Political Economy of Development: A Case Study the Development of the Eastern Special Development Zone

Abstract

The objectives of this qualitative research were to analyze structural conditions, agencies, and to propose the alternatives for development of the Eastern Special Development Zone by adopting neoliberalism concepts and special economic zone concepts as tools for understanding. The research was conducted using 3 types of data collection including documentary research, in-depth interview and, focus group discussion. The data was verified by the triangulation method. For analytical methods, structure and agency analysis. The research findings show that the structural conditions that contribute to the emergence and the dynamic of the Eastern Special Development Zone were the special power of the centralized state, the reproduction for the purpose of inheriting capitalist ideology, availability, and advantages of the Eastern Seaboard area. These three structural conditions were metaphorically the driving factors and the attracting factors that generate the developmental paradigm to increase the potential of capitalist production methods. With regards to the agencies as stakeholders, they consist of the state and state mechanisms, multinational capital, national capital, national politicians, local politicians, people’s network. These agencies interact in the forms of collaboration, conflict and, controversy. In terms of the alternatives for development, it is necessary to establish conditions for each group of agencies in order to coexist under the principles of social justice by prioritizing good governance principles relating to development, participatory development, equity distribution of benefits, elimination of causes that may lead to conflicts, etc.