So far, no country has escaped
from Third World status on the basis of foreign aid. Every country that
has moved out of comparative poverty (such as Korea, Taiwan and Singapore)
and every region that has become a particular country's economic locomotive
(such as Mumbai or Shanghai) has done so on the basis of trade, not aid.
This stands to reason because
buying from someone makes him a partner while giving to someone is more
likely to make him a supplicant than a friend. Aid is important, especially
in times of trouble such as after the Asian tsunami of 2004, but not nearly
as important as a market economy to the foundation of lasting wealth and
self-respect.
This reflection was prompted
by a recent trip to Bali, which tourism has lifted from being one of the
poorest parts of Indonesia to being one of the most prosperous parts. It
was gratifying to think that indulging in a five-star lifestyle at a fraction
of what it would cost in Australia and enjoying some remarkably good value
shopping might be helping to reduce world poverty and equalize the gap
between rich and poor. Tourists have never been accorded much moral standing
but it seems they are just as necessary as aid workers and might be of
more long-term benefit for the world's poorest countries.
A recent report by the Australian
Co-operative Research Centre for Sustainable Tourism noted that tourism
accounts for 36 per cent of trade in commercial services in advanced economies
but 66 per cent of such trade in developing countries. Tourism is the only
service industry where the Third World as a whole has a positive balance
of trade with the First World: a $6 billion surplus in 1980 rising to nearly
$9 billion in 1998. In addition, international tourism in developing countries
is increasing by 9.5 per cent a year compared to 4.6 per cent worldwide.
Unsurprisingly, the report
warns that tourism is too important to be left to the private sector and
worries about the effect of foreign tourism on local culture. Still, it
concedes that all forms of modernisation change indigenous cultures and
notes tourism is a growing and significant part of the economy in all but
one of the 12 countries that are home to 80 per cent of the world's poor.
Tourism, it concludes, "appears to be one of the few economic sectors able
to guide a number of developing countries to higher levels of prosperity
and for some to leave behind their least-developed country status".
If economic deprivation breeds
resentment and tourism is an important means to economic development, it's
no wonder terrorist groups have targeted tourism in countries such as Egypt
and Indonesia. Targeting places such as Bali's Sari nightclub not only
punishes the decadent infidel but helps to wreck the local economy in places
which fail to conform to any zealot's blueprint. Last year's bombings in
Bali, targeting families in cafes, were presumably designed to demonstrate
that no one is safe and were a form of economic warfare against the people
there.
The Federal Government rightly
warns people about the dangers of travel in countries such as Indonesia,
and people should be sensible about the potential risks involved. In 2003,
in the aftermath of the 2002 bombing at Kuta, tourist arrivals in Bali
were almost 40 per cent down on 2001. Even so, by 2004 tourist numbers
had exceeded the previous peak. Australian tourists had increased by 10
per cent on the previous record. There are no official figures yet for
this year but one hotel says September bookings are back to last year's
level.
In any event, Australians'
nervousness about security is in contrast to fondness for something different
and enthusiasm for a good deal.
People who have no desire
to court trouble or to make political statements can be conscious of the
importance of Indonesia to Australia and reluctant to have their choices
dictated to them. The most culturally oblivious tourist is still adding
to our collective awareness of our vast neighbour as well as building the
Indonesian economy, which is only a quarter the size of Australia's with
10 times the population.
Then there's the importance
of preserving a Muslim country which is relatively easygoing, culturally
pluralist and democratic. Taking a holiday in Indonesia is riskier than
going to the Gold Coast, but may ultimately be quite a patriotic thing
to do. |