Economists stress good governance
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)