Policy Implications

These lessons provide useful pointers for practical policy. The main ones appear to the following.
First, tendencies to turn inwards away from the international economic community would best be resisted. Indonesia has much to gain from an open and effective relationship with the outside world. It is therefore in Indonesia's interests to strengthen the mechanisms for dealing with the international economic community in a self-confident and open way.
Second, at the broadest level, the single best thing that Indonesia can do to protect national interests in dealing with the international economic community is to strengthen the fundamentals of government and economic management at home. When domestic economic performance is strong, there is little need to publicize the fact because the international economic community quickly hears the news; but when the domestic economy is weak, even well-designed public relations programs are unlikely to be effective. The aim, as Ministers Dorojatun Kuntjoro-Jakti and Boediono have emphasized, must be to lift the annual economic growth rate towards the 6-7% range.
Third, lessons learned from the experiences of other countries passing through economic transition should inform economic policy-making in Indonesia. These include the desirability of ameliorating social conflicts that arise during the process; the need to recognize that the transitional process is likely to take considerable time; and the fact that losers can be expected to resist change.
Fourth, plans should be developed to strengthen the capacity of Indonesian institutions to conduct official economic diplomacy. The key messages that need to be conveyed to the international community should be defined. Target audiences for economic messages need to be identified. Appropriate delivery mechanisms (in person, print, electronic) should be used in a strategic way. (McCawley and Wallace, 2002.)
Finally, consideration might be given to ways to strengthen the network of second tier civil institutions which support both domestic debate about economic issues and Indonesia's interaction with the international economic community.




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