Green School, Bali

In the 1930s, anthropologists Margaret Mead and Gregory Bateson, and artists Miguel Covarrubias and Walter Spies, and musicologist Colin McPhee created a western image of Bali as "an enchanted land of aesthetes at peace with themselves and nature", and western tourism first developed on the island.
Imperial Japan occupied Bali during World War II, during which time a Balinese military officer, Gusti Ngurah Rai, formed a Balinese 'freedom army'. The lack of institutional changes from the time of Dutch rule however, and the harshness of war requisitions made Japanese rule little better than the Dutch one. Following Japan's Pacific surrender in August 1945, the Dutch promptly returned to Indonesia, including Bali, immediately to reinstate their pre-war colonial administration. This was resisted by the Balinese rebels now using Japanese weapons. On 20 November 1946, the Battle of Marga was fought in Tabanan in central Bali. Colonel I Gusti Ngurah Rai, by then 29 years old, finally rallied his forces in east Bali at Marga Rana, where they made a suicide attack on the heavily armed Dutch. The Balinese battalion was entirely wiped out, breaking the last thread of Balinese military resistance. In 1946 the Dutch constituted Bali as one of the 13 administrative districts of the newly-proclaimed State of East Indonesia, a rival state to the Republic of Indonesia which was proclaimed and headed by Sukarno and Hatta. Bali was included in the "Republic of the United States of Indonesia" when the Netherlands recognised Indonesian independence on 29 December 1949.
The 1963 eruption of Mount Agung killed thousands, created economic havoc and forced many displaced Balinese to be transmigrated to other parts of Indonesia. Mirroring the widening of social divisions across Indonesia in the 1950s and early 1960s, Bali saw conflict between supporters of the traditional caste system, and those rejecting these traditional values. Politically, this was represented by opposing supporters of the Indonesian Communist Party (PKI) and the Indonesian Nationalist Party (PNI), with tensions and ill-feeling further increased by the PKI's land reform programs. An attempted coup in Jakarta was put down by forces led by General Suharto. The army became the dominant power as it instigated a violent anti-communist purge, in which the army blamed the PKI for the coup. Most estimates suggest that at least 500,000 people were killed across Indonesia, with an estimated 80,000 killed in Bali, equivalent to 5% of the island's population. With no Islamic forces involved as in Java and Sumatra, upper-caste PNI landlords led the extermination of PKI members.
As a result of the 1965/66 upheavals, Suharto was able to manoeuvre Sukarno out of the presidency, and his "New Order" government reestablished relations with western countries. The pre-War Bali as "paradise" was revived in a modern form, and the resulting large growth in tourism has led to a dramatic increase in Balinese standards of living and significant foreign exchange earned for the country. A bombing in 2002 by militant Islamists in the tourist area of Kuta killed 202 people, mostly foreigners. This attack, and another in 2005, severely affected tourism, bringing much economic hardship to the island. Tourist numbers have now returned to levels before the bombings.