The World Bank toughens its stance

The World Bank toughens its stance

The World Bank's attitude towards Indonesia has changed. In
the past, the bank always avoided censuring president Soeharto
even though it admitted corruption, repression and the collapse
of the financial system progressively grew in Indonesia during
his 32-year rule. In a report released in February, the bank
admitted that opposing the Indonesian government's policies at
that time would have meant destroying the bank's image as a
staunch supporter which helped make Indonesia's success story.

The World Bank has now shed its former timidity and is
limiting its assistance to Indonesia even though this country has
once again become poor, its per capita income having fallen from
US$1,184 a year in 1996 to $300 at present. It may approve an
Indonesian request for aid under the International Development
Assistance (IDA) program, but only if that aid will be used for
certain (World Bank approved) purposes such as building a social
safety net.

Why this change of attitude on the World Bank's part? There
are two possible factors: First, it may regard Indonesia as still
being still well-off enough (to help itself). Second, the bank
feels it will have to be more careful in dealing with Indonesia
because the money might simply disappear.

Indonesia is quite well known internationally where practices
of corruption and collusion are concerned. Even money for the
country's social safety net is being corrupted, and this is done
not only by bureaucrats, but also by members of certain non-
governmental organizations.

So great is our dependence on foreign loans at present,
though, that those who are in charge of handling the money should
not be irresponsible. Such an objectionable attitude on the part
of just a few could easily harm the interests of the community as
a whole. In this era of reform there is no place for dishonesty,
much less for behavior that hurts the most basic interests of our
poor.

-- Bisnis Indonesia, Jakarta