Economists stress good governance
By Vincent Lingga and Prapti Widinugraheni
MEDAN, N. Sumatra (JP): Indonesian economists agree with the World Bank and International Monetary Fund view that good governance is increasingly crucial in ensuring equitable and sustainable economic development.
Mohammad Sadli, a senior economist and former cabinet minister attending the 13th Congress of the Indonesian Economists Association (ISEI) said yesterday that the trend towards good governance would accelerate and Indonesia should pay serious attention to this trend.
Djisman Simandjuntak, executive director of the Jakarta-based Prasetia Mulya Management Institute, said it is much better for the government to empower people rather than to control them.
"I raised the issue as long as four years ago," he said of the campaign toward good governance started by the World Bank and IMF early this month.
"I agree that good governance is an essential component of the development process," said Mari Pangestu, a senior economist from the Jakarta-based Centre for Strategic and International Studies (CSIS).
Minister of Finance Mar'ie Muhammad, who opened the congress on Thursday evening, cited good governance as a prerequisite for the effective operation of a managed market economy.
The World Bank and IMF, at their joint annual meeting in Washington early this month, announced the fight against corruption as one of their top priority programs.
They define good governance as ensuring the rule of law and improving the efficiency and accountability of the public sector. Transparency and openness are seen as strong deterrents to corruption and essential to equitable and sustainable economic growth.
The world bodies hold that corruption diverts resources from the poor to the rich, increases the cost of running businesses, distorts public-sector spending and deters foreign investment.
Ambivalent
Sadli pointed out that some western nations are ambivalent about demanding good governance in developing countries.
"Western European countries have been adamant in demanding good governance and imposing it as a condition of their deals with other nations. But when it comes to enforcement, they are often discriminative, tending to punish only the weak ones," he said.
Mari Pangestu considered good governance a home-grown process, which should not be imposed from outside.
"Developed countries which try to impose good governance on developing nations may be suspected of harboring a disguised objective to protect their own interests or particular industries," Mari said.
Anwar Nasution from the University of Indonesia's School of Economics suggested that Indonesia seriously consider the World Bank's recent decision to withdraw from projects which are tainted with corruption and unfair business practices.
He said that if the statement is aimed at Indonesia, there is no point in saying that the issue is a "domestic affair".
"We should try to see what's wrong with ourselves," he told reporters.
"If a neighbor passes your house and, upon seeing weeds in your garden suggests that you trim it to make it look nicer, is it appropriate to defend yourself by saying that it is your home affair?" he said
The ISEI Congress will end this afternoon with a declaration of recommendations to the government. (vin/pwn)