Economic Crises and the Breakdown
of Authoritarian Regimes
Indonesia and Malaysia in Comparative Perspective
Why do some authoritarian regimes topple during financial crises,
whereas others steer through financial crises relatively unscathed? In
this book, Thomas B. Pepinsky uses the experiences of Indonesia and
Malaysia and the analytical tools of open economy macroeconomics to
answer this question. Focusing on the economic interests of authoritar-
ian regimes’ supporters, Pepinsky shows that differences in cross-border
asset specificity produce dramatically different outcomes in regimes
facing financial crises. When supporters are divided by the mobility
of their capital assets, as in Indonesia, they desire mutually incompat-
ible adjustment policies, yielding incoherent adjustment policy fol-
lowed by regime collapse. When coalitions are not divided by the
mobility of their assets, as in Malaysia, regimes adopt radical adjust-
ment measures that enable them to survive financial crises. Combining
rich qualitative evidence from Southeast Asia with cross-national time-
series data and comparative case studies of Latin American autocracies,
Pepinsky reveals the power of coalitions and capital mobility to explain
how financial crises produce regime change.
Thomas B. Pepinsky is Assistant Professor of Government and a faculty
affiliate of the Southeast Asia Program at Cornell University. His
research appears in World Politics, European Journal of International
Relations, Journal of East Asian Studies, Journal of Democracy , Studies
in Comparative International Development, and several edited vol-
umes. He received his Ph.D. from Yale University and taught at
the University of Colorado at Boulder from 2007 to 2008. He held a
Fulbright-Hays Doctoral Dissertation Research Abroad Fellowship in
Indonesia and Malaysia from 2004 to 2005.
© Cambridge University Press www.cambridge.org
Cambridge University Press
978-0-521-76793-4 - Economic Crises and the Breakdown of Authoritarian Regimes: Indonesia
and Malaysia in Comparative Perspective
Thomas B. Pepinsky
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