On the other hand, the government's financial ability to undertake these burdens is sharply reduced as a result of sharply reduced oil and gas revenues and losses in the investment of Brunei Darussalam's foreign reserves. Strengthening government finances - Unless government finance is strengthened, His Majesty's Government will be increasingly diminished in its ability to provide security, social services and infrastructure development. Laying the foundations for long term sustainable growth - This is necessary if Brunei Darussalam is to move beyond its current dependence on finite natural resources and its vulnerability to the volatility of world oil prices. BDEC believes that these three imperatives must be addressed in a national economic strategy which is decisive, concerted and integrated. One of the central lessons of the regional financial crisis is that economic problems have social and political consequences and if left unchecked can be potentially destabilizing.
Economic crisis can lead to social and political crisis.
No strategy however well conceived can succeed if the different ministries of His Majesty's Government pursue different and conflicting agendas and if it does not obtain the support of the private sector and the community at large. To address the budget deficit by slashing government expenditures without due regard for the health of the private sector and the infrastructure required for future growth is at best a short term quick fix response which does not address the basic challenge of economic sustainability. The Brunei Darussalam Economic Council recommends a two-phase strategy. All rights reserved.