Just over a week ago over 150 young people across Asia-Pacific gathered in Bangkok for four days in an event dubbed as SHAPE APAC 2018. For outsiders little was known about what was to happen. For Global Shapers that are now 7,000 strong globally the event was one not to be missed. The event was organised by Global Shapers Bangkok Hub, an activity largely by and for fellow Global Shapers Community, a volunteer initiative of the World Economic Forum. The Bangkok Hub has been in existence since 2012 just before the first World Economic Forum in ASEAN held in the same year. The past years have seen many changes including in leadership and collective power of young people to contribute for “the greater good”. That said, as the Hub is evolving out of the SHAPE APAC, which is in many ways its tipping point, the question it is being presented is: to what extent can the power of this autonomous collective– run completely voluntarily and without external funding, and now bigger than ever –turn into positive energy that results in lasting change to the outside community, precisely those they are meant to serve? So I made a conscious effort to sit Raghav Mettakhun, the current lead of the Bangkok Hub, down to share his thoughts and vision for Bangkok. Let’s see what we get out of this conversation.
First of all, could you share what SHAPE APAC is all about?
SHAPE APAC 2018 was tasked to bring together Global Shapers from the region under a specific theme. There are 7 more SHAPEs organised annually in other parts of the world map. Our main drive was to connect, empower and inspire young people to initiate impactful projects in their home communities. We selected ‘Green Evolution and Sustainable Lifestyle‘ as a theme as we wanted to raise awareness of the impact of their daily lives on the communities they live in. Participants chose a track that was most relevant to them. We had ‘Blockchain and Smart Energy‘, ‘Sustainable Cities‘ and ‘Future of Food’. We also included filed visits in and near Bangkok to expose participants to sustainability issues in real life contexts. Some of these activities included visiting local neighborhoods looking at how local residents have coped with rapid urbanization and tourism growth. Another one was at local fishing communities in Samutsangkram during which participants had the chance to participate in community lifestyles in the coastal mangrove ecology.
Why was sustainability chosen for SHAPE APAC 2018 – what is its significance?
Since 1987 when the term ‘sustainability’ was formally put forward as an agenda to guide the global development, it has transcended from a political rhetoric into fields of business and lifestyles. These were amplified due to recent events related to climate change – record temperature and floods in Japan, tsunami and earthquake in Indonesia, drought in China, you name it. Not only environmental effects but social and economic issues too. Bringing my passion in the environment, we also integrated the resource minimization aspect to it where everyone was encouraged to bring their own refillable water bottles as SHAPE APAC is the first ever single-use plastics-free event.As Bangkok Hub, we realised that these issues should be priorities for young people and they too should have a role to play in driving the change. In shaping SHAPE APAC, we were contemplating over how Global Shapers can make a difference. Our key objective is to get them inspired and implement related projects in their communities.
How were you initially involved in sustainability issues yourself…what was your personal background?
Although I was born and lived in the city almost my entire life I must admit that I’d always lived in the bubble, a pretty big and thick one. I came from a middle-class background where my family is managing a textile business in Bangkok for the past 50 years. I was educated in a private all-boys Catholic school and an international school before heading off to the UK for university for a degree in Environmental Science – the subject that have raised eyebrows of many Asian parents, a subject that is unlikely to bring substantial income comparing to Engineering, Law or Medicine. I have been labelled into so many different things from my surface-level background. I am by no means an expert on the issue but my willingness to make change remains the same. For me, sustainability is not just about protecting the environment, not using plastic bags and straws in the name of saving the world but viewing life and business from the ground up, seeing what we can change, what impact we can make in our community in Bangkok. Let’s try not to fall into the trend and abuse the buzzword that can sometimes lead to greenwashing.
So building on from this big SHAPE experience, which was somewhat a “gamechanger” for Bangkok Hub? What’s the Hub’s gameplan in relation to sustainability issues looking ahead?
As many previous SHAPE organisers have said, organising SHAPE is either make or break. I am sure that everyone in my team would agree with me that it is the former. We became closer than ever before. Continuing on from SHAPE APAC, we will bring topics of SHAPE APAC’s tracks to integrate into existing projects from now, at least for the year ahead. We plan to seek collaboration from neighbouring Hubs and roll out some of these projects. Maybe I am over ambitious but I think it is not impossible. I have seen positivity from participants attending, and I am sure many will be more than willing to lend us a hand to impact a couple of hundred to many thousands! One of specific plans I have in mind include implementing tree plantation and monitoring across cities in ASEAN, educating locals on compost, and blockchain 101 for beginners.
Let’s zoom out just a little bit. So Bangkok Hub has been existing for six years now? What do you think is special about the Hub and the Community itself?
The hub has come pretty far since our founding curator Nick Pisalyaput, Director of Sasin Entrepreneurship Center, who was nominated by the Global Shapers Community in 2012. What is special about the hub is the members – its utmost important composition that keep the Hub going. Our members came from all walks of life and nationalities, from a hotel owner, social enterprise leaders, to human rights expert and food connoisseur. Our hub is more diverse than ever before with a common goal of adding value to making Bangkok a better city to live for all. We look for young people who are passionate, driven and committed.
I think that what we do should at least resonate with the World Economic Forum’s vision which is ‘Committed to Improving the State of the World’. Not only do we look for talented young individuals but we also look for those with exceptional level of integrity and service mind because without the will to serve the community, especially on a voluntary basis, members can be easily distracted by their full-time job and other priorities.It is really important especially in the volunteer setting that members get to know each other. Projects are best executed when there is trust, and teamwork is an absolute vital. Previously members were mostly from recommendations and referrals within our network of friends but now we strive to be more inclusive, what I mean is people with whom we are less likely to cross path in our daily lives. My aim is also to recruit more volunteers from the creative sector to enhance our diversity – with this could create comprehensive projects with greater impact.
Any final thoughts you want to share?
My vision is to educate and empower local communities to be more aware of the impact we are currently making in their daily lives – and how we could make a real difference. Resilience and adaptability are the keywords I would like to emphasise during my tenure in leading the Hub. For example, how we could live our lives sustainably through technological disruptions, demanding skill sets, increasing stress, higher cost of living but not higher income and climate change. The Hub will plan to create mini-projects led by Hub members e.g. mental health, environment, career planning, blockchain technology and sustainable fashion while we would concurrently drive a bigger project at the same time. Actually, we will have the meeting in a few weeks’ time to discuss next steps in more detail. So, let’s see.
It seems that the Hub’s ambition is still running high under the current leadership. Like any other human structures, it seems that leadership is one of the key ingredients in shaping the overall direction and success for the Hub. However, the definition of success for Bangkok Hub should derive not from its members benefiting from the structure itself, but how much impact it truly creates on the community they live in. I suppose there is only one way to find out! If anything, SHAPE APAC 2018 was an instance of what young people can achieve when they come to work together and a reminder of the reason that a structure such as Global Shapers Community exists. To hear more about Bangkok Hub or support the group you already know how to find them!
The SHAPE APAC 2018 summit was sponsored by Mae Fah Luang Foundation under Royal Patronage and Thai Beverage PCL. Also supported by SPCG, Tesco Lotus, TCEB, Six Network, Alvaascé, Makkha Spa and 192 Logistics.
Indonesia’s new electric car may disrupt its relations with Japan
Authors: Muhammad Zulfikar Rakhmat, Dimas Permadi, and Ramadha Valentine
President Joko Widodo has recently signed a presidential regulation on electric cars. The regulation instructed several things, including forming a coordinating team to support the implementation of the electric vehicle program.
Jokowi hopes that electric vehicles will be able to replace fuel oil vehicles.
Due to air pollution in large cities such as Jakarta which continues to increase, Indonesia sees it important to begin using electric cars for the general public.
Jokowi also views the opportunity for Indonesia to develop electric cars because Indonesia has the main raw materials to build them. In Jokowi’s statement, he stated: “We know that 60 percent of the key to electric cars is the batteries and we have the components to make them [such as] cobalt and manganese in our country,”
To implement the agenda, the Indonesian government is likely to collaborate with various partners, including China. Although it is still a prediction, this was indicated by China’s intention to move its electric car companies to Indonesia, namely BYD Auto Co., Ltd and JIC. Moreover, Chinese car manufacturer Dongfeng Sokonindo (DFSK) also intends to produce DFSK E3 Glory cars in Indonesia which will be marketed in ASEAN. This strengthens the possibility that China will play a role in Indonesia’s plan.
China’s entry into Indonesia’s plan for electric cars could be a reasonable move and may be welcomed by Jakarta. Nonetheless, there is a potential that it may disrupt Jakarta’s long ties with Japan as its largest partner in the automotive sector.
Japan: Indonesia’s long-time automotive partner
When it comes to automotive, Indonesia has been relying hardly on Japan. As reported by the Association of Indonesia Automotive Industry, the majority of cars used in Indonesia are Japanese ones. CNN’s polling also shows that Indonesians prefer Japanese cars more than those produced by Europe, Korea, and China.
Another case which exemplifies the strong automotive ties between Jakarta and Tokyo is the Indonesian-made car “Proton” which was made under a special collaboration between Indonesia and Suzuki.
Considering the position of Indonesia as a country that has just stepped in to the business of electric cars, Indonesia seems to be very careful in involving foreign investors. Indonesia sees goods from China as relatively cheaper and of comparable quality.
In addition, Chinese companies applying for relocation in Indonesia was also considered as a serious step to strengthen the relations that had been built by the two countries.
Indonesia’s plan, which was conveyed by the Deputy for Infrastructure at the Coordinating Ministry of Maritime Affairs, Ridwan Djamaluddin, to involve China in making electric cars is likely to disrupt the stability of its long-time cooperation with Japan.
This could be true, especially if we look at how Indonesia has increasingly become a battleground between Beijing and Tokyo such as in the recent bidding for the construction of a railway between Jakarta and Bandung, whereby China succeeded in winning the bid. Japan, which has made a number of preparations to obtain Indonesia’s permission to participate in the project, feels disappointed as expressed by its Chief Cabinet Secretary, Yoshihide Suga.
Looking at this, electric cars can be another battleground between Japan and Indonesia.
Indonesia may take careful steps
To this date, it remains unclear whether Japan or China who will have a considerable take in Indonesia’s move towards electric cars.
Nonetheless, in the midst of the potential rivalry between Beijing and Tokyo, Indonesia may take careful steps. The government in Jakarta will try to ensure that it would not hurt the two sides. It is likely to weigh the interests and opportunities of both parties.
On the one hand, it needs to maintain close relations with its long time partner in the automotive industry, while on the other hand it sees considerable opportunities in cheap Chinese raw materials.
The three authors are analysts on Indonesian political economy
China-Indonesia relations are expected to grow during Jokowi’s second term
Authors: Muhammad Zulfikar Rakhmat, Ramadha Valentine and Dimas Permadi*
The relationship between China and Indonesia seems to be increasing, especially in the field of trade economy, this is evidenced from the trade figures between the two countries which have reached 45.3 million. The relationship between the two countries is mainly focused on three sectors which include trade and business, politics and security, and people to people exchange. Some agreements also appear to have been agreed by both parties along with the increased visits of the two state actors in turn.
With the election of Joko Widodo in the second period recently, cooperation between the two countries is likely to increase.
To date, Indonesia has accepted 28 joint projects with a value of $ 91.1 billion, under the guise of the BRI. The projects include the Sei Mankei special economic zone; phase two for Kualanamu airport; clean energy development in the Kayan river in North Kalimantan; the construction of a special economic zone in Bitung, South Sulawesi, and Kura island in Bali. These projects were carried out by private parties from Indonesia and China.
The latest, Indonesia has also signed another BRI cooperation package in April 2019, which contains 23 cooperation packages in investment and trade projects. The cooperation package include the development of four economic corridors, the high-speed train and technology development project, and the development of education. The 23 projects have produced investment value of US $ 14.2 billion.
Several projects by China have not yet been fully realized in Indonesia. The projects that were initiated in the BRI collaboration still found obstacles such as budget and license. The realization of the budget in the amount of 50 billion USD has only touched the 3 billion USD figure, which means that some projects have not yet been implemented.
For this reason, China is expected to make maximum efforts to meet the target projects that have been initiated previously. This will also help China in covering up the issue of project failure faced by Indonesia and published by several international and national media.
Moreover, China’s expected efforts to accelerating the BRI project is in line with its goal to realize the BRI in 2049. That year was chosen along with the 100th anniversary of the founding of the People’s Republic of China. Indonesia’s territory which is quite strategic has become one of China’s attractions in making Indonesia one of the important routes for its BRI.
With some of the above explanation that some BRI projects have not been fully realized, these two things reinforce the reasons for China in accelerating the BRI project in Indonesia.
In addition, Jokowi’s previous leadership period focused on infrastructure investments. This can be seen with several Infrastructure projects that are currently being implemented in several regions of Indonesia. Nonetheless, these infrastructure projects have not yet been fully achieved, especially during the recent transition period whereby the government has been occupied with other issues.
In this context, Jokowi may see the BRI as opportunities for the Indonesian government which has a vision of equitable development in the country. Collaboration under the BRI is seen to benefit the Indonesian government in realizing its infrastructure development in the near future.
Recommendations for both
2To reap the full benefits of the expectedly growing China-Indonesia relations, there are several steps that should be taken by Indonesia and China. The Indonesian government should learn how other countries in Asia, such as Pakistan, Sri Lanka, Bangladesh, the Maldives, Kyrgyzstan, Tajikistan and Laos. They are countries that received investment from China that ended in a debt trap project, whereby they all had to give up all assets that had been financed from the Chinese project.
One example is how Malaysia renegotiated the BRI project, because Malaysia felt disadvantaged by the BRI project cooperation agreement. As a result, the projects’ costs are reduced from the initial agreement fee. Studying Malaysia’s policies, the Indonesian government should be aware of Indonesia’s position in cooperation with China, that Indonesia has a fairly high bargaining position. Because China needs Indonesia to achieve its economic goals in the BRI project, which would not have been possible without Indonesia.
In recent years along with the commencement of the BRI, China has made several efforts as a self-branding tool that aims to build its good image. In Indonesia, China began to introduce its country through various ways, one of which is cultural efforts such as through media and cultural efforts. However, this does not seem able to change the sentiment because the efforts are still limited and not widely implemented. To this date, negative perspectives on Chinese foreign investment is still found among the people who are contributing to the policy making of the Indonesian government.
In fulfilling its vision, China is expected to be able to use soft-power in building its image in ensuring its investments provide benefits that can boost national economic growth.
*Ramadha Valentine and Dimas Permadi are analysts on Indonesian political economy
Reducing gender gaps in Asia and Pacific essential to realizing region’s potential
Over the past two decades, the Asia and Pacific region has made progress in reducing gender gaps in certain areas, most notably education. According to the World Economic Forum’s 2018 Global Gender Gap Report, 6 out of 25 developing Asian countries had attained gender parity in education. In 12 out of 18 Asia Pacific countries analysed in the Report, women outnumber men in tertiary education enrolment rates.
However, these improvements in skills and professional training for women have not translated yet into progress towards equal economic and professional clout.
Gender gaps persist in labour force participation, gendered-segregation of the labour market, financial inclusion, and representation in senior managerial positions across the corporate world. This is the only region in the world where the labour force participation rate of women is declining. Meanwhile, a growing body of research on the future of work in the region has highlighted the high concentration of women in informal and vulnerable work, and that the bulk of unpaid care work is disproportionally being carried out by women.
Female participation in the labour force in 2018
ranged from 60.1% in East Asia at the top end of the spectrum to only 25.9% at
the bottom end in South Asia, according to the International Labour
Organization (ILO). When women do work, they are often segregated into
“feminized” sectors, where wages are typically lower. Wages are not yet equal.
In developing Asia, the gender wage gap (75%) is lower than the global average
Women’s share in managerial positions across Asia varies significantly. In the corporate sphere, three countries in this region are among the top 10 economies worldwide with women in senior management positions, higher than the global average of 25%. They are the Philippines at 39%, Thailand at 37%, and Indonesia at 36%. On the other hand, there are countries in the region at the lower end, for example Japan with only 7%.
Women’s representation on corporate boards is even lower than at the managerial level. This ranged from 11.6% in Indonesia to 1.9% in South Korea. In 2011, India and Malaysia established 30% mandatory gender diversity quotas for senior management and board positions in corporations. However, implementation has been slow. As of 2016, women accounted only for 8.6% on corporate boards in Malaysia and 5.2% in India.
Banking at the most senior management level in particular remains male territory in the region, since the share of female representation at this level reached only 6.9% on average, according to data gathered by the Financial Times.
While developing countries in Asia and Pacific are embracing new financial technology to make rapid progress on financial inclusion, the gender gap is felt here too. Women accounted for just 35% of bank depositors and borrowers in these countries in 2016.
Increasing women’s participation in the workforce and closing the wage gap would have a tremendous growth impact for the region. ILO in 2017 estimated that this could add $3.2 trillion to Asia and Pacific region economies.
Increasing women’s access to finance can have life-changing impacts on not only their lives, but those of their families and communities. For example, women-led small and medium-sized enterprises in Sri Lanka are benefitting from facilitated access to credit to grow their businesses through an ADB project, which has been further supplemented by a grant from the Women Entrepreneurs’ Finance Initiative (We-Fi). Since last year, over 323 women’s businesses, employing 3,934 people, have financially benefitted from the project.
Financial institutions targeting female clients will be more successful at understanding and responding to customers’ needs if their personnel mirrors the market. Including female professionals and managers in research product selection and marketing will lead to better custom-tailored products. That is one reason why ADB’s Trade Finance Program has been running a gender initiative to support its participating banks to improve its workplace gender equality/family-friendly policies.
There is growing evidence that gender equality in management and leadership results in higher productivity, more diverse decision-making, and better and more sustainable results. This is particularly true for female leaders in the banking sector. A study by the International Monetary Fund recently found that a higher share of female senior leaders is associated with greater stability and more prudent management.
Moreover, it is true for any type of organization that effective women leaders provide positive role models and contribute to changing social perceptions about women and girls. Policymakers and multilateral development banks like my own must lead by setting good examples, and work with the banking sector to address the gender gaps.
On its part, ADB is committed to accelerating progress in gender equality in its developing member countries. And it is championing the cause within its own institutional structure and corporate culture.
Among other sectors, ADB supports various projects with a gender focus in such areas as technical and vocational education and training, urban and water, rural development, transport, and renewable energy. It has also provided technical assistance for legal and judicial reforms in support of gender equality, as well as women’s leadership within government and communities at all levels.
Last year, 56% of ADB’s sovereign and nonsovereign lending at entry had strong gender design elements. ADB is setting even higher standards for itself. In July 2018, ADB’s Board of Directors approved a long-term corporate strategy called the Strategy 2030. Under this, ADB aims to ensure 75% of its projects in the public and private sector will include gender designs by 2030.
Strategy 2030 sets gender equality and women’s empowerment as one of its operational priorities for the next decade. ADB will promote women’s economic empowerment by expanding entrepreneurship opportunities for women and promoting their access to quality jobs in higher-paying sectors and the science, technology, engineering, and mathematics sectors where women struggle to enter.
ADB’s approach is also informed by a recognition of the importance of tackling discriminatory social norms and institutions. It includes supporting legal, institutional, and governance reforms at public level to explore measures are carried out to remove gender-based discrimination, enhance women’s participation in public resource allocation, and support leadership at all levels
Another major thrust is reducing the domestic responsibilities faced by women through improved water, electricity, and transport infrastructure. In the Asia Pacific, women spend from 2 to 11 times more time on unpaid care work (caring for family members, cooking, cleaning, fetching water, etc.) than men. That time spent represents an important barrier to pursuing economic pathways.
In 2016, ADB Management took bolder actions and set higher targets to improve workplace gender balance by enhancing recruitment of talented women, career management, training, development, and retention of female staff within ADB. ADB also has a gender target for various levels of management that is closely monitored and transparently reported upon. Leadership development programmes are now being conducted to prepare women for senior positions and enable senior staff to become better managers of diverse teams.
Gender equality will indeed be at the heart of ADB’s priorities under Strategy 2030 and across the institution.
On a wider scale, women’s empowerment is not just an objective in itself; it is essential to achieving inclusive and sustainable development in Asia and the Pacific. Given the economic, environmental, and technology challenges facing society in Asia and Pacific, it is about time to utilise the ingenuity, creativity, and energy of the region’s entire population. To do this, countries must fully engage women; and educate and empower them to allow for their contribution. At the same time, we should ensure we include, educate, and equip all men and boys for this transition to make this journey together and leave no one behind.
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