Understanding World Bank

Understanding World Bank

Disappointing! This is what the World Bank thinks of the 100
days of Megawati's administration. This administration, the World
Bank says, is yet to make great strides in structural reforms and
in the running of the government.

This evaluation is a bitter pill for Indonesia, a country rich
in natural resources but heavily dependent on other nations.

This disappointment has led to negative market sentiment. The
rupiah fell to around Rp 11,000 per U.S. dollar at the close of
Monday's trading. Besides, it is also a hint that in the meeting
with the Consultative Group on Indonesia in Jakarta this week,
the World Bank and other regular creditors will not go soft on
Indonesia.

President Megawati must use this disappointment as a means to
spur herself to review her Cabinet and handle things properly.
Otherwise, this disappointment, coupled with domestic
dissatisfaction of her Cabinet's performance, will only snowball.

The commitment she made in her address at the recent opening
of the Annual Session of the People's Consultative Assembly to
eradicate collusion, nepotism and corruption must be translated
into reality.

One thing that indicates the weakness of this government is
that corruption cases of a huge magnitude are yet to be exposed.
Worse still, some of these cases have been shelved by the courts
because the legal enforcers concerned have been infected by the
corruption "virus".

Then she must ensure that domestic problems hampering business
activities, such as continued imposition of formal and illegal
levies and poor security, will be removed. Externally, she must
ensure that the government is prepared for any jolt in the world
economy caused by the U.S.-led attack on Afghanistan.

The World Bank has based its evaluation of Megawati's
performance on how she has responded to these internal and
external problems.

If only such an evaluation came from a particular group in a
formal forum at home, this group would certainly be condemned by
the pro-Megawati camp. As the evaluation has come from an
international institution, like it or not, it has to be accepted.

-- Bisnis Indonesia, Jakarta