Sat, 24 Feb 2001

Macau model for East Timor

I read with great interest Mr. C.G. Moghe's article A framework for East Timor's economic planning which appeared in The Jakarta Post on Feb. 21 and Feb. 22.

The existing reality in East Timor dictates that planning and developing this nascent nation along the lines of Macau, the Cayman Islands or the Bahamas could be a long shot. Besides, I guess that the leaders of an independent East Timor may not savor the idea of converting their country into a "gambling den" or a "tax haven" for Asia.

Economic planning must be rooted in sound principles and good conscience. Profit making and profiteering are not the same.

East Timorese must necessarily get their priorities right, the first and foremost being the formulation of a long-term vision (social, political and economic). In a way, it is better to start with nothing to work on. You have unlimited choices.

Lucky are these East Timorese to have been endowed with a string of Nobel Prize winners to guide this young nation at this critical juncture. No other country would have had the benefit of the wisdom of such Nobel Prize winners, even before the birth of the nation.

The second step for East Timor will be drafting of a constitution. Equally important is articulating the leaders' vision to the common people of East Timor.

A small population with a small territory might, after all, be a distinct advantage. East Timorese would do well to learn a lesson or two from Singapore for instilling a good work culture, clean governance and sense of nationhood. (A five hundred dollar fine for littering on the street might be disproportionate though).

The East Timorese will have to deal with a myriad of problems, all at the same time. There is no infrastructure worth talking about. Virtually everything will have to be rebuilt from ruins. Then, there are the issues of tribalism, illiteracy and the attendant backwardness. Taking over the administration from the UN, without any training, is another major hurdle.

Hopefully all of these will be tackled in due time. The UN should ensure that their staff are not withdrawn in haste. Until such time that the locals can, by and large, manage by themselves, it would be wise not to insist on any fixed timeframe for this process. The sympathy and support of the world's nations are with East Timor. This is a positive augury to begin with.

Lastly, I believe the "free zone" concept advocated by Mr. Moghe, the one similar to the U.A.E., might be workable for the medium to long-term prosperity of East Timor. The surrounding countries might also welcome East Timor becoming a "Free Trade Economic Zone", as it would be beneficial to all concerned.

Competing in a globalized world, on the strength of economic model the East Timor choose to adopt, they should try and avoid an overly bumpy ride. They have already suffered far too much.

Let us hope that the day is not far off when East Timor takes its rightful place in the comity of world nations. Let us all wish the people of East Timor success and a bright future.

D. CHANDRAMOULI

Jakarta