Thursday, August 4, 2011
Tulisan Sri Mulyani di Situs Bank Dunia: Winning in Transition
Nama
Sri Mulyani Indrawati kembali naik ke permukaan saat Partai Serikat
Rakyat Independen (SRI) mengumumkan calon presiden periode 2014 dari
partainya, yakni Sri Mulyani Indrawati. Sri Mulyani belum berkomentar,
namun ia menulis untuk situs Bank Dunia sekitar akhir bulan lalu. Inilah
tulisan Sri Mulyani dalam Winning in Transition.
Winning in Transition
By Sri Mulyani Indrawati
As published on the Project Syndicate website on July 25, 2011.
Is
the Arab Spring turning into a gloomy autumn? With brutal crackdowns
in Syria, a bloody civil war in Libya, and Yemen teetering on the brink
of chaos, the number of skeptics is growing. Although Egypt and
Tunisia’s pro-democracy movements achieved rapid regime change,
uncertainties remain in those countries, too. After a brief period of
hope, many observers now wonder whether the region is capable of
producing viable, and economically vibrant, democracies.
Revolutions
and their aftermaths, of course, are always fluid and fickle times,
and the outcome is often perched on a knife’s edge. Bridging the vast
gap between high expectations and the reality of limited budgets and
capabilities is a test in itself. Redressing past injustice and building
an economy that offers opportunity to all are major challenges as
well, fraught with volatility, uncertainty, and the dangers of
political opportunism.
But
transitions are also times of great opportunity. In the 1990’s, I was
among those Indonesians who demanded and celebrated the departure of
our own autocrat, Suharto, and I joined the new government when he
left. Many observers predicted that Indonesia, the world’s most
populous Muslim country, would be unable to sustain democracy and would
ultimately decline into chaos. The task ahead of us was daunting. But
we proved the skeptics wrong, and learned some fundamental lessons.
Perhaps
most importantly, we learned that there is no one-size-fits-all
solution for democratization. Each of the countries of the Middle East
and North Africa will face unique challenges, which will have to be
addressed on their own terms. Even so, they all must make a real and
symbolic break with the past. The new authorities must send strong
signals that the old ways are finished.
Change
must be formally manifested, with new laws that are widely publicized.
Legislation that empowers citizens with freedom of expression, free
and independent elections, and freedom of association is crucial, and
it must be made clear to the public that no one is above the law.
Anything less will undermine the transition.
Moreover,
corruption is the bane of development everywhere, so new governments
should move fast to establish institutions and procedures to fight it.
Transparency and accountability are powerful ideas with near-universal
support, which means that new leaders should not give up when the fight
becomes difficult. Civil-society organizations, local communities,
representatives of the poor and vulnerable, and women play a vital role
in this regard, and they should be included at every level of
decision-making.
In
Indonesia, we signed a hundred laws in less than 18 months, covering
everything from media freedom to elections, corruption,
decentralization, and anti-trust rules. We ratified new public-finance
legislation and ensured the independence of the country’s central bank.
New
leaders must also expect and manage setbacks. In post-revolutionary
times, expectations are high, and the obstacles to meeting them are
enormous. I know from personal experience that we did not always have
the luxury of getting the best outcomes. We had to compromise and settle
for the best possible results.
Security
threats are among the most serious setbacks in transitions.
Nationalistic sentiment is strong, and politicians and interest groups
can exploit it. Often, the security forces are holdovers from the old
regime, and there is no independent judicial system. Reforms will take
time, and the old bureaucracies may not be able to implement them.
In
Indonesia, we used various innovations to work around such dilemmas.
For example, we appointed an independent judge to take over the
bankruptcy and corruption courts, because career judges were too
tainted. Likewise, when we started cash-for-work programs as part of our
pro-poor agenda, we asked communities to run these initiatives.
More
broadly, new leaders are well advised to ensure that the economy
performs well. It is important to restore economic activity and create a
favorable environment for entrepreneurs, particularly small and
medium-size businesses, which constitute the main engine of job
creation. The recent revolutions, it should be recalled, started with
the self-immolation of a Tunisian fruit vendor, who was harassed and
insulted by the authorities.
But
economic success without accountability and social inclusion is not
sustainable, and new governments often must face tough choices in order
to protect the poor and vulnerable. They might have to abolish
mis-targeted subsidies to free up resources for more targeted and
efficient anti-poverty and job-creation programs.
In
Indonesia, we had to draw a line between the very poor and the
near-poor. We could not afford to raise salaries or provide subsidies
for everybody. Our help had to be targeted. So, while we helped the
neediest, we excluded others who were not poor enough to benefit. This
was a tough and unpopular choice.
Finally,
countries in transition need support – not only money, but also
technical know-how to implement highly complex reforms. When I became
Indonesia’s finance minister, I had 64,000 employees. But when we had to
modernize our tax system, we could not find the required expertise
anywhere in our country.
Yes,
we needed external assistance, but we never surrendered “ownership” of
the reform process; we made it work for us. If we Indonesians had not
been in charge of our own transition, it could easily have failed. That
lesson, too, is one that all countries in transition should bear in
mind.
Sri Mulyani Indrawati is Managing Director of the World Bank Group and a former finance minister of Indonesia. | ||
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