Soeharto warns of crisis contagion<\/p>\n
By Kornelius Purba<\/p>\n
CAIRO (JP): President Soeharto said yesterday that Asia's
\neconomic crisis could endanger not only the region's social
\nwelfare and political stability but could also spread to other
\ncontinents.<\/p>\n
Speaking on behalf of Asia at the opening of the Group of 15
\ndeveloping countries' (G-15) eighth summit here, the President
\npointed out that since the crisis broke out in mid-1997, it had
\npersisted with no indication as to when it would abate.<\/p>\n
\"It has also taken a heavy toll on the region's social and
\npolitical situation due to massive unemployment which could
\ntrigger a series of social problems, including the further spread
\nof poverty, a rise in crime and political instability,\" Soeharto
\nsaid.<\/p>\n
The President said the crisis had wiped out significant gains
\nof three decades of painstaking development in Indonesia.<\/p>\n
\"To reverse these negative trends, Indonesia must now
\nimplement a series of integrated reforms in the economic,
\nfinancial and monetary fields, including those already underway
\nin cooperation with the IMF,\" he said.<\/p>\n
He pointed out that the ongoing upheaval could not be fully
\nblamed on the suffering countries alone since external factors
\nhad also played a decisive role in their fall.<\/p>\n
Facts show that all of the affected countries have pursued
\npolicies opening their economies and liberalizing their trade and
\ninvestment, he said.<\/p>\n
\"It was generally accepted that each of these countries had
\nbasically sound fundamentals and were locomotives of growth and
\ndevelopment in their region,\" Soeharto asserted.<\/p>\n
The President and his entourage arrived here Saturday
\nafternoon for a one-week visit to attend the three-day summit and
\npay a three-day state visit to Egypt.<\/p>\n
Established in 1989, the group's objective is to boost
\ncooperation among developing countries. It is comprised of Egypt,
\nMalaysia, Algeria, Argentina, Brazil, Chile, India, Mexico, Peru,
\nSenegal, Zimbabwe, Venezuela, Jamaica, Indonesia and Kenya, which
\njoined the group last year in Kuala Lumpur. Sri Lanka is expected
\nto become the 16th member in this summit.<\/p>\n
Soeharto warned the international community that the Asian
\ncrisis could eventually spill over beyond the region if the world
\ncommunity did not closely work together to help the victim
\ncountries restore their economies.<\/p>\n
\"Since the international financial sector is deeply integrated
\nand Asian markets, production and trade are highly significant
\nfactors in the global economy, the contagion effect could spill
\nbeyond the region,\" Soeharto cautioned.<\/p>\n
Soeharto spoke after the meeting's opening speech by President
\nHosni Mubarak.<\/p>\n
\"The Asian crisis is but a passing phase in the growth of
\nAsia's economies,\" Mubarak noted.<\/p>\n
He said the crisis had shown the social costs of global
\nintegration and the \"contagion effect of weakness\" from one
\neconomy to another.<\/p>\n
\"The liberalization of our markets must be gradual,\" he added.<\/p>\n
Egyptian Foreign Minister Amr Moussa said in remarks broadcast
\nMonday that G-15 countries must open their markets but ensure
\nthat World Trade Organization (WTO) moves did not damage their
\ninterests.<\/p>\n
The WTO is dominated by the interests of the top
\nindustrialized countries, which \"do not coincide with the
\ninterests of the (world's) developing group of nations\", Moussa
\nwas quoted by Reuters as telling local Nile TV.<\/p>\n
\"Market economy is the buzzword,\" he said. \"We have to join
\nthis globalization and global markets but we need time.\"<\/p>\n
Peruvian President Alberto Fujimori said in a speech on behalf
\nof Latin American G-15 members that the region was taking steps
\nto integrate, especially with free-trade zones.<\/p>\n
\"South-South cooperation has to be expanded to give stronger
\nsupport to our development efforts,\" he said.<\/p>\n
\"In Latin America, we are now fully aware that integration is
\nan integral tool\", Fujimori said, adding that globalization
\n\"should not lead to frustration for anyone\".<\/p>\n
Algerian President Liamine Zeroual, speaking for African
\nstates, said the G-15 was unified in its aspirations. \"It has the
\nresponsibility of urgently and continuously seeking a fruitful
\ndialog between the South and North,\" he said.<\/p>\n
The summit was also attended by Malaysian Prime Minister
\nMahathir Mohammad, Jamaica's Prime Minister James Patterson,
\nKenya's President Daniel Arap Moi, Senegal's President Abdou
\nDiouf and Zimbabwe's Robert Mugabe.<\/p>\n
The leaders are to meet at the El-Golf Resort in Sharm El-
\nSheikh province, South Sinai, for their summit today. They will
\nhost a joint news conference at the end of their meeting
\ntomorrow.<\/p>\n
President Soeharto will then start his state visit. His
\nentourage includes Minister of Foreign Affairs Ali Alatas,
\nMinister\/State Secretary Saadilah Mursjid and his senior economic
\nadvisor Widjojo Nitisastro.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/soeharto-warns-of-crisis-contagion-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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