Pancasila economics

National Emblem of Indonesia Garuda Pancasila

Pancasila economics is an economic system which aims to reflect the five principles of Pancasila.[1] The term "Pancasila economy" first appeared in an article by Emil Salim in 1967.[2]

In essence, a Pancasila economy is a system that tries to avoid pendulum-like swings from one extreme (a free market economy) to the other (socialism). In simple terms, a "Pancasila economy" can be described as a market economic system with government control or a controlled market economy. A Pancasila economy can be considered an example of a mixed economy system or a third way of managing an economic system.[2]

A Pancasila economy is seen as a counterbalance to a neoclassical approach promoting individualism and free markets[3] that is adapted the values of Indonesian society, including religious values, culture, customs and norms.[4]

Characteristics

The five basic characteristics of the economic concept of Pancasila are:[5]

  • Cooperative development
  • Commitment to equity
  • Nationalist economic policy
  • Centralized planning
  • Decentralized implementation

The Pancasila economic system has significant differences from liberal economic systems.[5] It is oriented to the common people.[5][6] Pancasila is also different from socialism which does not recognize individual ownership.[5][6]

Indonesia

There has been much discussion about the need for a Pancasila economic system in economic development policy in Indonesia since Indonesian independence in 1945.[4]

The principles of a Pancasila economy were mandated by the Indonesian Constitution in 1945. These include humanity, economic nationalism, economic democracy and justice.[4]

See also

References

  1. ↑ "Macam dan Pengertian Sistem Ekonomi". www.ekonoomi.com. Retrieved 15 May 2014.
  2. 1 2 Prof. Dr. Dawam Rahardjo. "Analisis Pancasila sebagai Filosofi Perekonomian". www.ekonomikerakyatan.ugm.ac.id. Retrieved 15 May 2014.
  3. ↑ Mubyarto, 2002 & 68.
  4. 1 2 3 "Membumikan Sistem Ekonomi Pancasila". pelitaonline.com. Retrieved 15 May 2014.
  5. 1 2 3 4 "Prof Mubyarto dan Ekonomi Pancasila". poskotanews.com. Retrieved 15 May 2014.
  6. 1 2 "Pancasila needs to be implemented a system to economic". www.antaranews.com. Retrieved 15 May 2014.

Further reading

  • R. William Liddle. 1982. 'The Politics of Ekonomi Pancasila', Bulletin of Indonesian Economic Studies, XVIII (1), March, pp. 96-101.
  • Peter McCawley. 1982. 'The Economics of Ekonomi Pancasila', Bulletin of Indonesian Economic Studies, XVIII (1), March, pp. 102-109.
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