Great tasks face the nation in the next 25 years

Great tasks face the nation in the next 25 years

Following are excerpts from the provisional translation of
President Soeharto's State Address delivered at the plenary
session of the House of Representatives (DPR) on Aug. 16 on the
occasion of Indonesia's 49th Independence Day on Aug. 17.

JAKARTA: As a nation, half a century can no longer be regarded
as young. But if we look around to the vast corners of the world,
we see many nations are much older than ours. Not a few of them
are hundreds of years old. They are rich with experience, they
have built strong traditions, they have solid political
institutions and culture. Some of these countries have attained a
very high degree of economic progress and prosperity. Others have
not achieved such progress. While others more have even suffered
political, economic and social setbacks.

There are several primary elements that make a nation strong.
Or, on the contrary, that make nations weak and divided. Among
the most important elements are the spirit of nationalism, unity
and a sense of togetherness. We have to draw valuable lessons
from the experiences of other nations and furthermore, our own
experience from the Independence Proclamation until today. We
need all of this to widen our horizon in facing the future filled
with changes, challenges and opportunities.

As a developing country we feel the rapid flow of changes
towards progress. For this reason, there is always a special
significance as we commemorate the Independence Day every year.
This is also the case on the 17th of August 1994. This is the
last year we finalize the first 25-Year Long Term Development
program. It is also, at the same time, the first year of the
Second Long-Term Development program, the take-off stage.

We concluded the 1993-94 fiscal year last March, marking the
completion of REPELITA V. Thus, we have simultaneously brought to
a close the First Long-Term Development stage.

The national development we have been carrying out during the
First Long-Term Development program cannot be distanced from the
strategic environment and its evolution during that particular
period.

The end of the Cold War led to the significant reduction of
the world tension. Countries all over the world can give greater
attention to the problems of prosperity and quality of human
life. Nations have been competing to improve their economies.

The emphasis of relations among nations has shifted from
political to economic areas. The world attention can be
concentrated more on the effort to develop a better and equitable
economic order. This can be achieved through free unhindered
world trade. With the conclusion of the Uruguay Round
negotiations, the world enters a new chapter, namely free trade.

The world is becoming more unified. These developments bring
about both benefits and challenges. The unhindered flow of goods
and services will stimulate growth and lead to a greater
prosperity. But competitive skills are needed to benefit from
these developments. Herein lies the challenge. This is the reason
why we have been trying hard to see to it that our economy can
progress over the ups and downs of global events, by overcoming
obstacles that stand on the way.

Economic globalization is followed by another trend, namely
regional economic cooperations. The European Community and North
American countries have developed them. We too have long
established economic cooperation in ASEAN.

In such a world evolution, there is every possibility the
advanced countries become more advanced and the underdeveloped
become more underdeveloped. Even today there is a growing number
of Third World countries which have debt problems that stifle
their economies and hamper a sound growth.

In this connection, I would like to appeal to creditor
countries and international financial institutions to reduce
substantially the bilateral, multilateral and commercial debts so
as to constitute a meaningful relief. There must be a permanent
solution to the debt problem in order that debtor countries do
not have to repeatedly deal with it. The solution must be in such
a manner that the countries concerned can truly start their
development again.

In these past few days, a Ministerial Meeting of Non-Aligned
Countries on Debt and Development was being held in Jakarta.
Participants to the meeting are together with us here in this
hall and they will also attend the highlights of the
commemoration of our Independence Proclamation Day in front of
the Independence Palace tomorrow morning.

With this meeting, Indonesia does not intend to take over the
task of solving the debt problems of the developing countries.
The meeting is aimed at exchanging ideas and experiences on debt
and development. The common understanding in the meeting will
hopefully pave the way to a comprehensive and permanent solution
to the debt and development problems.

The advanced countries are trying to arrange the global
economy by themselves. However, the world is undoubtedly far
bigger than just the advanced countries. More than two-thirds of
the world population actually live in the developing countries.

On account of this fact the Non-Aligned Movement has agreed to
promote economic cooperation, mobilize solidarity and forces so
that developing countries are not being left even further behind.
The approach adopted by the Non-Aligned Movement is cooperation
and partnership, not confrontation. This is the reason that along
with the cooperation amongst fellow developing countries or
South-South cooperation, the Non-Aligned Movement appeals to the
advanced countries to participate in the endeavors by the
developing countries in helping each other to raise the standard
of their prosperity.

An example of cooperation involving advanced and developing
countries in one forum is the Asia-Pacific Economic Cooperation
(APEC). Next November we will have the honor to host an APEC
meeting.

The Asia-Pacific region has a very dynamic growth during the
last decade and it is predicted that it has great potential to
grow even faster in the future. In the summit meeting held last
year in Seattle, the United States of America; APEC leaders
issued a statement for cooperation and address jointly the rapid
regional and global economic changes. Economic cooperation in
this Asia-Pacific region draws great attention from all countries
in this region.

Present in this hall are the people's representatives
resulting from the general election. In this hall, the People's
Consultative Assembly, as holder of the people's sovereignty,
holds its session to choose a President and a Vice President, as
well as formulate the guidelines of state policy that must be
implemented by its Mandatory, namely the President, in
discharging his duties. Also in this hall the Government,
together with the House of Representatives, discuss and approve
laws as guidance of our life as a country, nation and society,
based on the constitution and laws. It is here too that the
people's representatives supervise the operation of the
Government and development in compliance with the mandate of the
Constitution.

What is happening here is a reflection of a great continuous
process in all stages and at all levels, namely a democratic
process. Beginning with the election of a Village Head, Regional
Head up to the President, it is the people who makes the
decision. The people also determines the direction and goals of
development and methods on how to achieve these goals.

All of this does not happen by itself. It is part of
national development, namely political development. The
development priority has always been on the economic field, but
we are aware from the very beginning that in the absence of a
political support it is impossible to carry out economic
development. The political support indicates two things. First,
the creation of a political stability, and second, the people's
participation in the decision-making process, its implementation
and supervision.

Political stability is a prerequisite for a smooth
development, without being harmed by upheavals. Political
upheavals prevented the people from concentrating their attention
on development. Political upheavals do not bring a peaceful and
tranquil feeling, which is greatly needed to mobilize all
resources for development.

Learning from our own history or experiences of other
nations, we are aware from early on the importance of national
stability as a basis for a successful development. Namely
development that stimulates growth for the people's just and
equitable prosperity. This is the essence of the Trilogy of
Development as a development strategy and practical application
of Pancasila.

We are aware from the beginning that development requires
the participation of all groups, segments and parties of the
community. This means that development needs democracy. The
experience of many nations shows that without the full and
sincere participation of the people, without democracy, progress
cannot be achieved optimally. Many nations have in fact suffered
from setbacks because they fail to apply democratic principles in
their political and economic life. As far as we are concerned,
the promotion of democracy is more than a mere necessity.
Democracy is a constitutional mandate. The founding fathers of
our republic have indicated to us the road to democracy that we
have to follow. Our democracy is manifested by the
representatives who hold mutual consultation to arrive at a
consensus and guided by wisdom.

Political stability and democracy are closely intertwined.
We do not want a forced political stability nor on account of the
lack of alternatives. Political stability is for the interest of
us all. Solid political stability is the application of a sound
and fresh democracy. Strong political stability is established
because of the support of the people at large.

Political stability does not mean defending outdated values
or preserving the status-quo.

We do not need a static political stability but a dynamic
one instead. This opens the way to further reform that produces
even stronger political stability. We have initiated this
reformation since the birth of the New Order, more than 25 years
ago. Reform requires an open atmosphere. Over the years the
openness has been gradually discernable. New and fresh ideas and
values are emerging and become the subjects of open and thorough
discussion, taking the good aspects as part of the nation's
political culture. However, we must strongly reject and avoid
those which are unsuitable to our identity and the essence of
nationalism.

What we really need is a responsible openness.

Our nation is so diverse. The history of our development is
still young. This makes us vulnerable, especially against
divisive elements. Openness does not mean unlimited freedom. Even
worse, freedom to be hostile, pitting one party against another
and unconstitutionally imposing one's ideas.

Differences of opinion are one of the characteristics of
democracy. We must respect every opinion--even though
different--as part of fundamental human rights. But as a state
under the law, even democracy has its rules. These are stipulated
by the Constitution and elaborated further in various laws, as
legal products which are in compliance with the people's will.
Without rules and without their observance, what will emerge is
anarchy, not democracy.

Any political aspirations are justifiable as long as they
are presented through democratic and constitutional means.

National stability definitely requires a peaceful and orderly
atmosphere. In this respect the Indonesian Armed Forces (ABRI)
play quite a prominent role, not only as a defense and security
but also as socio-political forces. The Armed Forces as
stabilizer and dynamist of development has carried out its task
satisfactorily. It has never abandoned its essence as
independence soldier who come from the people, fight for the
people, together with the people. During five REPELITAs, the
funds allotted for the development of the Armed Forces have been
very limited. Compared to other countries, especially if we look
at the size of the population and the vastness of the territory
that have to be defended and secured, the budget allocated for
the armed forces is extremely small. In fact, among ASEAN
members, the budget for our armed forces is relatively the
smallest. However, despite such a condition the task to defend
and secure the nation's sovereignty, cohesion, territorial
integrity, people's safety and development has been carried out
well. With limited budget the Indonesian Armed Forces could still
develop itself as a formidable, authoritative and strongly
resilient force. The Armed Forces have gone through a process of
integration and consolidation and it is now becoming a modern,
dependable and effective force. The Indonesian Armed Forces have
also participated in the efforts of the community of nations to
keep together peace in various parts of the world.

Development in the legal field has also had our great
attention. The Constitution sets forth that Indonesia is a state
based on law. Therefore, the laws play a central role in our life
as a nation. We are aware of the importance of the role of the
law as markers along the road to build the nation that offers the
feeling of peace, certainty and justice. We have made many
efforts to achieve this goal.

In line with the dynamic political stability, development
requires economic stability. We can see the result like, among
other things, the inflation which has been kept under control.
Economic stability is also reflected by a sound balance of
payments. The ratio between current account deficit and national
product so far has always been kept at around 1.5 to 3.5
percent. Foreign exchange reserves have always been available for
approximately five-month import.

Such well-maintained economic stability enables the promotion
of activities in all sectors and regions. The result is a
relatively high economic growth during these last 25 years.

The economic growth rate during the First Long-Term
Development program reached an annual average of 6.8 percent,
although there were years where the growth was slow. The growth
was much faster than the population growth which stood at an
annual average of 2.32 and 1.97 percent respectively for the
years 1971 - 1980 and 1980 - 1990. In fact, it went down further
in 1993 to 1.66 percent. As a result, the people's standard of
prosperity continued to improve.

We have succeeded in increasing the national product.
Especially its growth during REPELITA V was adequately high,
reaching an annual average of 6.9 percent. This figure is far
higher than the goal set for REPELITA V at five percent
annually. It was also above the average growth rate for the
entire First Long-Term Development program.

The industrial sector has become the prime mover of
development. The industrial growth during the First Long-Term
Development program reached an annual average of 12.4 percent.
The target set for REPELITA V was 8.5 percent annually. And yet
we have attained an average annual growth of 10.2 percent. In the
meantime, during the First Long-Term Development program the
agricultural sector has grown to an annual average of 3.6
percent, a relatively high rate of growth for the agricultural
sector. The major contribution to the agricultural growth was the
self-sufficiency in rice in 1984. We have been able to maintain
this self-sufficiency in a dynamic manner until now, and it
serves as a solid foundation for subsequent development stages.

The industrial sector has played an increasingly important
role in the overall national production: from 9.2 percent in 1969
to 22.3 percent in 1993. This sector has surpassed the
agricultural sector since 1991. The contribution of the
agricultural sector to the GDP in 1969 reached almost half or
49.3 percent. In 1993, its role has diminished to 18.5 percent.

Parallel with the changes in the structure of production,
there was also some changes in the structure of employment
opportunities from agricultural to industrial and service
sectors. In 1971, the agricultural sector employed 64.2 percent
of the entire work force. In 1990, the number of workers in the
agricultural sector declined to 49.9 percent. The number of those
working in the industrial and service sectors has become higher
compared to those in the agricultural sector. Changes also took
place in household activities. In 1983, the number of households
involved in the agricultural sector was about 60.5 percent.
Whereas the number went down to 51 percent in 1993.

Another important structural change in Indonesia's economy is
its declining dependence on oil. The contribution of the oil and
gas sector to the national product in 1970 was about 18 percent
and rose to around 24 percent 1981. Its contribution started to
decline since 1981, after greater activities took place in the
non-oil/gas sector. In 1993, the share of oil and gas sector in
the national product has declined to 10.8 percent.

Our economic growth -- especially in the industrial sector --
was made possible by higher industrial capabilities. Our
industrial products can compete in the international markets. By
the end of REPELITA V there were 400 types of industry that were
developed. About 4,000 kinds of our industrial commodities
penetrated the world markets, starting from handicrafts to high-
tech industrial products like airplanes.

The non-oil/gas export clearly became the principal strength
of our economic growth, particularly during the last two
REPELITAs in the First Long-Term Development program, primarily
export of manufactured goods.

Since the beginning to the end of the First Long-Term
Development program, the total export value has risen 42 times or
an average of 15.9 percent annually. When our export value in
1968 was a mere US$ 872 million, it jumped to US$ 36.5 billion in
1993 - 1994. During the same period the export value of non-
oil/gas has gone up even higher, namely to approximately 48 times
or an average increase of 16.5 percent annually. At the end of
the First Long-Term Development program, non-oil/gas export
constituted 74 percent of the entire foreign exchange revenues.
63.4 percent of this export consisted of manufactured goods.

The size of the export share reflects the economic growth.
When in REPELITA I the share of total export in our economic
growth was at an average of 31 percent annually, in REPELITA V
it has gone up to an average of about 49 percent annually.

What is most encouraging of the developments in the export
sector is the role of the small-scale industries. In 1993, the
small-scale industries contributed 10.3 percent of the total
export of industrial commodities. In REPELITA V, the export value
of small-scale industries has grown quite substantially, namely
by an annual average of 22 percent.

The growth of the cooperatives as the people's economic forum
has also been heartening. This must be constantly intensified in
order to enhance its quality and role. Before REPELITA I we had
about 9,300 cooperatives. By the end of REPELITA V, the number
has grown to 42,000.

We are able to make this progress because we succeeded in
constructing the supporting infrastructures. They have become
more extensive, diversified and the quality of its services
improved.

The development of power generation has multiplied many times
over. This must continue to be further intensified in order to
catch up with the extremely rapid growth of the industrial
sector. The provision of electricity has also improved the
general well-being. Back in 1971, there were only six out of 100
households that had electricity. Today, more than half of
households are enjoying electricity. Almost half of villages are
supplied with electricity that stimulates the economy and light
more than 30,000 villages.

During the First Long-Term Development program, the telephone
exchange boards have multiplied 38 times. The telephone density
has also risen from 15 per 10,000 persons at the beginning of
REPELITA I to 159 per 10,000 persons at the end of REPELITA V.

The communication network has also grown rapidly. In the land
communication, at the end of the First Long-Term Development
program the roads extended to more than 244,000 kilometers;
consisted of national, provincial, district and urban roads. We
are also building small roads leading to remote rural areas. The
smooth transportation is also sustained by and increasingly
consolidated means. The number of motor vehicles has increased by
more than 20 times during the First Long-Term Development
program.

Sea communication is extremely vital for Indonesia as an
archipelago state. During the First Long-Term Development program
various harbor facilities were built and expanded in 656
locations and most of them are in remote areas. At the end of
REPELITA V, there were three harbors functioning as container
ports, namely Tanjung Priok, Belawan and Tanjung Perak. In order
to sustain smooth foreign trade, 127 harbors were designated as
export harbors, 55 of them are located in the eastern part of
Indonesia, so that they can export directly and thus raises the
competitiveness of the local export products.

Apart from sea communication, our geographical situation
dictates us to develop air communication. During the First Long-
Term Development program, the number of airports has increased
from 108 to 146, whereby 88 of them serve the isolated areas.

The construction of irrigation network plays an important role
in raising agricultural production, especially to attain food
self-sufficiency. During the First Long-Term Development program,
we have built new irrigation networks providing water to almost
1.7 million hectares of paddy-fields and rehabilitated existing
irrigation network of around 2.9 million hectares. As a result,
we have also consolidated the irrigation for farmlands.

We have extended the provision of clean water reaching 80
percent of our urban population and 50 percent of the rural
population. In the beginning of the First Long-Term Development
program, only 20 percent of our urban population enjoyed clean
water.

The welfare improvement is also evident in the sector of
housing and settlement. During the First Long-Term Development
program, we have built about 856,000 simple and very simple
houses. We have renovated around 558,000 houses scattered in more
than 37,000 villages.

Between the years 1971-1990, the work force has risen to 32.6
million. At the same time, development has succeeded in creating
almost 34 million jobs. Consequently, the number of job-seekers
has declined from 3.6 million in 1971 to 2.3 million in 1990. The
structure of work force has also shifted to sectors which have
high value-added, that is from the agricultural to industrial and
service sectors.

Today, practically almost all children between 7-12 years old
are following elementary education. At the start of the First
Long-Term Development program, there were only four out of 10
children who attended elementary school. The secondary school
pupils -- including the equivalent Islamic schools -- are now
numbering seven million, covering more than half of the 13-15
years old. This number is almost six times higher than at the
start of REPELITA I. The number of high school pupils by the end
of the First Long-Term Development program reached 3.8 million, a
substantial increase from only about 480,000 in 1968. If the
Islamic high school pupils are also included, the number reaches
4.2 million, or more than one-third of adolescents between 16-18
years old. In the higher education, including religious
universities, the number of students has risen from around
156,000 in 1968 to 2.3 million during the 1993-94 scholastic
year. This means more than 10 percent of boys and girls between
19-24 years old are studying in universities.

The number of over 10 years old who are illiterate has
decreased significantly, from more than 39 percent at the
beginning of the First Long-Term Development program to around 14
percent by the end of REPELITA V.

In 1967, the life expectancy was 45.7 years. Now, it has
risen to 62.7 years. During the same period, the infant mortality
rate has declined from 145 to 58 per 100 childbirths. The
provision of energy food has risen from 2,035 kilo calories in
1968 to 2,991 kilo calories per person/day in 1992. The increased
energy food was accompanied by greater supply of protein, fat and
other nutritious sources.

The improved public health and nutrition is closely linked
with the improvement of health services to the public at large.
During the 1968-1993 period, the number of doctors has increased
from around four to almost 17 doctors serving 100,000 persons.
Health services through the Public Health Centers have reached
all corners of the country, now numbering close to 7,000. In
addition, they are also supported by Auxiliary and Mobile Public
Health Centers.

Another important development that took place during the
First Long-Term Development program was the enhanced role of
women. The number of women who enjoyed education rose by 38
percent between the years 1980 and 1990. The number of women
workers has increased by six percent or more than double the
percentage of the increase of men workers during the same period.
Through the Family Welfare Movement (PKK) and Integrated Service
Posts, women played a prominent role in improving the people's
well-being by way of raising their health standard and nutrition,
especially in the rural areas.

Development is not limited to physical things alone, but it
also covers all aspects of life. We believe the right development
is the development of complete individuals and the whole of the
society. For this reason, therefore, we give full attention to
the development of religion, so that religious followers can
perform their religious worship as well and easy as possible.

The cultural aspect of development has never been neglected.
We see development as a process of cultural changes, from
ignorance and backwardness to progress. Thus, development also
requires the promotion of cultural values that sustain the
process of reform and modernization, without abandoning the
fundamental values that mold Indonesia's national identity.

One of the important aspects of national development is
regional development. Development is not centralized and carried
by the central government alone. Development is also implemented
by all regions.

It is precisely through the regional development that the
participation, initiative and creativity of the people are being
encouraged to develop by capitalizing on the available resources
and potentials in the regions. To distribute regional development
resources and, at the same time, to support the regional effort
in developing and mobilizing development resources in the
respective regions, assistance is being given from the State
Budget.

This assistance is included in the INPRES program, the size of
which continues to be larger. Furthermore, the greater portion of
the land and building tax is returned to the regions.

The regional development is supported by transmigration. The
movement of people to outside Java through the transmigration
program has to date reached around eight million persons.
Compared to the number of people who moved to Java, those moving
out of Java is still larger. The transmigration program has
stimulated regional economic growth, raised productivity and
created new employment opportunities in the regions.

Most of the provinces in the eastern part of Indonesia have
registered high growth rate. This is very encouraging. The latest
data on regional gross domestic product demonstrates it. During
the first three years of REPELITA V, out of the 13 provinces
categorized as the eastern part of Indonesia -- including
provinces in Kalimantan -- 10 of them have grown above the
national average. Four out of five provinces that have an average
growth rate of above nine percent are actually located in the
eastern part of Indonesia. These provinces are: Southeast
Sulawesi with an average growth of 12.4 percent, East Timor 9.8
percent, Irian Jaya 9.7 percent and Central Sulawesi 9.3 percent.
This shows that the equitable distribution of intra-regional
development is going on.

We have carried out many activities in REPELITA V to enhance
the environment. We have, among other things, rehabilitated
critical lands and preserved forests totaling 44 million
hectares, reduced the pollution of 32 major rivers, improved the
sanitation of cities and developed the systems and methods of
development that do not harm the environment. The awareness of
the people about the importance of the environment has been
growing. The active participation of the people to preserve the
environment continues.

Our development has apparently touched all segments of the
society. The results of development have been enjoyed by the
people at the lowest economic rank. This is clearly evidenced by
the higher income of the poor population. The yardstick is the
declining number of people who are living below the subsistence
level.

In 1970, the number of poor people was estimated to be around
70 million or 60 percent of the whole of the Indonesian
population. In 1993, it was substantially reduced to 25.9 million
or 13.7 percent of Indonesia's total population. Whereas, in fact
during the same period Indonesia's population has increased by
around 73 million.

We are highly encouraged that the number of the poor has
declined very substantially. Yet we are aware the remaining
number is still quite big.

We have also noted that the rate of decline of the number of
the poor is slowing down. We can draw the conclusion that the
remaining poor people are those who have the lowest economic
potential. These brothers and sisters of ours are living in
remote areas and become more concentrated in pockets of poverty.

In order to overcome this poverty problem, we have launched a
poverty alleviation program specifically directed to the poor.
During the final year of REPELITA V, efforts were made to
identify villages that on account of their serious backwardness
became pockets of poverty. After improving the criteria and
evaluation system several times, we finally came to the
conclusion that there are 20,633 villages which need special
attention with a view to alleviating poverty. This is the reason
why starting with REPELITA VI, we are developing the Least-
Developed village INPRES. The objective is to directly overcome
poverty in these least-developed villages.

The achievement we have made demonstrated that we have
succeeded in attaining the goals of the First Long-Term
Development program, namely the fulfillment of the people's basic
needs and the creation of a balanced economic structure. We have
been carrying out development by subscribing consistently to the
Trilogy of Development. We have created economic stability and
managed its consolidation. We have achieved an adequately high
economic growth. We have carried out development resulting in the
enhancement of the people's well-being in a more equitable
manner.

In the Second Long-Term Development program we want to create
an advanced, prosperous and self-reliant society in a harmonious
living surrounding. We translate this goal by setting up various
targets. The REPELITA VI document contains the development
targets of the Second Long-Term Development program and REPELITA
VI in particular, as well as the strategy on how to reach them.

One of the most crucial targets is the quadrupling of the real
value of the per-capita income of Indonesians by the end of the
Second Long-Term Development program. To this end, we must have
an economic growth rate with an average of over seven percent
annually. Various sectors must mutually support and reinforce
each other. The industrial sector, that we rely upon, must have a
rapid growth.

The growth of the industrial sector at the beginning of the
Second Long-Term Development program -- namely during the current
REPELITA VI -- must consolidate further the existing industrial
structure. Our industry must make the best possible use of our
comparative advantages, namely the abundant natural and human
resources. But this alone is not sufficient. The foundation of
our industry must also be reinforced and strengthened. Its
technological contents must be upgraded, so as to produce goods
with high value-added and, at the same time, strongly
competitive. We have to improve the design and engineering
aspects. We have to strengthen the downstream industry, which so
far has been the mainstay of our export and it must also be
linked with the intermediate and upstream industries. This is the
path we have to follow in developing a dependable and self-
supporting national industry.

We have chosen industrialization as the main road for
economic growth. This selection is not without reason. We are
hoping that it is precisely the industrial sector that will
produce greater value-added growth and absorb a great number of
highly productive workers.

This certainly does not mean that we neglect the
agricultural sector, which continues to be important in our
economy. The sufficient supply of foodstuffs is very essential
for a nation with large population like Indonesia. This remains
the primary task of the agricultural sector. In this respect, we
are aware that although we have made much progress, the
agricultural development continues to face big obstacles.

We ought to shift manpower from the agricultural to other
sectors, especially the industrial sector. So far, the income of
workers in the agricultural sector is lower than those in other
sectors.

The process of transferring manpower from the agricultural
to industrial sector usually occurs as an urbanization process.
It also creates problems, because the urban areas are not always
prepared to accommodate the too rapid flow of additional
population. Therefore, the strategy to overcome this problem is
by developing industry in the rural areas, so that
industrialization does not always have to mean urbanization. This
is the reason why we should develop immediately agro-industry and
agro-business, especially in the rural areas.

For this purpose, it requires hard work and serious effort
on our part. Above all, it needs the participation of a broader
segment of the population and better-qualified people.
Consequently, the development of human resources receives a great
attention in the Second Long-Term Development program. For this
purpose, we have to develop the correct development programs in
all sectors. We ought to continue and intensify our institutional
development-- whether economic, social, political or even
governmental --in order to pioneer and support the reformation
and modernization of our society.

Apart from our target for growth, we have a clear and firm
objective for an equitable distribution. We are planning to
fundamentally overcome the issue of poverty in two REPELITAs. We
will stimulate faster the development of the least-developed
areas. We want to build a strong and self-reliant small and
medium-size businesses as an effort to raise the equitable
distribution of business and build a dependable business world.
We must build the cooperatives as the people's effective economic
forum.

We shall continue the deregulation and debureaucratization.
The goal is to prepare for a highly competitive global economy
that can survive in the increasingly unified and competitive
economy. Deregulation and debureaucratization certainly do not
mean setting up a liberal economic system that allows free
competition. The 1993 Guidelines of State Policy explicitly
demands us that this should be avoided.

Consequently, deregulation and debureaucratization, as well
as other incentives to raise our economic competitiveness must be
followed-up, so that our economy stays on course in realizing the
aspirations of the proclamation of independence. All the efforts,
resources and potentials, as well as policies must lead to an
economy imbued with justice. We must of course take into account
the fundamental economic principles. However, we also have to
strike a better balance of opportunities and ensure that our
economic system brings about prosperity to everybody.

These are the great tasks of our development in the days to
come.

Window A: Openness does not mean unlimited freedom. Even worse,
freedom to be hostile, pitting one party against another and
unconstitutionally imposing one's ideas.