Trade theories of state formation have failed to specify trade as market behavior, and to appreciate the political role of imported luxury goods in chiefdoms. When luxury goods and other valuable commodities become available through the market rather than through interpersonal, chiefly exchanges, the elite's power depends increasingly on economic exploitation and the control of arms. Archeological data from several locales illustrate the disruptive and formative effects of trade diasporas in chiefdoms.
Theories of conversion have often stressed either psychological or sociological factors, but viewing conversion as the public declaration of a new identity and incorporating the element of time afford a way to synthesize these approaches. Although conversions to Christianity in the Karo Protestant Church, legacy of a Dutch Reformed mission, were often prompted by political or pragmatic considerations and reinforced an ethnic identity in contrast to a Muslim majority, religious life for many Karo has been transformed over the long run.
Several bombings that targeted international capital or the Indonesian government put a chill on tourism and foreign investment, but despite high-profile investigations and trials, doubts that these were home-grown acts of Islamic terrorism remain pervasive. Military action in Aceh, continuing corruption, and lack of progress on legal reform suggest to many that post-New Order reformasi has stalled.
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