President Susilo Bambang Yudhoyono has introduced three economic strategies for the banking sector, namely 1. an average economic growth rate of 6,5 percent, 2. creation of macroeconomic stability to drive the real and bussines sectors and 3. fulfilment of people's basic rights.
Investment is necessary if you wish to achieve growth level about 5 percent. it has also been generally accepted that investment plays a major role in promoting a nation welfare.
Regarding the development under takings there may be a debate on the purpose and targets of these under takings. this debate may also touch on the limits of growth and the adoption by Third World countries of the Western model of development or industrialization. Investment however is not usually touched on this debate, especially with regard to the role its plays in modernization and industrialization efforts.
Theoritically we are familiar with consumption-led growth and ex-port-led-growth. the bottom line, however is that economic growth is based on wheter or not there are investment activities.
If a country fails also maintain investment growth at the certain level, for example , to counter its population growth or the growth of its labour force or even migration to the cities, this country will first undergo economic stagnation and then economic decline.
When the economy plunges , this country will face a host of problems other than the inability to carry out capital generating activities. Even the capital in hand will drop because it cannot be mainained and augmented.
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