You searched for: Content Type Working Paper Remove constraint Content Type: Working Paper Publishing Institution Centre for International Governance Innovation Remove constraint Publishing Institution: Centre for International Governance Innovation Political Geography China Remove constraint Political Geography: China Publication Year within 3 Years Remove constraint Publication Year: within 3 Years Topic Emerging Markets Remove constraint Topic: Emerging Markets
- Author: Wendy Dobson
- Publication Date: 02-2016
- Content Type: Working Paper
- Institution: Centre for International Governance Innovation
- Abstract: This paper reviews Indonesia’s economic prospects and what these imply for a closer relationship with Canada. By posing the question “Is Indonesia the next China?,” the author suggests that Indonesia has the considerable economic potential envisaged by foreign investors, but conveys uncertainty as to whether Southeast Asia’s most populous country can make the changes necessary to realize that potential. A review of the economic record and comparison of China’s and Indonesia’s economic structures, endowments and institutions show major differences between the two countries. The paper further questions what it will take to realize Indonesia’s potential, finding the answers to be: human capital development; increased participation in the region’s global value chains; meeting the growing middle-class demand for modern services; raising productivity in agriculture and fishing; and increasing use of the Internet. Failure to make these changes will increase the chances of Indonesia’s growth in per capita incomes slowing and falling into the middle-income trap. Canada’s role will be to monitor closely how Indonesia tackles its five priorities at the same time as it responds to the opportunities to exploit Indonesia’s abundant natural resources, urbanization and its expanding consumer demand for modern services and educational opportunities.
- Topic: Economics, Emerging Markets, Human Welfare, International Trade and Finance, Natural Resources, Regulation
- Political Geography: China, Indonesia