Indonesia and the IMF pill

Article Abstract:

The International Monetary Fund (IMF) plan for rescuing the Indonesia economy fails to address the root cause of Indonesia's problems. The IMF's plan focuses on measures to reduce inflation, but these are unlikely to have the desired effect and they will create high levels of unemployment. Indonesia's problems are due to companies setting prices at levels far above costs to produce the high profits which would enable them to obtain bank loans. Higher prices decrease demand. The IMF should have opted for expansionary policies, including more public investment, to stimulate demand and employment.

International Monetary Fund, Services, Column, Indonesia

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More like Singapore: can industrial policy build a hi-tech Hong Kong?

Article Abstract:

Hong Kong's chief executive, Tung Chee-hwa, has announced a new industrial policy which aims to foster hi-tech industry in Hong Kong. This policy has been proposed before in order to replace low-tech manufacturing, but the Hong Kong government was previously less interventionist. Hong Kong faces competition from the Philippines and Malaysia, which have lower costs and are also seeking to develop hi-tech activities, while other economies in the region like Taiwan already have a head start. Hong Kong is seeking to develop niches in order to combat these obstacles.

Hong Kong, Industrial policy

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