Rediscovering people<\/p>\n
Indonesia is in for another robust year with economic growth
\nof more than 7 percent, according to the predictions of both
\ngovernment and private-sector economists. Very rarely have
\neconomists of both camps been so unanimous about the economic
\noutlook despite the political overtones of the national agenda in
\nthe run-up to the May 29 general election. The predictions are
\nbased on two basic assumptions that the present national
\nleadership will be re-elected and the fundamentals of the economy
\nwill remain strong and healthy.<\/p>\n
The assumptions go further to include that the leadership's
\nre-election will guarantee the continuation of economic and
\nbureaucratic reforms. Further down the line, this means
\nconsistent major economic policies based on an export-led
\nstrategy. Because this kind of macroeconomic management has
\nproven its success in making economic fundamentals strong and
\nsound, the outcome of the upcoming election is not expected to
\nbring about any fundamental change to macroeconomic policy.<\/p>\n
Consistency is a boon to private investment, which have since
\nthe mid-1980s become the engine of economic growth, because it
\nmeans predictability -- the condition which distinguishes
\nbusiness from gambling. And capital investment thrives in an
\nenvironment which allows reasonable calculation of risk.<\/p>\n
But the upbeat predictions should not make us complacent,
\nbecause they are qualified with worrying reservations. The higher
\nincidence of riots in the last year means we should still be on
\nguard despite the rosy economic outlook. Social and political
\nstability is precarious and vulnerable to sudden brutal outbursts
\nof discontent and restlessness, which are often simply set off by
\nwild rumors. Another bout of mass violence, even though
\ngeographically limited, would not only reduce the nation's
\neconomic assets but also increase what foreign investors see as
\ncountry risk. The higher the country risk, the higher will be the
\ncost of foreign loans which we have to pay and the higher will be
\npeople's tendency to think short term. Needless to say, this is
\nnot conducive for resource-based investments which are mostly
\nlong term.<\/p>\n
As we enter the New Year, we should critically reflect upon
\nthe reasons which could have so easily led mobs to rampage and
\ncommit other destructive acts. The government and the ruling
\nGolkar, though certain of another majority win in the upcoming
\nelection, as they have always been in the past 25 years, should
\nnot be misled by the misperception that things are basically all
\nright.<\/p>\n
The latest wave of incidents should instead force the
\ngovernment to rediscover the people as the end of, and not the
\nmeans to, development. Several cabinet ministers have often
\npreached about the urgent need to empower the people but not much
\nof this has been translated into development strategy or policy.
\nWhat we have observed so far have been mostly ad hoc measures
\nsuch as the extension of concessional or interest-free loans,
\npreferential treatment and various other forms of political
\ngoodies which are unsustainable in the long run and do not
\nsignificantly empower the people.<\/p>\n
People-centered development means participation, people's
\ninvolvement, social mobilization and the broadening of economic,
\nsocial and political bases. Empowering people also means
\nre-engineering the government for the villages and dismantling
\nthe monolithic stranglehold of the large and corrupt central
\nbureaucracy. Such a development mode may not generate such high
\ngrowth as the free market system. But the latest wave of
\nincidents has disclosed the market system's failure to address
\ninequality, injustice and inhumanity. We have also noticed how
\nmany areas have simply become playgrounds for investors and
\nwealth extractors, who surely contribute to the generation of
\nhigh growth but do so without great regard for degradation,
\ndeprivation, denudation or the eviction of people.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/rediscovering-people-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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