You are here: Home» Economic Issues» World

Indonesia Expects Global Support Funds from G20

Adjust font size:

"Besides, that's not the government's business. Let the government concern with its own business," he said.

But all economists agreed on one thing, that is, at the summit developed countries could show respect to their developing counterparts in the global trade without adopting protectionism.

They said rich nations often cite health and security factors as the main concerns to cut imports from developing nations.

"Don't get manipulated. They often use 'old songs' to trick us," said Fuad.

He said rich countries chose an unfair way against developing countries to protect their markets and workers.

Aviliani from the INDEF said that many developed countries protect their markets, especially in this current global slowdown to reduce layoffs.

"But rich countries still have to abolish their protection practices to allow developing countries' goods entering their markets," Aviliani stressed.

The economists said that developed countries should realize that they are no longer the main engine to support the global economic growth. Sofyan from Apindo said that currently, China and Japan hold the main role to revive the global economy.

"The countries hold much forex reserves while the United States and Europe are facing a crisis," said Sofyan.

As of December 2008, China held forex reserves of almost 2 trillion U.S dollars while Japan held around 1 trillion dollars.

The bigger role of China and Japan in the world's economy will be one of the factors to trigger the world's monetary system reform. Usually, countries that face monetary problems turn to the International Monetary Fund (IMF) for help. But Fuad said that they should not make the IMF as the single body to handle the world's monetary affairs if they want to reform the world's monetary system,

"We have the World Bank and Asian Development Bank among others. And we can materialize an Asia Monetary Fund to lessen the IMF's job and to create competition between those financial institutions," he said.

Fuad also said sometimes IMF's policy does not suit well with the developing countries' conditions.

"Asia knows better to manage its own business rather than Washington," he said.

(Xinhua News Agency March 19, 2009)

     1   2