Let the Contest Begin: Celebrities, Artists, and Our Political Industry (Part-2)

By: Dr. Mohamad Ikhsan Modjo (Financial Economic Specialist’s BINUS International Program)

Similarly, as with other markets and industries, the pattern of competition and the players involved must have an equal level of play. So that it can bring optimal welfare for all people.

Given this similarity, it is interesting if an economic framework is used to analyze the relationship between political processes and the quality of future national governance as an implication of the rampant involvement of populist figures.

In this case, I will use a structure-conduct-performance analysis commonly used in industrial economics. This framework essentially explains that the performance of an industry will depend on the conduct of market players, which in turn is determined by the existing competition structure.

From the existing structure side, the domestic political industry today is characterized by intense competition, even overly intense. For 2009, the government has determined that there are 38 parties participating in the election. Thus, one can imagine how complex the interaction and competition processes are, especially when contrasted with the duopoly (two-party) or oligopoly (three-four-party) political industry in developed countries.