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29/9/2015

HizbutTahrirIndonesiaBlogArchiveTheDangersofBorrowingMoneyfromtheWorldBankandADB

TheDangersofBorrowingMoneyfromtheWorldBank
andADB
September28th,2015bykafi

AseniorresearcherofCoreIndonesia,
MuhammadIshak,revealsthedangerof
borrowing$4.2billionfromtheWorldBank
andtheAsianDevelopmentBankk(ADB).
Theloansfromdonoragenciesarecertainly
notfreebecausewecouldbeheldboundby
variouscommitmentsintheirfavor,
especiallybigcountrieswhichbecomethe
largestshareholderintheseagencies,saidMuhammadIshaktomediaumat.comon
Thursday(24/9).
Accordingtohim,thepoortrackrecordoftheWorldBankhasbeenverypopular.When
providingfinancialassistance,theagencywhosebiggestholderistheUSalwaysrequire
ustohaveacommitmenttothedebtorcountriestoimplementpoliciesinlinewiththe
viewsoftheagencybutverydetrimentaltotheborrowingcountries.
Amongthepoliciesarederegulation,economicliberalization,privatization,andthe
reductionoftherolesofthegovernment,whiletheADBisatoolofJapantostrengthen
theinfluenceofitsforeignpolicyandeconomyinAsiancountries,hesaid.Moreover,the
AsianInfrastructureInvestmentBankledbyChinamakesJapancontinuetomaintainits
influenceinAsiancountries.
Thecaseofthefasttrainprojectisthelatestevidenceofthecompetitionofboth
countries.Letaloneotherprojectssuchastheconstructionprojectsofelectricityandgas
infrastructure,heexplained.
HealsosaidthetherelianceonforeigndebtmakesIndonesiaincreasinglydependent.
JapanandChina,forexample,imposevariousrequirementsthatbenefittheireconomies
whenprovidingloanstotheIndonesiangovernment.Feasibilitystudies,designs,
constructions,procurementofrawmaterials,andcontractorsfortheprojectsmustcome
fromtheircountries.
InthecaseofChina,weevenhavetolettheirunskilledworkersworkinthoseprojects,
thoughtheseunskilledworkersareavailableinabundanceinthiscountry,hesaid.
Inaddition,thegovernmentmustpaythedebtinteresttakenfromthestatebudget.The
foreigndebthasreachedRP2,911trillionuntilJuly2015whilethepaymentfordebt
InterestforthisyearhasreachedRp156trillion.
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29/9/2015

HizbutTahrirIndonesiaBlogArchiveTheDangersofBorrowingMoneyfromtheWorldBankandADB

Themoreloansmeanthegreaterburdenforthecountryseconomy,especiallyinthe
weakeningexchangerateofrupiahwhichwillswelltheforeigndebt,heconcluded.[]
JP/RZ
Bacajuga:
1. CurrentEconomicTurmoilIsInseparableFromToxicPrescriptionofIMF
2. HouseMember:TheMakingof115LawsIsFundedbytheWorldBank,IMFand
ADB
3. PeopleCarrytheBurdenofPayingInstallmentandInterestWhilePilesupof
DebtAreLeftUnused
4. Burhanuddin:BankCenturyTakTermasukBankSistemik
5. KomentarPolitik:WaspadaiPenetrasiImperialisIMFdanWorldBank

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