Presidential hopefuls and globalization strategies

Aleksius Jemadu ,  Jakarta   |  Tue, 06/09/2009 10:47 AM  |  Opinion

When there is a sharp contestation of arguments among political leaders it is the public who benefit, because at the end of the day well thought-out policies can be produced.

Presidential hopefuls - Susilo Bambang Yudhoyono (SBY), Jusuf Kalla (JK) and Megawati Soekarnoputri - realize that the main issue in the upcoming presidential election will be the economy. No wonder there has been a hot debate regarding their economic policies.

From the perspective of national interest, an economic debate like this is not only timely but crucial. Rarely, if ever, do our political leaders discuss in depth Indonesia's globalization strategies.

Successes of other countries such as China and India show us that the predatory nature of globalization can only be dealt with if we have well-designed strategies and a clear agenda of goals to achieve. For instance, China took three decades from the time of Deng Xiao Ping's modernization program in late 1970s before it could reach its current economic superpower status.

India, meanwhile, began to open its economy in the early 1990's and has now managed to become one of the global players in the lucrative information technology sector.

With the selection of the former central bank governor Boediono as SBY's running mate, there has been a hot discussion in the media of whether Indonesia should go the "neoliberal" way in dealing with globalization challenges.

Those who agree with Boediono argue there is nothing wrong if Indonesia emulates the best practices of China and India. The opponents of that approach assert that a "neoliberal" economy will only lead to systematic pauperization of the Indonesian people.

As far as SBY and Boediono are concerned, the standpoint is clear. Today, Indonesia's economy is already on the right track and the only problem now is how to utilize all our regional and global commitments to sustain high economic growth and increase people's prosperity.

It is interesting to note that soon after Boediono was declared as SBY's running mate, JK made widely publicized visits to traditional markets, where small traders were struggling to survive under the pressure of the current global financial crisis. JK seemed to want to convince the public he is ready to offer alternative strategies to neoliberalism.

Megawati Soekarnoputri and Prabowo Subianto played their own parts in the game by choosing up "Pro-People" as their main campaign theme. It remains to be seen how their version of a "people-oriented economy" will challenge the domination of the neoliberal discourse.

There is a prediction that the closer we get to the presidential election, the more SBY and Boediono will be attacked by their contenders. Increasing numbers of people without jobs, increasing prices of basic needs and costs of education and health services can easily be politicized to delegitimize SBY's economic leadership.

However, there are a number of internal and external factors that may swing the pendulum in favor of SBY and Boediono.

First, if the legislative election can be seen as a referendum to test whether the Indonesian people agree with government's economic policies, the victory of SBY's Democratic Party should be regarded as a sign of popular consent to his model of economic development.

Second, without belittling JK's sincerity in promoting a more nationalistic economic development, such enthusiasm boomerang back on him unless he proves this commitment with his own track record.

Third, when Prabowo, Megawati's running mate, announced his incredibly huge wealth, many people found a disturbing paradox in his personality.

How can a man who has been so materially enriched through the globalization of capital and commodity markets suddenly have populist proclivities to promote a "people-oriented economy"?

Fourth, the proponents of neoliberalism are quick to point out that the success of leading economies in Asia like Japan, and Newly Industralizing Countries (NICs) China and India, has been due to their extensive exposure to globalization.

Notwithstanding the upper hand of the neoliberal discourse in the contestation of development paradigms, SBY and Boediono need to pay attention to the following economic wisdom. Moses Abramowitz, a pioneer in the study of economic growth in the early 1950s, said the fundamental requirement for economic development was social capacity.

Therefore, it is more complicated than just a factor of accumulation. Growth requires the state to develop economic institutions, endorse social behaviors and produce policies favorable to economic development.

Whichever economic ideology we embrace, in the final analysis economic development is about the quality of human agency.

Let us hope that all the presidential hopefuls will take this as the ultimate goal of their economic strategies. That way, they all deserve the support of their respective constituents.

The writer is a professor of international politics and lives in Jakarta.

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