'Indonesia must develop its own economic strategy'<\/p>\n
Fitri Wulandari, The Jakarta Post, Jakarta<\/p>\n
Thailand's former minister of commerce Narongchai Akrasanee
\nsuggested that in order for Indonesia to accelerate its economic
\nrecovery process, it must not rely too much on "ready-made
\npolicy" from multinational lenders such as the International
\nMonetary Fund and the World Bank.<\/p>\n
A ready-made policy could not be applied in every country as
\nthey did not all share similar economic conditions and
\nbackgrounds, he argued.<\/p>\n
"The formula of liberalization, deregulation and privatization
\nas endlessly advocated by the World Bank and IMF cannot be taken
\nas a cure-all strategy," Narongchai said in his keynote speech at
\na seminar on Indonesia's Strategy for Economic Development hosted
\nby The Jakarta Post here on Monday.<\/p>\n
"They belong to the global economic model ... but when you
\nlook at a country, the situation is different. Each country is
\ndifferent in the area of trade, financing and technology," the
\nchairman of Seranee Holdings Co., Ltd said.<\/p>\n
Narongchai said that Indonesia must develop its own strategy
\non economic development by focusing on foreign trade,
\ninternational financing and technology.<\/p>\n
"It (the strategy) depends on how good you are in trade,
\nfinance and technology. Although it takes consideration of this
\nglobal model, the strategy should be designed to fit your
\nsituation in these areas," he added.<\/p>\n
Thailand is among the Asian countries that have managed to
\nemerge out of that 1997 financial crisis that hit the region.<\/p>\n
Meanwhile, Indonesia is still muddling through and debating on
\nwhether or not to part ways with the IMF after 6 years. Thailand
\nhas already graduated from IMF tutelage.<\/p>\n
Thailand sought a US$17.2 billion rescue program from the IMF
\nin August 1997 during the Chavalit government. Of the $17.2
\nbillion IMF package, Thailand actually drew down only $12 billion
\nto help prop up the baht.<\/p>\n
After undergoing painful reform and taking unpopular measures,
\nThailand recovered from the crisis in 1999.<\/p>\n
Since then Thailand has made progress in its financial and
\nstructural reforms. So far, It has repaid $7 billion to the IMF.
\nThere remains $4.8 billion in outstanding loans. The last
\nrepayment to the IMF is due by May 2005.<\/p>\n
Last year, Thailand's economy grew by a surprisingly good 5
\npercent on the back of robust domestic consumption.<\/p>\n
Early this year, the Thailand government announced it planned
\nto repay all its remaining debts to the IMF by the first half of
\n2003.<\/p>\n
Thailand, Narongchai said, had started its own strategy called
\n"the Dual-Track Economic Policy" or "Local\/Regional Link - Global
\nReach".<\/p>\n
Under this strategy, Thailand is giving more attention than
\nbefore to the domestic market, which has been the primary mover
\nof its economy.<\/p>\n
"Domestic capacity enhancement is the key issue," he said.<\/p>\n
At the same time, the country is targeting ASEAN, East Asia
\nand other Asia countries as its foreign markets.<\/p>\n
However, this is being done without abandoning its links with
\ntraditional trading partners in the West.<\/p>\n
While continuing to promote export, Thailand is paying more
\nattention to the domestic market than ever before.<\/p>\n
As for foreign trade, Narongchai said, the country is
\ndeveloping industries that can compete internationally, such as
\nin the areas of food processing, tourism and the automotive
\nindustry.<\/p>\n
In international finance, Thailand is beginning to access
\ninternational money and capital markets for the purpose of owning
\nits own businesses.<\/p>\n
"We must make sure that reliance on foreign financing is for
\nthe purpose of eventually owning businesses," he remarked.<\/p>\n
Narongchai said that although Thailand has access to
\ninternational financing, so far it could not own its own
\nbusinesses as such financing went hand-in-hand with foreign
\ncontrol.<\/p>\n
"Thus, we cannot afford a fully open capital account despite
\nwhat the IMF tells us," Narongchai stressed.<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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