08.11.2014 Views

28th Edition - The President Post

28th Edition - The President Post

28th Edition - The President Post

SHOW MORE
SHOW LESS

Create successful ePaper yourself

Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.

www.thepresidentpost.com <strong>The</strong> <strong>President</strong> <strong>Post</strong><br />

October 12, 2011 A3<br />

<strong>The</strong> World<br />

THE CHANGING GLOBAL ECONOMY:<br />

Emerging Countries Set to Move<br />

Over the past decade the emerging countries have<br />

consistently post higher growth rates. According to<br />

statistics advanced countries average growth rates were<br />

first 2.9% and the emerging countries 3.6%. This has<br />

changed to the following comparison: the advanced<br />

countries 1.9% and the emerging countries 6.6%.<br />

By Atmono Suryo<br />

CHANGING WORLD<br />

IIn this 21st century it is<br />

becoming increasingly<br />

evident that a different<br />

world economic landscape<br />

is shaping up. As<br />

it now stands the world<br />

is still in a stage of transition.<br />

Countries should be prepared to<br />

be confronted with a number of<br />

unexpected developments and to<br />

make the necessary adjustments.<br />

In this era of globalization some<br />

massive changes will be in the<br />

making. It is being forecast that<br />

there will be a shift of economic<br />

power from the West to the East,<br />

and that the world will become<br />

a multipolar world with a large<br />

number of growth poles. Also, that<br />

the world economic landscape will<br />

undergo meaningful shifts.<br />

But one of the most important<br />

features of change is the rise<br />

of the developing countries and<br />

the increasing central role of the<br />

emerging countries in the global<br />

economy.<br />

<strong>The</strong> developing countries’ difficult<br />

struggle to improve their economic<br />

and social conditions actually<br />

dates back to some 50 years<br />

ago, the 60’s and 70’s. It was in<br />

1964 when the Group of 77 Developing<br />

Countries came into being,<br />

at the first session of UNCTAD<br />

(United Nations Conference on<br />

Trade and Development) in Geneva.<br />

That was the first attempt of the<br />

Third World to close ranks among<br />

the developing countries. <strong>The</strong> G77<br />

launched the concept of the New<br />

International Economic Order at<br />

the Sixth Special session of the<br />

United Nations to bring about a<br />

peaceful, just and prosperous<br />

world. It also took the initiative to<br />

begin the North-South Dialogue<br />

between the developed and developing<br />

countries.<br />

However, all those attempts of<br />

the past have failed. But a new<br />

momentum is now developing in<br />

this 21st century. This will give a<br />

chance for the developing countries<br />

to achieve growth and welfare<br />

for their people and to strengthen<br />

their position in the global economy.<br />

A highly important development<br />

in this era of globalization is the<br />

rise of the developing countries in<br />

the global economic setting. It will<br />

be noted that the emerging countries<br />

have been on the move to reform<br />

and develop their economies<br />

to keep up with the developments<br />

in this interdependent and complex<br />

world.<br />

<strong>The</strong> projected shift of economic<br />

power will slowly alter the world<br />

economic landscape. A small<br />

number of emerging countries<br />

GEO-ECONOMIC<br />

LANDSCAPE<br />

ADVANCED G20<br />

BRICS<br />

OTHER EMERGING G20<br />

OTHER ADVANCED<br />

OTHER EMERGING<br />

have been the forerunners of the<br />

developing countries in their respective<br />

regions.<br />

China and India are in the lead<br />

in Asia, Brazil in Latin America<br />

and Russia covering the Eastern<br />

part of Europe extending to<br />

Asia. <strong>The</strong> BRIC (Brazil-Russia-India-China)<br />

were followed by 6 other<br />

emerging countries, including<br />

Indonesia, to come to the present<br />

group of 10 Emerging Countries.<br />

In addition changes will also<br />

take place in the strategic areas<br />

of economic paradigm, economic<br />

policies and business practices.<br />

It covers the area of economic<br />

and social development and trade.<br />

It also covers the crucial area of<br />

investments and services and importantly<br />

the critical area of finance<br />

which continues to be in<br />

disarray.<br />

<strong>The</strong> emerging countries are the<br />

ones riding high on the waves of<br />

these changes or even triggering<br />

the necessary changes by taking<br />

advantage of the new opportunities<br />

open to them. This is happening<br />

in East Asia with the two giants<br />

in the lead, China and India,<br />

taking advantage of the experience<br />

of their predecessors of earlier<br />

times, Japan, South Korea, Taiwan<br />

and the other Asian tigers.<br />

GEO-ECONOMIC LANDSCAPE<br />

<strong>The</strong> map above shows the need<br />

and importance of developing<br />

closer cooperation between the<br />

emerging countries and the more<br />

advanced countries with the two<br />

main groupings cooperating under<br />

the G20 umbrella.<br />

As is known the G20 consists<br />

of the advanced countries (of<br />

the G7/G8 which consist of the<br />

United States, Canada, Germany,<br />

France, the United Kingdom<br />

and Italy – plus Australia and<br />

South Korea. And the 10 Emerging<br />

countries are Brazil, Russia,<br />

India, China, Mexico, Argentina,<br />

Turkey, Indonesia, South Africa<br />

and Saudi Arabia. <strong>The</strong>y consist<br />

of the BRIC countries (yellow)<br />

plus the other emerging countries<br />

(blue) which includes Indonesia.<br />

<strong>The</strong> G20 grouping represents<br />

the largest part of the world in<br />

terms of geographic size but also<br />

in terms of GDP/economic size.<br />

It represents 85% of of the world<br />

GDP, 80% of world trade, and twothird<br />

of the world population.<br />

Another important point to<br />

note is that over the past decade<br />

the emerging countries have consistently<br />

post higher growth rates.<br />

According to statistics advanced<br />

countries average growth rates<br />

were first 2.9% and the emerging<br />

countries 3.6%. This has changed<br />

to the following comparison: the<br />

advanced countries 1.9% and the<br />

emerging countries 6.6%.<br />

With the 10 emerging countries<br />

developing at a faster rate (to<br />

be followed soon by other developing<br />

countries) this will undoubtedly<br />

speed up the changes of the<br />

global economic landscape—to<br />

become a multipolar world with<br />

an increasing number of growth<br />

poles not only in Asia but also in<br />

Latin America and other parts of<br />

the world such as the Gulf countries.<br />

THE BIG TASK AHEAD<br />

It is of strategic importance for<br />

the global economy that in the<br />

coming years the emerging countries<br />

should be on the constant<br />

move. Not only to occupy a better<br />

“place in the sun” in the global<br />

economy, but also to achieve a<br />

new world economic order which<br />

which was the goal of the G77 developing<br />

countries years ago (Note:<br />

Indonesia belongs to the Group of<br />

the 77 developing countries).<br />

<strong>The</strong> World Bank, Asian Development<br />

Bank, BBVA and many<br />

media predict that the ten big<br />

emerging countries, located in every<br />

part of the world, will change<br />

the face of global economics and<br />

politics.<br />

10 BIG EMERGING COUNTRIES<br />

Latin<br />

America<br />

: Mexico, Brazil,<br />

Argentina<br />

Asia : China, India, South<br />

Korea, and Indonesia<br />

Others : South Africa, Poland,<br />

Turkey<br />

• According to BBVA Research<br />

the high growth rates of the 10<br />

emerging countries is expect-<br />

ed to contribute 51% of global<br />

growth compared to 14% of the<br />

G7 developed countries.<br />

• With regard to regional development<br />

East Asia is being considered<br />

as the most dynamic region<br />

in the global economy, led<br />

by two countries which were for<br />

centuries considered as one of<br />

the less-developed countries<br />

with enormously large populations.<br />

<strong>The</strong>y were for a long time<br />

considered as the sleeping giants.<br />

With the advanced countries<br />

presently in decline, the emerging<br />

countries have now the obligation<br />

to become another big<br />

power house in the global economy<br />

alongside the more advanced<br />

countries. <strong>The</strong> emerging countries<br />

should be able to accelerate their<br />

moves to become the new dynamics<br />

of the global economy.<br />

To that end, East Asia should<br />

become the largest contributor in<br />

that massive undertaking. It has<br />

all the potentials to become an<br />

important driver of growth of the<br />

global economy. East Asia has a<br />

very large GDP, an enormous expanding<br />

market, huge (younger<br />

age) human resources with increasing<br />

purchasing power and a<br />

very large middle income group. It<br />

has very large exchange reserves<br />

thanks to China, and an expanding<br />

industrial growth combined<br />

with rising “Asian multi-national<br />

companies”. On top of it, it carries<br />

the historic call to be the center of<br />

the global shift from the West to<br />

the East.<br />

<strong>The</strong> writer is former ambassador<br />

to the EU.<br />

Alamanda Tower<br />

Work. Nature. Balance<br />

“Alamanda Tower grows from<br />

the floor of a tropical oasis...<br />

it will be a unique, inspired<br />

place to work and connect...”<br />

Darryl Yamamoto, AIA<br />

Principal, DYXY Architecture + Interiors<br />

Reputable Developer<br />

Marketing Office<br />

Graha Irama, 15th Floor Unit A<br />

Jl. HR Rasuna Said Blok X-1<br />

Kavlling 1-2, Jakarta 12950<br />

Phone: (62-21) 526 1357, 526 1358<br />

Fax: (62-21) 526 1460<br />

Mobile: (62-21) 87885001616<br />

email: sales@alamandatower.com<br />

www.alamandatower.com<br />

Marketing Consultant<br />

PT Cushman & Wakefield Indonesia<br />

Indonesia Stock Exchange Building 2, 15/F<br />

Jl. Jend. Sudirman Kav 52-53, Jakarta 12190<br />

www.cushmanwakefield.com<br />

A development led by KAARYA Development, a well-reputed and awardwinning<br />

developer of Menara Karya, Menara Kadin and Cyber 2 Tower.<br />

Alamanda Tower is a GREENSHIP Registered Project and under green<br />

building certification process by Green Building Council Indonesia. <strong>The</strong><br />

owner and project team are targeting GREENSHIP Gold level to pledge<br />

commitment of green building. Our green features are double glazing,<br />

use of recycle water, low cooling load in tenancy area, low energy lighting<br />

and ample landscaped area.

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!