Credibility boost needed

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