Indonesia : The Imperative for Reform
In the one hundred days since assuming office, the new administration of Megawati Soekarnoputri has made little progress on structural and governance reforms. The events of September 11 and the slowdown in the global economy worsened the investment...
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| Language: | English en_US |
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Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2001/11/1645201/indonesia-imperative-reform http://hdl.handle.net/10986/15466 |
| Summary: | In the one hundred days since assuming
office, the new administration of Megawati Soekarnoputri has
made little progress on structural and governance reforms.
The events of September 11 and the slowdown in the global
economy worsened the investment climate in Indonesia, adding
to the government's already formidable array of
challenges. Indonesia's recovery has lagged behind its
neighbors and over half its population vulnerable to
poverty, more than any other crisis country. Moreover, its
fragile banking and corporate sectors, and the precarious
state of its government finances, make the country highly
vulnerable to risks--with immediate implications for fiscal
sustainability. Donors need to be realistic about what is
feasible, given strong vested interests, severe
institutional weaknesses, the uncertainties arising from
decentralization, and a turbulent transition to democracy.
Progress is most needed in the key areas of structural
reforms, good governance, and empowering and investing in
the poor. Together with fiscal sustainability, they are
consistent with the premise that stability, growth, and
effective government are the key ingredients for
long-lasting and sustainable poverty reduction. |
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