Monday, May 26, 2014

Encouraging Cabinet Professionals

When the weight of the crisis-hit Europe in 2008 , emerged as Prime Minister Lucas Papademos of Greece and Mario Monti as Italian prime minister in more or less the same period . Both coincidentally the same background as the doctorate in economics . Is it true that the crisis requires a technocrat than politician as the supreme leader ? And , what can be done a technocrat , but not by politicians , and vice versa ? Concluded , proficient technocrats designing policies , while politicians are competent to run it . What relevance to us ?

The tension between the political and the technocratic dimension also within the government surfaced the next five years . After the two presidential candidates and vice presidential candidates submit documents vision , mission , and programs of action to the National Election Commission , the question is how to run it . Joko Widodo Jusuf Kalla - with three themes , namely sovereignty in politics , self-sufficient economy , culture and personality . Prabowo - Hatta Rajasa launched a program of action in order to save Indonesia , including building a strong economy ; realize the people's economy ; and re-establish food sovereignty , energy , and natural resources .
( Read: jual sangkar )

In terms of the formulation , there was no noticeable difference . Both partners give attention to national interests in order to advance the prosperity of the people . The approach is also not much different , such as rural -based development , focusing on job creation , and accelerate the development of infrastructure . Problem infrastructure , Prabowo - Hatta targeting the construction of 3,000 kilometers of national highways and 4,000 kilometers railway line as a new priority . In addition, the base also follow the pattern of the six development corridors in the Master Plan for the Acceleration and Expansion of Indonesian Economic Development ( MP3EI ) initiated Hatta .

Jokowi - Kalla , in order to increase people's productivity and competitiveness of international markets , targeting additional 2,000 kilometers of new roads , 10 ports , 10 airports , and build 10 industrial estates . A total of 5,000 traditional markets in Indonesia will be built , as well as modernize the old market . To encourage investment , the efficiency of the business permit a maximum of 15 days . Moreover , in particular also will establish a development bank and infrastructure . Aspects are also considered access to finance through financial inclusion targets 50 percent of the population . The tax ratio target of 16 percent of gross domestic product .

Now both couples focus to win votes. After that , the problem is how to realize the dream. That's where the technocratic aspects needed . Legitimacy must be built by combining technocratic and political dimensions . Moreover , whoever wins the presidential election will have to deal with the economic dynamism that is so challenging .

First , the tension between growth and the current account deficit ( NTB ) will continue to happen . In order to reduce the deficit to about 2.5 percent NTB , economic growth should be sacrificed only 5.1 percent to 5.5 percent . Second , the tension between growth and employment. In the last decade , every 1 percent of economic growth is able to absorb labor 350000-400000 , 250000-300000 now only labor . Thus , to create 2 million jobs , for example , needs to be an increase growth and quality. In fact , the pace and quality of economic growth are often not aligned .

Third , fiscal pitfalls associated low tax ratio and the amount of subsidy . Increasing tax revenue can not be done if the low rate of economic growth . While the fiscal ability to carry out economic stimulus will be limited if the subsidy is so high . Not to mention the factors of exchange rate fluctuations that often erode the revenue side and increasing expenditure . Due to the depreciation of the exchange rate , the subsidy burden will rise in 2014 to Rp 100 trillion . As for the slowdown in growth , tax revenues will fall .

At the regional and global , in 2015 we are in a critical position . First , the possibility of a rate hike by the U.S. Federal Reserve ( Fed Funds Rate ) could potentially cause a sudden reversal of our financial markets . It is very dangerous considering that we rely on foreign financing to cover deficits , both fiscal and balance of payments . The more we rely on foreign capital , the greater the potential for turmoil .

Second, the entry into force of the ASEAN single market end of 2015 is very likely to erode the balance of our payment transactions . If the balance of our goods safely , the problem could threaten the balance sheet and income services . The liberalization of the movement of goods , services , investment and skilled labor can undermine our competitiveness . More and more foreign experts to work in the domestic market , the greater the potential for losses on our income account . Since late 2011, the amount of our revenue deficit of U.S. $ 6 billion - 7 billion dollars every quarter . In fact , in the 2004-2007 period , the amount of revenue deficit was only 2 billion - 3 billion U.S. dollars . From the first, the amount of our services consistent deficit in the range of 2 billion - 3 billion U.S. dollars .

Of complexity , the most anticipated thing these days is the composition of the cabinet . The market was disappointed with the election configuration that does not present a dominant political force . They worry that the government's ability to run the policy later interrupted by a low political support . This sentiment can be worse if the composition of the cabinet that 'll leave no show dimensions technocracy . Already politically weak , incompetent anyway .

We yearn for a government that is competent , professional , and uphold transparency and in favor of the interests of the people . All of these demands require high technocratic capabilities and expertise of the politicians advocating . Let us encourage professional cabinet .


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