RI can learn much from world development woes: World Bank

Berni K. Moestafa The Jakarta Post Jakarta

The 25th annual World Bank Development Report (WDR), though covering the globe, reads as if directly addressing Indonesia.

The report's subtitle, "Transforming Institutions, Growth and Quality of Life", reminds one of Indonesia's own ongoing, aggressive reforms.

According to the lead author, Zmarak Shalizi, Indonesia shares many of the world development problems mentioned in the report.

"There are probably a couple of issues that do apply to Indonesia even though the examples we use are from other countries," he said in an interview earlier this week at the World Bank office here.

Shalizi was on a three-day visit to seek feedback on the report, which the World Bank released in late August. He said the WDR examined development problems across the globe without categorizing them by country.

"On the forestry issue there is a lot that we say that is relevant to Indonesia on how to improve transparency, how to reduce corruption," he said. "You might want to look at the example that we've written up on Cameroon's tropical forests."

The African country was able to reduce corruption and environmental damage in its forestry sector through the public auctioning of forest concessions, he said.

"To the extent that it (corruption) is a problem to Indonesia, and as I've heard it is, then I think it's worth looking at."

That may also apply to Jakarta's urban problems, as the WDR draws examples from large cities in Brazil, Mexico and India.

In 1998, Bogota, Colombia, developed what it called an urban mobility strategy to reduce traffic and air pollution.

This strategy encouraged people to ride bicycles and to restrict the use of cars during certain hours and days, and also included a rapid transit bus system.

In 2001, air pollutants in the city had fallen by 40 percent and travel time had been reduced by 32 percent, the report said.

On institutional building, which is a recurring theme in the WDR, Indonesia may also study South Africa's break from its apartheid past.

South Africa has replaced the institutional foundations of apartheid with new, more inclusive ones that cover security agencies, provincial governments and health and education ministries.

"These and other measures facilitated the transition to democratic rule while preventing capital flight and preserving valuable social assets," the World Bank report said, describing it as an remarkable example of institutional transformation.

By comparison, Indonesia's transition to democracy has led to capital outflow and armed conflicts in the regions.

One of the report's examples does cite Indonesia, showing how upgrading village infrastructure like drainage, water supplies and sanitation "dramatically" improves living conditions.

Shalizi said the WDR laid out ideas over a broad section of issues for countries to learn from.

For Indonesia the report may present it with new ideas for its reform programs, which have been ongoing since 1998.

Last August, the country dramatically amended its Constitution against a backdrop of continued economic reform measures.

Although progress appears to be steady, it is also slow. Many of the reform benefits are designed with long-term objectives.

The costs of reform, however, are immediate.

Indonesia's infant democratic rule of law has yet to function properly. In its absence environmental degradation, legal uncertainty and corruption have taken over, deterring new investment in the country that is badly needed to fight back the poverty that resulted from the 1997 economic crisis.

Asked about the Indonesian reaction to the report, Shalizi said officials here had shown a great deal of interest. But he added that he was unsure whether that would lead up to any follow-up.

Shalizi met with several government officials and non- governmental organizations last Tuesday. "Judging from both meetings that I had today (Tuesday), in both cases I was asked whether I would come back and meet with a wider audience."

This year's WDR took the theme of sustainable development, to coincide with the earth summit held in Johannesburg in August.

Shalizi said his new project was to find out what was needed to speed up the reforms required for sustainable development.

The 250-page report was written over an 18-month period by a team of six World Bank staff members and four consultants.