Financial Crisis And Democratization

Financial crisis bursted out in South-eastern Asia in 1997.On May 21,1998, Suharto, the President of Indonesia, who had been controlled Indonesia about 32 years, announced that he would resign the president position. Suharto authoritarian regimes go to his destination, Indonesia is on its way democratization.The thesis is divided into two parts. The first part introduces Seymour Martin Lipset and Samuel P. Huntington's theories on democratization. Lipset believed that economic development would naturally lead to democratize. While, Huntington accepted Lipset's theory. He believed that economic development would provide economic basis for democratization. Excepted this view, he believed that traditional economic crisis adding quick economic development would change an authoritarian regimes into a democratic government. But, Suharto's authoritarian regimes ending in Indonesia challenged the traditional democratization theories.The second part : the writer emphatically analyses the relationship of financial crisis and democratization through the case of Indonesia. This part recommends the happens of Indonesia financial crisis, Suharto and IMF's methods of dealing with the financial crisis, analyses their unfit methods lead to the outbreak of May disorder and stimulated the disharmonies of nationalities and religions. In an embarrassing situation, Suharto's authoritarian regimes came to its end. Indonesia began its democratization.