Paper short abstract:

The paper aims to explain how critical events connect two different policy areas (financial access and social assistance) by critically examines the link between critical events, power relation, and resources. The study used the development of financial inclusion policy in Indonesia as the case.

Paper long abstract:

This paper aims to explain the role of critical events to the development of financial inclusion policy (improving financial access for the poor) in global south countries, by using Indonesia as the case. The study utilised theory of Advocacy Coalition Framework and process tracing based on the in-depth interviews with the key policy actors. The analysis concluded that there were two types of critical events that influenced the development of financial inclusion policy. The first is structural events. The structural events changed the constellation of power-relation in the policy area and immediately influenced policy objectives and means. For example, the change of government administration and the establishment of new institutions. The second is reinforcing events. These events indirectly shaped the policy objectives and means by providing resources and reasons to the policy elites to push financial inclusion into the national agenda. The study suggests the G20 summits and the annual Global Policy Forum organised by Alliance for Financial Inclusion (AFI) as reinforcing events. Overall, this study provides insights on the distinction of different critical events and how critical events could promote policy change differently.