Tue, 26 Sep 1995

Corruption stems from Western economic values

JAKARTA (JP): Western economic values, which stress the maximizing of profit at all costs, are to blame for the rampant corruption in Indonesia, noted economist Emil Salim said yesterday.

Many economic players, including conglomerates, think nothing of corruption and collusion with officials because they are driven by Western values, he said.

"Corruption is (the) cost (of economic activities)...So, why not?" said Emil, who is former minister of environment and a professor of economics at the University of Indonesia.

Speaking at a national symposium on Islam's contribution to public morality and spirituality, Emil spoke at length of the difference between the values adhered to by economic actors and those upheld by the Indonesian community in general.

"If economic actors who hold Western economic values are told to play a role in the market of the Indonesian community, it is understandable if adverse social impacts later emerge," he said.

Emil also spoke of the sense of "alienation" that big businesses experience due to the difference in values. "They feel that they behave properly and in accordance with those Western values, but the Indonesian community thinks they have deviated from social norms," he said.

This could explain why the community is not comfortable with the conglomerates, he added.

"The logic could also be used to explain why, for many economic actors, corruption and collusion with officials are the norms in the pursuit of business goals..(and why) the community is becoming concerned about it," he said.

The anomaly should be corrected, and society should develop an alternative system of values. "This is where Islam can contribute to the development of that value system," he said.

The two-day symposium is being held as part of the ongoing second Istiqlal Festival of Islamic Arts and Culture. A series of papers are being discussed in the symposium. Today, it will feature Minister of Finance Mar'ie Muhammad and Malaysian Deputy Prime Minister Dato' Anwar Ibrahim as keynote speakers.

Emil said that the Western economic system rests on the following values: an "anthropocentrist" view of life, which stresses self-interest; an emphasis on the pursuit of "more" of everything; and intolerance of anything which is "less" in nature, manifesting itself in a drive to "maximize profit."

The system is based on competition and the desire for instant gratification, he said, citing the emphasis on short-term economic goals as evidence.

"The venue and mechanism which enables those principles to grow is: market," he said. "It's in the market that demand and supply meet and, if it's liberated, it functions very efficiently."

The free market system, however, has many weaknesses, including the fact that it provides goods and services without moral considerations, he said. Thus, the market accommodates both illegal drugs and medicines, and sexual relationships are bought and sold like any other service, he said.

"The free market does not side with either the weak or the strong...Those who come forward to make use of the free market mechanism are generally the strong," he said. "Whatever impact is felt by the weak, the system does not care."

He said the values of Islam are the exact opposite of the values on which Western economics rest. The religion discourages anthropocentrism and encourages a life principle which places God in the center.

Islam discourages greed and teaches its believers not to always seek for "more", he said. Instead, Moslems are taught to strive for what is "adequate" and to balance the satisfaction of material and spiritual needs.

"Seen from a macro-economic point of view, Islam doesn't pursue the maximization of profit, but a balance of both spiritual and material development," he said. "From the macro- economic point of view, ...(Islam does not teach the pursuit of) mere rapid economic growth, but will shape the Indonesian community and people, who are spiritually and materially whole."

Other speakers at the symposium yesterday included social and political observers Usman Pelly and Fachry Ali, who focused their attention on the contribution of Islam to the development of the work ethos of people in Sumatra. (swe)