The local Muspida was chaired by the regional
army commander and did not include the speaker of the local DPRD.

Added to the political requirement for centralization in the early 1990s was the economic reality of the
unequal endowment of natural resources in the archipelago and the mismatch of population density to
resources. The least populated parts of the country were the richest in primary resources. A basic task of
the national government was to ensure that the wealth produced by resource exploitation be fairly
shared by all Indonesians. This goal meant that, in addition to Jakarta's political control of the national
administrative system, the central government also exercised control over local revenues and finances.
Thus, the absence of an independent funding base limited autonomy for provincial and local
governments.

About 80 percent of total public expenditure in the provinces was disbursed from the national budget
controlled by departments and agencies headquartered in Jakarta. Of the 20 percent administered by
the provinces, about half came from Inpres (Presidential Instruction) grants for infrastructure and other
developmental purposes. Beginning in 1969, the Inpres grant programs at provincial, district, and village
levels channeled about 20 percent of the development budget to small-scale projects for local
development, with an emphasis on roads, irrigation, schools, and public health. Only about 10 percent
of regional government revenue was derived from local taxes and fees.

Whereas once the central government's transfer of wealth from resource-rich provinces to people-rich
provinces had been a source of political irritation for the better-endowed regions, by Repelita V (FY
1989-93), the lag in development investment beyond the Java-Sumatra western core was the most
troubling. Suharto's 1992 New Year's message to the nation explicitly addressed this problem: "We are
also aware," he said, "of the fact that there is a wide gap in the progress achieved by each region in our
country, especially between the western and eastern part of the country." In looking to future policy, he
added that there would be stepped-up efforts to provide autonomy and decentralization. Such steps,
however, would require strengthening the capacity of subnational units financially and administratively,
as well as strengthening local participation in the setting of national goals and policies. To some
government leaders in the early 1990s, making concessions to economic and cultural claims for
autonomy would endanger national unity. Conflicting interests of politics and administration presented
special problems in the Special Region of Aceh and Irian Jaya and Timor Timur provinces.
Aceh
Aceh is the westernmost part of Sumatra and the part of Indonesia where the Islamic character of the
population is the most pronounced. The Acehnese demand for autonomy, expressed in support for the
1950s Darul Islam rebellion, was partially met by the central government's acceptance of a "special
region" status for the province in 1959, allowing a higher-than-usual official Indonesian respect for
Islamic law and custom. This special region status, together with growing prosperity, brought Aceh into
the Indonesian mainstream. This change was reflected in the growing support among Acehnese for the
central government, as indicated by votes for Golkar in national elections. In 1971, Golkar won 49
percent of the region's vote; in 1977, 41 percent; and in 1982, 37 percent. By 1987, however, with 51.8
percent of the vote, Golkar obtained its first majority, increasing it in 1992 to 57 percent. Nevertheless,
during the early 1990s, the idea of an independent Islamic state was kept alive by the Free Aceh (Aceh
Merdeka) movement, known to the central government as the Aceh Security Disturbance Movement
(GPK). Thought to have been crushed in the mid-1970s, the guerrilla campaign of the insurgents, under
the leadership of European-based Hasan di Tiro and with Libyan support, renewed its hit-and-run
warfare in the late 1980s, hoping to build on economic and social grievances as well as on Islamism.
ABRI reacted with crushing force and, as it sought to root out the separatists, civil-military relations
were imperiled. But moderately pro-Golkar 1992 election results suggested there was no widespread
alienation in Aceh.

Irian Jaya

Irian Jaya, the former Dutch New Guinea or West New Guinea, remained under Dutch control after
Indonesian independence in 1949. A combination of Indonesian political and military pressure and
international efforts led to an October 1962 Dutch transfer of sovereignty to the United Nations (UN)
Temporary Executive Authority, which was supported by a military observer force that oversaw the
cease-fire. In May 1963, full administrative control was handed over to Indonesia. After a 1969 Act of
Free Choice, the territory, which the Indonesians called Irian Barat (West Irian) until 1972, was
integrated into the republic as Indonesia's twenty-sixth province. Rich in natural resources, Irian Jaya
(Victorious Irian)--as the province was renamed in 1972--in 1992 was the largest and least-populated
province. Indonesia's efforts to exploit the resources and assimilate the indigenous Papuan and
Melanesian populations into the national administration and culture met sporadic armed resistance
from the Free Papua Movement (OPM) and aroused international concerns.

Although the OPM became a marginal domestic actor, more visible as an international symbol, the fact
of its existence justified an intimidating Indonesian military presence in the province, where suspicions
about Irianese loyalties led to abuses in the civil-military relationship. Cultural differences between
Indonesians and the indigenous population and complaints about the Javanization of Irian Jaya
exacerbated tensions. The cultural conflict was aggravated by indigenous people's perceptions that they
were being left behind economically by a flood of Indonesian immigrants coming in via the central
government sponsored transmigration program. Native-born Irianese also resented the so-called
spontaneous immigrants who dominated the informal sectors of urban economies. International critics
of Indonesian policy in Irian Jaya accused the central government of waging a kind of demographic
genocide.
East Timor

East Timor, the former Portuguese Timor, was incorporated into the Republic of Indonesia in 1976 as
Timor Timur Province, although Portugal never recognized what it saw as the forcible annexation of its
former territory. This incorporation followed Indonesian armed intervention in December 1975 in a
reaction to a chaotic decolonization process and the declaration of the Democratic Republic of East
Timor in November 1975 that had led to civil war. From Jakarta's point of view, this state of affairs held
out the alarming prospect of a communist or radical socialist regime emerging under the leadership of
the Revolutionary Front for an Independent East Timor (Fretilin). Moreover, Fretilin's rhetorical
invocation of kinship with other Third World communist revolutionary movements raised the specter of
a national security threat. Jakarta formalized its takeover of East Timor in July 1976 after the Indonesia-
sponsored People's Representative Council requested that East Timor be integrated into Indonesia as a
province. The human cost of the civil war--Indonesian military actions and the famine that followed--was
heavy. Estimates of Timorese deaths because of the conflict between 1975 and 1979 range from
100,000 to 250,000. The ability of Fretilin to mount a low-intensity resistance, the draconian
countermeasures adopted by Indonesian military forces against suspected Fretilin sympathizers, and
charges of Indonesian aggression against East Timor combined to make the problem of the status of East
Timor a continuing foreign policy problem for Indonesia in the early 1990s. For many individuals and
nongovernmental organizations, as well as for some foreign governments, Indonesian policy in East
Timor became the touchstone for negative attitudes toward the Suharto government. Internally,
however, Indonesia considered East Timor an integral part of the unitary state, a status that, despite
foreign criticism, was non-negotiable.

On paper, East Timor in 1992 conformed administratively to the general Indonesian pattern. In fact,
however, de facto military rule existed. For ten years, Jakarta-appointed governor Mario Carrascalo, a
Timorese committed to integration, sought to moderate interethnic conflict and resolve intra-Timorese
divisions among indigenous political parties. Carrascalo called upon the Timorese people to understand
that there were only three political groupings in Indonesia: Golkar, PPP, and PDI. Although the central
government invested heavily in Timor's development with more Inpres funds per capita than any other
province, resentment of Indonesian rule persisted and was growing in the early 1990s. The problem of
integration in Timor was similar to that of Irian Jaya: the imposition of Indonesian political culture on a
resistant population. Although Indonesian officials insisted that opposition to Jakarta's rule was confined
to Fretilin hardliners, other forces were at work in ways that aggravated a sensitive political
environment. The Roman Catholic Church staunchly defended the Christian identity of the Timorese in
the face of an influx of Indonesians from other provinces. The church worried about the government's
condoning, to the point of encouraging, Islamic proselytization, and about its own freedom of action in a
national political system disciplined to Pancasila democracy. Pope John Paul II's four-hour stopover in
Dili, the capital of East Timor, on October 12, 1989, called international attention to the church's
extraordinary position in the province. The disruption of traditional and Portuguese institutions, as well
as forced resettlement of segments of the population, led to land disputes, official corruption, and
economic exploitation by non-Timorese Indonesians attracted to the province. These grievances were
exacerbated by a heavy-handed military presence not always respectful of Timorese rights. One
consequence of Indonesian rule was the spread of literacy and skills acquisition by a younger generation
of Timorese who were faced with growing unemployment but who also were politically conscious. It was
the emerging militancy of the East Timorese youth, rather than the scattered Fretilin elements, that
seemed to pose the greatest challenge to security and stability in the province in the early 1990s.
Indonesian officials who were aware that on a per capita basis East Timor had received a
disproportionate share of developmental funds interpreted Timorese resentments as ingratitude.
Nevertheless, the combination of military pressure and economic and social development programs had
progressed to the point that on January 1, 1989, East Timor was proclaimed an open province to which
travel and tourism were permitted on the same basis as elsewhere in Indonesia. Some tensions followed
a minor demonstration during the pope's visit, but a reshuffling of the lines of military command and a
more determined effort by the new military leadership in the province to improve civil-military relations
were expected to ease tensions even further. These hopes were dashed on November 12, 1991, when
troops fired on youthful marchers in a funeral procession that had become a proFretilin political
demonstration in Dili. At least 50 and perhaps more than 100 people were killed.

The National Investigation Commission appointed by Suharto found the army guilty of "excessive force"
and poor discipline in crowd control. The senior officer in East Timor, Brigadier General Rafael S.
Warouw, was replaced, as was his superior in Bali; three officers were dismissed from the army, and at
least eight officers and soldiers were court-martialed. However, the punishments were relatively light
when contrasted with the harsh sentences meted out to Timorese arrested as instigators of the incident.
Nevertheless, the president's acceptance of a report that directly contradicted the army's contention
that the shootings had been in self-defense and his willingness to take action against military personnel
were pragmatic decisions that took the risk of offending ABRI members who preferred solidarity. The
central government's main concern seemed to be to contain the international criticism of what some
foreign observers called the Dili Massacre.

The November 12 affair confirmed that there were still strong social and political problems in East
Timor. It also raised questions as to the relative efficacy of the differing military approaches. Some
officers felt that the relative tolerance shown by the military to the restless youth since 1989 was too
permissive and encouraged opposition. The Dili affair also pointed out the strong emotions on the
military side, which led to the unauthorized presence of members of the local military garrison who
were widely accused of misbehavior. The investigation commission mentioned this in its official report,
stating "another group of unorganized security personnel, acting outside any control or command, also
fired shots and committed beatings, causing more casualties." Carrascalo called the replaced Warouw
the "best military commander East Timor has ever had." Tragic as it was, the November 12 incident
prompted both military and civilian government agencies to conduct a broad review of development
and security policies in East Timor including the question of civil-military relations. In fact, Carrascalo's
successor, Abilio Soares, was also a civilian as had been widely expected.

Economy

ROLE OF GOVERNMENT

In the early years of nation building, from 1950 to 1957, a variety of moderate policies were pursued to
support the pribumi through subsidized credit from the state-owned Bank Rakyat, or People's Bank, and
through limiting certain markets to pribumi business. The nation's first five-year development plan
(1956-60) proposed a realistic level of government investment in public infrastructure, but offered little
regulation or overall guidance to the private sector. This plan was superseded by dramatic
developments in the political and economic sphere, including the 1957 takeover of Dutch enterprises
initiated by workers, which led ultimately to state control of this important segment of the economy.
About 300 Dutch plantations and 300 firms in other areas such as mining, trade, finance, and utilities
ultimately came under the control of the Indonesian government. Dutch management was replaced by
Indonesian civil servants or military officers, most of whom had little managerial experience.

The de facto expansion of the state was sustained by a general policy shift to justify greater state
intervention in the economy. Sukarno's Guided Economy was initiated in a new eight-year development
plan begun in 1959, which entailed a twelvefold increase in government project expenditure from the
previous plan, without clear sources of finance. By the mid-1960s, central bank credit to the government
accounted for half of government expenditures. This deficit spending led in turn to mounting inflation,
which peaked at 1,500 percent between June 1965 and June 1966. At the same time, foreign debt
mounted, both from the West and increasingly from the Soviet Union. In spite of a highly visible public
building campaign, the economy stagnated and by 1966 per capita production was below the 1958 level.

Following the downfall of Sukarno, the New Order regime under Suharto pursued, with financial
assistance from the International Monetary Fund (IMF), a variety of emergency stabilization measures to
put the economy back on course. During the 1960s, a team of economists from the Faculty of Economics
at the University of Indonesia became influential presidential advisers. Because three of the five-
member team had received doctorates from the University of California at Berkeley, the group was
sometimes referred to as the "Berkeley Mafia." Chief among the Berkeley group's recommended
reforms was a balanced budget, although foreign assistance and foreign borrowing were included as
sources of revenue. Furthermore, in a break from the socialist tenor of Sukarno's Guided Economy,
Suharto's New Order heralded a return to private market development.

The New Order remained committed to a stable economic environment encouraged by responsible
fiscal and monetary policy, but concerns over foreign economic dominance, the limited national
industrial base, and the need for pribumi economic development mandated increased government
regulation during the 1970s. In spite of these increasing government controls, the economy continued
to prosper throughout the 1970s, with GDP growing an average 8 percent annually.

By the early 1980s, a precipitous drop in growth pointed to limits in the industrialization strategy, and a
new generation of reformers advocated a more limited role for the government. Entrenched
beneficiaries of protected markets and enlarged bureaucracies resisted these reforms, but when the oil
market collapsed in 1986, the balance was tipped in favor of the "freefight " advocates.

The Politics of Economic Reform

Two main forces of influence within the New Order government battled to shape economic policy: the
technocrats--who favored market reforms and a limited role for the government in the economy--and
economic nationalists--who argued that trade protection and direct government investment and
regulation were necessary to contain foreign influence while mobilizing sufficient resources to
modernize the economy. The technocrats were led by the original members of the "Berkeley Mafia,"
who had gained cabinet posts in the late 1960s. Among the most influential technocrats were Ali
Wardhana, initially the minister of finance in 1967 and coordinating minister of economics, finance, and
industry from 1983 to 1988, and Widjojo Nitisastro, who headed the National Development Planning
Board (Bappenas--for this and other acronyms, see table A), from 1967 to 1983. Although retired by
1988, both men remained influential behind-the-scenes advisers in the early 1990s. Under the tutelage
of Professor Sumitro Djojohadikusumo, a prominent intellectual and cabinet member in the 1950s who
founded the University of Indonesia Faculty of Economics during the 1960s, these Western-trained
economists were the voice of economic liberalism. The economic nationalists included prominent
officials in the Department of Industry, headed by Hartarto; offices under the minister of state for
research and technology, Bacharuddin J. Habibie; and the Investment Coordinating Board (BKPM). The
balance of power between the economic technocrats and the economic nationalists was mediated by
Suharto, who skillfully channeled the energies of both groups into separate arenas.

After the New Order successfully countered the rampant inflation and financial collapse of the Sukarno
era, the technocrats gained credibility and influence in the domain of financial and fiscal policy. As oil
revenues grew in the 1970s, those government agencies responsible for trade and industrial policy
sought to extend Indonesia's domestic industrial base by investing in basic industries, such as steel and
concrete, and by erecting trade barriers to protect domestic producers from excessive foreign
competition. Government regulations proliferated, and oil taxes fueled investment in development
projects and state enterprises.

The private sector became dominated by large conglomerate corporations, often Chinese minority-
owned, which had sufficient wealth and know-how to assist the government in large-scale
modernization projects. Australian economist Richard Robison estimated that Chinese Indonesian
capital accounted for 75 percent of private-sector investment in the 1970s. The two most prominent
conglomerates, the Astra Group and the Liem Group, had substantial holdings in dozens of private firms
ranging from automobile assembly to banking. The growth of these conglomerates usually hinged on
close ties to government. In exchange for monopoly privileges on production and imports of key
industrial products, conglomerates would undertake large-scale investment projects to help implement
government industrialization goals. Political patronage became a vital component of business success in
the early 1980s as government restrictions were extended to curtail imports when oil revenues began to
decline.

By the mid-1980s, about 1,500 items representing 35 percent of the value of imports were imported
either by licensed importers or controlled through a quota system. Such nontariff barriers affected
virtually all manufactured imports, but were particularly extensive for textiles, paper and paper
products, and chemical products. As a result of restrictions on imports, firms in these sectors were
effectively protected from foreign competition or able to sell their products at a higher cost. Firms that
obtained import licenses were also highly profitable, but costs were borne by the entire economy
because imports were often key inputs for many manufacturers. Popular resentment grew as the gains
from these restrictions enriched a privileged minority. To the long-standing public sensitivity toward the
prominence of the Chinese minority was added dismay that members of Suharto's family were profiting
from access to import monopolies.

Suharto's six children were the most visible beneficiaries of close government connections. Each child
was connected with one or more conglomerates with diverse interests, and like their Chinese minority
counterparts, they based their business success at least partly on lucrative government contracts. For
example, son Bambang Trihatmodjo's Bimantara Citra Group, reportedly the largest family
conglomerate by the 1990s and Indonesia's fifth largest company in 1992, got its start in the early 1980s
selling allocations of overseas oil to the National Oil and Natural Gas Mining Company (Pertamina)--the
government oil monopoly and the nation's largest company. Lower value middle East oil was thus used
for domestic refining and consumption while higher-grade Indonesian oil was used for export, primarily
to Japan.
Two vital industries symbolized the intricate relationship between government and business: steel and
plastics. In the first case, the founder of the Liem Group, Liem Sioe Liong, agreed in 1984 to invest
US$800 million to expand a government enterprise, Krakatau Steel, in Cilegon, Jawa Barat Province, to
add production of cold-rolled sheet steel. In return, a company owned partly by Liem received a
monopoly for the imports of cold-rolled steel. Once domestic production was underway, Liem's imports
were restricted to assure demand for the Krakatau product. The World Bank estimated that the scheme
added 25 to 45 percent to the cost of steel sheets in Indonesia, thereby raising costs of a wide range of
industrial products that used this material. In the second case, the importation of plastic raw materials
was monopolized through government license by Panca Holding Limited, on whose board of directors
sat Suharto's son, Bambang, and his brother, Sigit Harjojudanto. As a result, in 1986 the company
earned US$30 million on US$320 million worth of plastics imports, adding 15 to 20 percent to the price
of these materials for Indonesian users.

When oil prices plummeted in 1986, the growing dissatisfaction with the direction of trade and
industrial policy became more vocal among small private businesses excluded from the benefits. A
number of smaller businesses organized the Chamber of Commerce and Industry in Indonesia (Kadin).
These businesses became open critics of the "high-cost" economy of monopoly privilege, and in 1987
Kadin became the officially sanctioned channel of communication between business and government.
Other influential groups began to pressure the government for trade reforms, including international
lenders on whom Indonesia relied to assist the government with balance of payments difficulties
resulting from the decline in oil revenues.

Several major reforms were underway before the 1986 oil crisis, but without direct affect on trade
restrictions, which although valued by influential beneficiaries, had become costly to many businesses.
Major trade deregulation began in 1986, but left the largest import monopolies untouched until 1988, a
gradual approach to reform that influential technocrat Ali Wardhana attributed to the limitations of the
government bureaucracy. He hinted at a broader political motive, however, in acknowledging that
piecemeal reforms had the advantage of progressively winning a new constituency for further reform.
The financial sector was the first sector to be reformed in the 1980s, as it was in the mid-1960s, when
the New Order government faced the excesses of the previous regime.

Financial Reform

The president's technocratic advisers on financial policy, who had unsuccessfully resisted growing
government regulations during the 1970s, spearheaded the return to market-led development in the
1980s. The financial sector is often the most heavily regulated sector in developing countries; by
controlling the activities of relatively few financial institutions, governments can determine the direction
and cost of investment in all sectors of the economy. From the 1950s to the early 1980s, the Indonesian
government frequently resorted to controls on bank lending and special credit programs at subsidized
interest rates to promote favored groups. Toward the end of this period, the large state banks that
administered government programs were often criticized as corrupt and inefficient. Sweeping reforms
began in 1983 to transform Indonesia's government-controlled financial sector into a competitive source
of credit at market-determined interest rates, with a much greater role for private banks and a growing
stock exchange. By the early 1990s, critics were more likely to complain that deregulation had gone too
far, introducing excessive risk taking among highly competitive private banks.
Like many developing countries, the Indonesian financial sector historically was dominated by
commercial banks rather than by bond and equity markets, which require a mature system of
accounting and financial information. Several established Dutch banks were nationalized during the
1950s, including de Javasche Bank, or Bank of Java, which became the central bank, Bank Indonesia, in
1953. Under Sukarno's Guided Economy, the five state banks were merged into a single conglomerate,
and private banking virtually ceased. One of the first acts of the New Order was to revive the legal
foundation for commercial banking, restoring separate state banks and permitting the reestablishment
of private commercial banks and a limited number of foreign banks.

During the 1970s, state banks benefited from supportive government policies, such as the requirement
that the growing state enterprise sector bank solely with state banks. State banks were viewed as agents
of development rather than profitable enterprises, and most state bank lending was in fulfillment of
governmentmandated and subsidized programs designed to promote various economic activities,
including state enterprises and small-scale pribumi businesses. State bank lending was subsidized
through Bank Indonesia, which extended "liquidity credits" at very low interest rates to finance various
programs. By 1983 such liquidity credits represented over 50 percent of total state bank credit. Total
state bank lending in turn represented about 75 percent of all commercial bank lending. The nonstate
banks--which by 1983 numbered seventy domestic banks and eleven foreign or joint-venture banks--had
been curtailed during the 1970s by licensing restrictions, even though they offered competitive interest
rates on deposits and service superior to that offered by the large bureaucratic state banks. Bank
Indonesia also imposed credit quotas on all banks to reduce inflationary pressures generated by the oil
boom.

The first major economic reform of the 1980s permitted a greater degree of competition between state
and private banks. In June 1983, credit quotas were lifted and state banks were permitted to offer
market-determined interest rates on deposits. Many of the subsidized lending programs were phased
out, although certain priority lending continued to receive subsidized refinancing from Bank Indonesia.
Also, important restrictions remained, including the requirement that state enterprises bank at state
banks and limitations on the number of private banks. By 1988 state banks still accounted for almost 70
percent of total bank credit, and liquidity credit still accounted for about 33 percent of total state bank
credit.

In October 1988, further financial deregulation essentially eliminated the remaining restrictions on bank
competition. Limitations on licenses for private and foreign joint-venture banks were lifted. By 1990
there were ninety-one private banks--an increase of twenty-eight in a single year--and twelve new
foreign joint-venture banks, bringing the total foreign and joint-venture banks to twenty-three. State
enterprises were permitted to hold up to 50 percent of their total deposits in private banks. Later, in
January 1990, many of the remaining subsidized credit programs were eliminated.

The extensive bank deregulations promoted a rapid growth in rupiah-denominated bank deposits,
reaching 35 percent per year when controlled for inflation in the two years following the October 1988
reforms. This rapid growth led to concerns that competition had become excessive; concern was
heightened by the near failure of the nation's second largest private bank, Bank Duta. The bank
announced in October 1990 that it had lost more than US$400 million, twice the amount of its
shareholders' capital, in foreign exchange dealings. The bank was saved by an infusion of capital from its
shareholders, which included several charitable foundations chaired by Suharto himself. The spectacular
crash of Bank Summa in November 1992 was not protected by Bank Indonesia. Its owner, a highly
respected wealthy businessman, was forced to liquidate other assets to cover depositors' losses.
Unrestricted transactions in foreign exchange by Indonesian residents had been a unique feature of the
financial sector since the early 1970s. While many developing countries attempt to outlaw such so-
called capital flight, the New Order continued to permit Indonesian residents to invest in foreign
financial assets and to acquire the foreign exchange necessary for investments through Bank Indonesia
without limit. Commercial banks in Indonesia, including state banks, were also permitted since the late
1960s to offer foreign currency--usually United States dollar--deposits, giving rise to the so-called Jakarta
dollar market. By 1990 20 percent of total bank deposits were denominated in foreign currency. This
freedom to invest in foreign exchange served the financial institutions well. During the 1970s, when
banks' domestic credit activities were heavily restricted, most banks found it profitable to hold assets
abroad, often well in excess of their foreign exchange deposits. When demand for domestic credit was
high, banks resorted to international borrowing to finance expanding domestic loans. To control the
domestic supply of credit by plugging the offshore leak, in March 1990, Bank Indonesia issued a new
regulation that limited the net foreign position of a bank (the difference between foreign assets and
liabilities) to 25 percent of the bank's capital.

Prior to bank reforms in October 1988, some private banks were essentially the financial arm of large
business conglomerates and consequently did not make loans to businesses outside those connected
with the bank's owners. The 1988 bank reforms limited loans to businesses owned by bank
shareholders. When many of the government-subsidized credit programs targeted to small businesses
were eliminated in January 1990, the government required banks to lend a 20 percent share of their
loan portfolio to small businesses, defined as those businesses with assets, excluding land, worth less
than Rp600 million (about US$300,000). This aspect of financial reform ran counter to the overall effort
to improve bank efficiency, since the rule applied to all banks regardless of their expertise in small-scale
lending. However, the policy reflected the government's persistent concern that the public might
perceive the benefits of economic growth as limited to the wealthy few.

One of the most striking outcomes of financial reform was the revival of the Jakarta stock market in the
late 1980s. Established in 1977, the stock market had become lifeless during the early 1980s because of
extensive regulation of stock issues and price movements. In conjunction with substantial bank reforms,
many restrictions on the Jakarta Stock Exchange were lifted in the mid1980s , broadening the range of
firms that could issue equity and permitting stock prices to reflect market supply and demand. To tap
the growing international interest in Asian investments, foreign ownership was permitted for up to 49
percent of an Indonesian firm's issued capital. The market's response to these reforms was dramatic.
The number of firms listed on the exchange rose from 24 in 1988 to 125 in January 1991, and the market
capitalization--the total market value of issued stocks--reached more than Rp12 billion. Although this
amount of market capitalization was less than 15 percent of the volume of bank credit to private firms,
the stock market promised to become an increasingly important source of finance.

Trade and Industrial Reform

Indonesia's industrialization during the 1970s and early 1980s was accompanied by a growing web of
trade restrictions and government regulations that made private businesses the hostage of government
approval or protection. The dictates of the market had little bearing on profitability, and even the most
inefficient firms could prosper with the right government connections. As a consequence, almost all of
Indonesia's industrial production was sold on domestic markets, leaving exports dominated by oil and
agricultural products.
Major trade policy reforms, introduced in the mid-1980s, went a long way toward disentangling the
government from the marketplace. These reforms proved very successful in promoting the growth of
new export industries. Still, the large conglomerates that had emerged under heavy regulations also had
the resources to benefit most in the more competitive environment. By the early 1990s, the government
still confronted widespread popular concern over the distribution of gains from economic development.

The industrial and trade policy favored by government through the early 1980s was characterized by
development economists as import-substitution industrialization. As illustrated by the steel industry
example discussed above, the typical pattern was to encourage domestic producers to invest in a
priority sector, selected by the Department of Industry, that could substitute domestic production for
products previously imported. The enticement offered to the domestic investor often included sole
license to import the product and restrictions on other potential domestic producers. The Department
of Trade issued import licenses, and BKPM, which had jurisdiction over investment by all foreign firms
and most large domestic firms, provided the constraints to potential domestic competitors. The overall
direction of industrialization was framed in five-year development plans, but political influence often led
to a more capricious pattern of benefits. In addition to almost 1,500 nontariff restrictions, such as
import license requirements, tariffs ranging up to 200 percent of the value of an import were in place on
those imports not affected by licensing.

The inefficiencies that plagued this strategy were documented by Department of Finance economists
who were preparing for a major tax reform implemented in 1985. Case studies of firms in import
substitute sectors showed they generated 25 percent of employment opportunities that investment in
potential exports would have supplied, and that shifting investment from an import substitute to an
export product would generate four times the foreign-exchange earnings. Indonesia thus was left out of
the substantial regional growth in manufactured exports during the early 1980s. In Thailand and
Malaysia, manufactured exports accounted for 25 and 18 percent of exports, respectively, by 1980,
whereas manufactured exports generated only about 2 percent of total Indonesian exports that year.

The complexity of trade regulations provided a rich opportunity for corruption within the Customs
Bureau, which administered policies and assessed the value of imports to determine the appropriate
tariffs. In April 1985, the Customs Bureau was released from its responsibilities, and a Swiss firm, Socit
Gnrale de Surveillance, was contracted to process all imports valued over US$5,000. Socit Gnrale
de Surveillance determined the value of imports into Indonesia at their port of origin and shipped the
products in sealed crates to the Indonesian destination. Importers within Indonesia reported that their
import costs fell by over 20 percent within months of the reform.

The first measure to directly curtail high trade barriers came in the form of an export certification
program designed to offset the high costs for exporters who purchased imported inputs. This was
abandoned, however, when the United States threatened to curtail textile imports from Indonesia
because of the alleged subsidy from the certification scheme. In response, Indonesia agreed to sign the
General Agreement on Tariffs and Trade (GATT) Export Subsidy Accord in 1985. This provided a further
impetus for more substantial trade reform since the agreement prohibited government compensation
for export costs created by nontariff barriers to imported inputs.

In May 1986, the first in a series of more substantial trade reforms was announced. The reform package
provided duty refunds for tariffs paid on the imports of domestic producers who exported a substantial
share of their products. To overcome the problem of nontariff barriers, such as licensing restrictions on
imports, exporters were granted the right to import their own inputs, even if another firm previously
had exclusive privilege to import the product. Restrictions on foreign investment were reduced,
particularly to stimulate production for export.

Although these reforms improved profits of exporting firms, they did not help to encourage exports
from firms that preferred to supply the protected domestic market. In November 1988, a major trade
reform began to dismantle the extensive nontariff barriers and to lower and simplify tariffs rates. By
eliminating the influential plastics and steel import monopolies, government indicated the seriousness
of the new policy direction. The 1988 reforms brought the share of domestic manufacturing protected
by nontariff barriers to 35 percent from 50 percent in 1986.

Deregulation continued in a series of reform packages affecting both direct trade barriers and
government regulations that indirectly influenced the "high-cost" business climate. By 1990 nontariff
barriers affected only 660 import items, compared with 1,500 items two years earlier. Tariffs, still
charged on almost 2,500 different imported items, had a maximum rate of 40 percent. BKPM adopted a
new policy in 1989 to list only those economic sectors in which investment was restricted; the negative
list replaced a complex Priority Scale List that had controlled investment in virtually all sectors. In 1991
the contract with Socit Gnrale de Surveillance was renewed under new provisions mandating that
the Customs Bureau be trained to eventually replace the foreign firm.

Most of the substantial reforms that began in the mid-1980s and continued through the early 1990s
reflected a new orientation to market-led economic development. In some cases, however, important
new policies reflected the longstanding government concern that the private marketplace could not be
trusted to ensure politically desirable outcomes. This was particularly true of policies concerning the
processing of Indonesia's valuable natural resources and the sensitive area of pribumi business
development.

Indonesia was the world's leading exporter of tropical logs in 1979, accounting for 41 percent of the
world market. Concerns about environmental degradation and the lack of domestic log processing
capacity led to restrictions on log exports beginning in 1980, culminating in a complete ban on log
exports in 1985. The intent was primarily to foster the nascent plywood and sawmill industry, which
could in turn export its output and expand employment and industry within the country. By 1988
Indonesia supplied almost 30 percent of world exports of plywood. The success of this policy led to
other similar initiatives, including a ban on raw rattan exports in 1988 to foster the domestic rattan
furniture industry and a substantial export tax on sawn timber in 1990 to promote the domestic wood
furniture industry.

Many benefits that fostered the growth of large conglomerates were reduced or eliminated, but the
conglomerates adapted quickly to the new environment. For example, the Bimantara Citra Group,
operated by Suharto's son Bambang, lost its plastics import license held through Panca Holdings in 1988
but gained new interests in sectors that had previously been closed to private investment. The group
became the first Indonesian company permitted to establish a privately owned television station--
Rajawali Citra Televisi Indonesia (RCTI)--and, in the early 1990s, was poised to invest in petrochemical
plants, long a government stronghold. Another son, Tommy Suharto, had a major holding in Sempati Air
Services, the first private Indonesian airline permitted to offer international jet service in competition
with the government airline monopoly, Garuda Indonesia. An extensive review of Suharto family
holdings published in the Far Eastern Economic Review in April 1992 noted that public resentment of
family business gains was growing, although government officials and businessmen refused to voice
their concern openly.
The government took some measures to curtail the continued dominance of large conglomerates. In
1990 Suharto himself publicly called for large business conglomerates to sell up to 25 percent of their
corporate shares to employee-owned cooperatives on credit supplied by the conglomerates themselves,
to be repaid with future stock dividends. The request was not legally mandated, but the attendant
publicity that clearly identified the major Chinese minority firms involved was viewed as pressure to
comply. Within a year, 105 companies had sold much smaller shares of stocks, diluted by special
nonvoting provisions, to the cooperatives. A further initiative in 1991 called for large firms to become
the "foster fathers" of smaller pribumi businesses, which would serve as their suppliers, retailers, and
subcontractors.

Large, state-owned enterprises faced greater competition, but privatization of these operations did not
seem likely in the early 1990s. During the late 1980s, however, several measures were undertaken to
prepare for possible eventual privatization, including a thorough independent assessment of the
profitability of each enterprise and a review of management compensation in relation to performance
criteria. In 1988 the Department of Finance issued a new regulation outlining measures that could be
taken to improve the performance of state-owned enterprises. The measures included management
contracts with the private sector, issuing private ownership shares on capital markets or direct sale to
private owners, and liquidation.

Another government policy initiated in 1989 suggested that at least some state-owned industries would
be protected from possible privatization. A Council for the Development of Strategic Industries was
established, headed by Minister of State for Research and Technology Habibie. The council gained
control of ten major state enterprises, including several munitions plants, the state aircraft firm
Archipelago Aircraft Industry (IPTN), and Krakatau Steel. Under Habibie the industries' long-term
development would be coordinated with continued government funding. This policy, viewed as a
concession to the economic nationalists in the midst of government cutbacks, assured a major role for
state-owned industries in Indonesia's most technologically sophisticated sectors.

Tourist spots

ROLE OF GOVERNMENT

In the early years of nation building, from 1950 to 1957, a variety of moderate policies were pursued to
support the pribumi through subsidized credit from the state-owned Bank Rakyat, or People's Bank, and
through limiting certain markets to pribumi business. The nation's first five-year development plan
(1956-60) proposed a realistic level of government investment in public infrastructure, but offered little
regulation or overall guidance to the private sector. This plan was superseded by dramatic
developments in the political and economic sphere, including the 1957 takeover of Dutch enterprises
initiated by workers, which led ultimately to state control of this important segment of the economy.
About 300 Dutch plantations and 300 firms in other areas such as mining, trade, finance, and utilities
ultimately came under the control of the Indonesian government. Dutch management was replaced by
Indonesian civil servants or military officers, most of whom had little managerial experience.

The de facto expansion of the state was sustained by a general policy shift to justify greater state
intervention in the economy. Sukarno's Guided Economy was initiated in a new eight-year development
plan begun in 1959, which entailed a twelvefold increase in government project expenditure from the
previous plan, without clear sources of finance. By the mid-1960s, central bank credit to the government
accounted for half of government expenditures. This deficit spending led in turn to mounting inflation,
which peaked at 1,500 percent between June 1965 and June 1966. At the same time, foreign debt
mounted, both from the West and increasingly from the Soviet Union. In spite of a highly visible public
building campaign, the economy stagnated and by 1966 per capita production was below the 1958 level.

Following the downfall of Sukarno, the New Order regime under Suharto pursued, with financial
assistance from the International Monetary Fund (IMF), a variety of emergency stabilization measures to
put the economy back on course. During the 1960s, a team of economists from the Faculty of Economics
at the University of Indonesia became influential presidential advisers. Because three of the five-
member team had received doctorates from the University of California at Berkeley, the group was
sometimes referred to as the "Berkeley Mafia." Chief among the Berkeley group's recommended
reforms was a balanced budget, although foreign assistance and foreign borrowing were included as
sources of revenue. Furthermore, in a break from the socialist tenor of Sukarno's Guided Economy,
Suharto's New Order heralded a return to private market development.

The New Order remained committed to a stable economic environment encouraged by responsible
fiscal and monetary policy, but concerns over foreign economic dominance, the limited national
industrial base, and the need for pribumi economic development mandated increased government
regulation during the 1970s. In spite of these increasing government controls, the economy continued
to prosper throughout the 1970s, with GDP growing an average 8 percent annually.

By the early 1980s, a precipitous drop in growth pointed to limits in the industrialization strategy, and a
new generation of reformers advocated a more limited role for the government. Entrenched
beneficiaries of protected markets and enlarged bureaucracies resisted these reforms, but when the oil
market collapsed in 1986, the balance was tipped in favor of the "freefight " advocates.

The Politics of Economic Reform

Two main forces of influence within the New Order government battled to shape economic policy: the
technocrats--who favored market reforms and a limited role for the government in the economy--and
economic nationalists--who argued that trade protection and direct government investment and
regulation were necessary to contain foreign influence while mobilizing sufficient resources to
modernize the economy. The technocrats were led by the original members of the "Berkeley Mafia,"
who had gained cabinet posts in the late 1960s. Among the most influential technocrats were Ali
Wardhana, initially the minister of finance in 1967 and coordinating minister of economics, finance, and
industry from 1983 to 1988, and Widjojo Nitisastro, who headed the National Development Planning
Board (Bappenas--for this and other acronyms, see table A), from 1967 to 1983. Although retired by
1988, both men remained influential behind-the-scenes advisers in the early 1990s. Under the tutelage
of Professor Sumitro Djojohadikusumo, a prominent intellectual and cabinet member in the 1950s who
founded the University of Indonesia Faculty of Economics during the 1960s, these Western-trained
economists were the voice of economic liberalism. The economic nationalists included prominent
officials in the Department of Industry, headed by Hartarto; offices under the minister of state for
research and technology, Bacharuddin J. Habibie; and the Investment Coordinating Board (BKPM). The
balance of power between the economic technocrats and the economic nationalists was mediated by
Suharto, who skillfully channeled the energies of both groups into separate arenas.
After the New Order successfully countered the rampant inflation and financial collapse of the Sukarno
era, the technocrats gained credibility and influence in the domain of financial and fiscal policy. As oil
revenues grew in the 1970s, those government agencies responsible for trade and industrial policy
sought to extend Indonesia's domestic industrial base by investing in basic industries, such as steel and
concrete, and by erecting trade barriers to protect domestic producers from excessive foreign
competition. Government regulations proliferated, and oil taxes fueled investment in development
projects and state enterprises.

The private sector became dominated by large conglomerate corporations, often Chinese minority-
owned, which had sufficient wealth and know-how to assist the government in large-scale
modernization projects. Australian economist Richard Robison estimated that Chinese Indonesian
capital accounted for 75 percent of private-sector investment in the 1970s. The two most prominent
conglomerates, the Astra Group and the Liem Group, had substantial holdings in dozens of private firms
ranging from automobile assembly to banking. The growth of these conglomerates usually hinged on
close ties to government. In exchange for monopoly privileges on production and imports of key
industrial products, conglomerates would undertake large-scale investment projects to help implement
government industrialization goals. Political patronage became a vital component of business success in
the early 1980s as government restrictions were extended to curtail imports when oil revenues began to
decline.

By the mid-1980s, about 1,500 items representing 35 percent of the value of imports were imported
either by licensed importers or controlled through a quota system. Such nontariff barriers affected
virtually all manufactured imports, but were particularly extensive for textiles, paper and paper
products, and chemical products. As a result of restrictions on imports, firms in these sectors were
effectively protected from foreign competition or able to sell their products at a higher cost. Firms that
obtained import licenses were also highly profitable, but costs were borne by the entire economy
because imports were often key inputs for many manufacturers. Popular resentment grew as the gains
from these restrictions enriched a privileged minority. To the long-standing public sensitivity toward the
prominence of the Chinese minority was added dismay that members of Suharto's family were profiting
from access to import monopolies.

Suharto's six children were the most visible beneficiaries of close government connections. Each child
was connected with one or more conglomerates with diverse interests, and like their Chinese minority
counterparts, they based their business success at least partly on lucrative government contracts. For
example, son Bambang Trihatmodjo's Bimantara Citra Group, reportedly the largest family
conglomerate by the 1990s and Indonesia's fifth largest company in 1992, got its start in the early 1980s
selling allocations of overseas oil to the National Oil and Natural Gas Mining Company (Pertamina)--the
government oil monopoly and the nation's largest company. Lower value middle East oil was thus used
for domestic refining and consumption while higher-grade Indonesian oil was used for export, primarily
to Japan.

Two vital industries symbolized the intricate relationship between government and business: steel and
plastics. In the first case, the founder of the Liem Group, Liem Sioe Liong, agreed in 1984 to invest
US$800 million to expand a government enterprise, Krakatau Steel, in Cilegon, Jawa Barat Province, to
add production of cold-rolled sheet steel. In return, a company owned partly by Liem received a
monopoly for the imports of cold-rolled steel. Once domestic production was underway, Liem's imports
were restricted to assure demand for the Krakatau product. The World Bank estimated that the scheme
added 25 to 45 percent to the cost of steel sheets in Indonesia, thereby raising costs of a wide range of
industrial products that used this material. In the second case, the importation of plastic raw materials
was monopolized through government license by Panca Holding Limited, on whose board of directors
sat Suharto's son, Bambang, and his brother, Sigit Harjojudanto. As a result, in 1986 the company
earned US$30 million on US$320 million worth of plastics imports, adding 15 to 20 percent to the price
of these materials for Indonesian users.

When oil prices plummeted in 1986, the growing dissatisfaction with the direction of trade and
industrial policy became more vocal among small private businesses excluded from the benefits. A
number of smaller businesses organized the Chamber of Commerce and Industry in Indonesia (Kadin).
These businesses became open critics of the "high-cost" economy of monopoly privilege, and in 1987
Kadin became the officially sanctioned channel of communication between business and government.
Other influential groups began to pressure the government for trade reforms, including international
lenders on whom Indonesia relied to assist the government with balance of payments difficulties
resulting from the decline in oil revenues.

Several major reforms were underway before the 1986 oil crisis, but without direct affect on trade
restrictions, which although valued by influential beneficiaries, had become costly to many businesses.
Major trade deregulation began in 1986, but left the largest import monopolies untouched until 1988, a
gradual approach to reform that influential technocrat Ali Wardhana attributed to the limitations of the
government bureaucracy. He hinted at a broader political motive, however, in acknowledging that
piecemeal reforms had the advantage of progressively winning a new constituency for further reform.
The financial sector was the first sector to be reformed in the 1980s, as it was in the mid-1960s, when
the New Order government faced the excesses of the previous regime.

Financial Reform

The president's technocratic advisers on financial policy, who had unsuccessfully resisted growing
government regulations during the 1970s, spearheaded the return to market-led development in the
1980s. The financial sector is often the most heavily regulated sector in developing countries; by
controlling the activities of relatively few financial institutions, governments can determine the direction
and cost of investment in all sectors of the economy. From the 1950s to the early 1980s, the Indonesian
government frequently resorted to controls on bank lending and special credit programs at subsidized
interest rates to promote favored groups. Toward the end of this period, the large state banks that
administered government programs were often criticized as corrupt and inefficient. Sweeping reforms
began in 1983 to transform Indonesia's government-controlled financial sector into a competitive source
of credit at market-determined interest rates, with a much greater role for private banks and a growing
stock exchange. By the early 1990s, critics were more likely to complain that deregulation had gone too
far, introducing excessive risk taking among highly competitive private banks.

Like many developing countries, the Indonesian financial sector historically was dominated by
commercial banks rather than by bond and equity markets, which require a mature system of
accounting and financial information. Several established Dutch banks were nationalized during the
1950s, including de Javasche Bank, or Bank of Java, which became the central bank, Bank Indonesia, in
1953. Under Sukarno's Guided Economy, the five state banks were merged into a single conglomerate,
and private banking virtually ceased. One of the first acts of the New Order was to revive the legal
foundation for commercial banking, restoring separate state banks and permitting the reestablishment
of private commercial banks and a limited number of foreign banks.
During the 1970s, state banks benefited from supportive government policies, such as the requirement
that the growing state enterprise sector bank solely with state banks. State banks were viewed as agents
of development rather than profitable enterprises, and most state bank lending was in fulfillment of
governmentmandated and subsidized programs designed to promote various economic activities,
including state enterprises and small-scale pribumi businesses. State bank lending was subsidized
through Bank Indonesia, which extended "liquidity credits" at very low interest rates to finance various
programs. By 1983 such liquidity credits represented over 50 percent of total state bank credit. Total
state bank lending in turn represented about 75 percent of all commercial bank lending. The nonstate
banks--which by 1983 numbered seventy domestic banks and eleven foreign or joint-venture banks--had
been curtailed during the 1970s by licensing restrictions, even though they offered competitive interest
rates on deposits and service superior to that offered by the large bureaucratic state banks. Bank
Indonesia also imposed credit quotas on all banks to reduce inflationary pressures generated by the oil
boom.

The first major economic reform of the 1980s permitted a greater degree of competition between state
and private banks. In June 1983, credit quotas were lifted and state banks were permitted to offer
market-determined interest rates on deposits. Many of the subsidized lending programs were phased
out, although certain priority lending continued to receive subsidized refinancing from Bank Indonesia.
Also, important restrictions remained, including the requirement that state enterprises bank at state
banks and limitations on the number of private banks. By 1988 state banks still accounted for almost 70
percent of total bank credit, and liquidity credit still accounted for about 33 percent of total state bank
credit.

In October 1988, further financial deregulation essentially eliminated the remaining restrictions on bank
competition. Limitations on licenses for private and foreign joint-venture banks were lifted. By 1990
there were ninety-one private banks--an increase of twenty-eight in a single year--and twelve new
foreign joint-venture banks, bringing the total foreign and joint-venture banks to twenty-three. State
enterprises were permitted to hold up to 50 percent of their total deposits in private banks. Later, in
January 1990, many of the remaining subsidized credit programs were eliminated.

The extensive bank deregulations promoted a rapid growth in rupiah-denominated bank deposits,
reaching 35 percent per year when controlled for inflation in the two years following the October 1988
reforms. This rapid growth led to concerns that competition had become excessive; concern was
heightened by the near failure of the nation's second largest private bank, Bank Duta. The bank
announced in October 1990 that it had lost more than US$400 million, twice the amount of its
shareholders' capital, in foreign exchange dealings. The bank was saved by an infusion of capital from its
shareholders, which included several charitable foundations chaired by Suharto himself. The spectacular
crash of Bank Summa in November 1992 was not protected by Bank Indonesia. Its owner, a highly
respected wealthy businessman, was forced to liquidate other assets to cover depositors' losses.

Unrestricted transactions in foreign exchange by Indonesian residents had been a unique feature of the
financial sector since the early 1970s. While many developing countries attempt to outlaw such so-
called capital flight, the New Order continued to permit Indonesian residents to invest in foreign
financial assets and to acquire the foreign exchange necessary for investments through Bank Indonesia
without limit. Commercial banks in Indonesia, including state banks, were also permitted since the late
1960s to offer foreign currency--usually United States dollar--deposits, giving rise to the so-called Jakarta
dollar market. By 1990 20 percent of total bank deposits were denominated in foreign currency. This
freedom to invest in foreign exchange served the financial institutions well. During the 1970s, when
banks' domestic credit activities were heavily restricted, most banks found it profitable to hold assets
abroad, often well in excess of their foreign exchange deposits. When demand for domestic credit was
high, banks resorted to international borrowing to finance expanding domestic loans. To control the
domestic supply of credit by plugging the offshore leak, in March 1990, Bank Indonesia issued a new
regulation that limited the net foreign position of a bank (the difference between foreign assets and
liabilities) to 25 percent of the bank's capital.

Prior to bank reforms in October 1988, some private banks were essentially the financial arm of large
business conglomerates and consequently did not make loans to businesses outside those connected
with the bank's owners. The 1988 bank reforms limited loans to businesses owned by bank
shareholders. When many of the government-subsidized credit programs targeted to small businesses
were eliminated in January 1990, the government required banks to lend a 20 percent share of their
loan portfolio to small businesses, defined as those businesses with assets, excluding land, worth less
than Rp600 million (about US$300,000). This aspect of financial reform ran counter to the overall effort
to improve bank efficiency, since the rule applied to all banks regardless of their expertise in small-scale
lending. However, the policy reflected the government's persistent concern that the public might
perceive the benefits of economic growth as limited to the wealthy few.

One of the most striking outcomes of financial reform was the revival of the Jakarta stock market in the
late 1980s. Established in 1977, the stock market had become lifeless during the early 1980s because of
extensive regulation of stock issues and price movements. In conjunction with substantial bank reforms,
many restrictions on the Jakarta Stock Exchange were lifted in the mid1980s , broadening the range of
firms that could issue equity and permitting stock prices to reflect market supply and demand. To tap
the growing international interest in Asian investments, foreign ownership was permitted for up to 49
percent of an Indonesian firm's issued capital. The market's response to these reforms was dramatic.
The number of firms listed on the exchange rose from 24 in 1988 to 125 in January 1991, and the market
capitalization--the total market value of issued stocks--reached more than Rp12 billion. Although this
amount of market capitalization was less than 15 percent of the volume of bank credit to private firms,
the stock market promised to become an increasingly important source of finance.

Trade and Industrial Reform

Indonesia's industrialization during the 1970s and early 1980s was accompanied by a growing web of
trade restrictions and government regulations that made private businesses the hostage of government
approval or protection. The dictates of the market had little bearing on profitability, and even the most
inefficient firms could prosper with the right government connections. As a consequence, almost all of
Indonesia's industrial production was sold on domestic markets, leaving exports dominated by oil and
agricultural products.

Major trade policy reforms, introduced in the mid-1980s, went a long way toward disentangling the
government from the marketplace. These reforms proved very successful in promoting the growth of
new export industries. Still, the large conglomerates that had emerged under heavy regulations also had
the resources to benefit most in the more competitive environment. By the early 1990s, the government
still confronted widespread popular concern over the distribution of gains from economic development.

The industrial and trade policy favored by government through the early 1980s was characterized by
development economists as import-substitution industrialization. As illustrated by the steel industry
example discussed above, the typical pattern was to encourage domestic producers to invest in a
priority sector, selected by the Department of Industry, that could substitute domestic production for
products previously imported. The enticement offered to the domestic investor often included sole
license to import the product and restrictions on other potential domestic producers. The Department
of Trade issued import licenses, and BKPM, which had jurisdiction over investment by all foreign firms
and most large domestic firms, provided the constraints to potential domestic competitors. The overall
direction of industrialization was framed in five-year development plans, but political influence often led
to a more capricious pattern of benefits. In addition to almost 1,500 nontariff restrictions, such as
import license requirements, tariffs ranging up to 200 percent of the value of an import were in place on
those imports not affected by licensing.

The inefficiencies that plagued this strategy were documented by Department of Finance economists
who were preparing for a major tax reform implemented in 1985. Case studies of firms in import
substitute sectors showed they generated 25 percent of employment opportunities that investment in
potential exports would have supplied, and that shifting investment from an import substitute to an
export product would generate four times the foreign-exchange earnings. Indonesia thus was left out of
the substantial regional growth in manufactured exports during the early 1980s. In Thailand and
Malaysia, manufactured exports accounted for 25 and 18 percent of exports, respectively, by 1980,
whereas manufactured exports generated only about 2 percent of total Indonesian exports that year.

The complexity of trade regulations provided a rich opportunity for corruption within the Customs
Bureau, which administered policies and assessed the value of imports to determine the appropriate
tariffs. In April 1985, the Customs Bureau was released from its responsibilities, and a Swiss firm, Socit
Gnrale de Surveillance, was contracted to process all imports valued over US$5,000. Socit Gnrale
de Surveillance determined the value of imports into Indonesia at their port of origin and shipped the
products in sealed crates to the Indonesian destination. Importers within Indonesia reported that their
import costs fell by over 20 percent within months of the reform.

The first measure to directly curtail high trade barriers came in the form of an export certification
program designed to offset the high costs for exporters who purchased imported inputs. This was
abandoned, however, when the United States threatened to curtail textile imports from Indonesia
because of the alleged subsidy from the certification scheme. In response, Indonesia agreed to sign the
General Agreement on Tariffs and Trade (GATT) Export Subsidy Accord in 1985. This provided a further
impetus for more substantial trade reform since the agreement prohibited government compensation
for export costs created by nontariff barriers to imported inputs.

In May 1986, the first in a series of more substantial trade reforms was announced. The reform package
provided duty refunds for tariffs paid on the imports of domestic producers who exported a substantial
share of their products. To overcome the problem of nontariff barriers, such as licensing restrictions on
imports, exporters were granted the right to import their own inputs, even if another firm previously
had exclusive privilege to import the product. Restrictions on foreign investment were reduced,
particularly to stimulate production for export.

Although these reforms improved profits of exporting firms, they did not help to encourage exports
from firms that preferred to supply the protected domestic market. In November 1988, a major trade
reform began to dismantle the extensive nontariff barriers and to lower and simplify tariffs rates. By
eliminating the influential plastics and steel import monopolies, government indicated the seriousness
of the new policy direction. The 1988 reforms brought the share of domestic manufacturing protected
by nontariff barriers to 35 percent from 50 percent in 1986.

Deregulation continued in a series of reform packages affecting both direct trade barriers and
government regulations that indirectly influenced the "high-cost" business climate. By 1990 nontariff
barriers affected only 660 import items, compared with 1,500 items two years earlier. Tariffs, still
charged on almost 2,500 different imported items, had a maximum rate of 40 percent. BKPM adopted a
new policy in 1989 to list only those economic sectors in which investment was restricted; the negative
list replaced a complex Priority Scale List that had controlled investment in virtually all sectors. In 1991
the contract with Socit Gnrale de Surveillance was renewed under new provisions mandating that
the Customs Bureau be trained to eventually replace the foreign firm.

Most of the substantial reforms that began in the mid-1980s and continued through the early 1990s
reflected a new orientation to market-led economic development. In some cases, however, important
new policies reflected the longstanding government concern that the private marketplace could not be
trusted to ensure politically desirable outcomes. This was particularly true of policies concerning the
processing of Indonesia's valuable natural resources and the sensitive area of pribumi business
development.

Indonesia was the world's leading exporter of tropical logs in 1979, accounting for 41 percent of the
world market. Concerns about environmental degradation and the lack of domestic log processing
capacity led to restrictions on log exports beginning in 1980, culminating in a complete ban on log
exports in 1985. The intent was primarily to foster the nascent plywood and sawmill industry, which
could in turn export its output and expand employment and industry within the country. By 1988
Indonesia supplied almost 30 percent of world exports of plywood. The success of this policy led to
other similar initiatives, including a ban on raw rattan exports in 1988 to foster the domestic rattan
furniture industry and a substantial export tax on sawn timber in 1990 to promote the domestic wood
furniture industry.

Many benefits that fostered the growth of large conglomerates were reduced or eliminated, but the
conglomerates adapted quickly to the new environment. For example, the Bimantara Citra Group,
operated by Suharto's son Bambang, lost its plastics import license held through Panca Holdings in 1988
but gained new interests in sectors that had previously been closed to private investment. The group
became the first Indonesian company permitted to establish a privately owned television station--
Rajawali Citra Televisi Indonesia (RCTI)--and, in the early 1990s, was poised to invest in petrochemical
plants, long a government stronghold. Another son, Tommy Suharto, had a major holding in Sempati Air
Services, the first private Indonesian airline permitted to offer international jet service in competition
with the government airline monopoly, Garuda Indonesia. An extensive review of Suharto family
holdings published in the Far Eastern Economic Review in April 1992 noted that public resentment of
family business gains was growing, although government officials and businessmen refused to voice
their concern openly.

The government took some measures to curtail the continued dominance of large conglomerates. In
1990 Suharto himself publicly called for large business conglomerates to sell up to 25 percent of their
corporate shares to employee-owned cooperatives on credit supplied by the conglomerates themselves,
to be repaid with future stock dividends. The request was not legally mandated, but the attendant
publicity that clearly identified the major Chinese minority firms involved was viewed as pressure to
comply. Within a year, 105 companies had sold much smaller shares of stocks, diluted by special
nonvoting provisions, to the cooperatives. A further initiative in 1991 called for large firms to become
the "foster fathers" of smaller pribumi businesses, which would serve as their suppliers, retailers, and
subcontractors.

Large, state-owned enterprises faced greater competition, but privatization of these operations did not
seem likely in the early 1990s. During the late 1980s, however, several measures were undertaken to
prepare for possible eventual privatization, including a thorough independent assessment of the
profitability of each enterprise and a review of management compensation in relation to performance
criteria. In 1988 the Department of Finance issued a new regulation outlining measures that could be
taken to improve the performance of state-owned enterprises. The measures included management
contracts with the private sector, issuing private ownership shares on capital markets or direct sale to
private owners, and liquidation.

Another government policy initiated in 1989 suggested that at least some state-owned industries would
be protected from possible privatization. A Council for the Development of Strategic Industries was
established, headed by Minister of State for Research and Technology Habibie. The council gained
control of ten major state enterprises, including several munitions plants, the state aircraft firm
Archipelago Aircraft Industry (IPTN), and Krakatau Steel. Under Habibie the industries' long-term
development would be coordinated with continued government funding. This policy, viewed as a
concession to the economic nationalists in the midst of government cutbacks, assured a major role for
state-owned industries in Indonesia's most technologically sophisticated sectors.

Famous for

Bali

With its alluring mix of beaches, volcanoes, temples, stunning scenery, artistic and cultural wealth, the
island has long been the jewel in the Indonesian tourism crown.

Gunung Bromo

The obligatory sunrise views of this mountain in east Java, with the peak and its equally stunning
neighbours rising from an almost other worldly sea of sand, are simply spell binding. There are also
plenty of wails to enjoy in this cool, attractive region.

Borobudur

Java's number-one tourist attraction, this colossal, multi-tiered temple is the world's largest Buddhist
stupa. Over a thousand years old, the temple, though now ruined, is still surprisingly evocative, with
over three thousand reliefs detailing scenes from everyday life and the path followed by the soul to
enlightenment, along with ancient tales illustrated the journey.

Orangutans

The animals at the orangutan rehabilitation centre at Bukit Lawang in Sumatra are arguably the most
famous example of Indonesia's wildlife. The centre aims to reintroduce into the wild orangutans that
have been rescued from captivity; visitors here are welcome to watch the twice-daily feeding sessions.
Komodo Dragons

An apparent throwback to the age of dinosaurs, these creatures, actually the world's largest lizards, live
on Komodo in Nusa Tenggara, the chain of islands stretching between Bali and West Papua. The largest
ever recorded was more than 3m long and weighed in at 150kg, though most of the dragons aren't quite
so enormous.

Diving

The highlight of many visits, Indonesia's marine life is startling in its diversity. Current centres for diving
are Bali, Gili Islands off Lombok, and Sulawesi

Satay

Sate (or satay, as some spell it in English) is considered native to Indonesia . It is a widely renowned food
in almost all areas of Indonesia and is considered the national dish.

Sports

Sports in Indonesia generally refer to football, badminton and table tennis. These two are the popular
games here. But there are many traditional sports in Indonesia. They are bull races, bull fights, rowing,
and unique ram fights, all of which are held as part of special festivities. Kerapan Sapi or Bull Race is an
annual event here. Here the bulls are decorated with flowers, ribbons and gilded halters and paraded
through the towns. The Renggong Horse Contest is an annual event held every year on the month of
September at Sumedang. In this festival the horses and jockeys exhibit their dancing skills in a heated
competition. Silat is a form of martial art, can be performed as a dance or an exercise and is comparable
to Karate or Kung Fu. Silat is quiet popular here. But soccer, badminton and table tennis are mostly
played and practiced in Indonesia. Football is the most popular sport in Indonesia and played and
practiced at various levels, from children to middle-aged men. Some of the major teams include Persija
Jakarta, Persib Bandung, Persebaya Surabaya, PSM Makassar, and Arema Malang. The national body is
the Football Association of Indonesia. Indonesia won the gold medal for football in the 1962 Asian
Games. Badminton is Indonesia's most successful sport. Indonesia has been winning the gold medal in
badminton since the very inception of badminton to the Olympics in 1992. Golf is gaining popularity
nowadays with a number of excellent golf courses coming up across the archipelago. Many important
hotels have their own tennis and squash courts, swimming pools, health clubs and those at seaside
resorts provide equipment for sailing, surfing, scuba diving and windsurfing. There are also a growing
number of dive shops which provide necessary equipment and professional services.
 Cambodia

INTRODUCTION

Cambodia officially known as the Kingdom of Cambodia, is a country located in the southern
portion of the Indochina Peninsula in Southeast Asia. With a total landmass of 181,035 square
kilometres (69,898 sq mi), it is bordered by Thailand to the northwest, Laos to the northeast, Vietnam to
the east, and the Gulf of Thailand to the southwest. With a population of over 14.8 million, Cambodia is
the 69th most populous country in the world. The official religion is Theravada Buddhism which is
practiced by around 95% of the Cambodian population. The country minority groups
include Vietnamese, Chinese, Chams and 30 various hill tribes.[6] The capital and largest city is Phnom
Penh; the political, economical, and cultural center of Cambodia.

In 802 AD Jayavarman II declared himself king which marked the beginning of the Khmer Empire.
Successive kings flourished which marked the Khmer empire's immense power and wealth who
dominate much of South East Asia for over 600 years. Cambodia was ruled as a vassal between its
neighbors, until it was colonized by the French in mid-19th century. Cambodia gained independence in
1953. The Vietnam War extended into Cambodia, giving rise to the Khmer Rouge, which took Phnom
Penh in 1975. Cambodia reemerged several years later within a socialistic sphere of influence as
the People's Republic of Kampuchea until 1993. After years of isolation, the war-ravaged nation was
reunited under the monarchy in 1993.

Rebuilding from decades of civil war, Cambodia has seen rapid progress in the economical andhuman
resource areas. The country has had one of the best economic records in Asia, with economic growth
growing an average 6.0% for the last 10 years. Strong textiles, agriculture, construction, garments, and
tourism sectors led to foreign investments and international trade.[7] In 2005, oil and natural gas
deposits were found beneath Cambodia's territorial waters, and once commercial extraction begins in
2013, the oil revenues could profoundly affect Cambodia's economy.[8]

Etymology

The official name of the country is the Kingdom of Cambodia, which is pronounced in Khmer as Preh
Rachanachk Kmpcha. Etymologically, its components are: -Preah- ("sacred") ; -Reachea- (from
Sanskrit raja, meaning "king, royal, realm") ; -ana- (from Pli , "authority, command, power", itself
from Sanskrit j, same meaning) -chak (from Sanskrit chakrameaning "wheel", a symbol of power and
rule.

History

There is some sparse evidence for a Pleistocene human occupation of present day Cambodia, which
includes quartz and quartzite pebble tools found in terraces along the Mekong River, inStung
Treng and Krati provinces, and in Kampot Province, altnough their dating is unreliable.
Some slight archaeological evidence shows communities of hunter-gatherers inhabited Cambodia
during Holocene: the most ancient Cambodian archeological site is considered to be the cave ofL'aang
Spean, in Battambang Province, which belongs to the so-called Hoabinhian period. Excavations in its
lower layers produced a series of radiocarbon dates as of 6000 BC

Politics

Independence Monument: built to commemorate Cambodia's independence from France on November

9, 1953.

National politics in Cambodia take place within the framework of the nation's constitution of 1993. The
government is aconstitutional monarchy operated as a parliamentaryrepresentative democracy.
The Prime Minister of Cambodia, an office held by Hun Sen since 1985, is the head of government, while
the King of Cambodia (currently Norodom Sihamoni) is the head of state. The prime minister is
appointed by the king, on the advice and with the approval of the National Assembly

The prime minister and the ministerial appointees exerciseexecutive power while legislative powers are
shared by the executive and the bicameral Parliament of Cambodia, which consists of a lower house, the
National Assembly or Radhsphea and an upper house, the Senate orSnat. Members of the 123-
seat Assembly are elected through a system of proportional representation and serve for a maximum
term of five years. The Senate has 61 seats, two of which are appointed by the king and two others by
the National Assembly. Senators serve five year terms

On October 14, 2004, King Norodom Sihamoni was selected by a special nine-member throne council,
part of a selection process that was quickly put in place after the abdication of King Norodom Sihanouk a
week prior. Sihamoni's selection was endorsed by Prime Minister Hun Sen and National Assembly
Speaker Prince Norodom Ranariddh (the king's half brother and current chief advisor), both members of
the throne council. He was enthroned in Phnom Penh on October 29, 2004.

The Cambodian People's Party (CPP) is the major ruling party in Cambodia. The CPP controls the lower
and upper chambers of parliament, with 73 seats in the National Assembly and 43 seats in the Senate.
The opposition Sam Rainsy Party is the second largest party in Cambodia with 26 seats in the National
Assembly and 2 in the Senate.

Military

The Royal Cambodian Army, Royal Cambodian Navy, Royal Cambodian Air Force and Royal
Gendarmerie collectively form the Royal Cambodian Armed Forces, under the command of theMinistry
of National Defense, presided over by the Prime Minister of Cambodia. His Majesty King Norodom
Sihamoni is the Supreme Commander of the Royal Cambodian Armed Forces (RCAF), and the country's
Prime Minister Hun Sen effectively holds the position of commander-in-chief.

The introduction of a revised command structure early in 2000 was a key prelude to the reorganisation
of the Cambodian military. This saw the defence ministry form three subordinate general departments
responsible for logistics and finance, materials and technical services, and defence services under the
High Command Headquarters (HCHQ).

The minister of National Defence is General Tea Banh. Banh has served as defence minister since 1979.
The Secretaries of State for Defence are Chay Saing Yun and Por Bun Sreu. The new Commander-in-Chief
of the RCAF and was replaced by his deputy General Pol Saroeun, who is a long time loyalist of Prime
Minister Hun Sen. The Army Commander is General Meas Sophea and the Army Chief of Staff is Chea
Saran.

In 2010, the Royal Cambodian Armed Forces comprised about 210,000 personnel. Total Cambodian
military spending stands at 3% of national GDP. The Royal Gendarmerie of Cambodia total more than
7,000 personnel. Its civil duties include providing security and public peace, to investigate and prevent
organized crime, terrorism and other violent groups; to protect state and private property; to help and
assist civilians and other emergency forces in a case of emergency, natural disaster, civil unrest and
armed conflicts.

Foreign relations

Ambassador Thay Vanna presents his credentials to Russian President Dmitry Medvedev on October 18,
2010.The foreign relations of Cambodia are handled by the Ministry of Foreign Affairs under H.E. Hor
Namhong. Cambodia is a member of the United Nations, the World Bank and the International
Monetary Fund. It is a member of the Asian Development Bank (ADB), ASEAN, and joined the WTO on
October 13, 2004. In 2005 Cambodia attended the inaugural East Asia Summit in Malaysia. On
November 23, 2009, Cambodia reinstated the membership to the International Atomic Energy Agency
(IAEA). Cambodia first became a member of IAEA on February 6, 1958 but withdrew its membership on
March 26, 2003.[50]

Cambodia has established diplomatic relations with numerous countries; the government reports
twenty embassies in the country[51] including many of its Asian neighbours and those of important
players during the Paris peace negotiations, including the US, Australia, Canada, China, the European
Union (EU), Japan, and Russia.[52] As a result of its international relations, various charitable
organizations have assisted with social, economical, and civil infrastructure needs.

Geography

Cambodia has an area of 181,035 square kilometers (69,898 sq mi) and lies entirely within the tropics,
between latitudes 10 and 15N, and longitudes 102 and 108E. It borders Thailand to the north and
west, Laos to the northeast, and Vietnam to the east and southeast. It has a 443-kilometer (275 mi)
coastline along the Gulf of Thailand.

Cambodias landscape is characterized by a low-lying central plain that is surrounded by uplands and low
mountains and includes the Tonle Sap (Great Lake) and the upper reaches of the Mekong River delta.
Extending outward from this central region are transitional plains, thinly forested and rising to
elevations
Flowing south through the countrys eastern regions is the Mekong River. East of the Mekong the
transitional plains gradually merge with the eastern highlands, a region of forested mountains and high
plateaus that extend into Laos and Vietnam. In southwestern Cambodia two distinct upland blocks,
the Krvanh Mountains and the Dmrei Mountains, form another highland region that covers much of
the land area between the Tonle Sap and the Gulf of Thailand. In this remote and largely uninhabited
area, Phnom Aural, Cambodias highest peak, rises to an elevation of 5,949 feet (1,813 metres). The
southern coastal region adjoining the Gulf of Thailand is a narrow lowland strip, heavily wooded and
sparsely populated, which is isolated from the central plain by the southwestern highlands.

The most distinctive geographical feature is the inundations of the Tonle Sap (Great Lake), measuring
about 2,590 square kilometers (1,000 sq mi) during the dry season and expanding to about 24,605
square kilometers (9,500 sq mi) during the rainy season. This densely populated plain, which is devoted
to wet rice cultivation, is the heartland of Cambodia. Much of this area has been designated as
a biosphere reserve.

Climate

Cambodia's climate, like that of the rest of Southeast Asia, is dominated by monsoons, which are known
as tropical wet and dry because of the distinctly marked seasonal differences.

Cambodia has a temperature range from 21 to 35 C (69.8 to 95 F) and experiences tropical monsoons.
Southwest monsoons blow inland bringing moisture-laden winds from the Gulf of Thailandand Indian
Ocean from May to October. The northeast monsoon ushers in the dry season, which lasts from
November to March. The country experiences the heaviest precipitation from September to October
with the driest period occurring from January to February.

Wildlife

Sarus Crane

Cambodia has a wide variety of plants and animals. There are 212 mammal species, 536 bird species,
240 reptile species, 850 freshwater fish species (Tonle Sap Lake area), and 435 marine fish species. Much
of this biodiversity is contained around the Tonle Sap Lake and the surrounding biosphere.[53] The Tonle
Sap Biosphere Reserve is a unique ecological phenomenon surrounding the Tonle Sap. It encompasses
the lake and nine provinces: Kampong Thom, Siem Reap, Battambang,Pursat, Kampong
Chhnang, Banteay Meanchey, Pailin, Oddar Meanchey and Preah Vihear. In 1997, it was successfully
nominated as a UNESCO Biosphere Reserve.[54] Other key habitats include the dry forest
of Mondolkiri and Ratanakiri provinces and the Cardamom Mountains ecosystem, including Bokor
National Park, Botum-Sakor National Park, and the Phnom Aural and Phnom Samkos wildlife
sanctuaries.

Administrative divisions

The capital (reach thani) and provinces (khaet) of Cambodia are first-level administrative divisions.
Cambodia is divided into 24 provincesincluding the capital.
Municipalities and districts are the second-level administrative divisions of Cambodia. The provinces are
subdivided into 159 districts and 26 municipalities. The districts and municipalities in turn are further
divided into communes (khum) and quarters (sangkat).

ECONOMY

In 2010 Cambodia's per capita income in PPP is $2,470 and $1,040 in nominal per capita. Cambodia's per
capita income is rapidly increasing but is low compared to other countries in the region. Most rural
households depend on agriculture and its related sub-sectors. Rice, fish, timber, garments and rubber
are Cambodia's major exports. The International Rice Research Institute (IRRI) reintroduced more than
750 traditional rice varieties to Cambodia from its rice seed bank in thePhilippines.[56] These varieties
had been collected in the 1960s.

Based on the Economist, IMF: Annual average GDP growth for the period 20012010 was 7.7% making it
one of the world's top ten countries with the highest annual average GDP growth. Tourism was
Cambodia's fastest growing industry, with arrivals increasing from 219,000 in 1997 to 2 million in 2007.
In 2004, inflation was at 1.7% and exports at $1.6 billion US$.

China is Cambodia's biggest source of foreign direct investment in the kingdom. China plans to spend
$8 billion in 360 projects in the first seven months of 2011. It is also the largest source of foreign aid,
providing about $600 million in 2007 and $260 million in 2008.

The older population often lacks education, particularly in the countryside, which suffers from a lack of
basic infrastructure. Fear of renewed political instability and corruption within the government
discourage foreign investment and delay foreign aid, although there has been significant aid from
bilateral and multilateral donors. Donors pledged $504 million to the country in 2004,[57] while theAsian
Development Bank alone has provided $850 million in loans, grants, and technical assistance

Tourism

View of Angkor Wat in Siem Reap. Today Angkor Wat is Cambodia's main tourist attraction and is visited
by many visitors from around the world.

The tourism industry is the country's second-greatest source of hard currency after the textile
industry.[46] Between January and December 2007, visitor arrivals were 2.0 million, an increase of 18.5%
over the same period in 2006. Most visitors (51%) arrived through Siem Reap with the remainder (49%)
through Phnom Penh and other destinations.[59] Other tourist destinations includeSihanoukville in the
south east which has several popular beach resorts and the area around Kampotand Kep including
the Bokor Hill Station. Tourism has increased steadily each year in the relatively stable period since the
1993 UNTAC elections; in 1993 there were 118,183 international tourists, and in 2009 there were
2,161,577 international tourists.

Demographics
As of 2010, Cambodia has an estimated population of 14,805,358 people. Ninety percent of Cambodia's
population is of Khmer origin and speak the Khmer language, the country's official language. Cambodia's
population is relatively homogeneous. Its minority groups
include Vietnamese (2,200,000), Chinese (1,180,000),Cham (317,000), and Khmer Loeu (550,000).[63] The
country's birth rate is 25.4 per 1,000. Its population growth rate is 1.70%, significantly higher than those
of Thailand, South Korea, and India.

RELIGION

Buddhism is the major religion in Cambodia

Theravada Buddhism is the official religion of Cambodia, which is practiced by more than 95 percent of
the population. The Theravada Buddhist tradition is widespread and strong in all provinces, with an
estimated 4,392 temples throughout the country.[67] The vast majority of ethnic Khmers are Buddhist,
and there is a close association between Buddhism, cultural traditions, and daily life. Adherence to
Buddhism generally is considered intrinsic to the country's ethnic and cultural identity. Religion in
Cambodia, including Buddhism, was suppressed by the Khmer Rouge during the late 1970s but has since
experienced a revival.

Urbanization

Rank City Name Province Population

1 Phnom Penh 2,234,566

Phnom Penh

2 Battambang Battambang 250,000

3 Siem Reap Siem Reap 171,800

4 Preah Sihanouk 132,000

Sihanoukville

5 Poipet Banteay Meanchey 89,549

6 Prey Veng Prey Veng 74,000

7 63,770
Kampong Cham Kampong Cham
Health

The quality of health in Cambodia is rising. As of 2010, the life expectancy is 60 years for males and 65
years for females, a major improvement since 1999 when the average life expectancy was 49.8 and 46.8
respectively

the Royal Cambodian Government plans to increase the quality of healthcare in the country by raising
awareness of HIV/AIDS, malaria, and other diseases.

Culture

Various factors contribute to the Cambodian culture including Theravada Buddhism,Hinduism, French
colonialism, Angkorian culture, and modern globalization. TheCambodian Ministry of Culture and Fine
Arts is responsible for promoting and developing Cambodian culture. Cambodian culture not only
includes the culture of the lowland ethnic majority, but also some 20 culturally distinct hill tribes
colloquially known as the Khmer Loeu, a term coined by Norodom Sihanouk to encourage unity between
the highlanders and lowlanders. Rural Cambodians wear a krama scarf which is a unique aspect
of Cambodian clothing. Thesampeah is a traditional Cambodian greeting or a way of showing respect to
others. Khmer culture, as developed and spread by the Khmer empire, has distinctive styles of dance,
architecture and sculpture, which have been exchanged with neighbouring Laos and Thailand through
the history. Angkor Wat (Angkor means "city" and Wat "temple") is the best preserved example of
Khmer architecture from the Angkorian era along with hundreds of other temples that have been
discovered in and around the region.

Cuisine

Rice is the staple grain, as in other Southeast Asian countries. Fish from the Mekong and Tonle Sap rivers
is also an important part of the diet. The supply of fish and fish products for food and trade in 2000 was
20 kilograms per person or 2 ouncesSome of the fish can be made into prahok for longer storage.
The cuisine of Cambodia contains tropical fruits, soups and noodles. Key ingredients are kaffir
lime, lemon grass, garlic, fish sauce, soy sauce, curry, tamarind, ginger, oyster sauce, coconut
milk and black pepper. per day per person

Sports

Football is one of the more popular sports, although professional organized sports are not as prevalent
in Cambodia as in western countries because of the economic conditions. Football was brought to
Cambodia by the French and became popular with the locals.[82] The Cambodia national football
teammanaged fourth in the 1972 Asian Cup, but development has slowed since the civil war. Western
sports such as volleyball, bodybuilding, field hockey, rugby union, golf, and baseball are gaining
popularity. Native sports include traditional boat racing, buffalo racing, Pradal Serey, Khmer traditional
wrestling andBokator. Cambodia first participated in the Olympics during the 1956 Summer Olympic
Games sendingequestrian riders.

Dance

Cambodian dance can be divided into three main categories: Khmer classical dance, folk dance, and
social dances.

Music

Traditional Cambodian music dates back as far as the Khmer Empire. Royal dances like the Apsara Dance
are icons of the Cambodian culture. Popular types of dances are Romvong, commonly danced at
festivals. The Classic Music Era of Cambodia was during the 1960s to the 1970s featuring notable
singers Sinn Sisamouth andRos Sereysothea. However, during the Khmer Rouge Revolution many classic
and popular singers of the 60s and 70s died of execution, starvation, or overwork
 Malaysia

Introduction

Malaysia (i/mle/ m-lay-zh or i/mlesi/ m-lay-see-) is a federal constitutional

monarchy in Southeast Asia. It consists of thirteen states and three federal territories and has a total
landmass of 329,847 square kilometres (127,350 sq mi) separated by the South China Sea into two
similarly sized regions, Peninsular Malaysia and Malaysian Borneo. Land borders are shared
with Thailand, Indonesia, and Brunei, and maritime borders exist with Singapore,Vietnam, and
the Philippines. The capital city is Kuala Lumpur, while Putrajaya is the seat of the federal government.
In 2010 the population exceeded 27.5 million, with over 20 million living on the Peninsula.

Malaysia has its origins in the Malay Kingdoms present in the area which, from the 18th century,
became subject to the British Empire. The first British territories were known as theStraits Settlements,
whose establishment was followed by the Malay kingdoms becoming British protectorates. The
territories on Peninsular Malaysia were first unified as the Malayan Union in 1946. Malaya was
restructured as the Federation of Malaya in 1948, and achieved independence on 31 August 1957.
Malaya united with Sabah, Sarawak, and Singapore on 16 September 1963, with si being added to give
the new country the name Malaysia. However, less than two years later in 1965, Singapore was expelled
from the federation. Since independence, Malaysia has had one of the best economic records in Asia,
with GDP growing an average 6.5% for almost 50 years. The economy has traditionally been fuelled by
its natural resources, but is expanding in the sectors of science, tourism, commerce and medical
tourism.

Etymology

The word Melayu is thought to derive from theSanskrit term Malaiur or Malayadvipa, which can be
translated as "land of mountains", the word used by ancient Indian traders when referring to the Malay
Peninsula.[11][12][13][14][15] Other theories propose it originates from the Tamil word Malai, meaning
"mountain".[16] The term was later used as the name of the Melayu Kingdom, which existed between the
7th and 13th centuries on Sumatra

Malaysia, Micronesia and Melanesia, distinguishing these Pacific cultures and island groups from the
already existing term Polynesia. In 1831, he proposed these terms to the Socit de Gographie.
Dumont d'Urville described Malaysia as "an area commonly known as the East Indies".[18] In 1850, the
English ethnologist George Samuel Windsor Earl, writing in the Journal of the Indian Archipelago and
Eastern Asia, proposed naming the islands of Southeast Asia asMelayunesia or Indunesia, favouring the
former.

History

Evidence of modern human habitation in Malaysia dates back 40,000 years,[25] The first inhabitants are
thought to be Negritos.[26] Traders and settlers from India and China arrived as early as the 1st century
AD, establishing trading ports and coastal towns in the 2nd and 3rd centuries. Their presence resulted in
strong Indian and Chinese influence on the local cultures, and the people of the Malay Peninsula
adopted the religions of Hinduism and Buddhism.Sanskrit inscriptions appear as early as the 4th or 5th
century.[27] The Kingdom of Langkasuka arose around the 2nd century in the northern area of the Malay
Peninsula, lasting until about the 15th century.[24] Between the 7th and 13th centuries, much of the
southern Malay Peninsula was part of the maritime Srivijaya empire. After the fall of Srivijaya,
the Majapahit empire had influence over most of Peninsular Malaysia and the Malay Archipelago

Governance

Malaysia is a federal constitutional elective monarchy. The system of government is closely modelled on
that of the Westminster parliamentary system, a legacy of British colonial rule.[46] The head of state is
the Yang di-Pertuan Agong, commonly referred to as the king. The Yang di-Pertuan Agong is elected to a
five-year term by and from among the nine hereditary rulers of the Malay states; the other four states,
which have titular Governors, do not participate in the selection. By informal agreement the position is
systematically rotated among the nine,[46] and has been held by Abdul Halim of Kedahsince December
2011.[47] The Yang di-Pertuan Agong's role has been mostly ceremonial since changes to the
constitution in 1994.

Legislative power is divided between federal and state legislatures. The bicameral
federal parliamentconsists of the lower house, the House of Representatives and the upper house,
the Senate.[49] The 222-member House of Representatives is elected for a maximum term of five years
from single-member constituencies, which are determined based on population. All 70 senators sit for
three-year terms; 26 are elected by the 13 state assemblies, and the remaining 44 are appointed by the
Yang di-Pertuan Agong upon the Prime Minister's recommendation.

Foreign relations and military

A founding member of the Association of Southeast Asian Nations (ASEAN)[62] and the Organisation of
Islamic Cooperation (OIC), the country participates in many international organisations such as
the United Nations, the Asia-Pacific Economic Cooperation,the Developing 8 Countries, and the Non-
Aligned Movement (NAM).It has chaired ASEAN, the OIC, and the NAM in the past.[3] A former British
colony, it is also a member of the Commonwealth of Nations.[68] Kuala Lumpur was the site of the
first East Asia Summit in 2005.

Subdivisions

Malaysia is a federation of 13 states and three federal territories. These are divided between two
regions, with 11 states and two federal territories on Peninsular Malaysia and the other two states and
one federal territory in East Malaysia. Governance of the states is divided between the federal and the
state governments, and the Federal government has direct administration of the federal territories.[83]

The 13 states are based on historical Malay Kingdoms, and 9 of the 11 Peninsular states, known as
the Malay states, retain their royal families. The Yang di-Pertuan Agong is elected by and from the nine
rulers to serve a five-year term.[3] Each state has a unicameral legislature known as the State Legislative
Assembly. The states of East Malaysia (Sabah and Sarawak) have separate immigration policies and
controls, and a unique residency status.[

Geography

Malaysia is the 66th largest country by total land area, with a land area of 329,847 square kilometres
(127,355 sq mi). It has land borders with Thailand in West Malaysia, and Indonesia andBrunei

Economy

Malaysia is a relatively open state-oriented and newly industrialised market economy.[112][113] The state
plays a significant but declining role in guiding economic activity through macroeconomic plans.
Malaysia has had one of the best economic records in Asia, with GDP growing an average 6.5 per cent
annually from 1957 to 2005

In 2010 the GDP per capita (PPP) was $414.400 billion, the 3rd largest economy in ASEAN and 29th
largest in the world

Religion

The Malaysian constitution guarantees freedom of religion while making Islam the state
religion.[152] According to the Population and Housing Census 2010 figures, ethnicity and religious beliefs
correlate highly. Approximately 61.3% of the population are practicing Islam. 19.8% practice Buddhism;
9.2% Christianity; 6.3% Hinduism; and 1.3% practice Confucianism, Taoismand other traditional Chinese
religions.[153], 0.7% declared no religion and the remaining 1.4% practised other religions or did not
provide any information

Language

The official language of Malaysia is Bahasa Malaysia,[2] a standardised form of the Malay
language.[156] Historically English was the de facto administrative language, with Malay becoming
predominant after the 1969 race riots.[157] English remains an active second language, and serves as the
medium of instruction for maths and sciences in all public schools.[158][159] Malaysian English, also known
as Malaysian Standard English, is a form of English derived from British English. Malaysian English sees
wide use in business, along with Manglish, which is a colloquial form of English with
heavy Malay, Chinese, and Tamil influences. The government discourages the misuse of Malay and has
instituted fines for public signs that mix Malay and English.

Culture

Malaysia has a multi-ethnic, multicultural, and multilingual society. The original culture of the area
stemmed from indigenous tribes that inhabited it, along with the Malays who later moved there.
Substantial influence exists from Chinese and Indian culture, dating back to when foreign trade began.
Other cultural influences include the Persian, Arabic, and British cultures. Due to the structure of the
government, coupled with the social contract theory, there has been minimal cultural assimilation of
ethnic minorities

Fine arts

Traditional Malaysian art was mainly centred around the areas of carving, weaving, and
silversmithing.[172] Traditional art ranges from handwoven baskets from rural areas to the silverwork of
the Malay courts. Common artworks included ornamental kris, beetle nut sets, and
woven batikand songket fabrics. Indigenous East Malaysians are known for their wooden masks.[91] Each
ethnic group have distinct performing arts, with little overlap between them. However, Malay art does
show some North Indian influence due to the historical influence of India.

Cuisine

Malaysia's cuisine reflects the multi-ethnic makeup of its population.[177] Many cultures from within the
country and from surrounding regions have greatly influenced the cuisine. Much of the influence comes
from the Malay, Chinese, Indian, Thai, Javanese, and Sumatran cultures,[91] largely due to the country
being part of the ancient spice route
 Brunei
History:

Brunei was trading with China during the 6th century, and, through allegiance to the Javanese Majapahit
kingdom (13th to 15th century), it came under Hindu influence. In the early 15th century, with the
decline of the Majapahit kingdom and widespread conversion to Islam, Brunei became an independent
sultanate. It was a powerful state from the 16th to the 19th century, ruling over the northern part of
Borneo and adjacent island chains. But Brunei fell into decay and lost Sarawak in 1841, becoming a
British protectorate in 1888 and a British dependency in 1905. Japan occupied Brunei during World War
II; it was liberated by Australia in 1945.

The sultan regained control over internal affairs in 1959, but Britain retained responsibility for the
state's defense and foreign affairs until 1984, when the sultanate became fully independent. Sultan
Bolkiah was crowned in 1967 at the age of 22, succeeding his father, Sir Omar Ali Saifuddin, who had
abdicated. During his reign, exploitation of the rich Seria oilfield had made the sultanate wealthy. Brunei
has one of the highest per capita incomes in Asia, and the sultan is believed to be one of the richest men
in the world. In Aug. 1998, Oxford-educated Prince Al-Muhtadee Billah was inaugurated as heir to the
500-year-old monarchy.

Sultan Bolkiah began taking cautious steps toward democratic reform in Sept. 2004, when he reinstated
Parliament for the first time since Brunei gained independence in 1984. He was widely praised in May
2005 when he fired four members of his cabinet, including the education minister, whose plan to
expand religious education angered many parents.

Politics and Government:

Brunei has a constitutional sultanate. It has a legal system based on English common law, although
Islamic shariah law supersedes this in some cases.

The political system in the country is governed by the constitution and the tradition of the Malay Islamic
Monarchy, the concept of Melayu Islam Beraja (MIB). The three components of MIB cover Malay
culture, Islamic religion and the political framework under the monarchy.

Under Brunei's 1959 constitution, His Majesty Paduka Seri Baginda Sultan Haji Hassanal Bolkiah
Mu'izzaddin Waddaulah is the head of state with full executive authority, including emergency powers
which are renewed every two years, since 1962. The Sultan's role is enshrined in the national ideology
known as Melayu Islam Beraja (MIB), or Malay Muslim Monarchy. The country has been under
hypothetical martial law since the Brunei Revolt of 1962.The Royal family retains a venerated status
within the country.
 Burma
officially the Republic of the Union of Myanmar. Is a country in Southeast Asia. Burma is bordered by
China, Laos, Thailand, Bangladesh and India. One-third of Burma's total perimeter of 1,930 kilometers
(1,200 mi) forms an uninterrupted coastline along the Bay of Bengal and the Andaman Sea.

Pre History:

Little is known with certainty about the early history of Burma. Cave paintings and
a Holocene assemblage in a hunter-gatherer cave site in Padah Lin in Shan State show evidence of an
early Neolithic culture (circa 10,000 BC). Rice cultivation and chicken domestication were being
practiced around 2,500 BC, and the production of iron tools dates to around 1500 BC. Of the modern
Burmese, the Mon people are thought to have migrated into the lower Irrawaddy valley in around 1500
BC and, by the mid-10th century BC, they were dominant in southern Burma.The Tibeto-
Burman speaking Pyu arrived later in the 1st century BC, and established several city states of which
Sri Ksetra (modern Pyay) was the most powerful in central Irrawaddy valley. The Pyu kingdoms
entered a period of rapid decline in early 9th century AD when the powerful kingdom of Nanzhao (in
present-day Yunnan) invaded the Irrawaddy valley several times.

Imperial era (10441885)

This period was characterized by constant warfare between Ava and the various other kingdoms. During
the reign of Minkhaung I, Ava briefly controlled Rakhine and fought wars of unification with Razadarit of
Bago. Under Minyekyawswa, Ava came close to defeating Bago a few times, but could never quite
reassemble the lost empire. By the late-15th century, constant war left Ava greatly weakened and its
peripheral areas became either independent or autonomous. In 1510, King Minkyinyo of Taungoo broke
away from Ava and established a small independent kingdom. In 1527, Mohnyin (Shan: Mong
Yang) Shans captured Ava ending the delicate power balance that had existed for nearly two centuries.
The Shans would rule Upper Burma until 1555.

Despite the wars, this period is considered a golden age for Burmese culture. During the rule of
Queen Shin Sawbu (14531472) of Bago, the Shwedagon Pagoda, the epicenter of Burmese religion, was
raised to its near present height. The many pagodas and temples of Mrauk Uwere built during this
period.

Reinforced by fleeing Burmans from Ava, the Kingdom of Taungoo under its young, ambitious
king Tabinshwehti defeated the more powerful Hanthawaddy Kingdom and ruled all of Lower Burma by
1541. Tabinshwehti's successor King Bayinnaung retook Ava from the Shans and went on to conquer a
vast swathe of western South East Asia including Manipur (now in India), Mong Mao (Southern Yunnan),
the Shan states, Lan Na (present-day northern Thailand), and Ayutthaya (Siam), and Lan Xang (Laos).
However, Bayinnaung's massive empire unravelled soon after his death in 1581. The Siamese declared
independence in 1584, and went on to capture the Tenasserim region of Lower Burma by 1595. The
Taungoo capital at Bago was sacked by Rakhine forces aided by Portuguese mercenaries in 1599.
The Taungoo King Anaukpetlun regrouped and defeated Rakhine and Portuguese forces in 1613 and
reestablished a smaller reconstituted kingdom based in Ava that covered most of Burma except for the
lower Tenasserim coast (under Siamese rule) and Arakan. In 1740, the ethnic Mons of Lower Burma
broke away, and founded the Restored Hanthawaddy Kingdom. The newly founded kingdom attacked,
and sacked Ava in 1752, ending the Taungoo Dynasty.

After the fall of Ava, pockets of resistance against Mon rule sprang up across Upper Burma. One such
group, Alaungpaya's Konbaung Dynasty defeated Restored Hanthawaddy in 1757, and by 1760, had
reunited much of the kingdom except for Tenasserim. Alaungpaya's son Hsinbyushindefeated four
Chinese invasions and at the same time, conquered Siamese capital Ayutthaya in 1767 and Manipur in
1770. He also captured Cachar and Jaintia as tributaries. But his victories were short lived. His brother,
King Bodawpaya formally annexed Arakan in 1784 and Manipur in 1814. King Bagyidaw's general Maha
Bandula captured the kingdom of Assam (now a part of India) in 1817 and again in 18211822 creating
the second largest empire in Burmese history. However, the breadth of this empire was short lived and
the Konbaungs lost Assam, Manipur, Arakan and Tanintharyi (Tenessarim) to the British in 1826 after
their defeat in the First Anglo-Burmese War, and, later had to cede Rangoon, Bago, and the Irrawaddy
Delta regions to the British after the Second Anglo-Burmese War.
King Mindon founded Mandalay in 1859 and made it his capital, skilfully navigating the growing threats
posed by the competing interests of Britain and France. However, his successor KingThibaw was largely
ineffectual and, in 1885, the British, alarmed by the French conquest of neighbouring Laos,
occupied Mandalay and Upper Burma in 1885 after the brief Third Anglo-Burmese War

Colonial era (18861948)

With the fall of Mandalay, all of Burma came under British rule. Throughout the colonial era, many
Indians arrived as soldiers, civil servants, construction workers and traders and, along with the anglo-
Burmese community, dominated commercial and civil life in Burma. Rangoon became the capital of
British Burma and an important port between Calcutta and Singapore.

Democratic republic (19481962)

On 4 January 1948, the nation became an independent republic, named the Union of Burma, with Sao
Shwe Thaik as its first President and U Nu as its first Prime Minister. Unlike most other former British
colonies and overseas territories, it did not become a member of the Commonwealth.

Government and politics

The constitution of Burma, its third since independence, was drafted by its military rulers and published
in September 2008. The country is governed as a presidential republic with a bicameral legislature, with
a portion of legislatures appointed by the military and others elected in general elections. The current
head of state, inaugurated as President on 30 March 2011, is Thein Sein.

The legislature, called the Pyidaungsu Hluttaw, is bicameral and made up of two houses: The 224-seat
upper house Amyotha Hluttaw (House of Nationalities) and the 440-seat lower house Pyithu
Hluttaw (House of Representatives). The upper house consists of 224 member of which 168 are directly
elected and 56 are appointed by the Burmese Armed Forces while the lower house consists of 440
members of which 330 are directly elected and 110 are appointed by the armed forces. The major
political parties are the National Democratic Force and the two backed by the military: the National
Unity Party, and the Union Solidarity and Development Party. The National League for Democracy, the
party of Aung San Suu Kyi, was declared illegal before the 2010 elections for failing to register for the
elections.

Burma's army-drafted constitution was approved in a referendum in May 2008. The results, 92.4% of
the 22 million voters with an official turnout of 99%, are considered suspect by many international
observers and by the National league of democracy with reports of widespread fraud, ballot stuffing,
and voter intimidation.

The elections of 2010 resulted in a victory for the military-backed Union Solidarity and Development
Party and various foreign observers questioned the fairness of the elections. One criticism of the
election was that only government sanctioned political parties were allowed to contest in it and the
popular National League for Democracy was declared illegal and is still barred from political activities.
However, immediately following the elections, the government ended the house arrest of the
democracy advocate and leader of the National League for Democracy, Aung San Suu Kyi. And her ability
to move freely around the country is considered an important test of the military's movement toward
more openness. After unexpected reforms in 2011, NLD senior leaders have decided to register as a
political party and to field candidates in future by-elections.

Burma has a high level of corruption, and ranks 176th out of 180 countries worldwide on the Corruption
Perceptions Index with a rating of 1.4 out of 10 (10 being least corrupt and 0 being highly corrupt) as of
2010.

Economy

The country is one of the poorest nations in Southeast Asia, suffering from decades of stagnation,
mismanagement and isolation. The lack of an educated workforce skilled in modern technology
contributes to the growing problems of the economy.The country lacks adequate infrastructure. Goods
travel primarily across the Thai border, where most illegal drugs are exported and along the Irrawaddy
River. Railways are old and rudimentary, with few repairs since their construction in the late 19th
century.Highways are normally unpaved, except in the major cities. Energy shortages are common
throughout the country including in Yangon.

Religion

Many religions are practiced in Burma. Religious edifices and orders have been in existence for many
years. Festivals can be held on a grand scale. The Christian and Muslim populations do, however, face
religious persecution and it is hard, if not impossible, for non-Buddhists to join the army or get
government jobs, the main route to success in the country. Such persecution and targeting of civilians is
particularly notable in Eastern Burma, where over 3000 villages have been destroyed in the past ten
years. More than 200,000 Rohingya Muslims have settled in Bangladesh, to escape persecution, over the
past 20 years.

89% of the population embraces Buddhism (mostly Theravada). Other religions are practiced largely
without obstruction, with the notable exception of some ethnic minorities such as the Muslim Rohingya
people, who have continued to have their citizenship status denied and therefore do not have access to
education, and Christians in Chin State.[4 percent of the population practices Christianity; 4 percent,
Islam; 1 percent, traditional animistic beliefs; and 2 percent follow other religions, including Mahayana
Buddhism, Hinduism, East Asian religions and the Bah' Faith. However, according to a U.S. State
Department's 2010 international religious freedom report, official statistics are alleged to underestimate
the non-Buddhist population. Independent researchers put the Muslim population at 6 to 10% of the
population. A tiny Jewish community in Rangoon had a synagogue but no resident rabbi to conduct
services.

Sports:
Traditional sports
The national game is Chinglone; played in teams of six, the object of the game is to keep a cane ball in
the air for as long as possible using any part of the body except the hands.

Burmese boxing is another popular sport; it can appear extremely vicious to the uninitiated spectator.
Many Western sports are also played.
A large number of Buddhist festivals are held annually in Myanmar and provide an interesting way for
visitors to experience local traditions and culture (see also Special Events in the General Infosection). For
serious practitioners, there are several centers for the study and practice of Theravada Buddhism, the
most famous of which is theMahasi Meditation Centerin Yangon. The center was founded in 1947 by
Mahasi Sayadaw, one of Myanmars greatest meditation teachers. Visitors wishing to participate in
Buddhist retreats need to obtain a special, long-stay entry visa (allowing stays of up to 12 weeks). The
application procedure takes up to 10 weeks. For further details about the necessary application
requirements, contact the Embassy or Consular section at the Embassy (seeGeneral Info section).

Visitors can also attend performances of Myanmars traditional popular theater, known as pwe (show).
Performances take place in a variety of contexts, including religious festivals, weddings, sporting events
or even funerals, and sometimes last for an entire night. Of further interest are performances of
traditional dance forms (nat pwes), which pay homage to the spirit world, or marionette theater (yok-
thei pwe), widely practiced during the late 18th century in Mandalay and one of the most characteristic
forms of national cultural expression.

Tourist spots

Yangon

Yangon is home to the Shwedagon Pagoda, one of the wonders of the world. Described by Rudyard
Kipling as "a beautiful, winking wonder," Shwedagon Pagoda is the one of the most magnificent
monuments on earth.
Bagan

The World Heritage Site of Bagan is the wonder of wonders in the "Golden Land". About 3,000 ancients
Temples and Stupas, dating from the 11th century, adorn the vast arid plain of Bagan. Views across the
red brick Pagodas are stunning and quite unforgettable. The traditional date of the foundation of Bagan
is 849 AD but the actual Golden Age began only in the 11th century after King Anawrahta (1044-1077)
ascended the throne and became the 42nd ruler of the Bagan Dynasty. As a former center of Buddhist
spirituality and learning, Bagan rank amongst the great sites in India and Tibet

Mandalay

"City of Gems"- according to the meaning of its former "Yadana Pon", remains the country's cultural
center. Situated in the heart of the Upper Myanmar, Mandalay is the economic and religious center of
upper Myanmar. Being an old capital of Myanmar Kings, founded in 1857 by King Mindon, Mandalay is
abundantly rich in historical memorials and Buddhist monuments as well. Some say to know Mandalay
means to know Myanmar.
 East Timor
History

The pre-occupation history of Timor is sketchy. The migration of various peoples along the South-East
Asian monsoon track from northwest to southeast evidently led to the population of the island by a
civilisation that had no written records but worked in iron and had a relatively sophisticated system of
agriculture.

The island was linked into a regional trading system centred on Java, which extended as far as China and
India.The Portuguese first arrived on the island in the early 16th century and by the 1550s had occupied
the eastern part. The Dutch took control of the western part, which became part of the Dutch East
Indies and, after independence, Indonesia.

The Japanese invaded in 1942, occupying the territory until its liberation in 1945; Portugal regained
possession and remained in control until the 1974 Portuguese Revolution. In 1975, the new left-wing
Portuguese government relinquished all of its colonies. East Timor then enjoyed just a few days of
independence, before the Indonesians annexed it as their 27th province. In the savage counter-
insurgency campaign that followed, the Indonesian army killed over 100,000 East Timorese. In June
1999, President Habibie of Indonesia announced that a referendum would be held in East Timor,
offering independence or autonomy within Indonesia.

The referendum was held in August 1999 and 80 per cent opted for independence. By way of revenge,
the Indonesian army indulged in an orgy of destruction and killing that displaced hundreds of thousands
of people and destroyed the territory's already fragile economic base.

In Octobear 1999, a UN transitional administration (UNTAET) was set up in East Timor, pending the
conduct of national elections. In addition, Gusmo was released from prison.

In May 2002, after 450 years of continuous foreign occupation, East Timor became the world's newest
independent state. The Presidency, contested in April 2002, was won by Xanana Gusmo, with a huge
majority. The current president of East Timor is Jos Manuel Ramos-Horta, since 2007.

Religion

Christian majority with 86% Catholic. Islam and animist beliefs are also practised.

The last available figures on religion were collected in 1992 (before independence), at which time about
the population was 90% Roman Catholic, 4% Muslim, 3% Protestant, 0.5% Hindu and an undetermined
number were Buddhist. As of 2002, the dominant religion still appeared to be Catholicism; however, it is
believed that a number of registered Catholics actually practice traditional animism, a religious category
which had not been officially recognized by the Indonesian government.
The new government has generally respected the regulations for freedom of religion that were
established by the UNTAET administration. Though public opinion had leaned toward making
Catholicism the national religion, the presiding Bishop Carlos Filipe Ximenes Belo (a Nobel Peace Prize
laureate) encouraged members of the Constituent Assembly not to make such a designation. The 2002
constitution instead provides for the separation of church and state.

Due to past associations with Indonesian occupation groups, some Muslim and Protestant minorities
have reported social harassment.

Government

Repulic form of government in which the people, or some significant portion of them, have supreme
control over the government and where offices of state are elected or chosen by elected people.

The Head of state of the East Timorese republic is the president, who is elected by popular vote for a
five-year term and whose role is largely symbolic, though he is able to veto some legislation. Following
elections, the president appoints as prime minister the leader of the majority party or majority coalition.
As head of government the prime minister presides over the Council of State or cabinet.

The unicameral Timorese parliament is the National Parliament or Parlamento Nacional, whose
members are elected by popular vote to a five-year term. The number of seats can vary from a minimum
of 52 to a maximum of 65, though it exceptionally has 88 members at present, due to this being its first
term of office. The Timorese constitution was modelled on that of Portugal. The country is still in the
process of building its administration and governmental institutions.

Economy

Timor-Leste or East Timor is one of the poorest countries in the world, with basic income,health, and
literacy levels similar to those of countries in sub-Saharan Africa. Both infrastructure and resources are
lacking in urban and rural areas. Unemployment and underemployment combined are estimated to be
as high as 70%. Half of the country's population lives below the poverty line.

Oil and gas revenues have surged since 2005 as major projects in the Joint Petroleum Development Area
that Timor-Leste shares with Australia have come online. The government set up a special Petroleum
Fund in 2005 to facilitate the sustainable use of its revenues over the long term. Petroleum Fund assets
reached $6.9 billion in 2010.

Timor-Leste joined the United Nations on September 27, 2002. It is pursuing membership in the
Association of Southeast Asian Nations (ASEAN) and became a member of the ASEAN Regional Forum
(ARF) in July 2005. Timor-Leste's foreign policy has placed a high priority on its relationships with
Indonesia; regional friends such as Malaysia and Singapore; and donors such as Australia, the United
States, the European Union, Japan, and Portugal.
Tourist spots

Ainaro

This is a small region in the district of Ainaro. This place is home to Mount Ramelau which is the highest
point in the region. You would have a great time trekking up to the region and enjoying the amazing
natural scenery of the place.

Aileu

This is one of the best Tourist Destinations in East Timor that you must definitely visit while you are on
tours to the region. This beautiful region is situated in the northwestern part of the country. It was in
this town that the Portuguese first started their business in. There are many natural and historical
attractions that are present in the town.

Maubara

This place is home to a large number of rocky beaches. You are sure to have a wonderful in here. You
can see the beautiful Ombai strait from this area. There are also some Indonesian and Portuguese
structures that dot the region. You are sure to have a great time exploring this region. These are
architectural marvels and you can explore these places to know about the history of the region.

Baguia

This is one of the important Tourist Destinations in East Timor. This is in the region of Baukau district in
the region of East Timor. You can go to the Matebean Mountain that is located in the region. This is one
of the highest peaks in the region and you are sure to have a great time trekking up the hill. The region
has a very pleasant climate. There is also a castle that you can visit while you are here. The lush greenery
of the region is sure to be very rejuvenating for you.

Dili

This is the capital of the country of East Timor. The place boasts of some of the best natural
surroundings. There are also a host of structures that are worth exploring while you are there in the
region. This is one of the best Tourist Destinations in East Timor.

Famous for

Baucau

East Timor is well known for locating beautiful cities. One of those beautiful cities in East Timor is named
as Baucau (Baukau). This city is located on the northern coast, which is in the eastern part of the East
Timor. Baucau was formerly called as Vila Salazar.

Tapai
It is one of the traditional fermented cuisines that are made from rice. It can be made from many staple
food grains and tubers which gives it a different taste and texture. Tapai is sweet, tangy in taste and is
little alcoholic.

Sports

Track and field

Marathon

Football
 Myanmar
History

The first identifiable civilization is that of the Mon. The Mon probably began migrating into the area in
about 300 BC, and their first kingdom Suwarnabhumi, was founded around the port of That on in about
300 BC.

In 7th century the Pyu arrive in mayanmar and established city kingdoms at Binnaka, Mongamo, Sri
ksetra, and Halingyi . During this period, Myanmar was part of an overland trade route from China to
India. By 849, the Burmans had founded a powerful kingdom centered on the city of Bagan and filled the
void left by the Pyu. The kingdom grew in relative isolation until the reign of Anawrahta (1044 - 77) who
successfully unified all of Myanmar.

After the collapse of Bagan authority, Myanmar was divided once again. The Burmans had restablished
themselves at the city of Ava by 1364, where Bagan culture was revived and a great age of Burmese
literature ensued by defeating the Mon city of Thaton in 1057. Myanmar was known to the West ever
since western explorers had heard of it. Marko Polo was the earliest known westerner who discovered
Myanmar and introduced to the West.

Religion & Believes

Buddhism :

Freedom of Religion

Freedom of religion is practiced in Myanmar, although a majority (some 89.1%) are Buddhists in
Myanmar. But Myanmar seems democratic that Buddhism is not defined as the official religion of the
country, like most Islamic countries does.

Teravada Buddhism / Orthodox Buddhism

Just like Roman Catholic and Protestants, there are 2 major churchs in Buddhism: Teravada and
Mahayana. Teravada Buddhism is the orthodox church, and it dominates in Myanmar, Thailand, and
southeast Asia.

Pagoda:

A pagoda, in Southeast Asia, is cone-shaped monumental structure built in memory of Buddha. But in
the Far East, a pagoda is a tower-like, multi-storeyed structure of stone, brick, or wood, usually
associated with a Buddhist temple complex.
The pagoda derives from the stupa of ancient India, which was a dome-shaped commemorative
monument, usually erected over the remains or relics of a holy man or king.

The Buddhist pagoda was elaborated in Tibet into a bottle-shaped form; it took pyramidal or conical
designs in Burma, Thailand, Cambodia, and Laos; and in China, Korea, and Japan, it evolved into the
best-known pagoda form.

The stories can be circular, square, or polygonal

Shin Pyu (or) the Novice hood:

The word "Shin Pyu" in Myanmar means "initiating into Buddhist Order as a Novice". To go in detail, the
word Shin means a novice and Pyu means to make one. The Shin Pyu ceremony is a common event, as
a family earns great merit when a son forsakes his childhood life and dons the robe of the monk.

BeneVoLent Prince:

Lawkanat, the peacekeeper To the people of Myanmar Lawkanat is the symbol of peace and prosperity
and his figures are displayed prominently in our art, culture and the Theravada religion. The role of the
Lawkanat as peacemaker is based on a fascinating legend handed down through the generations.

Superstition:

(e.g)

Don't leave a shoe or a slipper up-side-down. It'll cause bad luck.

Don't keep a broken glass or a mirror in homes. Replace the window panes as soon as possible if broken.

Government

Military regime

During World War II, Burma was a key battleground; the 800-mile Burma Road was the Allies' vital
supply line to China. The Japanese invaded the country in Dec. 1941, and by May 1942, had occupied
most of it, cutting off the Burma Road.

After one of the most difficult campaigns of the war, Allied forces liberated most of Burma prior to the
Japanese surrender in Aug. 1945.

Burma became independent on Jan. 4, 1948. In 1962, left-wing general Ne Win staged a coup, banned
political opposition, suspended the constitution, and introduced the Burmese way of socialism. After
25 years of economic hardship and repression, the Burmese people held massive demonstrations in
1987 and 1988. These were brutally quashed by the State Law and Order Council (SLORC). In 1989, the
military government officially changed the name of the country to Myanmar. (The U.S. State
Department does not recognize the name Myanmar or the military regime that represents it.)
Economy

Since official statistics in Myanmar are notoriously unreliable or falsified, it is very difficult to draw a
clear picture about economic performance. Realistic numbers have been brought forward by the
Economist Intelligence Unit, which has combined proxy measures with published economic growth
rates.

Economic growth in Myanmar remains weak as the economy struggles to recover from the devastation
brought by the cyclone and as export revenue and remittances contract owing to the general problems
affecting the global economy.

Myanmar currently exports gas to Thailand in sizeable quantities, and new projects are planned with
Chinese, Indian and South Korean partners. Aid-funded rebuilding efforts have given a boost to
construction growth, but this has been offset by a contraction of agricultural output, with crop, livestock
and fisheries output likely to be negatively affected by weaker global demand.

The cyclone severely damaged transport and other infrastructure in the south of the country and, as a
result, the manufacturing sector there will struggle to grow in coming years. In addition to these
problems, manufacturers throughout Myanmar continue to face shortages of capital, energy and
imported inputs.

Myanmar is not a large recipient of foreign investment. The country is regarded as a highly risky
destination for foreign capital and a difficult location to do business in. FDI is overwhelmingly directed at
the gas and oil sectors; very little is invested in industry and even less in agriculture.

Tourist spots

Scott Market (YANGON) Yangon (Literally meaning End-of -Strife) is the capital of Myanmar as well as
the gateway to Myanmar.

Yangon is proud of the towering gold-crusted Shwedagon Pagoda, which is best known for its grandeur
and awe-inspiring greatness. Described by Rudyard Kipling (1898) as "a beautiful, winking wonder that
blazed in the sun, of a shape that was neither Muslim dome nor Hindu temple spire," Shwedagon
Pagoda is the one of the most magnificent monuments on earth. It is said to have been built over 2,500
years ago and Four Relics of the FOUR BUDDHAS are enshrined in it.

TWANTE

Twante is famous for its ShweSandaw Pagoda, pottery and cotton-weaving. Exploring the town by
charter-trishaw will definitely give you a new experience and amusement. 1 or 2 km further south of
local market is the pottery workshop where you can observe their traditional way of process.

North of Yangon.....

Htaukkyant is a small junction town where the road forks off to Pyay and Bagan to the north-west and to
Bago and Mandalay to the north-east. Here you can visit a tree shrine dedicated to a legendary "Nat" to
witness some local peoples' belief and Allied War Graves Cemetery with 27,000 graves of allied soldiers
who died in Myanmar and Assam campaigns of WWII. It is beautifully maintained by the Commonwealth
War Graves Commission.

KYAIKHTIYO (Golden Rock)

KYAIKHTIYO PAGODA, known as "Golden Rock," perches on the edge of a cliff at the top of Kyaikhto
mountains range, part of the Eastern Yoma. This magnificent "Golden Rock" is the most meditative and
popular tourist attraction in Mon State. A small Stupa rests on top of a big boulder covered in gold leaf,
which balances on the cliff thanks to a Sacred Hair of the Buddha enshrined or preserved inside the
Stupa.

MAWLAMYINE (MOULMEIN)

Mawlamyaing is the capital and port of the Mon State. It lies at the mouth of Thanlwin (Salween) river
about 39 km upstream from the Gawdwin Lighthouse. It is situated at 270 km south-east of Yangon.
Many old colonial buildings still remain along the quiet streets. Several fine Pagodas and Monasteries up
in the hills above MAWLAMYINE give you the perfect views of the city and its harbour.

MANDALAY

Mandalay was the last capital of the third Myanmar Empire. It is located 668 km north from Yangon.
Mandalay's value lies in that it is a repository of late Myanmar history. Mandalay embodies all the
elements of Myanmar's ancient educational, social and cultural system. Mandalay is the home and
guardian of the best traditions of Myanmar music and dance .

Symbols of religion are richer in Mandalay than in any of the living Myanmar city. It is the principal
centre for studies of Buddhist literature. The other tourist attractions are Mandalay Hill, Mya-nan-san-
kyaw Golden Palace, the old city walls and the moat; Mahamuni Image of Buddha,

ANCIENT CITIES AROUND MANDALAY

AMARAPURA

Amarapura (literally meaning 'the immortal city') lies about 11 km south of Mandalay. The modern town
of AMARAPURA is often referred to as TaungMyo, meaning "The Southern City" to distinguish it from
MANDALAY, the Northern City.

INNWA

Innwa, a former capital of upper Myanmar (Literally meaning Mouth of the Lake) nearly 400 years after
the fall of Bagan,

ARCHAEOLOGICAL ZONE

BAGAN (Pagan)
Bagan was ancient capital of the first Myanmar Empire, founded by King Anawrahta. What is more,
Anawrahta accomplished another great task for the country: he introduced Theravada Buddhism into
Myanmar with the help of Shin Arahan, a mission monk from THATON.

Famous for

BEACHES OF MYANMAR

NGAPALI

This beach resort is located on the northern coast in Rakkhine State, about 7 km away from THANDWE
(SANDOWAY), one of the ancient Rakkhine (formerly ARAKAN) towns. It is said to have been named
after the NAPLE of ITALY by a homesick Italian.

NGWE SAUNG

NgweSaung lies in the west of Pathein, the capital of Ayeyarwaddy Division .It is a most recently
developed beach resort,

Myanmar National Sports Federations

Myanmar National Sports Federations were established according to Myanmar National Olympic Council
Act ,chapter (7) , which was enforced as the State Law and Order Restoration Councils Act (6 / 93) on
19th April ,1993 . There are altogether (36) Myanmar National Sports Federations . The roles and
functions of the Myanmar National Sports Federations are ,to nurture outstanding and new generation
athletes ,to organize local sports competitions ,to select and to train top athletes from the various sports
diciplines, to affiliate officially with the International Sports Federations, to organize and to compete in
the International Sports Competitions , local sports

competitions and in the regional games and competitions

1. Myanmar Archery Federation

2. Myanmar Athletic Federation

3. Myanmar Badminton Federation

4. Myanmar Basketball Federation

5. Myanmar Billiard & Snooker Federation

6. Myanmar Body Building Federation

7. Myanmar Bowling Federation

8. Myanmar Boxing Federation

 Vietnam
History

The Vietnamese are descendants of nomadic Mongols from China and migrants from Indonesia.
According to mythology, the first ruler of Vietnam was Hung Vuong, who founded the nation in 2879
B.C. China ruled the nation then known as Nam Viet as a vassal state from 111 B.C. until the 15th
century, an era of nationalistic expansion, when Cambodians were pushed out of the southern area of
what is now Vietnam.

A century later, the Portuguese were the first Europeans to enter the area. France established its
influence early in the 19th century, and within 80 years it conquered the three regions into which the
country was then dividedCochin-China in the south, Annam in the central region, and Tonkin in the
north.

Paris proposed a unified government within the French Union under the former Annamite emperor, Bao
Dai. Cochin-China and Annam accepted the proposal, and Bao Dai was proclaimed emperor of all
Vietnam in 1949. Ho and the Vietminh withheld support, and the revolution in China gave them the
outside help needed for a war of resistance against French and Vietnamese troops armed largely by a
United States worried about cold war Communist expansion.

Geography

Vietnam occupies the eastern and southern part of the Indochinese peninsula in Southeast Asia, with
the South China Sea along its entire coast. China is to the north and Laos and Cambodia are to the west.
Long and narrow on a north-south axis, Vietnam is about twice the size of Arizona. The Mekong River
delta lies in the south.

Beliefs & Religions

Vietnam is a country which has a rich and wide variety of religions. These include religions based on
popular beliefs, religions brought to Vietnam from the outside, and several indigenous religious groups..

As with other countries, the Vietnamese have several popular beliefs, such as animism and theism. The
most widespread popular belief among the Vietnamese is the belief in ancestor-worship.

Government

Communist state.Vietnam is communist, but more of a socialist state.

The Socialist Republic of Vietnam is a single-party state. A new state constitution was approved in April
1992, replacing the 1975 version. The central role of the Communist Party was reasserted in all organs
of government, politics and society. Only political organizations affiliated with or endorsed by the
Communist Party are permitted to contest elections. These include the Vietnamese Fatherland Front,
workers and trade unionist parties. Although the state remains officially committed to socialism as its
defining creed, the ideology's importance has substantially diminished since the 1990s. The President of
Vietnam is the titular head of state and the nominal commander in chief of the military of Vietnam,
chairing the Council on National Defense and Security. The Prime Minister of Vietnam Nguyen Tan Dung
is the head of government, presiding over a council of ministers composed of 3 deputy prime ministers
and the heads of 26 ministries and commissions.

The National Assembly of Vietnam is the unicameral legislature of the government, composed of 498
members. It is superior to both the executive and judicial branches. All members of the council of
ministers are derived from the National Assembly. The Supreme People's Court of Vietnam, which is the
highest court of appeal in the nation, is also answerable to the National Assembly. Beneath the Supreme
People's Court stand the provincial municipal courts and the local courts. Military courts are also a
powerful branch of the judiciary with special jurisdiction in matters of national security. All organs of
Vietnam's government are controlled by the Communist Party. Most government appointees are
members of the party. The General Secretary of the Communist Party is perhaps one of the most
important political leaders in the nation, controlling the party's national organization and state
appointments, as well as setting policy.

Socio-economic

The five-year socio-economic development plan will focus on achieving breakthroughs three specific
areas: completing institutions for a socialist-oriented market economy, training high quality human
resources, and improving the transport system and urban infrastructure.

Baulch, Chuyen, Haughton, and Haughton examine the latest quantitative evidence on disparities in
living standards between and among different ethnic groups in Vietnam. Using data from the 1998
Vietnam Living Standards Survey and 1999 Census, they show that Kinh and Hoa (majority) households
have substantially higher living standards than minority households from Vietnam's other 52 ethnic
groups. Subdividing the population into five broad categories, the authors find that while the Kinh, Hoa,
Khmer, and Northern Highland minorities have benefited from economic growth in the 1990s, the
growth of Central Highland minorities has stagnated.

The authors then estimate and decompose a set of expenditure regressions which show that even if
minority households had the same endowments as Kinh households, this would close no more than a
third of the gap in per capita expenditures. While some ethnic minorities seem to be doing well with a
strategy of assimilating (both culturally and economically) with the Kinh-Hoa majority, other groups are
attempting to integrate economically while retaining distinct cultural identities.

Disaggregating further, they find that the same ethnic groups whose living standards have risen fastest
are those that have the highest school enrollment rates, are most likely to intermarry with Kinh
partners, and are the least likely to practice a religion.

The authors then estimate and decompose a set of expenditure regressions which show that even if
minority households had the same endowments as Kinh households, this would close no more than a
third of the gap in per capita expenditures. While some ethnic minorities seem to be doing well with a
strategy of assimilating (both culturally and economically) with the Kinh-Hoa majority, other groups are
attempting to integrate economically while retaining distinct cultural identities. A third group
comprising the Central Highland minorities, including the Hmong, is largely being left behind by the
growth process. Such diversity in the socioeconomic development experiences of the different ethnic
minorities indicates the need for similar diversity in the policy interventions that are designed to assist
them.

Tourist and destination

XamNeua; sometimes transcribed as Sam Neua or Samneua; literally "northern swamp") is the capital
city of Houaphan Province, Laos, located in the northeast of the country. XamNeua is one of the
country's least visited provincial capitals by Western tourists.

Muang Sing

Muang Sing is a mountainous district located in the north-west of LuangNamtha Province bordering with
Myanmar and China. Muang Sing is a traditional Tai Lu, Tai Neua and Akha cultural nexus, as well as a
trade center for Tai Dam, Hmong, Mien and Lolo. There are over nine ethnic minority groups in the
District. Two groups dominate the District population: Tai Lu comprising about 30% of the total (mostly
in town and adjacent plains) and Akha around 45% (In the surrounding hills). Most people in Muang Sing
live in small rural villages and practice agriculture as their main occupation.

Angkor Temples

Angkor Thom is a 3km sq walled and moated Royal city, was the last capital of the Angkorian Empire,
and home to Angkor's greatest king, Jayavarman VII. After Jayavarman VII re-captured the Angkorian
capital from the Cham invaders in 1181, he began a massive building campaign across the Empire,
constructing Angkor Thom as his new capital city. He began with existing structures such as Baphuon
and Phimeanakas and built a grand enclosed city around them, adding the outer wall and moat, and
some of Angkor's greatest temples, including his state temple, Bayon, set at the centre of the city. There
are 5 entrances (gates) to the city; one for each cardinal point, and the Victory Gate leading to the Royal
Palace area. Each gate is crowned with 4 giant smiling faces. The South Gate is often the first stop on a
tour of the temples.

Cat Ba Island

Almost half of Cat Ba Island (which has a total area of 354 sq km) and 90 sq km of the adjacent waters
were declared a national park in 1986 to protect the islands diverse ecosystems. These include
subtropical evergreen forests on the hills, freshwater swamp forests at the base of the hills, coastal
mangrove forests, small freshwater lakes and coral reefs. Most of the coastline consists of rocky cliffs,
but there are a few sandy beaches hidden away in small coves.

Ngo Mon Gate

Hue is also an important center of Buddhism. In Hue and its surrounding still exist tens of pagodas
constructed more 300 years ago, and a hundred of temples and pagodas built in the early century.
Besides, Hue is a place where the royal music is originated, and a place with traditional famous dishes
and sophisticated handicraft.

Sports

The Vietnam renovation process that began in 1986 has brought a great push to the development of
sports in Vietnam along with positive social and economic changes. This sports movement has drawn in
the participation of millions of people of all ages.

Today sports in Vietnam thrives. One may hit on groups of people engaged in the traditional Chinese
shadow boxing or tajiquan, deep-breathing training, playing badminton and mini-soccer. There are
professional courses on judo, karate and taekwondo which are passions for the youth in Vietnam.
Vietnam has also began to make its mark in the international sporting arena with its first silver medal
won at the 2000 Sydney Olympics by HieuNgan Tran for martial art tae kwon do.
 Thailand
Capital: Bangkok, population 8 million

Major Cities:

Nonthaburi, population 265,000

Pak Kret, population 175,000

Hat Yai, population 158,000

Chiang Mai, population 146,000

Government:

Thailand is a constitutional monarchy under the beloved king, Bhumibol Adulyadej, who has reigned
since 1946. King Bhumibol is the world's longest-serving head of state. Thailand's current Prime Minister
is Yingluck Shinawatra, who assumed office as the first ever female in that role on August 5, 2011.

Language:

Thailand's official language is Thai, a tonal language from the Tai-Kadai family of East Asia. Thai has a
unique alphabet derived from the Khmer script, which is itself descended from the Brahmic Indian
writing system. Written Thai first appeared around 1292 A.D.

Commonly used minority languages in Thailand include Lao, Yawi (Malay), Teochew, Mon, Khmer, Viet,
Cham, Hmong, Akhan and Karen.

Spoken and written Thai remain largely incomprehensible to the casual visitor. However, English is
widely understood, particularly in Bangkok where it is almost the major commercial language. English
and other European languages are spoken in most hotels, shops and restaurants, in major tourist
destinations, and Thai-English road and street signs are found nation-wide.

Population:

Thailand's estimated population as of 2007 was 63,038,247. The population density is 317 people per
square mile.

The vast majority are ethnic Thais, who make up about 80% of the population. There is also a large
ethnic Chinese minority, comprising about 14% of the population. Unlike the Chinese in many
neighboring Southeast Asian countries, the Sino-Thai are well-integrated into their communities. Other
ethnic minorities include the Malay, Khmer, Mon, and Vietnamese. Northern Thailand also is home to
small mountain tribes such as the Hmong, Karen, and Mein, with a total population of less than 800,000.

Religion:
Thailand is a deeply spiritual country, with 95% of the population belonging to the Theravada branch of
Buddhism. Visitors will see gold-spired Buddhist stupas scattered all across the country.

Muslims, mostly of Malay origin, make up 4.5% of the population. They are located primarily in the far
south of the country, in the provinces of Pattani, Yala, Narathiwat, and Songkhla Chumphon.

Buddhism is said to have first appeared in Thailand among the Mon people in the third century B.C.E.
The Mons left China about 2,000 years ago and settled in both Thailand and Burma. They are believed to
be the first settlers in Thailand. Once established, they soon encountered other peoples arriving from
the north. Many small kingdoms were subsequently established across the land, each vying for power
over another. It is likely, considering the first settlers were from China, that some Chinese Buddhist
influence was possible. However, Buddhism is generally considered to have appeared in Thailand from
India and not from China.

By the thirteenth century, missionaries from Sri Lanka were able to convince the king of Thailand,
Ramkhamhaeng, to convert to Buddhism. Pali was established as the religious language of Thailand and
Theravada Buddhism firmly took root, where it thrives to this day.

There was a revival of the Theravadan traditions in the nineteenth and twentieth centuries across
Southeast Asia. In Burma and Sri Lanka these reforms were part of the independence movement against
colonial rule. In Thailand, which retained its independence, reform was initiated by King Rama IV (reign
18511868), who was a monk himself for twenty-seven years.

Thailand also hosts tiny populations of Sikhs, Hindus, Christians (mostly Catholics), and Jews.

Geography:

Thailand covers 514,000 square kilometers (198,000 square miles) at the heart of Southeast Asia. It is
bordered by Myanmar (Burma), Laos, Cambodia, and Malaysia.

The Thai coastline stretches for 3,219 km along both the Gulf of Thailand on the Pacific side, and the
Andaman Sea on the Indian Ocean side. The west coast was devastated by the Southeast Asian tsunami
in December of 2004, which swept across the Indian Ocean from its epicenter off Indonesia.

The kingdom of Thailand lies in the heart of Southeast Neighboring countries:

Myanmar - west and north

Lao P.D.R. - north and northeast

Cambodia - southeast and

Malaysia - south

Geography:
The highest point in Thailand is Doi Inthanon, at 2,565 meters (8,415 feet). The lowest point is the Gulf
of Thailand, at sea level.

Climate

Thailand can best be described as tropical and humid for the majority of the country during most of the
year. The area of Thailand north of Bangkok has a climate determined by three seasons whilst the
southern peninsular region of Thailand has only two.

In northern Thailand the seasons are clearly defined. Between November and May the weather is mostly
dry, however this is broken up into the periods November to February and March to May. The later of
these two periods has the higher relative temperatures as although the northeast monsoon does not
directly effect the northern area of Thailand, it does cause cooling breezes from November to February.
The other northern season is from May to November and is dominated by the southwest monsoon,
during which time rainfall in the north is at its heaviest.

The southern region of Thailand really has only two seasons -- the wet and the dry. These seasons do
not run at the same time on both the east and west side of the peninsular. On the west coast the
southwest monsoon brings rain and often heavy storms from April through to October, whilst on the
east coast the most rain falls between September and December.

Economy:

Thailand's "Tiger Economy" was humbled by the 1997-98 Asian financial crisis, when the GDP growth
rate plummeted from +9% in 1996 to -10% in 1998. Since then, Thailand has recovered well, with
growth at a manageable 4-7%.

The Thai economy depends mainly on automotive and electronics manufacturing exports (19%),
financial services (9%), and tourism (6%). About half of the workforce is employed in the agriculture
sector, and Thailand is the world's top exporter of rice. The country also exports processed foods like
frozen shrimp, canned pineapple, and canned tuna.

Thailand's currency is the baht.

With a well-developed infrastructure, a free-enterprise economy, and pro-investment policies, Thailand

appears to have fully recovered from the 1997-98 Asian Financial Crisis. The country was one of East
Asia's best performers from 2002-04. Boosted by increased consumption and strong export growth, the
Thai economy grew 6.9% in 2003 and 6.1% in 2004 despite a sluggish global economy. Bangkok has
pursued preferential trade agreements with a variety of partners in an effort to boost exports and to
maintain high growth.

History

Throughout its 800-year history, Thailand can boast the distinction of being the only country in
Southeast Asia never to have been colonized. Its history is divided into five major periods.
Nanchao Period
(650-1250 A.D.)

The Thai people founded their kingdom in the southern part of China, which is Yunnan, Kwangsi and
Canton today. A great number of people migrated south as far as the Chao Phraya Basin and settled
down over the Central Plain under the sovereignty of the Khmer Empire, whose culture they probably
accepted. The Thai people founded their independent state of Sukhothai around 1238 A.D., which marks
the beginning of the Sukhothai Period.

Sukhothai Period
(1238-1378 A.D.)

Thais began to emerge as a dominant force in the region in the13th century, gradually asserting
independence from existing Khmer and Mon kingdoms. Called by its rulers "the dawn of happiness", this
is often considered the golden era of Thai history, an ideal Thai state in a land of plenty governed by
paternal and benevolent kings, the most famous of whom was King Ramkhamhaeng the Great. However
in 1350, the mightier state of Ayutthaya exerted its influence over Sukhothai.

Ayutthaya Period
(1350-1767)

The Ayutthaya kings adopted Khmer cultural influences from the very beginning. No longer the paternal
and accessible rulers that the kings of Sukhothai had been, Ayutthaya's sovereigns were absolute
monarchs and assumed the title devaraja (god-king). The early part of this period saw Ayutthaya extend
its sovereignty over neighboring Thai principalities and come into conflict with its neighbours, During the
17th century, Siam started diplomatic and commercial relations with western countries. In 1767, a
Burmese invasion succeeded in capturing Ayutthaya. Despite their overwhelming victory, the Burmese
did not retain control of Siam for long. A young general named Phya Taksin and his followers broke
through the Burmese and escaped to Chantaburi. Seven months after the fall of Ayutthaya, he and his
forces sailed back to the capital and expelled the Burmese occupation garrison.

Thon Buri Period

(1767-1772)

General Taksin, as he is popularly known, decided to transfer the capital from Ayutthaya to a site nearer
to the sea which would facilitate foreign trade, ensure the procurement of arms, and make defense and
withdrawal easier in case of a renewed Burmese attack. He established his new capital at Thon Buri on
the west bank of the Chao Phraya River. The rule of Taksin was not an easy one. The lack of central
authority since the fall of Ayutthaya led to the rapid disintegration of the kingdom, and Taksin's reign
was spent reuniting the provinces.

Rattanakosin Period
(1782 - the Present)
After Taksin's death, General Chakri became the first king of the Chakri Dynasty, Rama I, ruling from
1782 to 1809. His first action as king was to transfer the royal capital across the river from Thon Buri to
Bangkok and build the Grand Palace. Rama II (1809-1824) continued the restoration begun by his
predecessor. King Nang Klao, Rama III (1824-1851) reopened relations with Western nations and
developed trade with China. King Mongkut, Rama IV, (1851-1868) of "The King and I" concluded treaties
with European countries, avoided colonialization and established modern Thailand. He made many
social and economic reforms during his reign.

King Chulalongkorn, Rama V (1869-1910) continued his father's tradition of reform, abolishing slavery
and improving the public welfare and administrative system. Compulsory education and other
educational reforms were introduced by King

Vajiravudh, Rama VI (1910-1925). During the reign of King Prajadhipok, (1925-1935), Thailand changed
from an absolute monarchy to a constitutional monarchy. The king abdicated in 1933 and was
succeeded by his nephew, King Ananda Mahidol (1935-1946). The country's name was changed from
Siam to Thailand with the advent of a democratic government in 1939. Our present monarch, King
Bhumibol Adulyadej, is King Rama IX of the Chakri Dynasty.

People

Throughout the long history, Thailand has gently absorbed immigrants. Many were skilled as writers,
painters, sculptors, dancers, musicians and architects, and helped enrich indigenous culture. People
inhabiting Thailand today share rich ethnic diversity - mainly Thai, Mon, Khmer, Laotian, Chinese, Malay,
Persian and Indian stock - with the result that there is no typically Thai physiognomy or physique. There
are petite Thais, statuesque Thais, round-faced Thais, dark-skinned Thais and light-skinned Thais. Some
80% of all Thais are connected in some way with agriculture which, in varying degrees, influences and is
influenced by the religious ceremonies and festivals that help make Thailand such a distinctive country.

Tourist Destinations

Bangkok
Vibrant, colorful and cosmopolitan, Bangkok thrives with life all day long. With gleaming skyscrapers,
dazzling malls and shops, gorgeous temples and a plethora of luxury hotels Bangkok often surpasses
imagination. Come and sea the floating markets, enjoy the cabaret dancing, taste lip-smacking food,
shop at the five star international malls and make the most of the interesting nightlife at Bankok and
you will keep coming back here.

Phuket
Just 40 minutes away from Bankok, Phuket is one of the most frequented holiday destinations in Asia.
Boasting some of the best beaches and islands in Thailand Thailand Islands and Beaches a rocking
nightlife and a host of recreation options, it is so much fun to stay at Phuket, that you will be obsessed
with the land. Undoubtedly, a piece of heaven on earth, come to Phuket to unravel its beauty and
beguiled by its charm. There is a wide array of accommodation and dining options for you to choose
from.
Lampang
Founded in late 17th century by Queen Chama Devi, Lampang has found position among the most
popular Tourist Destinations in Thailand due to its archaic monuments, temples and monasteries.
Adorning the entire city stands a number of beautiful temple and monastery that bears the mark of the
age old architecture and narrates the story of the past. Come to this city located north of Bankok and a
take a tour back in time.

Pattaya
A couple of hors away from the capital city of Thailand, Pattaya is gifted with serene beaches. Feel the
soft and supple sand, enjoy the beauty of the bright blue water or indulge in sports activities. At Pattaya,
you can do all of it and more. With a wide choice of hotels and restaurants, a number of tourist
destinations Pattaya is Thailands oldest International Beach Resort.

FAMOUS FOR:

The Most Popular Floating Market

The Damnoen Saduak Floating Market is located at
Damnoen Saduak District, Ratchaburi Province, about
105 kms from Bangkok. According to history around
1866 King Rama IV ordered that a 32 kms long canal
be dug at Damnoen Saduak. This canal would connect
the Mae Klong River with the Tacheen River.

The excellent quality soil beside the canal is very fertile

and suitable for growing many kinds of fruits and vegetables.
The area is famous for Malacca grape, Chinese grapefruit,
mangoes, bananas, and coconut.

Land of Elephants at Ban Ta Klang, Surin

Mahouts do not live all over this Land of Elephants province. Only the Kui in a few villages are
kui a-chiang or mahouts.

This ancient Kui village has raised elephants for hundreds of years, since the time when their
ancestors settled down in the Dry evergreen forest at the juncture of the Mun and the Chi Rivers.
This area had abundant food to feed retired war elephants, which were earlier sent to Ayutthaya as
tax in kind instead of being conscripted.

In the old days, pachi, the head of mahouts, led a number of fellow mahouts t ocatch wild elephants in
Cambodia. The international conflict in that country put a stop to this practice. Elephant raising in Surin,
however, continues unabated, as young elephants are born every year.

The Kui reject the employment of elephants in hard work, such as logging, which is more popular in the
North. Elephants, like friends or sons, grow side by side with them. Their bond is indivisible.
While no wild elephants are rounded up now. Domesticated elephants prolong the art of mahouts.
When youn elephant reaches the age of 1 or 2 years old, it needs to be trained to receive such orders as
helping mahout to its back, turn left-right, walk forward-backward, etc.

In the former time, elephants were trained at home. Now there exists an elephant training center near
the Elephant Study Center, to train teenage elephants. Elephant has good memory and can learn several
tricks with regular practices

Thai Food

Everybody knows the famous food of Thailand, which is a mix of spicy and sour tastes of rice.

Rice is the basic aliment in Thailand. Rice is eaten with most dishes. The word "to eat" in Thai language
is "KIN KHAO" which means "to eat rice".

Khao suey

- steamed rice

Khao Nio

Famous sticky Rice

Sepak Takraw

Another sport indigenous to Thailand is Sepak Takraw, a variant of volleyball played with the feet and a
light rattan ball. There are several versions of the game with different rules. In the south of Thailand the
game is played with a net. Only the feet and head are permitted to touch the ball. It is amazing to see
players perform aerial pirouhettes, spiking the ball over the net with their feet.

Sports

Muay Thai Boxing

Muay Thai kickboxing is probably the most popular spectator sport in Thailand. Almost anything goes
both in the ring and the stands. If you want to watch a Muay Thai fight night there are Muay Thai
stadiums all over the country. The wild musical accompaniment, the ceremonial beginning to each
match, along with the devastating martial arts action will make it a night to remember.

Volley Ball

Volleyball is a sport in which two teams, separated by a high net, hit a ball back and forth over the net
using only their hands. Each team has a maximum of three hits to get the ball back over the net to the
other team. A point is scored if the ball hits the ground in the opponents' court. A team
of Katoey (ladyboys) volleyball players made headlines in Thailand when they started a meteoric rise
through the national championships. Two films have been made about their exploits. There are beach
volleyball competitions at many tourist spots.
 LAOS

History

The Lao people migrated into Laos from southern China from the 8th century onward. In the 14th century,
the first Laotian state was founded, the Lan Xang kingdom, which ruled Laos until it split into three
separate kingdoms in 1713. During the 18th century, the three kingdoms came under Siamese (Thai) rule
and, in 1893, became a French protectorate. With its territory incorporated into Indochina. A strong
nationalist movement developed during World War II, but France reestablished control in 1946 and made
the king of Luang Prabang constitutional monarch of all Laos. France granted semiautonomy in 1949 and
then, spurred by the Viet Minh rebellion in Vietnam, full independence within the French Union in 1950.

In 1951, Prince Souphanouvong organized the Pathet Lao, a Communist independence movement, in
North Vietnam. Viet Minh and Pathet Lao forces invaded central Laos, resulting in civil war. By the
Geneva Agreements of 1954 and an armistice of 1955, two northern provinces were given to the Pathet
Lao; the rest went to the royal regime. Full sovereignty was given to the kingdom by the Paris
Agreements of Dec. 29, 1954. In 1957, Prince Souvanna Phouma, the royal prime minister, and Pathet
Lao leader Prince Souphanouvong, the prime minister's half-brother, agreed to reestablishment of a
unified government, with Pathet Lao participation and integration of Pathet Lao forces into the royal army.
The agreement broke down in 1959, and armed conflict began anew.

In 1960, the struggle became a three-way fight as Gen. Phoumi Nosavan, controlling the bulk of the royal
army, set up in the south a pro-Western revolutionary government headed by Prince Boun Oum. General
Phoumi took Vientiane in December, driving Souvanna Phouma into exile in Cambodia. The Soviet bloc
supported Souvanna Phouma. In 1961, a cease-fire was arranged and the three princes agreed to a
coalition government headed by Souvanna Phouma.

Religion

There is no official religion in Laos, although the largest religion, Buddhism, has a large impact on the
country's culture. Another religion, animism, is not as popular as Buddhism, but has carried over some of
it's traditions into modern-day Laos. Brahmanism is another religion that was worshipped (which came
from India). Other religions, such as Christianity (Catholic and Protestant) and Islam are also found in
small numbers.

Government
Type: Communist state.
Branches: Executive--President (head of state); Chairman, Council of Ministers (prime minister and head
of government); 11-member Politburo; 61-member Central Committee.Legislative--132-seat National
Assembly. Judicial--district, regional, and a national Supreme Court.
Political parties: Lao People's Revolutionary Party (LPRP)--only legal party.
Administrative subdivisions: 16 provinces, and Vientiane prefecture.

Economy
Laos is a poor, landlocked country with an inadequate infrastructure and a largely unskilled work force.
The country's per capita income in 2010 was $986 (est.). Agriculture, mostly subsistence rice farming,
dominates the economy, employing an estimated 75% of the population and producing 29% of GDP.
Domestic savings are low, forcing Laos to rely heavily on foreign assistance and concessional loans as
investment sources for economic development. In 2010, donor-funded programs accounted for
approximately 8.5% of GDP and 90% of the governments capital budget. In 2010, the country's foreign
debt was estimated at $5.8 billion.

Following its accession to power in 1975, the communist government imposed a harsh, Soviet-style
command economy system until 1986, when the government announced its "new economic mechanism"
(NEM). Initially small in scale, the NEM was expanded to include a range of reforms designed to create
conditions conducive to private sector activity. Prices set by market forces replaced government-
determined prices. Farmers were permitted to own land and sell crops on the open market. State firms
were granted increased decision-making authority and lost most of their subsidies and pricing
advantages. The government set the exchange rate close to real market levels, lifted trade barriers,
replaced import barriers with tariffs, and gave private sector firms direct access to imports and credit.
These economic reforms led to increased availability of goods and economic growth that has continued to
the present day.

The economy of Laos is essentially a free market system with active central planning by the government,
similar to the Chinese and Vietnamese models. However, unlike China or Vietnam, Laos has negligible
industrial capacity, a primitive and underproductive system of agriculture, and increasingly relies on its
rich natural resources to earn much needed-foreign reserves. In particular, the hydropower, mining,
precious metals, and timber sectors have attracted major investment from Thailand, Vietnam, and in the
last decade, China. China is now the largest source of foreign direct investment (FDI) in Laos.

The government relies heavily on foreign assistance for public investment, and despite escalating
revenues from the natural resources sector, shows no signs of significantly reversing this trend. The
seventh 5-year plan (2011-15) calls for a budget of U.S. $5 billion for public investment, U.S. $3.8 billion
(76%) of which would come from foreign assistance. Tourism remains a bright spot of the Lao economy,
offering real future potential, solid growth, and substantial job creation.

International indices rate Laos poorly on transparency and ease of doing business. Endemic corruption
and poorly developed commercial law continue to hamper economic development. Laos has begun the
World Trade Organization accession process, with the intention of joining that organization as soon as
possible.

Tourist destinations

Buddha park located 25km southeast of Vientiane, it is known locally as xieng Khuan. The main
attractions are the sculptures. Several of them depict the Buddha while others are from Hindu
myth. There are also sculptures of demons, humans and other creatures.

The Patuxai Monument the name means victory Gate and it is found in the heart of Vientiane.
Built in 1968, the monument is a reminder of the nations fight for independence against the
French. It is along Lan Xang boulevard.

Pha That Luang set on the eastern side of Vientiane, the Pha That Luang (great stupa) is one
of the most recognizable symbols of Laos. The Stupa has three stages with each outlining a part
of Buddhist philosophy and belief. The stupa is 147 ft high.

Wat Si Saket one of the most interesting tourist spots in Laos. It is a buddhidt wat built in 1818.
It has an elaborately designed roof abd a terrace around it. According to archeologists, it is quite
possibly the oldest surviving temple in the country.
Sports:

Traditional sport is field hockey played with bamboo sticks and a ball made of roots, boats races, soccer.
Laos is a founding participant in SEA games.

Known for:

Laos, known as the Land of a Million Elephants, is a landlocked country in Southeast Asia about the
size of Kansas. The elephant symbolizes the ancient kingdom of Lan Xang, and is sacred to the Lao
people, who believe it will bring prosperity to their country.

Regions in Laos

Northern Laos (Ban Nalan Trail, Bokeo Nature Reserve, Houay Xai, Luang Prabang, Luang
Namtha, Muang Ngoi Neua, Muang Long, Muang Ngeun, Muang Xay, Nong Khiaw, Pakbeng,
Vieng Phoukha) hilltribe villages, mountains and the remarkably charming former capital
Central Laos (Vientiane, Phonsavan, Plain of Jars, Tha Khaek, Tham Nong Pafa Cave , Vang
Vieng, Vieng Xai) south-east Asia's sleepiest capital city and rural countryside
Southern Laos (Champasak, Pakse, Savannakhet, Si Phan Don) the Mekong flatlands, more
mountains and the area least visited by tourists

2011 SEA games result

TOTAL
gold silver bronze
Lao PDR MEDAL

Shorinji Kempo 2 2 7 11

Vovinam 2 0 5 7

Petanque 2 0 2 4

Taekwondo 1 3 5 9

Judo 1 2 1 4

Shooting 1 0 0 1

Wushu 0 4 1 5

Sepak Takraw 0 1 3 4

Karate-Do 0 0 4 4

Boxing 0 0 3 3

Wrestling 0 0 2 2

Soft Tennis 0 0 2 2

Pencak Silat 0 0 1 1

Total 9 12 36 57
 PHILIPPINES

History

The Philippines' aboriginal inhabitants arrived from the Asian mainland around 25,000 BC They were
followed by waves of Indonesian and Malayan settlers from 3000 BC onward. By the 14th century AD ,
extensive trade was being conducted with India, Indonesia, China, and Japan.

Ferdinand Magellan, the Portuguese navigator in the service of Spain, explored the Philippines in 1521.
Twenty-one years later, a Spanish exploration party named the group of islands in honor of Prince Philip,
who was later to become Philip II of Spain. Spain retained possession of the islands for the next 350
years.

The Philippines were ceded to the U.S. in 1899 by the Treaty of Paris after the Spanish-American War.
Meanwhile, the Filipinos, led by Emilio Aguinaldo, had declared their independence. They initiated
guerrilla warfare against U.S. troops that persisted until Aguinaldo's capture in 1901. By 1902, peace was
established except among the Islamic Moros on the southern island of Mindanao.

The first U.S. civilian governor-general was William Howard Taft (19011904). The Jones Law (1916)
established a Philippine legislature composed of an elective Senate and House of Representatives. The
Tydings-McDuffie Act (1934) provided for a transitional period until 1946, at which time the Philippines
would become completely independent. Under a constitution approved by the people of the Philippines in
1935, the Commonwealth of the Philippines came into being with Manuel Quezon y Molina as president.

On Dec. 8, 1941, the islands were invaded by Japanese troops. Following the fall of Gen. Douglas
MacArthur's forces at Bataan and Corregidor, Quezon instituted a government-in-exile that he headed
until his death in 1944. He was succeeded by Vice President Sergio Osmea. U.S. forces under
MacArthur reinvaded the Philippines in Oct. 1944 and, after the liberation of Manila in Feb. 1945, Osmea
reestablished the government.

Religions

Main Religions in the Philippines. Roman Catholic 80.9%, Muslim 5%, Evangelical 2.8%, Iglesia ni Kristo
2.3%, Aglipayan 2%, other Christian 4.5%, other 1.8%,

Government

The Government of the Philippines is called The Republic or Democratic form of government. In this type
of government, the power is in the hand of the people, the majority. The officials are voted by the people,
for the people and given power by the people of the Philippines.

Type: Republic.
Independence: 1946.
Constitution: February 11, 1987.
Branches: Executive--president and vice president. Legislative--bicameral legislature.Judicial--
independent.
Administrative subdivisions: 16 regions and Metro Manila (National Capital Region), 80 provinces, 122
cities.
Political parties: Liberal Party, Lakas-Christian Muslim Democrats/KAMPI, Nacionalista, Nationalist
People's Coalition, Laban ng Demokratikong Pilipino, Pwersa ng Masang Pilipino, Aksiyon Demokratiko,
Partido Demokratikong Pilipino-Lakas ng Bayan, and other small parties.
Suffrage: Universal, but not compulsory, at age 18.

Economy

The Philippines economy is the worlds 47th largest economy (as of 2008). The Philippine peso is the
countrys unit of currency. The Philippines has undergone a transformation from being an agriculture
based country to that of a newly industrialized country. The economy is now vastly dependent on the
services and manufacturing sector. The country has a total labor force of around 38.1 million. As of
October 2009, its foreign currency reserves stood at US$36.13 billion.

Tourist Destinations

The Rice Terraces in Banaue Ifugao are considered to be the Eighth Wonder of the World. The
terraces are listed as a UNESCO World Heritage Site. Approximately during the ministry of Jesus
Christ on earth (over 2000 years ago), the native people of Ifugao began carving the terraces of
the mountains using merely their bare hands and sticks from the trees in the forests. The terraces
were carved mainly to provide an area of land suitable for planting rice which is the staple food of
most Filipinos whether breakfast, lunch or dinner, rice is always served and eaten with the main
dish. The rainforests above the mountains act as a natural irrigation system used to water the rice
plants. The terraces are 7 hours of travel by car (50 miles) from Baguio city, the summer capital
of the Philippines. Travelling from Manila, the capital city of the Philippines, it would take a total of
12 hours to reach the terraces, a distance of about 205 miles.
The Tubbataha Reefs National Marine Park is a sanctuary (government-protected conservation
area) consisting of over 1000 species of marine creatures and birds. The Reef
is listed as a UNESCO World Heritage Site and is the most popular Philippine diving site for
tourists. The Tubbataha Reef has two coral reef atolls, the North and South Atoll. The Park can
be reached via boat travel of 10 to 12 hours which is about 112 miles from Puerto Princesa city,
the capital of Palawan province.
The Chocolate Hills of Bohol are a spectacular natural wonder in the Philippines. It consists of
nearly 1800 small cute little hills that are spread over an area of 20 square miles. The hills are
located in 3 towns of Bohol namely Carmen, Batuan and Sagbayan. A viewing station is available
in the government resort Chocolate Hills Complex in the town of Carmen, Bohol which is a
distance of about 34 miles from Tagbilaran City. Sagbayan Peak Mountain Resort offers an
alternative viewing station of the world-renowned and popular Chocalate Hills in the town of
Sagbayan, a distance of 47 miles from Tagbilaran City.
Mayon Volcano has a worldwide reputation as the most perfectly formed volcano in the world
because of its near-perfect conical shape and form. Mayon Volcano is the champion among the
best competitors for the world's most perfectly coned volcanoes like Osorno Volcano of Chile,
Mount Fuji of Japan, Mount Taranaki of New Zealand, Mount Cotopaxi of Ecuador, Volcan
Arenal of Costa Rica and Shishaldin Volcano of Alaska, USA. Because of its natural elegance
and beauty, it is listed on the World's Top 10 Wonders of Nature. Visitors traveling to Mayon
Volcano from Manila would take an hour by plane getting to Legazpi City then 10 miles north of
Legazpi city is the magnificent Mayon Volcano, the most popular landmark of the province of
Albay, Philippines.
Boracay Island has been nominated several times as the NUMBER ONE Tropical Beach in the
world. It has two major tourism beaches namely White Beach and Bulabog Beach. Regarded as a
world-class tourist spot and among the Top 10 tourist attractions, travel destinations, vacation
hotspots and most visited places in the Philippines, Boracay's two main beaches are venues to a
host of leisure activities such as windsurfing, kiteboarding, kitesurfing, scuba diving, snorkeling,
swimming, beach-side nature walking, sunbathing, beach volleyball, golf, and other recreational
sports.
Sports

Five major sports in the Philippines:

Basketball

Boxing (very popular because of Manny Pacquiao)

Billiards

Football

Volleyball

Known in the Philippines

The Philippines is known for the growth of sugarcane, coconuts, rice, corn, bananas, cassavas,
pineapples and mangoes. The Philippines is also known for its electronics assembly, garments, footwear,
pharmaceuticals, chemicals, wood products, food processing, petroleum refining and fishing

Fiestas are a large part of Filipino culture and lifestyle. Each city has at least one festival of its own.
Fiestas are usually thrown to honor the patron saint of a given area. The biggest celebration of all comes
during Christmas.

Regions:

The three island group is divided into regions and there are more than seventeen (17) different Philippine
regions.

Luzon has eight (8) regions.

Visayas has three (3) regions.
Mindanao has six (6) regions.

Philippine Regions

Luzon
1. Ilocos Region
2. Cagayan Valley
3. Central Luzon
4A. Calabarzon
4B. Mimaropa
5. Bicol Region
16. Cordillera Administrative Region (CAR)
17. National Capital Region (NCR)

Visayas
6. Western Visayas
7. Central Visayas
8. Eastern Visayas

Mindanao
9. Zamboanga Peninsula
10. Northern Mindanao
11. Davao Region
12. Soccsksargen
13. Caraga
17. Autonomous Region of Muslim Mindanao

Each region is further split into Provinces of which there are currently seventy nine (79) provinces and the
National Capital Region (NCR)

Philippine Provinces
Island Group: Luzon
Region: 1. Ilocos
Provinces1. Illocos Norte2. Illocos Sur3. La Union4. Pangasinan

Island Group: Luzon

Region: 2. Cagayan Valley
Provinces1. Batanes2. Cagayan 3. Isabela4. Nueva Viscaya5. Quirino

Island Group: Luzon

Region: 3. Central Luzon
Provinces1. Aurora2. Bataan3. Bulacan4. Nueva Ecija5. Pampanga6. Tarlac7. Zambales

Island Group: Luzon

Region: 4a. Calabarzon
Provinces1. Batangas2. Cavite 3. Laguna4. Quezon5. Rizal

Island Group: Luzon

Region: 4b. Mimaropa
Provinces1. Marinduque2. Occidental Mindoro3. Oriental Mindoro4. Palawan5. Romblon

Island Group: Luzon

Region: 5. Bicol
Provinces1. Albay2. Camarines Norte3. Camarines Sur4. Catanduanes5. Masbate6. Sorsogon

Island Group: Visayas

Region: 6. Western Visayas
Provinces1. Aklan2. Antique3. Capiz4. Iloilo5. Guimaras6. Negros Occidental

Island Group: Visayas

Region: 7. Central Visayas
Provinces1. Bohol2. Cebu3. Negro Oriental4. Siquijor

Island Group: Visayas

Region: 8. Eastern Visayas
Provinces1. Biliran2. Eastern Samar3. Leyte4. Northern Samar5. Samar (Western)6. Southern Leyte
Island Group: Mindanao
Region: 9. Zamboanga Peninsula
Provinces1. Zamboanga Sibugay2. Zamboanga del Norte3. Zamboanga del Sur

Island Group: Mindanao

Region: 10. Northern Mindanao
Provinces1. Bukidnon2. Camiguin3. Misamis Occidental4. Msamis Oriental5. Lanao del Norte

Island Group: Mindanao

Region: 11. Davao
Provinces1. Davao del Norte2. Davao del Sur3. Davao Oriental4. Comostela Valley

Island Group: Mindanao

Region: 12. Soccsksargen
Provinces1. North Cotabato2. Sultan Kudarat3. South Cotabato4. Saranggani

Island Group: Mindanao

Region: 13. Caraga
Provinces1. Agustan del Norte2. Augustan del Sur3. Suriago del Norte4. Suriago del Sur

Island Group: Luzon

Region: 14. Cordillera Administrative Region (CAR)
Provinces1. Abra2. Benguet3. Ifugao4. Kalinga5. Apayao6. Mountain Province

Island Group: Mindanao

Region: 15. Autonomous Region of Muslim Mindanao (ARMM)
Provinces1. Basilan2. Sulu3. Tawi-Tawi4. Lanao del Sur5. Magrindanao

Island Group: Luzon

Region: 16. National Capital Region (NCR)
Provinces1. Manila (composed of the cities within Manila)
 TOTAL
gold silver bronze
Philippines MEDAL

Taekwondo 4 3 5 12

Boxing 4 1 1 6

Billiard & Snooker 3 2 4 9

Athletics 2 9 5 16

Cycling 2 4 7 13

Wushu 2 4 3 9

Wrestling 2 3 3 8

Bridge 2 2 1 5

Softball 2 0 0 2

Chess 1 4 3 8

Bowling 1 4 1 6

Tennis 1 2 3 6

Traditional Boat Race 1 2 2 5

Ekuestrian 1 2 0 3

Archery 1 2 0 3

Rowing 1 1 1 3

Basketball 1 1 0 2

Judo 1 0 6 7

Fencing 1 0 3 4

Fin Swimming 1 0 1 2

Baseball 1 0 0 1

Wall Climbing 1 0 0 1

Swimming 0 2 5 7

Diving 0 2 1 3

Karate-Do 0 1 6 7

Soft Tennis 0 1 5 6

Pencak Silat 0 1 3 4

Weightlifting 0 1 2 3

Sailing 0 1 1 2

Water Polo 0 1 0 1
Water Ski 0 0 2 2

Gymnastic - Artistic 0 0 1 1

Golf 0 0 1 1

Sepak Takraw 0 0 1 1

Table Tennis 0 0 1 1

Total 36 56 78 170

SEAGAMES
History of Southeast Asian Games
The Southeast Asian Games (also known as the SEA Games), is a biennial multi-sport event
involving participants from the current 11 countries of Southeast Asia. The games is under
regulation of the Southeast Asian Games Federation with supervision by the International
Olympic Committee (IOC) and the Olympic Council of Asia.

The Southeast Asian Games owes its origins to the Southeast Asian Peninsular Games or SEAP
Games. On 22 May 1958, delegates from the countries in Southeast Asian peninsula attending
the 3rd Asian Games in Tokyo, Japan had a meeting and agreed to establish a sport organization.

Thailand, Burma (now Myanmar), Malaya (now Malaysia), Laos, South Vietnam and Cambodia
(with Singapore included thereafter) were the founding members. These countries agreed to hold
the Games biannually. The SEAP Games Federation Committee was formed.

The first SEAP Games were held in Bangkok from 12-17 December 1959 comprising more than
527 athletes and officials from Thailand, Burma, Malaya (now Malaysia), Singapore, South
Vietnam and Laos participating in 12 sports.

About Sea Games 2011

Indonesia SEA Games 2011 held in 11 days from November 11, 2011 - November 22, 2011 in
two host cities, Palembang and Jakarta with 542 gold medals competed through 44 sports.

Indonesia was chosen as the host the 2011 SEA Games in the SEA Games Federation Council
Meeting in Bangkok, Thailand 6 September 2006. This year is the fourth time for Indonesia to be
host country for Southeast Asian countries sports festival after in SEA Games X 1979, SEA
Games XV 1987, dan SEA Games XIX 1997.

As the main host, Palembang concentrated the game in Jaka Baring Sports Complex which
covers an area of 45 thousand square meters and also at the sports center Gelora Sriwijaya
Palembang.

In Jakarta, competition venues were centered in Bung Karno Main Stadium (SUGBK). This
stadium is the largest and oldest stadium in Indonesia which is very historic for the people of
Indonesia which is located in the capital of Jakarta and has seating capacity of about 88 thousand
spectators. Currently, Bung Karno Regions stood wide range of facilities for sporting activities in
36 Venues, Politics, Business, Recreation and Tourism.

SEA Games Organizing Committee or commonly abbreviated as INASOC stated there are four
keys of success to be addressed during this Southeast Asia countries sport festival, that are the
successful of achievement, successful of management, successful of legacy and that no less
important is the successful of democratic economy.

For the SEA Games to be memorable especially for Indonesia and all participating countries, one
of the impressions building efforts is done by specifying a logo that depicts Eagle with the
philosophy of "Garuda Flight above Indonesia Nature?. As a symbol of the country, Garuda in
the global sphere is well known and directly associated with Indonesia.
SEA GAMES LOGO
To host the SEA Games in 2011 has the meaning of hard work for Indonesia. Many things must be
prepared to pick up the success Games of these Southeast Asian countries.
Garuda logo was officially introduced January 15, 2011 at the kick off event, 300 Days toward
the SEA Games in Tanah Airku Theatre, Taman Mini Indonesia Indah, Jakarta. Physically, the
Garuda symbolizes the power and its flaps wings represent the grandeur or glory.

In the logo, the head was given the red streaks symbolizing courage, fighting spirit, the spirit of
play which also reflects the nationalism. The green streaks shaped mountain symbolizing
Indonesia Nature Mountains and streaks of blue wave symbolizing the ocean archipelago.

The concept, is about the mighty Garuda as a guidance and as a protective figure, flying high
above the Earth Mother which is rich in natural resources of forest, mountain, and maritime.

This spirit seems able to inspire athletes of Indonesia, from Sabang to Merauke. Proud of their
own country and compete in sportsmanship with friendly countries.

Eleven small orange circles that resembles the petals form of a large circle is a representation of
the 11 participating countries.

Countries in SEA GAMES

Brunei Darussalam

Malaysia

Singapore

Vietnam

Cambodia

Myanmar

Thailand

Indonesia

Lao PDR

Philippines

Timor-Leste
Sports in SEA GAMES

MEASURED SPORTS
 Diving

Archery
Fin swimming

Athletic
Sailing

Gymnastic
Rowing

Weight lifting
Canoeing

Paragliding
Traditional boat race

Sport Climbing
Water ski

Swimming
Cycling

Synchronized Swimming
Equestrian

Water Polo
Open water swimming

GAMES SPORTS
 Basketball

Badminton
Volleyball indoor

Tennis
Baseball

Soft tennis
Softball

Table tennis
Billiard

Football
Bridge

Futsal
Chess

Takraw

Roller sport

MARTIAL ART SPORTS

 Taekwondo

Fencing
Kempo

Wushu
Pencak Silat

Boxing
Judo

Vovinam
Wrestling

Karate

CONCENTRATION SPORTS

Golf

Bowling

Shooting

Petanque
Result
Overall
Country Medal
Indonesia 182 151 145 478

Thailand 109 100 119 328

Vietnam 96 92 99 287

Malaysia 59 50 81 190

Singapore 42 45 73 160

Philippines 36 56 78 170

Myanmar 16 27 39 82

Lao PDR 9 12 36 57

Cambodia 4 11 24 39

Timor Leste 1 1 6 8

Brunei Darussalam 0 4 7 11
Grand Total 554 549 707 1810

Country Event Hosted Year Hosted

Indonesia 4 1979, 1987, 1997, 2011
Thailand 3 1985, 1995, 2007
Philippines 3 1981, 1991, 2005
Malaysia 3 1977, 1989, 2001
Singapore 3 1983, 1993, 2015
Myanmar 1 2013
Laos 1 2009
Vietnam 1 2003
Brunei 1 1999
Cambodia -
Timor-Leste -

Hosting Tally