Pancasila economics is an economic system which aims to reflect the five principles of Pancasila. The term "Pancasila economy" first appeared in an article by Emil Salim in 1967.
In essence, a Pancasila economy is a system that tries to avoid pendulum-like swings from one extreme (a free market economy) to the other (socialism). In simple terms, a "Pancasila economy" can be described as a market economic system with government control or a controlled market economy. A Pancasila economy can be considered an example of a mixed economy system or a third way of managing an economic system.
A Pancasila economy is seen as a counterbalance to a neoclassical approach promoting individualism and free markets that is adapted the values of Indonesian society, including religious values, culture, customs and norms.
Video Pancasila economics
Characteristics
The five basic characteristics of the economic concept of Pancasila are:
- Cooperative development
- Commitment to equity
- Nationalist economic policy
- Centralized planning; and
- Decentralized implementation
The Pancasila economic system has significant differences from liberal economic systems. It is oriented to the common people. Pancasila is also different from socialism which does not recognize individual ownership.
Maps Pancasila economics
Indonesia
There has been much discussion about the need for a Pancasila economic system in economic development policy in Indonesia since Indonesian independence in 1945.
The principles of a Pancasila economy were mandated by the Indonesian Constitution 1945. These include humanity, economic nationalism, economic democracy and justice.
See also
- Emil Salim
- Indonesian economy
- Pancasila (politics)
References
Source of article : Wikipedia
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