Indonesian - Economist | August 26, 1962 -
Economic success without accountability and social inclusion is not sustainable, and new governments often must face tough choices in order to protect the poor and vulnerable.
Sri Mulyani Indrawati
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Reliable numbers about the amount of dirty money around the world are difficult to come by. But according to an estimate by the nonprofit Global Financial Integrity group, $1 trillion vanishes from the developing world's economies every year.
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Between 1995 and 2009, Western Europe's entrepreneurs created jobs faster than the U.S. did, and European economies exported more than the BRIC countries of Brazil, Russia, India and China. Eastern Europe's productivity increased more rapidly than East Asia's.
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Over time, Europeans have come to rely on governments to protect them from the rougher facets of private enterprise and to look after them in old age.
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While prosperity and longevity arrive together, they cannot be treated the same. With greater wealth, people in Asia may not have to work as many hours as they do now. But living longer means they will have to work more years, not fewer.
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I think the implications for the rise of China are huge in terms of the political landscape, economic balance, de-velopment thinking, and the environment.
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There's broad recognition that you really have to put the money where people are going to self-manage.
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Conflicting legislation and regulations, overlapping mandates, unwillingness to enforce land use, elite capture, entrenched attitudes, and lack of incentives to influence behavior are rife in many resource-rich countries.
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Like many countries, Indonesia can transform its decision-making system to be more transparent and inclusive, particularly on resource allocation and use.
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