No need to fear IMF aid
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