No need to fear IMF aid

The government's decision to ask for foreign assistance, particularly from the International Monetary Fund (IMF), in its efforts to overcome the present currency crisis has invited many reactions. On one side of the extreme are those who are nervous about the prospect, while on the other end, people are feeling utterly relieved.

Those who feel uneasy are mostly influenced by reports of past IMF practices in helping developing countries to stabilize their troubled economies. Usually such information originates from books written by left-leaning economists. This is not to say that such writings, though loaded with ideological messages, are entirely devoid of facts. The IMF's program of structural adjustment, which it imposed on a number of Latin American countries, did indeed affect the poor in a negative manner because of its tendency to reject all kinds of subsidies, including those that benefited the poor.

Those who welcome IMF aid are usually conservative supporters of the free market idea who believe that every country must maintain a high degree of fiscal and monetary discipline. These people are highly critical of government subsidies since they suspect that instead of benefiting the poor, those subsidies tend to benefit those who do not deserve to be subsidized. These suspicions, too, are not entirely lacking in supporting facts.

Indonesia, which for almost a quarter of a century has not applied for IMF assistance, can indeed be proud of the fact that it is regarded as a "good boy" by this global financial institution. Nevertheless, the fact that this country is now compelled to ask for assistance from this particular "slave driver" should open our eyes to the reality that some soul- searching and introspection on our part is in order. The problem is that, of late, we have become lax in maintaining our sense of discipline in preparing our economy for the coming era of global competition.

Indonesia very well knows what must be done to put its economy in order. The problem is that various vested interests are pulling us from committing ourselves fully to the task that is to be done. Viewed in this perspective, it is perhaps right to say that we do need the IMF's whip to put us back on the right track.

-- Media Indonesia, Jakarta