Credibility boost needed

The current controversy surrounding the Supreme Court and a number of economic and political policies that have been implemented lately have raised some concern. These developments have caused both the public's sense of legal security and the government's credibility to become eroded, particularly over the question of consistency in the government's implementation of policies.

Both those issues, according to a World Bank study, act as a brake on a country's economic development. The study, which was conducted at the end of 1992 in 28 countries by the prestigious international institution, found that a positive correlation exists between the credibility which a state possesses in the eyes of its people, and the rate of that particular country's economic growth. In other words, the higher the state's credibility in the eyes of the people, the higher that country's economic growth rate will be, and vice versa.

A number of government policies that have been implemented of late have aroused concern. This is particularly true in cases where export-oriented policies are apparently being reversed in favor of import-substitute manufacturing policies accompanied by protective measures.

We are not against import-substitute industries or protection as long as they remain reasonable in scope. The fairest yardstick in this matter, we believe, is the capability of the products to compete in the world market. The government, as the World Bank study concludes, can help boost its ability to compete in two ways: by improving its own credibility level through fostering a greater sense of legal security, and by implementing economic policies that are both consistent and market friendly.

-- Media Indonesia, Jakarta