RI tries to ease debt burden of poor states
RI tries to ease debt burden of poor states
By Achmad Nuhoeri
JAKARTA (JP): Indonesia plans to continue using its position as chair of the Non-Aligned Movement to urge the rich industrialized countries to address the huge debts of Third World countries, an official said.
Economist Emil Salim, a member of NAM's task force on debt, disclosed at a seminar on Monday Indonesia's plan to try and persuade the leaders of the Group of Seven (G-7) industrialized countries to discuss the issue at their next summit in Halifax, Canada, later this year.
Speaking at a seminar on the role of NAM and Third World debts organized by the University of Indonesia, Emil said Indonesia is proposing that the industrialized countries invest more in the heavily indebted African countries to help them pay their way out of their debt problems.
He did not say how Indonesia plans to push this issue through the G-7 agenda.
President Soeharto, the current chairman of NAM, made a major breakthrough when he traveled to Tokyo in 1993 to meet with some of the G-7 leaders. At the time, he pleaded on behalf of NAM members that they address the debt problem of Third World countries, particularly African states. The issue was later incorporated in the final communique of the G-7 summit.
Emil said however that African states must also show their willingness to ensure political stability, which clearly is a prerequisite for economic development. "Nobody will invest in a country that is unstable."
The one-day seminar at the University of Indonesia was organized by the recently-established NAM Study Center, part of the university's School of Social and Political Sciences.
Other speakers invited were Nana Sutresna, head of the NAM Executive Committee, Riza Sihbudi of the Indonesian Institute of Sciences and Soedjati Djiwandono of the Centre for Strategic and International Studies.
Emil said the world had virtually ignored the debt problem of African states until NAM addressed it when Indonesia took over leadership of the organization in 1992.
"More than 55 countries, mostly in Africa, are heavily indebted and nobody showed any concern except for NAM," he said, adding that NAM is the only institution with the will to help the poor African states out of their predicament.
He described the Paris Club, a forum of western creditors, as too demanding and the World Bank as too harsh in their quick condemnations of countries unable to pay their debts.
He said the problem in some African countries has reached the point where they cannot even pay the interest on their debts, let alone the principal.
Soedjati's presentation, in contrast to Emil's, was pessimistic about NAM's success in winning concessions from the industrialized countries over the debt issue.
Lip service
He said the pledge of cooperation by the industrialized countries was nothing but lip service. However, he agreed that something positive has come out of NAM on the debt issue during Indonesia's chairmanship.
"Indonesia's fine record as a debtor compels the G-7 countries to listen to the pleas for assistance. They (G-7) also hope that Indonesia will influence other NAM members and the way they manage their debts."
Nana Sutresna said Indonesia hopes the progress achieved by Indonesia during its three-year term as NAM chairman will be continued by Colombia, which has been appointed to take over the leadership later this year.
The senior diplomat said President Soeharto has proposed the creation of the Center for Development within NAM which will help members handle their debt problems.
Indonesia and Colombia have been in touch to discuss the NAM leadership. "Indonesia will not take its hands completely off NAM after its leadership period ends," said Nana.