However, the nexus between growth and political stability is never linear. In this paper
we explored the pattern of growth since the mid-1990s, and find that triggering
economic growth under a decentralized authoritarian system is costly. This system
enabled local governments to favour and compete for investment-led growth, but
generated negative spillovers of rapid growth, include rising disparity across incomes
and regions, environmental degradation, frequent macro disturbance, external imbalance
of payments, financial fragility and prevalent corruption.
The resolution