The governance models vs. the development courses of the mining sector: cases of Indonesia and the Philippines

Abstract

AbstractIndonesia and the Philippines have shared similar history, geological condition, and economic structure. Located in Southeast Asia, both countries have rich reserves of metallic minerals. They have also experienced changes of political system in the post-WWII era, from an authoritarian regime to a democracy, and have both pursued a neoliberal economic policy since the 1980s.​ However, the shared commonalities have not led to a similar development path of the mining industry in the two countries. Our research was aimed to reveal the key factors that caused the divergence of the mining development in Indonesia and the Philippines, from three main aspects: the evolution of the political system, the economic and mining policies adopted by the two governments, and the role of the mining regulations. The main question asked was that “Why did the similar political systems and economic policy fail to create a convergent path for mining development in the two neighbors?” The research has proved the validity of our hypothesis: the distinct political objectives and economic circumstances have impacted the implementation of the Neoliberal economic policy in the two countries. To a less extent, the scale of the mining industry in their respective economies and the different features of their respective colonial past were partially responsible as well.