Use debts productively<\/p>\n
What caused the Mexican financial crisis? The larger part of
\nthe inflowing foreign capital was not being used productively. As
\nsoon as signs of a crisis appeared, the money fled abroad. The
\ncountry's foreign exchange reserves, which fell from US$30
\nbillion to $6 billion, was also not being used productively. It
\nwas used to bolster the peso and to import consumption goods.<\/p>\n
The matter of economic productivity was once again mentioned
\nby Prof. Sumitro Djojohadikusumo, our highly respected economist,
\nwhen he spoke of our foreign debt burden. The important thing, he
\nwarned, was to use the money to finance productive economic
\nactivities so that the rewards can be used to repay those debts.
\nAs an example of the unproductive use of money he mentioned the
\nbuilding of golf courses.<\/p>\n
Of our foreign debt burden which is now nearing the $100
\nbillion mark, $52 billion are incurred by the government and the
\nrest by the private sector. The principle is valid in both cases:
\nthe important thing is not the total but our ability to repay
\nboth the principal and interest. If our economic productivity
\nincreases, the increase in our foreign debts will pose no
\nproblem.<\/p>\n
-- Kompas, Jakarta<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/use-debts-productively-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }