x, 84 p. : ill. / Modernization theory posits that economic growth and democratization are mutually constitutive processes. I extend a recent literature that finds this relationship to be spurious due to the existence of a number of international factors, specifically the role of foreign capital. Through two-stage least square (2SLS) regressions for as wide a sample as the data allow and two case studies (Indonesia and the Philippines), I find that the presence of US capital significantly influences domestic political institutions. This relationship, however, is non-linear and interrelated with exogenous shocks. / Committee in charge: Tuong Vu, Chairperson; Craig Parsons, Member; Karrie Koesel, Member; Will Terry, Member

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Haji Agus Salim (1884--1954) was an Indonesian Muslim political figure of the Nationalist Era (1908--1945). He was influential in two important associations; Sarekat Islam (SI-Islamic Union) and the Jong Islamieten Bond (JIB-Young Muslim Union). Salim was born into religious family and had a Western education. In 1915 when he joined the Sarekat Islam it was at the height of its popularity. Salim became so engrossed with its goals, that he devoted most of his life to it. As such, he was soon able to obtain a high-ranking position in it, and to help formulate the movement's strategies. This thesis presents a number of Salim's positions on politics which show his disagreement and criticism of the Dutch Colonial policy and its effects, as well as his advocacy of an Islamic approach to politics rather than "socialism" as advocated by communist members of the SI. These views aimed at the paramount goal of freeing Indonesia from the Dutch colonialism. His views on "Nationalism" can be gleaned from his exchange of polemics with Sukarno, later president of Indonesia. These polemics portrayed Salim as a nationalist who would not depart from a religious viewpoint. Finally, his involvement with JIB was a continuation of his desire to implement and promote Islamic values among Young Indonesian Muslims of Western education, whom he regarded as the future leaders of the country.

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