Indonisia

Statement by


Prof. Dr. Basri Hasanuddin
State Minister Coordinator for People's Welfare

and Poverty Eradication

Mr President,

On behalf of my delegation I would like to join previous speakers in extending our warm appreciation to the United Nations and to the Swiss Government for facilitating and hosting this important gathering focusing on world social development issues.

In the years that have elapsed since the convening of the World Summit for Social Development, the international community has made strides in bringing social issues to the forefront of its agenda. The achievements and progress that have been made in creating a better awareness of social issues is indeed laudable. Nevertheless, we are far from realizing the lofty and noble goals to enhance the human condition and to improve standards of living for all that were so eloquently espoused during the Summit meeting.

Poverty runs rampant throughout the world and in some countries has actually increased. Reducing unemployment continues to be a slow process, let alone addressing the need for productive employment. Social integration eludes our grasp. In fact, the goals set at Copenhagen seem at times to be a distant hope.

One major impact on social development, particularly within the developing countries, has certainly been the process of globalization and liberalization. It has clearly accentuated the development problems of the developing countries such as access to markets, financial resources and technology, and prematurely opened up many economies exposing them of overwhelming competition. It is a telling sign that growth in the developing world is decreasing at this moment in history of great change and innovation.

If the international community is sincere in its pronouncements for social development, then certainly we must work to redress the existing asymmetries and imbalances in the global economy. In this connection, Indonesia would call on the international community to reduce the negative impacts of financial crisis by, inter alia, assisting developing countries in strengthening their domestic capital markets. This must include measures to deal with short-term capital flows and the volatility they bring to financial markets. To achieve this, developing countries should attain greater participation in the decision-making process of international financial institutions. At the same time, many developing countries continue to face the crushing burden of debt and the debt servicing. We would hope that this issue would be resolved in an expeditious manner, as it remains a serious obstacle for many countries in implementing their commitments. Indonesia does welcome such initiatives as the HIPC to comprehensively address the debt burdens of LDCS. This needs to be expanded to meet the needs of all relevant countries and must be implemented in as rapid pace as possible.

Among the crucial and essential requirements foreseen at Copenhagen in implementation and follow-up were efforts to mobilize new and additional financial resources that are both adequate and predictable. Yet, despite the commitment made we continue to witness a decline in official development assistance and financing for development remains problematic. Indonesia will be hosting a seminar in Jakarta this December on the issue of financing for development, which we expect to result in a substantive contribution to this perennial question.

Mr. President,

No where are the risks of globalization more evident than in the experiences of East Asia beginning in 1997. The financial crisis that struck the region had a devastating impact, rolling back progress that had been made over decades and swelling the ranks of the poor.

In Indonesia, the repercussions of the crisis were particularly severe, ushering in political change and social upheaval. Before it, our economic growth had averaged 8% per year, and we were poised to implement the 10 commitments made at Copenhagen. By the end of 1997, of all the affected East Asian economies, Indonesia was the hardest hit by the crisis. Our banking system had virtually collapsed and our corporate sector was financially crippled and production had taken a nose-dive. Inflation spiraled to an astronomical 78 percent so that at the end of 1998, the country was saddled with a negative of more than 13 percent. As a result, millions of our people and their families lost their livelihood and fell below the poverty line. However, by the end of 1999, our economic growth rate had picked up again and stood at 0.23%. We are expecting this positive growth to improve further and to reach 3 to 4 percent this year.

The Indonesian government, despite three decades of vigorous work to achieve economic and social development, was unable to cope with the overwhelming financial losses and lost its legitimacy. In its place a new reform government has successfully faced the challenge of the economic collapse, and simultaneously constructed a more democratic and transparent political structure. We have achieved a measure of success on all counts.

Regardless of the setback of recent years, let me be clear in stating that Indonesia's determination to achieve the goals enunciated at Copenhagen has not weakened. We remain committed to eradicating poverty and to creating an enabling environment for social development. First and foremost, the new reform government of Indonesia is strengthening the country's political and legal structures. We are putting in place a transparent and accountable governance and administration in all sectors of society, as the indispensable foundation for the realization of social. and people-centered sustainable development. Supporting all of this is the promotion and protection of human rights and ftmdamental freedoms and adherence to the rule of law.

In 1998, the Government of Indonesia introduced its "Integrated Movement on the Eradication of Poverty", which is a people-centered approach. This movement employs three strategies: the first focuses not only on improving industries, but also on the people and how to empower the family; the second is to acknowledge the sociocultural diversity of the nation and adopt decentralized policies for development programs; the third if for development programs to encourage an independent network of stakeholders.

Equally important for the new reform Government of Indonesia is to address the expansion of productive employment. This is being done through such means as soft loans to the self-employed, enhancing microenterprises and through the creation of employment by adopting labour intensive projects.

One of the most significant features of Indonesia's efforts to enhance the social conditions of the country is the significant progress that is being made in the promotion and protection of human rights. We are now well into the National Plan of Action on Human Rights 1998-2003. Among the progress achieved has been the signing of the ILO core conventions, which among others deals with the issue of the worst forms of child labour. We are also currently in the process of ratification of the International Covenant on Civil and Political Rights, and the International Covenant on Economic, Social and Cultural Rights.

We in Indonesia realize that neither social nor economic development will progress far in the absence of equality for women in the work place, at home and in society. If we can improve access to health care for women and children, if we can enhance levels of education for girls as well as boys, if we can develop a sociocultural environment for equality, then our social and economic policies and programmes will greatly benefit.

In closing, Mr. President, let me express my delegation's sincere wish that this special session of the General Assembly does not end as an exercise in rhetoric, but that it will help to restore momentum for social development. In such times of unprecedented wealth and creativity, it would be unconscionable for the desperate calls for development to go unheeded.

Thank you.