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.