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Abstract:This paper analyzes the relation of culture, institutions and economic development using the example of Indonesia. The success of economic catch-up development depends essentially on the interconnection between pre-existing informal constraints on the one hand and novel, imported institutions on the other. Hence culture, understood as the interplay between legal rules and non-legal constraints, has to be considered as an important determinant of economic development and growth. In order to adapt economic policies and thereby prevent institutional traps, which may otherwise hinder economic reforms, it is essential to understand culture and the ways in which different cultural factors support or constrain the functioning of formal institutional settings. Applying a cultural approach to economics in the case of Indonesia's economic development allows for the inclusion of complex cultural conditionality of economic behavior and puts special emphasis on the role of politicians as public and cultural entrepreneurs. Altogether, the example of Indonesia demonstrates once more the necessity to apply a cultural approach to the study of catch-up development in a globalized world.

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The pollution of the oceans by plastic waste is a growing threat to marine life, ecosystems, livelihoods of coastal communities and the health of human beings in general. Indonesia is the world’s second largest source of marine plastic pollution. As an island state, plastic litter is regularly flushed into the sea. In this study we explore some behavioural and cultural reasons for the high consumption and pollution by plastic bags on Bali and locally adapted solutions. The data was collected from interviews and surveys with shop owners and customers, religious leaders, students, lecturers and activists during 3 years of research in the region. The analysis is structured in three parts: first, understanding the relevant concepts that inform Balinese perception of the natural environment; second, analysing the popularity and aversions among local Balinese in regard to plastic bags; third, investigating a local initiative working towards a ban of plastic bags. Based on these three parts we identified promising approaches that can effectively support local initiatives and awareness campaigns.