Country Strategy and Program 2006–2009: Indonesia

Abstract

Indonesia saw rapid growth and declining poverty in the early 1990s, then sudden economic deterioration and heightened poverty in 1997–2000, following the Asian financial crisis. The crisis exposed a lack of good governance. Since the crisis, the macroeconomic focus and debt reduction have led to low development spending, while private consumption has been the main driver of growth. Progress toward the Millennium Development Goals (MDGs) has been mixed.