Sustainable Economic Development And Trade

A group of adolescents sitting inside an internet café are discussing their local newscast website’s trending topics. All though sustainable development has been a topic of discussion for years, some teenagers are not aware of it. Ordinarily relatively knowledgeable about diverse subjects, Ron interrogated the group for responses about sustainable development. To which, Ami acknowledges ignorance of the subject. Though not completely knowledgeable about sustainable development, Dena communicated observation of people conversing about sustainable development, noting that some were louder and more passionate than others about it. After locating the definition of sustainable development electronically Jenny chimed in, this 1987 United Nations report states, sustainable development refers to a type of development, stating that it will ensure that it meets the needs of the present without compromising the ability of future generations to meet their own needs (as cited in Aikins, 2014). Of course, this definition did not satisfy their inquisitive minds, so they decided to further their investigation of sustainable development. Hayden and Theo heard the group talking about sustainable development and expressed their desire and willingness to assist them with researching the subject. After a brief thought, the group unanimously welcomed Hayden and Theo to join them. Shortly after joining the group, Theo presented the others with an article about sustainable development which also

19. After reading this chapter, what do you believe are the two greatest obstacles preventing poor countries from becoming rich?

To start off, palm oil production has devastating impacts on people who are employed in that field. It does provide jobs for many people in Southeast Asia, but companies will often take over a region for their own financial benefit. “The palm oil industry has been linked to major human right violations, including child labor… Children are made to carry large loads of heavy fruit, weed fields, and spend hours every day bent over collecting fruit from the plantation floor… Children receive little or no pay for their efforts.” says the website “Say No To Palm Oil”. No child wants to do this exhausting task, but with the rainforest that local people depend on thinning, some families must take up the job. “Instead of being able to sustain themselves, indigenous communities become reliant on the palm oil industry for their income and survival.”

Although trade liberalization brings advantages for the economic growth in many countries as discussed above, there is questionable that in what way and to what extents trade liberalization affects the environment. The debates around these issues show that trade liberalization could influence the environment in both positive and negative ways and through various channels (Kirkpatrick & Scrieciu 2008). The Organisation for Economic Co-operation and Development (OECD 1994), identifies five types of environmental effects related to trade liberalization, that including: scale effects, structural effects, product effects, technology effects and regulatory effects. Panayotou (2000) also considers the effects of income level when examine the influences of trade on environment. Theoretically, each channel has both positive and negative effect (OECD 1994), but the overall effects of trade openness on environment will be the accumulated impacts of those factors.

Indonesia is the sixteenth largest economy, the largest economy in the South-east Asian economic region with the world's fourth largest population (263 million in 2017). It is an emerging economy that has increased its international integration, trade liberalisation and diverted from policies of import substitution towards export-led development. Indonesia is a member of the Group of 20 (G20) major economies and has been an active founding member of the World Trade Organisation (WTO). The impact of globalisation has benefited Indonesia as quality of life indicators and economic developments have improved but it also presents the challenge of improving regulations, building more competitive industries, increasing investment into education and infrastructure to remain competitive. Consequently, Indonesia has introduced numerous strategies to promote economic growth and development.

Dmitry Orlov held a conference titled Definancialisation, Deglobalisation, Relocalisation in 2009. His discussion mainly focused on the sustainability of our economy. Sustainability occurs when our way of living is proportionately matched with our economic standing and well-being. The sustainability rate in our country is too low and should be increased by the reserves for the production of items such as oil and fossil fuels. However, he proposed that sustainability did not need to be factored in with the fatality percentage. He strongly believes that citizens should prepare for economic hard times without an abundant amount of money, less imported goods, and the capabilities of providing their own needs. His thoughts could work in theory and could help our economy, currently, if we followed his suggestions.

Indonesia is the largest economy in South-East Asia; it has progressed into a decentralized electoral democracy and has managed to reduce its overall poverty from 17 percent in 2004 to 11 percent in 2014. However, despite their steady economy and major improvements, nearly 40 percent of Indonesia lives just above the poverty line. Additionally, Indonesian public services and health standards fall behind other middle-income countries; these facts combined with their high rates of maternal mortality, child malnutrition, and insufficient access to education place Indonesia in the developing or Third World realm. Indonesia’s history, geographic position, abundance of natural resources, wars and conquest, as well as trade has fundamentally shaped the economic and political structure. Furthermore, leadership influence, intervening forces, and its colonial masters have also played a large role in constructing the systems of this developing country.

During the course of the semester, I continue to placed high emphasis on the Brundtland commission because it give birth to the word “sustainable development” which environmental policy makers continue to relied on to enhance environmental protection. Authors of International Environmental Law and Policy for the 21st century, Nanda and Pring, write, “The message of the Brundtland Report was that it is possible to achieve a path of economic development for the global economy which meets the need of the present generation without compromising the chances of future generations to meet their needs” (Nanda and Pring 2013, 27). The Brundtland commission provides is a clear indication that society should place emphasis on creating focus create sustainable economic program aimed at providing renewable resources and reduce our consumption of nonrenewable product. To achieve this concept of sustainability, corporations have a leading responsibility to make this a priority to enact policies and implement governmental regulations in achieving sustainability. With this been said, I agreed with Stuart L. Hart, that multinational corporation have the moral responsible to enhance environmental protection. Hart writes “Business- more than either government or civil society –is uniquely equipped at this point in history to lead us toward a sustainable world in the years ahead”(Hart 2010,19). Over the years, globalization, politics, and business interest have impacted businesses to make

Something in this world halts the progress in many countries. What is that thing that we heard every day of our life, we know what it is but we don´t do it anything to stop it. It is corruption. I know that you know what corruption means, but you don´t know how this word affects our country or many countries. This word stops the development of a country, it doesn´t make slowly, it stops completely. To end the corruption the government and the society have to work together, if they don´t do it, the corrupter will stop the development of our country to make them riches. The corruption is just a factor that stops the development like I said. But I want to explain how a sustainable development is successful for the underdevelopment countries.

Too much focus on commodities will not help to further grow their economy as commodity prices are generally lower than manufactured goods, and are volatile, very much determined by world market forces. When prices drop, it will affect Indonesia’s export income greatly. Therefore, a shift in focus will help to make the economy more stable.

More than 21 million people in Indonesia died because of starvation, more than 1 million children can’t receive education in schools cause economy factors, and more than 28 million people is struggling against poverty.

How do trade, Investment flows affect environmental sustainability? Evidence from Panel data in Southeast Asia

The inter-linkage between investment flows and trade and environmental sustainability is an extensively researched area. It has been marked that FDI is increasingly being directed to the developing countries in recent period, whose export basket is generally more intensive in primary products and manufacturing products. In this background, the recent study contributes to the existing merge of research by managing a panel data empirical analysis over 2000-2014 for Southeast Asian 9 countries to understand the relationship between investment flows and trade and environmental performance index (EPI) for countries. The regression results reveal that while environmental sustainability of countries is negatively related with merchandise export orientation and FDI outward movements, it is a positively manipulated by service exports. The findings also confirm a positive relationship between several politic economic factors (e.g. abundant democratic set up and lesser corruption) and environmental performance of countries. The empirical findings lend proof to the competition that investment flows and trade significantly affects environmental sustainability of Southeast Asia countries.

However, would the idea of mercantilists who emphasize the only national benefits, productivity, or competitiveness fit to the current globalised world? Krugman (1996) denies the idea of mercantilism as they do not fully understand the meaning of comparative advantage. Comparative Advantage is an economic law made by David Richard in 1817 who expanded Adam Smith’s Wealth of Nations. Comparative Advantage law encourages free trade that stimulate market competition and industry specialization to a country to export. As the scale of economy works in specialization, it would make production of goods more efficient and thereby reduces the aggregate cost within the framework. Therefore all the citizen could receive the benefit (Todaro 2014).

Indonesia lives off of their international trade. It has a very high impact on their country and some people will do whatever they need to do in order to keep business. This is where illegal trading comes into effect. Wild, exotic animals are illegally captured, sold and shipped every day in Indonesia. They have access so easily through their rainforest and because they are so close to ports they can be transferred and traded (BOSA, 2008). China and the United States make up over 20% of Indonesia’s trading and do over 140 billion dollars a year in exports (OEC, 2017). When comparing Indonesia and the United States most say the two