Why Was Indonesia So Poor When It Gained Its Independence

question 22

Multiple Choice

Why was Indonesia so poor when it gained its independence from the Dutch in 1949?

• A) Indonesia had no marketable products.
• B) Indonesia had accumulated high levels of international debt.
• C) It suffered several years of drought and famine.
• D) Civil war drained resources and stifled manufacturing.
• E) The Dutch had used Indonesia largely for its tropical crops and invested little in transportation, health, or education in Indonesia.

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Definitions:

Defensive Industries

Industries with below-average sensitivity to the state of the economy.

Durable Goods

Consumer products that have a long life span (over three years) and are used over time, such as cars, appliances, and furniture.

Food Producers

Food Producers are companies or individuals engaged in the cultivation, preservation, and distribution of food products and commodities to consumers.

Defensive Industries

Sectors of the economy expected to remain stable during various phases of the business cycle, often including utilities and consumer staples.