Faisal Basri and 'Dunia Persilatan'

This is a spontaneous and naughty comment after reading an article written by Faisal Basri in Kompas (May 7th, 2007), but actually I had mix feelings that are brilliant and ridiculous.

Basri says:

Now there is a moment for correcting the wrong policy that had happened. BI is responsible to give optimum efforts via pure monetary policy. Other problems that do not connect with the functions of central bank directly should be replaced to government authority as soon as possible.

It is not worth enough that BI is doing manouvre persistently in order to defense their position whereas an institution reform (rule and regulation) and capacity building is happening. Not mention if BI is doing deep politisation for defending theirself interest.

The battle is between BI and Ministry of Finance (MF) on behalf of government of Indonesia. No doubt that Basri is briliant when describing what BI has to do and not to do, strengths and weaknesses, and suggesting why BI is guilty if defending their position and their complicity of conflict of interest, it is very briliant. But, once again but, why MF looks innocent viewed by Basri? He does not want to elaborate how MF has to do, what the wrong things done by MF are, etc. This article has no balance, fairness, and I think it is tendentious enough. It is strange. Very strange. I just wake up after thinking that it is ultimately well-known that Sri Mulyani, the Minister of Finance, is from FEUI as same as Basri.

Am I jealous? (Very good question) May be yes, may be no (does it seem a familiar advertising?

Anyway, that makes me remember a proverb in 'dunia persilatan' that is One Teacher, One Sorcery, Do not Disturb Among Others.

From Kerala for Community Empowerment

I was impressed to a finding in an article published by The Economist, May 10th 2007, about how mobile phones promote economic growth. When reading the title, I could not find immediately the connection beetween the use of mobile phone with growth in case the welfare of fishermen.

The characteristics of Kerala, a region in the south of India, is actually similar as many maritime areas in Indonesia where the most occupation of population is fisherman. Fishermen have less power of bargaining in fish market comparing to buyers and rent seekers (tengkulak), so after they have done a work in catching fish from the middle of night to sunrise they only get a lower price because there are a plenty of fish from all fishermen in the same time. It is logic when suply is higher than demand, the price is falling.

The mobile phone connects the fishermen in the sea with fish market in the coast, so there is no asymetric information in the fishermen side. The fishermen in the sea can estimate when they should go down to the coast with their catch. By knowing the situation in the fish market fishermen can keep the price on the high level.

It is very simple and briliant finding. Then I am thinking that we can try to apply the concept to the programs of community empowerment in Indonesia. Basically, government does not have to protect the poor, but empowerment can be done by optimalizing bargaining of the poor to the market.

Corruption and Development

In Indonesia, a problem of corruption is very gravely. I am sorry that fighting against corruption is not the number one priority in either Mid Term National Development Planning (Rencana Pembangunan Nasional Jangka Menengah) 2004-2009 or Government Work Plan (Rencana Kerja Pemerintah) 2007 and 2008.

When I was studying economics I wrote a thesis showing that fighting corruption is very benefecial for developing countries such as Indonesia because there is a big portion of government expenditure in funding development.

Here is an abstract of my thesis:

Corruption and Development:
A Cross-Country Analysis

This paper tries to investigate and explain the impact of corruption on per capita GDP across 105 countries. The distinction of this paper comparing to earlier studies is to investigate that the impact of corruption on development is different among countries by involving dummy developed and developing countries and cluster geographical areas (Western and developed countries, Developing countries in Asia, Africa, South America and Caribbean, and Eastern Europe and Ex Soviet Union). The methods used are OLS, 2SLS, and fixed effects regressions. The results show that first, by using OLS and 2SLS, the impact of corruption on per capita GDP is negatively significant. Fixed effects estimation show no impact of corruption on per capita GDP but this is probably due to the short panel as well as measurement error. Second, developing countries have higher impact of corruption on per capita GDP rather than developed countries. Third, looking on across geographical areas, developing countries in Eastern Europe and Ex Soviet Union have the highest negative impact, and then in Asia, Africa, Western and developed countries, and the lowest is in developing countries in South America and Caribbean.

Update:
The short version of my thesis is published by Development Planning Magazine. There is no official website of this magazine.

Amadou Toumani Toure

In the first posting of my blog, this morning I was just impressed an article in Kompas today, 05/16/2007, about Amadou Toumani Toure, ATT, a man behind a better democracy and civilization in Mali. Here is an excerp:

ATT is an initial of Amadou Toumani Toure. He is Mali's president, a country in West Africa. ATT is reputable as a personalify and patern for Africa and developing countries. ATT is also called as soldier of democracy from Mali, a country with density about 13 millions people who the majority of them are moslem.

His name is very fragrant because he impersonated a change of Mali as one of the best democratic countries in Africa. His pamor begun from 1991 after he had been a leader in a coup in Moussa Traore's governance, a dictator who had dominated Mali for 23 years. Afterward, he resigned as head of state for a meantime in period 1991-1992."

He was born in 1948, as old as our president, SBY. Before I read this article, I haven't know him, almost blank. Now, I only thinking why my country does not have, or yet born, a wise and admirable leader like ATT. But, I never give up to wait...., and I am always waiting.....

......or, do I have to do something?