Periphery and Small Ones Matter: Interplay of Policy and Social Capital

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This open access book analyzes the dualism and inequality in Indonesia insofar as how it affects micro, Small & Medium enterprises. The author considers how the general direction of policy should be to mitigate the effects of agglomeration forces leading towards concentration of activities in developed areas, and exploit the same forces by encouraging small businesses to operate in a close proximity and enable them to enjoy the external economies. If serious efforts to foster inclusive growth are to be made, conducting these two tasks should be the focus of social planners. The question is, how? The book addresses this question by focusing on the role of interactions between policies and institutions, of which social capital is an important part.