ARNDT’S STORY Asia Pacific Press is based in the Crawford School of Economics and Government at The Australian National University. Asia Pacific Press is a specialist publisher on economics, development, governance and management in the Asia Pacific region. As well as book publishing, Asia Pacific Press also houses the influential journals Asian–Pacific Economic Literature and the Pacific Economic Bulletin. The Institute of Southeast Asian Studies (ISEAS) was established as an autonomous organisation in 1968. It is a regional centre dedicated to the study of socio-political, security and economic trends and developments in Southeast Asia and its wider geostrategic and economic environment. The Institute’s research programs are the Regional Economic Studies (RES, including ASEAN and APEC), Regional Strategic and Political Studies (RSPS), and Regional Social and Cultural Studies (RSCS). ISEAS Publishing, an established academic press, has issued almost 2,000 books and journals. It is the largest scholarly publisher of research about Southeast Asia from within the region. ISEAS Publishing works with many other academic and trade publishers and distributors to disseminate important research and analyses from and about Southeast Asia to the rest of the world. ARNDT’S STORY The life of an Australian economist Peter Coleman, Selwyn Cornish, Peter Drake Asia Pacific Press The Australian National University Institute of Southeast Asian Studies Singapore Co-Published by ANU E Press and Asia Pacific Press The Australian National University Canberra ACT 0200 Email: [email protected] This title available online at: http://epress.anu.edu.au/arndt_citation.html © 2007 ANU E Press and Asia Pacific Press This work is copyright. Apart from those uses which may be permitted under the Copyright Act 1968 as amended, no part may be reproduced by any process without written permission from the publisher. First published in Australia by First published in Singapore by Asia Pacific Press ISEAS Publishing Crawford School of Economics Institute of Southeast Asian Studies and Government 30 Heng Mui Keng Terrace The Australian National University Pasir Panjang Canberra ACT 0200 Singapore 119614 Ph: 61-2-6125 4700 Fax: 61-2-6125 0767 E-mail: [email protected] Website: http://www.asiapacificpress.com Website: http://bookshop.iseas.edu.sg Asia Pacific Press ISBN 978-0-7315-3810-2 ISEAS ISBN 978-981-230-449-0 __________________________________________________________________________ National Library of Australia Cataloguing in Publication entry Coleman, Peter, 1928- . Arndt’s story : the life of an Australian economist. Bibliography. Includes index. ISBN 9780731538102 (pbk.) ISBN 9781921313172 (online) 1. Arndt, H. W. (Heinz Wolfgang), 1915-2002. 2. Australian National University - Biography. 3. Economists - Australia - Biography. 4. Economists - Southeast Asia. I. Drake, P. J. (Peter Joseph), 1932- . II. Cornish, Selwyn. III. Title. 330.092 __________________________________________________________________________ Editors: Jan Borrie and Clare Shamier Photo editor: Jessica Miller Design: Annie Di Nallo Design Printed in Australia by Paragon Printers CONTENTS List of illustrations vi Abbreviations viii Note on sources x Note on authors xi Preface xiii Prelude— Bettina Arndt H.W.A.—The man and his marriage xiv Part 1—Peter Coleman 1. From Kaiser to Hitler 1 2. Oxford made him 13 3. Arndt in the internment camp 32 4. Chatham House 42 Part 2—Selwyn Cornish 5. Passage to Australia 56 6. The University of Sydney 68 7. Public intellectual 75 8. Ruth’s trip to Europe 87 9. New horizons 96 10. Canberra University College 104 11. Canberra 119 12. South Carolina 130 13. Politics 146 14. Economics and policy 171 15. Geneva 195 16. A new lease of intellectual life 206 Part 3—Peter Drake 17. Economic development in practice: it all began in Jakarta 224 18. The Department of Economics, RSPS, 1963–80 236 19. Sukarno’s Indonesia 257 20. Suharto’s Indonesia 265 21. Other parts of Asia 274 22. Retirement 293 Postlude—Bettina Arndt Chez Arndt 312 Notes 317 References 321 Index v325 LIST OF ILLUSTRATIONS 1. Professor Fritz Arndt teaching his beloved chemistry 2. Fritz Arndt, bedecked with honorary medals, sitting for a bronze bust made for the German Chemical Society 3. Heinz and his sister Bettina 4. Heinz holidaying with friends in Viareggio, Italy 1934 and his brother and sister Bettina 5. A young German in Oxford 6. Dapper young man 7. Heinz and his sister Bettina in England, circa 1937 8. Heinz and Ruth in Cambridge, 1940 9. Relaxing in Switzerland 10. Interned and sent to Canada, 1939 11. The future Mrs Arndt, Ruth Strohsahl, 1939 12. Heinz and Ruth in their student days at London School of Economics, 1939 13. Heinz with his mother Julia at Ruth and Heinz’s wedding 14. Ruth with her mentor, Marjorie Rackstraw 15. Wedding, Hampstead, 12 July, 1941 16. Their first Australian beach, 1946 with son Chris 17. Arndt family in Ainslie 18. Heinz with his young family—Chris, Bettina and Nick 19. Ruth playing the piano at one of her migrant parties, with Heinz looking on 20. Neighbours in Hurstville, Noel and Joan Butlin, 1945. 21. Arndts in the Deakin front garden, then set in a bush landscape 22. Family holiday on the South Coast 23. Ruth on her favourite back terrace 24. Heinz and Ruth share a moment at Tuross Lakes 25. Heinz painting landscapes in Geneva, 1960 26. Heinz and Ruth in Canberra 27. The well-dressed BBQ chef 28. With Sir Robert Menzies, circa 1958 29. On the ACT Advisory Council, 1961 30. Heinz’s office at Coombs 31. Such a happy man vi 32. In Dehli 33. Heinz with Premier Sun of Taiwan 34. Heinz with Yip Yat Hoong and Kiyoshi Kojima 35. Heinz with Jan Tinbergen 36. With SA Premier Don Dunstan and US economist Paul Samuelson, 1973 37. In Banda Aceh 38. With Raj Krishna, Bangkok 39. In Indonesia, with Dennis DeTrey (World Bank), Ir Tungky Ariwibowo (Industry Minister) and Marzuki Usman (later Tourism Minister) 40. With Ross Muir, Peter Drysdale, Toshi Kinoshita, Hal Hill and Kazuo Imai 41. Juwono Sudarsono (current Indonesian Defence Minister), Clara Juwono (CSIS, Jakarta) and Moh Arif (the latter a close friend from Malaysia) 42. Heinz and Professor R.M. Sundrum, staff member of Economics, RSPAS, 1971–90 43. In Indonesia, one of many happy dinners 44. Heinz with students 45. A good mix of (mainly) former students, Helen Reid, Hal Hill, Ross McLeod, Chris Manning, HWA, Howard Dick, Andrew Elek, Anne Booth, Tony Reid and Peter McCawley 46. Heinz at the home of Bessie and Vic Camino, Heinz’s closest friends from the Philippines 47. In 1995 Gadjah Mada University, Yogyakarta, one of Indonesia’s leading universities, launched the Arndt Scholarship Scheme 48. With Professor Nopirin, Dean, Faculty of Economics, Gadjah Mada University and Colleagues 49. HWA, Stuart Harris and Ross Garnaut 50. The academic family, including Ruth as ANU council member at Bettina’s ANU graduation, 1971 51. At Bettina’s wedding to Dennis Minogue, 1977 52. Ruth with Nick’s son Gregory, 1986 53. Heinz with Chris’s girls Sara and Emma 54. Heinz at Cottesloe Beach with Sara and Virginia, circa 1980 55. Heinz with Bettina’s older son Jesse playing tiddlywinks, circa 1986 56. Arndt family gathered for 50th wedding anniversary celebrations, 2000 57. Last portrait with Ruth 58. Heinz meets his great-granddaughter Charlotte, 2002 59. Recent Arndt gathering Bettina’s daughter, Taylor, Nick’s sons, Benjamin and Gregory, Nick’s wife, Catherine, Bettina and sons Jesse and Cameron and brother Nick 60. Chris’ daughters Sara and Virginia, Bettina with her sons, Jesse and Cameron at the launch of the H.W. Arndt Building at The Australian National University 61. The H.W. Arndt Building opened in 2005 vii ABBREVIATIONS AAJRP Joint Research Project on ASEAN–Australia Economic Relations ABC Australian Broadcasting Corporation ACT Australian Capital Territory ADB Asian Development Bank ADIEP Asian Institute for Economic Development and Planning AIPS Australian Institute of Political Science AJHP Australian Journal of History and Politics ALP Australian Labor Party ANU Australian National University ANZAAS Australian and New Zealand Association for the Advancement of Science APEL Asian–Pacific Economic Literature ASEAN Association of Southeast Asian Nations BIAS Board of the Institute of Advanced Studies (ANU) BIES Bulletin of Indonesian Economic Studies CHOGM Commonwealth Heads of Government Meeting CSO Central Statistical Organisation (India) CUC Canberra University College DMZ Demilitarised Zone ECAFE United Nations Commission for Asia and the Far East ECE United Nations Economic Commission for Europe IEA International Economic Association IMF International Monetary Fund IPA Institute of Public Affairs IPB Institut Pertanian Bogor (Indonesia) ISI Indian Statistical Institute LSE London School of Economics MIT Massachusetts Institute of Technology NEDO National Economic Development Office (United Kingdom) NGO non-government organisation NSW New South Wales viii OECD Organisation for Economic Cooperation and Development OPEC Organisation of Petroleum Exporting Countries PAFTAD Pacific Trade and Development Conference PAP People’s Action Party (Singapore) PNG Papua New Guinea PWU Plantation Workers’ Union (Malaysia) RAAF Royal Australian Air Force RSPS Research School of Pacific Studies (ANU) RSSS Research School of Social Sciences (ANU) SEANZA Southeast Asia, New Zealand and Australia SGS School of General Studies (ANU) SSRC Social Science Research Council UNCTAD United Nations Conference for Trade and Development UNDP United Nations Development Program UNIDO United Nations Industrial Development Organisation UNTAD United Nations Trade and Development Commission USSR Union of Soviet Socialist Republics WEA Workers’ Educational Association (United Kingdom) ix NOTE ON SOURCES The bulk of the personal papers of Professor H.W. Arndt are located in the National Library of Australia. Heinz made four deposits of papers in his lifetime: in 1981, 1988, 1993 and 2000, the first under the Taxation Incentives for the Arts scheme. The papers deposited in 1981, 1988 and 1993 bear the catalogue number MS 6641; those deposited in 2000 have not yet been catalogued (their accession number is Ms ACC00/158).