Be Optimistic!

http://articles.ibonweb.com/webarticle.asp?num=976

IBonWEB.com - Looking back on what the country's economy has gone through
may bring us to a saddening yet somewhat ridiculous picture of the crisis.
After the fell down of Soeharto in 1998 which followed by monetary and
banking crisis, some economists predicted the economy even may turn worse.
Some of them predicted that the economic growth will be negative and will
reach minus 20 percent, or even 30 percent, and the poverty rate will reach
50 percent of the population. But the facts speak different; poverty rate
only reached 23 percent of population and economic growth only reached minus
13 percent.

At the end of 1998, many economists still had pessimistic predictions. They
said that the economic growth will be still negative at minus three percent
in 1999, but in reality, the economic growth was not negative, it reached
0.3 percent. They still had negative prediction for the year of 2000. They
predicted that the economic growth would only stay around 2 percent. But the
condition in the first quarter of 2000 was beyond their predictions, so they
revised their prediction of economic growth to 4 percent. But in fact, the
economic growth reached 4.8 percent.

After those fallacies, most economists still had negative prediction. They
said in 2001 the economic growth will be lower than 4.8 percent and some of
them even said that the growth will only be two percent. But in reality, as
the Statistic Indonesia announced recently, the economic growth has reached
2.6 percent in the first quarter.

Referring to my previous column in this media entitled Vote of No
Confidence, there is a discrepancy between predictions and reality. And it
is not just a matter of coincidence or "statistical discrepancy", but it
gives us message to be more pessimistic about Indonesian economy.
Conventional and conservative way of thought is no longer appropriate to
analyze the economy in crisis. We have to be more creative and optimist! By
that, we could find an extraordinary solution for Indonesian economic
crisis.

Martin Manurung (Economist of Puri Consulting and Teaching Staff of Faculty
of Economics, University of Indonesia) .



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