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Archive for October, 2009

Summit Aims to Remove Hurdles to Indonesia’s Economic Growth

Posted by admin On October - 30 - 2009 ADD COMMENTS

Source: Jakarta Globe

Dion Bisara & April Aswadi

President Susilo Bambang Yudhoyono officially opened a three-day summit on Thursday, aimed at seeking ways Indonesia can remove regulatory and other barriers that had been hampering economic development.

Southeast Asia’s largest economy needs billions of dollars to improve its ailing infrastructure, including power plants and networks, toll roads, bridges, railways, ports and airports. However, those dollars have failed to materialize because bureaucratic red tape, conflicting regulations and graft have deterred investors from putting their money into the country.

In his opening speech to the National Summit 2009 — which was attended by government officials, academics and business leaders — Yudhoyono said his administration expected the meeting to deliver input on how to remove the bottlenecks that have been hampering growth.

“We aim to get rid of the bottlenecking. There will be a tool that will monitor [the country’s situation] 24 hours a day. Which problems need to be solved? The laws? The regulations? Or the officials? If it is the laws, we will re-design them. If it is due to the officials, they better step aside, because our development will not go anywhere [if that situation persists],” Yudhoyono said.

The “tool” he was referring to was his new presidential working unit — headed by Kuntoro Mangkusubroto — which will specifically oversee the de-bottlenecking of the various processes hindering economic development, including identifying and tackling the complicated bureaucratic and regulatory environment.

Hatta Rajasa, the coordinating minister for the economy, said the unit would be the president’s eyes and ears for identifying the problems at the implementation level.

Yudhoyono has set a target of 7 percent annual GDP growth by 2014, while his administration aims to reduce the country’s unemployment rate to around 6 percent and poverty levels to 8 percent to 10 percent.

The economy grew at 6.1 percent in 2008 and the 2009 state budget forecast 4.3 percent growth. The Central Statistics Agency (BPS) recorded national unemployment at 8.1 percent as of February, while people who lived below the poverty line as of March remained at 14.2 percent of the total population.

Three major topics will be discussed at the summit: the economy, people’s welfare and politics, and national security. Each topic will be discussed by separate commissions. Hatta said all recommendations would be taken into account when forming the government’s 100-day and five-year programs.

The summit’s first day closed with numerous suggestions. On infrastructure, it was suggested the country needed to revise many regulations. In regard to land acquisitions, the biggest obstacle in infrastructure development, a regulation in lieu of law was needed.

It was also suggested that regulations at regional and central government levels needed to be coordinated, especially those that contradicted each other, such as when government regulations to speed up infrastructure development clash with agricultural, forestry and mining laws.

On energy, Evita Herawati Legowo, director general of oil and gas at the Energy and Minerals Resources Ministry, said the government planned to review who should benefit from subsidized fuel. Beginning next year, she said, measures would be put in place to ensure that subsidized fuels would reach specific consumer targets.

But Evita said it was not yet clear how that would be achieved.

Jakarta Photo: Downtown Skyscrapers

Posted by admin On October - 27 - 2009 1 COMMENT

JakartaPhotoSource: National Geographic

Photograph by Mark Lewis/Stone/Getty Images

A forest of skyscrapers dominates modern Jakarta, but Islam looms much larger than this comparatively diminutive mosque. Indonesia is the world’s largest Muslim country.

Mining Companies Say Govt Delay In Regulations Could Hurt Investment

Posted by admin On October - 27 - 2009 1 COMMENT

JG10Source: Jakarta Globe

October 26, 2009

Yessar Rosendar

Investment in the mining sector could suffer as the implementing regulations for the Mining Law passed in December are now likely to be delayed until March due to “technical problems,” a legislator said on Monday.

“The government has confirmed that the new regulations on mineral and coal resources will be completed by the end of March,” said Teukeu Riefky Harsya, chairman of the House of Representatives’ energy commission. “We had hoped they would be ready by the end of the year.”

He said various technical problems were behind the delay. These included the coordination of the new regulations with other legislation and the need to hold further hearings with industry players.

Teukeu said the delay could stall investment in the mining sector as the Mining Law could not be implemented until the regulations were issued.

Mining industry players were not pleased by the delay.

“We hope that the government will finalize the regulations as soon as possible,” said Priyo Pribadi Soemarno, the executive director of the Indonesian Mining Association. “If they keep being delayed, this could disrupt investment in the mining sector.”

Priyo said the delay would hold up the issuing of mining concessions by local governments because they could not proceed without the regulations.

“There is as yet no interdepartmental or local government synchronization,” he said, referring to overlap between the Mining Law and the environmental and forestry laws.

“Under the Mining Law, the power rests with the central government. If the regulations aren’t finished, then the government should issue interim government regulations to fill the vacuum.”

Four sets of implementing regulations are currently being drafted by the House. These rules cover the granting of mining concessions, the operation of mining firms, mine management, and supervision and post-mining environmental rehabilitation.

Industry representatives this month said that they were confused by recently issued regulations restricting the work contractors were allowed to perform for mining concessionaires. They added that the regulations failed to clearly explain what contractors were permitted to do and what they were barred from.

They said Article 10 of the Sept. 30 regulations, which provides that “the holder of a mining concession or special mining concession must itself perform mining, processing and refining work,” was particularly problematic, as much of this work was currently being carried out by contractors.

SBY’s Inaugural Speech: The Text

Posted by admin On October - 21 - 2009 ADD COMMENTS

InagurationSource: Jakarta Globe

I thank Jusuf Kalla who has been at my side for the past five years. Your service is now noted in perpetuity in the annals of the nation’s history and will always be remembered.

We have just passed the 2004-2009 historical period which was full of challenges. Today, the Indonesian nation is thankful and satisfied that in the midst of the political unrest and crisis in various parts of the world, we are still standing upright as a democratic state that is relatively strong and stable.

In the midst of the global financial storm, Indonesia continues to grow positively and experience the third highest growth rate in the world. In the midst of conflicts and disintegration in other parts of the world Indonesia has become more harmonious and united.

But all of this should not make us drop our guard, or become negligent, or even more so — too proud. Remember, our work is far from over. Like the journey of a ship, we still have to face an ocean that is full of waves and storms.

Beyond Indonesia, the economic recession is not yet fully over. Trade and investment flows have yet to fully recover. Meanwhile, the prices of oil and various other commodities continue to fluctuate and could threaten the stability and the certainty of our economy. Therefore, even though the signs of a recovering world economy are beginning to be visible, we should not dream; we should continue to strengthen our economy while at the same time continuing our national efforts to minimized the impact of the current world crisis.

Internally, we have to be thankful that reforms have proceeded further and will surely be completed. Efforts to build good governance, eradicate corruption, have started to yield results but still need to be stepped up. Poverty has begun to wane, although efforts to enhance the prosperity of the people still need to be continued.

Experience has shown that each achievement we have reached is usually followed by new challenges. But I believe that all those challenges, both those we know about and those we cannot yet imagine, we will be able to face and overcome together.

This year, we have seen the people of Indonesia make their choice in elections that have taken place in a peaceful and democratic way. This is the third time we have been able to hold direct, general, free and confidential as well as honest and fair elections.

In elections, winning or losing is normal. In a democracy, we all are winners, if democracy wins, the people win, and Indonesia wins.

On that note I wish to take this good opportunity to express my respect for Megawati Sukarnoputri, Prabowo Subianto, Muhammad Jusuf Kalla, and Wiranto for their active participation and their good example as presidential and vice presidential candidates in the elections.

They are the sons and daughters of the nation who have been of service in nurturing democratic life in our homeland.

Today, I call on all components of the nation to unite again and together build this nation, build a future for us all. With a new spirit and togetherness, let us face the developments of the next five years with full optimism and confidence.

To carry out the people’s mandate for the next five years, the Vice President and I have prepared programs for the first 100 days, one year, and five years.

The essence of the five year program is the enhancement of people’s prosperity, the strengthening of democracy and of justice. 

Raising people’s prosperity is the main priority. We want to increase the welfare of the people through economic development based on competitive advantages, management of natural resources and the enhancement of human resources.

Our economy needs to grow higher, but this economic growth should be one that is inclusive, that is just and accompanied by an equitable distribution.

We also want to build a civilized democratic system, a democracy that provides room for freedom and political rights for the people but without dismissing stability and political order.

We also want to create justice which is marked by a respect for non-discrimination and equal opportunities while continuing to maintain social solidarity and protection for the weak.

There are certain keys to success. First of all, we should never give up and lose our sprit. Remember that all our nation’s monumental achievements, from the revolution, the development of the national reform, the settlement of various conflicts, including the handling of the tsunami, have all been possible by perseverance and the spirit of not giving up. We have to inflame ourselves with the spirit of ‘we must be able to do it.’

With this spirit that Indonesia can do it, we will be able to safeguard our economic growth in the midst of a world crisis. With this spirit, we will be able to uphold good governance and eradicate corruption. With this spirit too, we will be able to reduce poverty and enhance the prosperity of the people.

The second key to success is unity and cohesion. In democracy, we can have different opinions but this does not mean that we should be split. In a healthy democracy, there are times when we engage in debate, there are times when we close our ranks.

In facing various and increasingly heavy world challenges, the leaders of the nation, whatever their political colors, should continue to maintain their cohesiveness in looking for solutions together; be prepared for self-sacrifice for the larger interest of the nation. In continuing the journey of the nation, never free of challenges, and in conducting the second wave of reforms in the next 10 years, let us all nurture and strengthen our unity and cohesiveness.

Thirdly: maintain our identity, our Indonesianness. What differentiates Indonesia from other nations is culture; our ways of life and our Indonesianness. There is an identity and personality that makes this Indonesian nation superior and not easy to rock. Our Indonesianness is reflected in pluralism, or our unity in diversity, our politeness, tolerance and moderateness, openness and humantarian sense.

These are what we should countinue to nurture and grow in our conscience. These are the most valuable social capital and potential.Pancasila, NKRI, UUD 1945 and Bhineka Tunggal Ika.

To our guests from friendly countries, please receive a warm greeting from the nation of Indonesia. I will also take a moment to express my thanks and respect.

The presence of dignitaries at the inauguration is a source of goodwill and respect. Indonesia will continue to practice a free and active politics, fighting for justice and world peace. Indonesia will maintain a friendly and moderate spirit of nationalism. Indonesia is facing a strategic environment where no country perceives Indonesia as an enemy and there is no country which Indonesia considers an enemy. Thus Indonesia can exercise its foreign policy freely in all directions, having a million friends and zero enemies. 

Lastly, Indonesia will cooperate with anyone with the same intentions and goals to build a peaceful, just, democratic and prosperous world. Indonesia will stay at the front line in the efforts to save the earth from climate change. And in reforming the world’s economy, mainly through the G-20 in the fight for the Millennium Development Goals, advancing multilateralism through the United Nations and creating harmony among countries. Regionally, Indonesia is working with other ASEAN countries to make Southeast Asia a peaceful, prosperous and dynamic region.

JG

Global Recession Still a Threat, Indonesian President Says

Posted by admin On October - 21 - 2009 ADD COMMENTS

SBYSource: Jakarta Globe

October 20, 2009

Muhamad Al Azhari & Venisa Tjahjono

President Susilo Bambang Yudhoyono on Tuesday warned that the global recession was not yet over and that a rise in oil prices could still derail the economic recovery.

“International trade and investment have yet to return to normal. Consequently, we need to strengthen our economy,” he said after being sworn in for a second term at the House of Representatives (DPR).

“Fluctuations in oil prices, like we’re seeing at the moment, are also a threat.”

The government expects the economy to grow by 4.3 percent this year and 5 percent next year.

Crude oil prices for November delivery touched $80.05 a barrel in electronic trading on the New York Mercantile Exchange on Tuesday morning, before sliding back to $79.06, Bloomberg reported.

Oil prices are up 78 percent this year, accelerating their advance as a recovery in stock markets emboldens investors and the sliding dollar spurs buying of commodities.

The country is forced to import oil from overseas to cover about 30 percent of national demand, and increases in international crude prices affect the national budget in the form of higher spending on fuel subsidies.

Finance Minister Sri Mulyani Indrawati, apparently confident of remaining in her job for a second term, said the government’s targets for its first 100 days in office included maintaining current growth momentum and ensuring that higher oil prices did not affect the poor.

“We will maintain the path to domestic economic recovery,” Sri Mulyani said. “Inflation looks good, but we will remain cautious in 2010. The exchange rate also seems to be looking good.”

Even if the economy is kept on track, analysts said Yudhoyono and Vice President Boediono would still have to speed up bureaucratic reforms, upgrade poor infrastructure, fight corruption and improve the overall investment climate.

According to the latest Doing Business survey produced by the International Finance Corp. — the investment arm of the World Bank — Indonesia remains stuck in 122nd place out of 183 economies in terms of the ease of doing business.

Joachim Von Amsberg, the World Bank’s country director for Indonesia, told the Jakarta Globe on Tuesday that investors were waiting for both bureaucratic reforms, meaning streamlining regulations, cutting red tape and simplifying dealings with the bureaucracy, as well as wider reforms such as improving the country’s infrastructure and judicial system.

Meanwhile, Sofyan Wanandi, the chairman of the Indonesian Employers Association (Apindo), questioned the ability of career politicians to serve in key economic posts.

“Can they or can’t they [perform]? What matters is whether a person is appointed to the right place, and this is what I’m doubting. But we need to give them a chance,” he said.

The top economic post, coordinating minister for the economy, is expected to be given to Hatta Rajasa, a close ally of the president. Critics say he does not have enough experience in economic affairs.

Media reports suggest that Democratic Party member Darwin Saleh is being considered for the mining and energy portfolio, Tifatul Sembiring of the Prosperous Justice Party (PKS) for communications and information, and Fadel Muhammad of the Golkar Party for maritime affairs.

‘Indonesia Can Do It,’ President Says

Posted by admin On October - 21 - 2009 ADD COMMENTS

kiss by his wifePresident Susilo Bambang Yudhoyono receiving a congratulatory kiss from his wife, Kristiani, after his inauguration at the People’s Consultative Assembly. (Photo: Yudhi Sukma Wijaya, JG)

Source: Jakarta Globe

October 20, 2009

Febriamy Hutapea

President Susilo Bambang Yudhoyono began his second term in office on Tuesday with a call for all Indonesians to put aside their political differences and unite for the sake of the nation.


“Today, I call on all components of the nation to unite again to build this nation, to build a future for us all. With a spirit of togetherness, let us face the next five years full of optimism and confidence,” Yudhoyono said.

In his inaugural address after being officially sworn in along with Vice President Boediono, Yudhoyono said national unity was one of the keys to achieving the three main goals of his government for the next five years — increasing prosperity, strengthening democracy and ensuring justice.

“In a democracy, we can have our different opinions, but this does not mean that we should be divided. In a healthy democracy, there are times when we should engage in debate, and there are times when we need to close our ranks,” Yudhoyono said in his speech before the members of the People’s Consultative Assembly (MPR) and invited guests.

He said that to overcome the increasingly serious challenges facing Indonesian and the world, all of the nation’s leaders had to pull together to ensure the success of a second wave of reforms.

“The leaders of the nation, whatever their political colors, should continue to look for solutions together and to be prepared for self-sacrifice for the larger interests of the nation,” he said.

Yudhoyono also paid homage to outgoing Vice President Jusuf Kalla, saying that “your services are now noted in the annals of the nation’s history and will always be remembered.”

He also praised his rivals in July’s presidential and vice presidential election — Megawati Sukarnoputri, Prabowo Subianto, Kalla and Wiranto — as “sons and daughters of the nation who have been of service in nurturing democratic life in our homeland.”

He said that in terms of democracy, “we all are winners. If democracy wins, the people win, and Indonesia wins.”

Yudhoyono said he and Boediono had prepared a detailed agenda for their first 100 days, first year and for their five years in office. “The essence of the five- year program is to focus on the people’s prosperity through the strengthening of democracy and justice,” he said.

The president said that to achieve these goals, the people needed to hold on to the spirit of “Indonesia can do it.”

“With this spirit, we will be able to uphold good governance and eradicate corruption. With this spirit too, we will be able to reduce poverty and increase the prosperity of the people,” he said.

Yudhoyono said that increasing people’s prosperity, the top priority of his new administration, would be achieved through economic development based on competitive advantages, the management of natural resources and the continued development of human resources.

“Our economy needs to grow, but this economic growth should be one that is inclusive, that is just, and is accompanied by equitable distribution,” he said.

Yudhoyono also promised to build a civilized democratic system that allowed people to exercise their freedoms and political rights without forsaking stability and political order.

“We also want to create a system of justice that does not discriminate and that provides equal opportunities while maintaining social solidarity and protecting the weak,” he said.

Although Indonesia has been able to weather the recent global economic crisis and, unlike many other parts of the world, has remained strong and stable, the country should not fall into the trap of complacency, Yudhoyono warned.

“Remember, our work is far from over. Like the journey of a ship, we still have to face an ocean full of waves and storms.”

President Executive Club’s 2nd ‘Expatriate Gathering’

Posted by admin On October - 21 - 2009 ADD COMMENTS

expat gathering‘Jababeka-President University Peduli Gempa SumBar’, was the theme for President Executive Club’s 2nd ‘Expatriate Gathering’, which was held on 9th October 2009’.

Sixty expatriates from Jababeka and its surrounding industries attended for an evening of networking whilst also bringing their charitable hand to the scene. ‘Dale Carnegie Training’ and the accountancy firm ‘BDO’, sponsored the event and the friendly vibe of the participants meant for a delightful evening. The event was opened with a few words by Paul Preston, the General Manager of President Executive Club, and a short speech from Dale Carnegie’s representative Ms Eka Permanasari, whilst free-flow wine, beer and light foods being served throughout made for a lively atmosphere. In response to the demands of Club’s members and Jababeka’s tenants, President Executive Club will hold an Expatriate Gathering or social event every month.

For enquiries, please contact:

Michelle Suteja at       +62 21 572 7337 ext. 512,

Fax:                             +62 21 572 7338,

Email:                          michelle.suteja@jababeka.com

Revolution in a Box

Posted by admin On October - 21 - 2009 1 COMMENT

TV.OPENER.Source: Foreign Policy

BY CHARLES KENNY | NOVEMBER/DECEMBER 2009

It’s not Twitter or Facebook that’s reinventing the planet. Eighty years after the first commercial broadcast crackled to life, television still rules our world. And let’s hear it for the growing legions of couch potatoes: All those soap operas might be the ticket to a better future after all.

“The television,” science-fiction writer Ray Bradbury lamented in 1953, is “that insidious beast, that Medusa which freezes a billion people to stone every night, staring fixedly, that Siren which called and sang and promised so much and gave, after all, so little.” Bradbury wasn’t alone in his angst: Television has been as reviled as it has been welcomed since the first broadcasts began in 1928. Critics of television, from disgusted defenders of the politically correct to outraged conservative culture warriors, blame it for poor health, ignorance, and moral decline, among other assorted ills. Some go further: According to a recent fatwa in India, television is “nearly impossible to use … without a sin.” Last year, a top Saudi cleric declared it permissible to kill the executives of television stations for spreading sedition and immorality.

So will the rapid, planetwide proliferation of television sets and digital and satellite channels, to corners of the world where the Internet is yet unheard of, be the cause of global decay such critics fear? Hardly. A world of couch potatoes in front of digital sets will have its downsides — fewer bowling clubs, more Wii bowling. It may or may not be a world of greater obesity, depending on whom you ask. But it could also be a world more equal for women, healthier, better governed, more united in response to global tragedy, and more likely to vote for local versions ofAmerican Idol than shoot at people.

Indeed, television, that 1920s technology so many of us take for granted, is still coming to tens of millions with a transformative power — for the good — that the world is only now coming to understand. The potential scope of this transformation is enormous: By 2007, there was more than one television set for every four people on the planet, and 1.1 billion households had one. Another 150 million-plus households will be tuned in by 2013.

In our collective enthusiasm for whiz-bang new social-networking tools like Twitter and Facebook, the implications of this next television age — from lower birthrates among poor women to decreased corruption to higher school enrollment rates — have largely gone overlooked despite their much more sweeping impact. And it’s not earnest educational programming that’s reshaping the world on all those TV sets. The programs that so many dismiss as junk — from song-and-dance shows toDesperate Housewives — are being eagerly consumed by poor people everywhere who are just now getting access to television for the first time. That’s a powerful force for spreading glitz and drama — but also social change.

Television, it turns out, is the kudzu of consumer durables. It spreads across communities with incredible speed. Just look at the story of expanding TV access in the rural areas of one poor country, Indonesia: Within two years of village electrification, average television ownership rates reached 30 percent. Within seven years, 60 percent of households had TVs — this in areas where average surveyed incomes were about $2 a day. Fewer than 5 percent of these same households owned refrigerators. Television is so beloved that in the vast swaths of the world where there is still no electricity network, people hook up their TVs to batteries — indeed, in a number of poor countries, such as Peru, more homes have televisions than electricity.

As a result, the television is fast approaching global ubiquity. About half of Indian households have a television, up from less than a third in 2001; the figure for Brazil is more than four-fifths. (In comparison, just 7 percent of Indians use the Internet, and about one-third of Brazilians do.) In places like Europe and North America, 90-plus percent of households have a TV. Even in countries as poor as Vietnam and Algeria, rates are above 80 percent. But the potential for real growth in access (and impact) is in the least-developed countries, like Nigeria and Bangladesh, where penetration rates are still well below 30 percent.

If an explosion of access is the first global television revolution, then an explosion of choice will be the second. By 2013, half of the world’s televisions will be receiving digital signals, which means access to many more channels. Digital broadcast builds on considerably expanded viewing options delivered through cable or satellite. Indeed, nearly two-thirds of households in India with a TV already have a cable or satellite connection. And in the United States, a bellwether for global television trends, the spread of cable since 1970 has meant an increasing number of broadcast channels are sharing a declining proportion of the audience — down from 80 percent to 40 percent over the last 35 years. The average American household now has access to 119 channels, and a similar phenomenon is spreading rapidly around the globe.

The explosion of choice is loosening the grip of bureaucrats the world over, who in many countries have either run or controlled programming directly, or heavily regulated the few stations available. A 97-country survey carried out a few years ago found that an average of 60 percent of the top five television stations in each country were owned by the state, with 32 percent in the hands of small family groupings. Programming in developing countries in particular has often been slanted toward decidedly practical topics — rural TV in China, for example, frequently covers the latest advances in pig breeding. And coverage of politics has often strayed from the balanced. Think Hugo Chávez, who refused to renew the license of RCTV, Venezuela’s most popular TV network, after it broadcast commentary critical of his government. He regularly appears on the state channel in his own TV show Aló Presidenteepisodes of which last anywhere from six to a record 96 hours.

But increasingly, the days when presidential speechmaking and pig breeding were must-see TV are behind us. As choices in what to watch expand, people will have access both to a wider range of voices and to a growing number of channels keen to give the audience what it really wants. And what it wants seems to be pretty much the same everywhere — sports, reality shows, and, yes, soap operas. Some 715 million people worldwide watched the finals of the 2006 soccer World Cup, for example. More than a third of Afghanistan’s population tunes into that country’s version of American IdolAfghan Star. The biggest television series ever worldwide is Baywatch, an everyday tale of lifesaving folk based on and around the beaches of Santa Monica, Calif. The show has been broadcast in 142 countries, and at its peak it had an audience estimated north of 1 billion. (Today, the world’s most popular TV show is the medical drama House, which according to media consulting firm Eurodata TV Worldwide was watched by 82 million people last year in 66 countries, edging out CSIand Desperate Housewives.)

Ghulam Nabi Azad, India’s health and family welfare minister, has even taken to promoting TV as a form of birth control. “In olden days people had no other entertainment but sex, which is why they produced so many children,” he mused publicly in July. “Today, TV is the biggest source of entertainment. Hence, it is important that there is electricity in every village so that people watch TV till late in the night. By the time the serials are over, they’ll be too tired to have sex and will fall asleep.” Azad is certainly right that television helps slow birthrates, though experience from his own country and elsewhere suggests that it is by example, not exhaustion, that TV programs manage such a dramatic effect.

Since the 1970s, Brazil’s Rede Globo network has been providing a steady diet of locally produced soaps, some of which are watched by as many as 80 million people. The programs are no more tales of everyday life in Brazil thanDesperate Housewives is an accurate representation of a typical U.S. suburb. In a country where divorce was only legalized in 1977, nearly a fifth of the main female characters were divorced (and about a quarter were unfaithful). What’s more, 72 percent of the main female characters on the Globo soaps had no kids, and only 7 percent had more than one. In 1970, the average Brazilian woman, in contrast, had given birth nearly six times.

But the soaps clearly resonated with viewers. As the Globo network expanded to new areas in the 1970s and 1980s, according to researchers at the Inter-American Development Bank, parents began naming their kids after soap-opera characters. And women in those parts of the country — especially poor women — started having fewer babies. Being in an area covered by the Globo network had the same effect on a woman’s fertility as two additional years of education. This wasn’t the result of what was shown during commercial breaks — for most of the time, contraceptive advertising was banned, and there was no government population-control policy at all. The portrayal of plausible female characters with few children, apparently, was an important social cue.

Cable and satellite television may be having an even bigger impact on fertility in rural India. As in Brazil, popular programming there includes soaps that focus on urban life. Many women on these serials work outside the home, run businesses, and control money. In addition, soap characters are typically well-educated and have few children. And they prove to be extraordinarily powerful role models: Simply giving a village access to cable TV, research by scholars Robert Jensen and Emily Oster has found, has the same effect on fertility rates as increasing by five years the length of time girls stay in school.

The soaps in Brazil and India provided images of women who were empowered to make decisions affecting not only childbirth, but a range of household activities. The introduction of cable or satellite services in a village, Jensen and Oster found, goes along with higher girls’ school enrollment rates and increased female autonomy. Within two years of getting cable or satellite, between 45 and 70 percent of the difference between urban and rural areas on these measures disappears. In Brazil, it wasn’t just birthrates that changed as Globo’s signal spread — divorce rates went up, too. There may be something to the boast of one of the directors of the company that owns Afghan Star. When a woman reached the final five this year, the director suggested it would “do more for women’s rights than all the millions of dollars we have spent on public service announcements for women’s rights on TV.”

TV’s salutary effects extend far beyond reproduction and gender equality. Kids who watch TV out of school, according to a World Bank survey of young people in the shantytowns of Fortaleza in Brazil, are considerably less likely to consume drugs (or, for that matter, get pregnant). TV’s power to reduce youth drug use was two times larger than having a comparatively well-educated mother. And though they might not be as subtly persuasive as telenovelas or reality shows, well-designed broadcast campaigns can also make a difference. In Ghana, where as few as 4 percent of mothers were found to wash their hands with soap after defecating and less than 1 percent before feeding their children, reported hand-washing rates shot up in response to a broadcast campaign emphasizing that people eat “more than just rice” if preparers don’t wash their hands properly before dinner.

Indeed, TV is its own kind of education — and rather than clash with schooling, as years of parental nagging would suggest, it can even enhance it. U.S. kids with access to a TV signal in the 1950s, for instance — think toddlers watching quality educational programming like I Love Lucy — tended to have higher test scores in 1964, according to research by Matthew Gentzkow and Jesse Shapiro of the University of Chicago. Today, more than 700,000 secondary-school students in remote Mexican villages watch the Telesecundaria program of televised classes. Although students enter the program with below-average test scores in mathematics and language, by graduation they have caught up in math and halved the language-score deficit.

Similarly, evidence that television is responsible for the grim state of civic discourse is mixed, at best. Better television reception in Javanese villages in Indonesia, according to research by Ben Olken, comes with substantially lower levels of participation in social activities and with lower measures of trust in others. Villages with access to an extra TV channel see a decline of about 7 percent in the number of social groups. Similar outcomes have been found in the United States. But improved television reception did not appear to affect the level of discussion in village meetings or levels of corruption in a village road project undertaken during Olken’s study. And an examination of the early history of television in the United States by Markus Prior suggests that regions that saw access to more channels in the 1950s and 1960s witnessed increases in political knowledge, interest, and turnout, especially among less-educated TV viewers. Continue reading


Stephen Roach: Preparing for the next Asia

Posted by admin On October - 20 - 2009 ADD COMMENTS

StephenSource:  McKinsey Quarterly

OCTOBER 2009

Stephen Roach explains how the next two decades will bring dramatic changes to the region.

Asia has proven comparatively resilient against the current downturn, but hurdles still lie ahead. In order to maintain robust growth rates in the face of weak US demand, the region’s dynamic economies must stoke domestic consumption and embrace environmentally sustainable development policies. So says Stephen Roach, chairman of Morgan Stanley Asia and author of The Next Asia: Opportunities and Challenges for a New Globalization. In this video interview, Roach discusses prospects for increased integration and cooperation between the region’s economies, explores the pitfalls and potential for countries like India and Japan, and considers whether the “Asian Century” has finally arrived. Clay Chandler, Asia editor with McKinsey’s publishing group, spoke to Roach in Hong Kong in August 2009.

Watch the video.

Indonesia President’s Cabinet Raises Concerns

Posted by admin On October - 20 - 2009 ADD COMMENTS

SBYSource: WSJ.com

Ocober 20, 2009

JAKARTA — The new cabinet of Indonesian President Susilo Bambang Yudhoyono features choices likely to be popular with foreign investors, but a number of his newest political appointees lack the credentials to push through much-needed economic reforms, analysts said.

Mr. Yudhoyono, who was re-elected in a landslide victory in July and will be officially sworn in to a second five-year term on Tuesday, had promised to appoint a cabinet composed mainly of technocrats — instead of representatives of local political parties, which dominated his cabinet during his first term in office.

But it appeared Monday that some of the top economic portfolio jobs were allotted to politicians that are close to Mr. Yudhoyono, even though they lack track records in backing reforms analysts say are needed to ensure Indonesia’s recent growth is sustained.

Top appointees include politicians from Indonesia’s Golkar Party, the political vehicle of former president Suharto whose 32-year government was mired in corruption, local media reported. They also include a former Transport Minister who earned a reputation at the time for backing local businesses over foreign investors.

Investors have taken a renewed interest in Indonesia this year, as the resource-dependent economy is forecast to grow 4% due largely to a rebound in global commodity prices. But analysts say the country needs broad legislative and legal changes — including steps to slash bureaucratic red-tape, reduce corruption and make it easier to finance large infrastructure projects — to maintain investors’ interest, especially as growth picks up elsewhere in the world.

The cabinet is likely to be formally announced on Wednesday at the earliest, but a number of candidates have confirmed they have been asked to serve over the past few days.

The market is likely to applaud the inclusion of Finance Minister Sri Mulyani Indrawati. Ms. Indrawati did not confirm she would keep her job but said she’d been asked to fulfill a cabinet-level role that promoted economic growth through fiscal measures, a likely reference to the finance minister portfolio.

Ms. Indrawati, a former senior executive at the International Monetary Fund, has won praise for reducing public debt and restoring confidence in Indonesia’s macroeconomic policy. She has also attempted to clean up corruption in the tax and customs departments, which are major impediments to foreign investment.

A former head of JP Morgan’s operations in Indonesia, Gita Wirjawan, confirmed that Mr. Yudhoyono had asked him to head Indonesia’s investment board, which will be elevated to a cabinet-level position. Attracting more foreign investment, which has lagged far behind the capital pouring in to India and China, is crucial to rebuilding Indonesia’s decrepit infrastructure and Mr. Wirjawan is seen as an experienced banker.

But in other areas, Mr. Yudhoyono’s selection of ministers drew criticism for putting too many positions in the hands of inexperienced party politicians, a complaint that dogged his first administration.

“Yudhoyono is attempting to balance technocrats with party representatives, and the result is likely to be more of the same: capable economic management and missed opportunities for institutional reform,” said Kevin O’Rourke, who runs a Jakarta-based political consultancy.

Mr. O’Rourke pointed to the apparent choice of Hatta Rajasa as Senior Economics Minister as a disappointment. Mr. Rajasa, currently state secretary and a close aide to Mr. Yudhoyono, confirmed he’d been asked to fill an economic post in the cabinet but declined to give further details.

As a former Transport Minister, Mr. Rajasa blamed global shipping companies for charging too much rather than trying to reform the web of unpopular levies that push up the cost of doing business through Indonesian ports, Mr. O’Rourke said. Attempts to reach Mr. Rajasa were not successful.

Attempts to reach a spokesman for Mr. Yudhoyono were also unsuccessful.

Mr. Yudhoyono also named a number of politicians from the Golkar Party to key economic jobs, including the Industry Minister portfolio, local media reported. The party, which has strong support among government employees, has a history of blocking efforts to streamline the country’s unwieldly bureaucracy and privatize state-owned industries.

Darwin Zahedy Saleh, a member of Mr. Yudhoyono’s Democrat Party, the largest in Parliament, confirmed he was asked to become Energy Minister but declined to comment further until it was made official.

Oil output has been falling in recent years due to unclear regulations and reports of corruption that have deterred foreign majors from spending on exploration. Indonesia this year pulled out from the Organization of Petroleum Exporting Countries.

Mr. Saleh, a former economics professor at the University of Indonesia, is an unknown quantity and may find it hard to tackle endemic corruption in the oil sector given his limited experience in government, analysts said.

Write to Tom Wright at tom.wright@wsj.com