Hatta and Co-operatives: The Middle Way for Indonesia?

Abstract

Because of Hatta's role as a leader of the moder ate and rationalist faction in Indonesia, his book has wide inter est. As Vice President from 1950 to 1956, he was able to act as a buffer between extreme Nationalists and Communists and the more pro-Western groups. His book shows that he takes seriously Article 38 of the Constitution which calls for organi zation of the national economy on a co-operative basis. His anticapitalist attitudes are apparent throughout the book, and he repeatedly contrasts corporations, which are for him the epitome of class struggle, and co-operatives, which are the In donesian route to the classless society. Yet Hatta also regards co-operatives as a technique for economic development; but it is clear even to him that a "co-operative national economy" cannot be attained for decades. Meanwhile, the failure of in dependence to bring prosperity is a major factor in the current conflict in Indonesia. It is clear that Indonesia cannot await the organization of a co-operative economy to begin an effec tive economic development program. What Indonesia needs most now is a large dose of "ad hocery"; it is doubtful whether Hatta alone can provide the necessary leadership for such a practical economic development program.