Why we need foreign aid<\/p>\n
From Media Indonesia<\/p>\n
Unlike relief aid for the casualties of natural disasters,
\n\"foreign aid\" refers more often to monetary loans rather than
\ngrants. We have to return the foreign aid we get, the repayment
\nof which is included debt servicing expenses under the state
\nbudget.<\/p>\n
Why does our government need such foreign aid?<\/p>\n
The most basic reason is that the government's finances are
\nbarely adequate to cover all of its development programs and
\nactivities.<\/p>\n
By official declaration the foreign aid plays only a
\nsupplementary role. As the years have passed, however, the
\nexternal loans meant in the beginning to support the domestic
\ndevelopment program have become a burden. The repayment
\nobligation become heavier with each year. From the first to the
\nfifth five-year development programs (Pelita), 1969-1994, the
\namount required for external debt servicing increased by 37.1
\npercent per year on average.<\/p>\n
In the run up to the imminent Consultative Group for Indonesia
\n(CGI) meeting in Paris from July 7 to July 8, 1994, economists
\nhave expressed concern over the total value of our foreign debt,
\nwhich they say is approaching the \"psychological threshold
\namount\" of US$ 100 billion. Certainly Indonesia's economic policy
\nmakers ought to note this.<\/p>\n
The donor countries do not extend loans to developing nations
\nsolely for economic reasons. Basically they are motivated by
\nvarious strategic, political and ideological interests, although
\noutwardly they would seem to give aid for the moral and humane
\nreason of helping the Third World.<\/p>\n
In my opinion, our country needs to take steps to free itself
\nof dependence on external debts, which should include the
\nfollowing:<\/p>\n
* The role of foreign loans in the budget should be reduced by
\ndecreasing total amounts through belt-tightening measures.
\nFunding priorities should be sharpened under the declared
\ngovernment principle of financial prudence. As long as we still
\nneed foreign loans we should get more choosy about the donor
\ncountries which, like it or not, are restrictive regarding the
\npolicies of recipient countries.<\/p>\n
* Revenues from domestic sources should be optimized,
\nparticularly by raising more taxes through more effective
\ncollection and expanding the number of taxpayers. In this regard
\nthe possibility of \"collusion\" between taxpayers and tax-
\ncollectors should be kept to a minimum, a factor that would boost
\npublic trust in the taxation system itself.<\/p>\n
SUDARTO<\/p>\n
Jakarta<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/why-we-need-foreign-aid-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }