New paradigm needed to face globalization: Economists<\/p>\n
JAKARTA (JP): Several noted economists have suggested that
\nIndonesia applies a new paradigm to its economic development to
\nanticipate changes resulting from globalization.<\/p>\n
\"We need a new paradigm to face a number of new trends caused
\nby continuing globalization,\" economist Mari Pangestu of the
\nCentre for Strategic and International Studies (CSIS) said
\nyesterday.<\/p>\n
Mari and economists Djisman S. Simandjuntak, Faisal H. Basri,
\nMiranda Gultom Siregar, Sjahrir, Moh. Arsjad Anwar and Bungaran
\nSaragih, were speaking at a seminar on \"Seeking A New Paradigm in
\nIndonesian Economic Development\", which was organized by CSIS.<\/p>\n
The trends, according to Mari, include increasing trade
\nprotectionism in the developed countries.<\/p>\n
\"The domestic pressures for trade protectionism will increase
\nin industrialized countries due to the increasingly tougher
\ncompetition in the world market,\" she noted.<\/p>\n
While developed countries hope to market more products in
\ndeveloping countries --particularly those in the highly dynamic
\nAsia Pacific region, they at the same time see the emerging
\neconomies as their main competitors to their domestic markets,
\nMari said.<\/p>\n
She said in the future investments will flow only to the
\ncountries with sound and consistent macroeconomic policies.<\/p>\n
On fiscal policy, she said the Indonesian government should
\nnot raise taxes to finance its comprehensive social security
\nsystem, as their counterparts in many other developed countries
\nhave.<\/p>\n
Miranda Gultom, an economist of the Jakarta School of
\nEconomics at the University of Indonesia noted that Indonesia
\nwill face a serious problem in its business institutions,
\nparticularly in the banking sector, when tackling global
\ncompetition.<\/p>\n
She cited particular weaknesses of the banking sector in human
\nresources, technology, payment systems, and policy inconsistency
\non the part of the Indonesian government.<\/p>\n
Djisman Simandjuntak, the director of the Prasetia Mulya
\nSchool of Management, criticized Indonesian businessmen who have
\nbeen focusing on high growth through short-term strategies.<\/p>\n
He saw corporate investment in human resource development as
\nextremely inadequate.<\/p>\n
Agro-business<\/p>\n
Bungaran Saragih, an expert at the Bogor Agricultural
\nInstitute, suggested that the government refocus attention to the
\nagricultural sector, which still employs 50 percent of
\nIndonesia's workforce.<\/p>\n
\"If the priority of our development process is to alleviate
\npoverty without damaging the environment, we should develop more
\nof our agro-business resources, \" Bungaran said.<\/p>\n
However, Emil Salim, a former minister for population and
\nenvironment, also saw the need for a new paradigm of economic
\ndevelopment but suggested that it remain based on market
\nmechanisms.<\/p>\n
Emil added that the government should apply more monetary
\nmeasures, rather than fiscal ones, to check inflation and to
\nallow for the healthy development of the private sector.<\/p>\n
On top of that, the government should further improve the
\nclimate for enhancing the competitiveness of the business sector
\nthrough the dismantling of price distortions, managed trading,
\nvertical and horizontal integrations and monopolistic practices.<\/p>\n
He suggested that the government reduce its intervention in
\nbusinesses and commit itself to maintaining consistency in its
\nmacroeconomic policy.<\/p>\n
But Faisal Basri of the University of Indonesia argued that
\nIndonesia does not need a new paradigm. \"We should instead go
\nback to basics,\" he said. (rid13)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/new-paradigm-needed-to-face-globalization-economists-1447893297",
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