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Tempat/Venue	:	JAKARTA, INDONESIA
Tarikh/Date	:	30-05-2001
Tajuk/Title 	:	THE INAUGURAL SESSION OF THE 
			ELEVENTH SUMMIT OF THE G-15
Versi 		:	ENGLISH
Penyampai	:  	PM
		    

      It  gives  me  great pleasure to be in  Jakarta  to
   join  other  leaders  of the Group  of  Fifteen  at  our
   annual  Summit. I am particularly honoured to  be  given
   the  opportunity to speak on behalf of the Asian  member
   countries.    Let   me  first  congratulate   you,   Mr.
   President,  on  your assumption of the  Chairmanship  of
   the  Group  of  Fifteen.  We would like to  express  our
   heartfelt  thanks  to  you  for  the  warm  welcome  and
   generous  hospitality accorded to us since  our  arrival
   in  Jakarta.  We are also deeply appreciative of all the
   efforts   made  by  Indonesia  to  ensure  a  successful
   outcome for this Summit.
   
   2.    On  behalf  of  the leaders of  the  Asian  member
   states,  I  would  also like to welcome His  Excellency,
   Deputy  President  Dr.  Hassan  Habibi  of  the  Islamic
   Republic  of  Iran  and His Excellency,  Vice  President
   Gustavo  Bell Lemus of Colombia to this Summit  Meeting.
   We  sincerely  believe that with the  admission  of  the
   Islamic  Republic  of Iran and Colombia,  the  Group  of
   Fifteen  will  be further strengthened.  I am  confident
   that  the  Islamic  Republic of Iran and  Colombia  will
   have  many  useful  ideas to share  and  initiatives  to
   advance.
   
   3.   This Summit in Jakarta comes at a very crucial  time 
   for  the  developing  countries  in general  and  G-15 in 
   particular. Clearly,  every  aspect of our lives and  the 
   manner countries are conducting their relations have been
   affected by the   march of  globalisation, which has been 
   accelerated  by   the   revolution  in   information  and 
   communication  technology (ICT).  While  we  do  not deny 
   that   globalisation  brings    benefits,  we  have  also
   to   acknowledge  the challenges  and  the  risks    that 
   unfettered  globalisation has brought.  We have to manage 
   the challenges and be wary of the risks if we do not wish
   to be marginalised.
   
   4.   There is no doubt that globalisation has exacerbated 
   the  vulnerabilities  of  developing countries and eroded 
   their national policy-making capacity.In the area of trade,
   for  instance, developing  countries h ave been unable to
   overcome  the  inequitable   and declining terms of trade 
   against that of the developed  countries.   Yet developed 
   countries  continue  to  push the developing countries to
   further liberalise  their trade  regardless of whether or
   not  their  economies  are ready or  able to cope with the
   process.
   
   5.   Aside   from   being  already  disadvantaged  by the
   imbalances    contained  in  the Uruguay Round agreements, 
   developing   countries are  being pressured into agreeing 
   to a new round of   WTO  negotiations,  incorporating new 
   issues demanded by  deve loped countries. Indeed if these
   new issues were to be included, developing countries would 
   ultimately  lose whatever  limited  policy discretion they 
   still possess in pursuing their development dimension and
   nation-building process.
   
   6.   In the financial sector, despite the painful lessons
   that  should  be  drawn  from the  Asian financial crisis, 
   we have  been disappointed  with the little progress made 
   to   reform  the    international  financial architecture.  
   Sad to say, the focus has tended to be more on ideological
   rather than the practical issues.  The failure of the free
   market  to self-regulate  international finance as well as
   misallocated  resources  and  volatile exchange rates have 
   largely been ignored.Instead the highly questionable value
   of free and  unregulated markets are still being touted as 
   the  ideal  which  must  be  adhered  to at whatever cost. 
   The   ideology   of   market   freedom   it   seems     is 
   more  important   than the  well-being  of  human society.
   
   7.   It has   become all too clear that the IMF is more  a
   political instrument than one for financial rehabilitation.
   The  sufferings  of people seem to be of little concern as
   long  as certain  policies and directives are implemented. 
   There   is  little  hope  that contrary   views  will  be
   entertained. 
   
   8.    The   revolution   in information and  communication
   technologies  has  merely  highlighted  the failure of the
   market   in   addressing   the   growing   divide  between 
   developing  and  developed  countries as well as the rural 
   and  urban  areas.   In   an  interconnected   world,  the
   unconnected  have  become  disenfranchised and de nied the
   benefits of the new economy.
   
   9.    Developing  countries  have   been   presented  with
   additional  challenges.   ICT  heightens  the   importance
   of   human   capital   in    the   development    process. 
   This  human  capital  has  become  a  main,  if  not,  the
   main   determinant   of wealth  creation and indispensable
   to   accelerating    sustained   economic     growth   and
   development.  We   thus   welcome  as  timely and relevant 
   the   theme   of   the   Eleventh   Summit  of  our  Group,
   namely   harnessing  the  potential  of  the  digital  era 
   for development.
   
   10.  Mental  power or knowledge in which ICT is premised is
   dynamic  and  constantly  advancing.  Access to and mastery
   over   the  latest  knowledge are basic to the creation and 
   development  of  a pool of rich  or  relevant human capital
   which   could   be   further   enriched   and harnessed for 
   development by exploiting the opportunities  created by the 
   digital  technology.  In order to benefit from ICT, we have 
   to create an efficient system of knowledge management where
   knowledge  could  be   shared,  distributed and analysed to
   enable the creation  of  new knowledge.
   
   11.   As  developing  countries,   we have to overcome major
   impediments  in order  to seize the opportunities offered by 
   the  digital era.   First  and most basic of all, we have to 
   develop the necessary human capital.  However, human capital 
   alone would not  be sufficient  to a ddress the requirements 
   of  the new economy.  Developing good  infostructure as well 
   as pragmatic  legal and policy  framework are  also crucial.
   
   12.  To harness information and communication technology for
   development,   the primary   problem   faced   by developing 
   countries is the low  accessibility of the network.  Service 
   penetration e specially  to remote and rural areas where the 
   majority of our people  live is low. The developed economies, 
   for  instance,  have a penetration  rate for fixed lines and 
   Internet  at around 50 percent of the population whereas the 
   developing  economies  are  languishing  at below 20 percent.
    
   13.   The   biggest   hurdle we have to overcome is the cost
   involved   in      financing   comprehensive   infostructure 
   development.  Even if  we d eregulate  the provision of such
   services,  we  still have  to address the inclination of the 
   private  sector  to concentrate on commercially viable areas 
   or  services  that command  premium  charges.   Leaving  the  
   financing  of  infostructure  entirely to the private sector 
   is  to  aggravate the  digital  divide  not  only within the 
   country  but  also  the greater  divide   between  countries.  
   This  creates  the  information  poverty  cycle  and in  the 
   process,  ensure  that  the  developing  remains  developing.
   
   14.  In   addition  to creating the infostructure, we have to
   create a knowledge society that is not only computer literate
   but  has   the capacity   to  create content  and application
   solutions   in   order  to  leverage  on ICT  for development.
   Meeting  this  requirement  represents  one  of  the  biggest
   challenges that  developing countries face in the information
   age.
   
   15.  Increasingly also,   we  have  to  enhance the level  of
   adaptability  or   up-take   of the   e-systems,   especially
   e-transaction  as  this would promote the development  of the 
   ICT market.  Unfortunately,  for many of   us we still do not 
   have the legal and regulatory frameworks   in place.   At the 
   same   time,   we   have   to   create awareness  and  change 
   well-entrenched business and working practices and procedures.
   
   16.  The rapid advancement in ICT has its downside too, which
   we have to address. ICT has facilitated an explosive increase
   in  short-term  financial  speculations in stock and currency
   markets  and  other  financial  markets  and  enabled  highly
   leveraged  institutions  such  as  hedge  funds  to speculate.
   Technological developments in certain areas have also made it
   difficult  for  national Governments to determine cultural or
   communications  policy or  to control  the spread of negative
   information and cultural products.
   
   17.  In light of our inherent  weaknesses in the  ICT sector, 
   we  have  to foster closer co-operation  and   collaboration 
   among members of our Group.
   
   18.  In Malaysia, we discover that we have to view the lack of
   infostructure  not  merely  from the technical perspective but
   also from  the  policy  approach.  We  have  learnt  that some
   intervention is required in order to rebalance a purely market-
   driven  environment.  Malaysia  would  thus be instituting the
   Universal Service Provision,  whereby a  fund financed through
   mandatory  contributions  from  licensed   operators  would be
   established  to provide  service  to areas  formerly neglected.
   In addition,  the Government  would  provide direct funding to
   connect  schools  and other public  institutions.    On the IT
   content, we  could all,  for instance,  learn  from   India in
   developing   content industries   as well as in creative media.
   
   19.  We would do well to  consider other areas of co-operation
   and  collaboration.  We  should speak with one voice   to urge
   developed countries   to provide ICT at more affordable prices
   as well  as support infostructure  development  and financing.
   We  have  to  participate  actively  and  together in   global
   negotiations on ICT.
   
   20.   Finally,   it would  be  pertinent  for   us  to  share
   information  and  resources  to  develop our human potential.
   Malaysia firmly believes that for G-15 to remain relevant, we
   must use  the development potential of ICT to ensure a better
   quality of life for our people.
   
   21.   Acting   individually,  we  have  limited  capacity  in
   withstanding the mounting challenges  confronting us.  Acting
   collectively  and in concert with each  other,  we can make a
   stand and even  contribute to shaping   a future in which the
   concerns and interests of developing countries are taken into
   account.
   
   22.  Accordingly,  we must exert  all efforts to  manage  the
   globalisation   process  so  as to favour us and   the  other
   developing countries.  Towards this end,   we have to work as
   closely together as possible.

   Sumber : Pejabat Perdana Menteri
    




    
    

             
 


 
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