01-06-2005, 04:44 PM
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#2 (permalink)
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Junkie
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And an editorial commenting upon the donation.
Quote:
Stunning, and not just in size
By Tom Allard
January 7, 2005
The two leaders embraced in a show of friendship.
The Indonesian President, Susilo Bambang Yudhoyono, was clearly touched by John Howard's compassion and his promise of $1 billion. It was a gesture disaster-torn Indonesia "will never forget".
The Federal Government's huge aid package stands alone as the most generous offered by a single country. But what makes it remarkable is the way it has been delivered.
It is pure unilateralism.
By circumventing the United Nations and rejecting a freeze on Indonesia's debt repayments, Australia is isolated even from the US in its approach to helping the reconstruction after the tsunami disaster.
After the calamitous decision to invade Iraq before the UN weapons inspectors had finished their jobs, unilateralism and Australia have an unhappy recent history.
Yet in this case there is a lot of merit in Howard's position.
There is no more vital relationship for Australia at the moment than the one it shares with its near neighbour and, by dealing directly with Indonesia Australia has created a reservoir of goodwill with Yudhoyono.
The leaders of the two countries get on very well and yesterday's initiative clearly touched SBY, who told the Prime Minister he "will never forget it".
It's priceless diplomatic capital, and if managed wisely can be leveraged to Australia's advantage for years to come, most notably in deepening co-operation in the war against terrorism, in areas where the threat to Australia's interests is greatest.
Also, the more Australia and Indonesia work closely together and develop mutual understanding, the more likely it is that Indonesia will be sympathetic to Australia's interests in other areas, including its attempt to join a dynamic and fast-growing pan-Asian economic community.
As the world's largest Muslim nation and a new and successful democracy, the recovery and long-term prosperity of Indonesia have the potential to do much to convince the wider Islamic world the West is not intrinsically hostile to it.
To be sure, the billions pledged by rich nations, led by Australia, completely overshadow the paltry $50 million pledged so far by the oil-rich Arab states.
Howard is also on solid ground in eschewing the debt moratorium push.
Pop stars, aid groups and churches have long advocated debt forgiveness as the best way to spur development in the Third World.
When huge slabs of government budgets are spent servicing outstanding loans instead of being devoted to their impoverished populations, such an idea has obvious appeal.
The truth is, however, this is a supremely inefficient way of assisting the survivors of the Boxing Day calamity.
There can be no guarantees that this money will find its way to the estimated 1 million people without shelter or that it will be used to rebuild critical infrastructure.
Indeed, it is almost certain that it will not.
As sovereign states, countries receiving aid cannot be properly policed in how they spend the funds released by the debt freeze.
In the case of Indonesia, which is still riddled with corruption, the funds are likely to be siphoned off, probably to its military, whose equipment is in a state of disrepair.
By delivering the $1 billion through a joint commission closely overseen by Australian as well as Indonesian ministers and officials, the Australian model best ensures transparency and that taxpayers' funds are not being misallocated.
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It goes against my grain to praise unilateralism, but in this case I have no choice but to do so.
Mr Mephisto |
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