The challenge of the world food crisis is very real due to the unpredictable world politics. Many countries including Indonesia are quite worried about the current world economic instability. A number of countries responded in different ways to save their domestic food. Thus, this crisis brings not only a dilemma for countries that do not have sufficient food resources but also for countries that have sufficient food resources or countries that have food superiority in certain fields. The state must be able to have a solution policy so as not to get caught in a crisis because not a single country can survive without cooperation with other countries let alone food issues.
Indonesia as one of the countries with the largest palm oil plantations in the world and has become a major actor in meeting global palm oil demand. Indonesia is able to maintain its position as the largest palm oil producer in the world. Indonesia’s palm oil exports are getting bigger because the world’s sunflower seed oil potential is experiencing very high structural constraints. The obstacle in question is the conflict between Ukraine and Russia which causes sunflower seed oil to not be produced properly. In addition, sunflower seed oil and soybean oil experienced production constraints due to crop failures by the biggest soybean oil producers, namely Agentina and Paraguay experienced drought. In facing global climate uncertainty and world political instability, Indonesia must be more aware of the current situation and always ensure that Indonesia is able to face the challenges of political instability and the global climate.
In March 2022, Indonesia experienced a shortage of cooking oil because Indonesia was not able to control exports and control food oil entrepreneurs not to play the market as they saw the potential for profit because of the reduced competitors in oil producers who were considered able to increase their profits. This tends to be allowed but not done domestically. How ironic for an oil-producing country to experience an extraordinary oil scarcity. This creates a negative image of Indonesia’s domestic economic regulations and also triggers a high level of social conflict because people cannot afford to buy cooking oil at high prices. However, the Indonesian government has solved this problem by limiting the export of fried oil. However, the conflict between Ukraine and Russia is still going on and the world is still unable to solve the complex climate change problem with various climate change mitigations formulated in the Paris Agreement and the United Nations Framework Convention on Climate Change (UNFCCC) as well as the agenda of international development institutions such as UNDP-SDGs, World Bank, Organization for Economic Cooperation and Development (OECD), and G20. Indonesia must be more careful in entering into regional trade agreements to facilitate the implementation of exports. Indonesia’s participation in the Regional Comprehensive Economic Partnership (RCEP) has provided opportunities to reduce trade borders in the region and other member countries. This will have negative implications from Indonesia’s involvement in RCEP on the palm oil industry, domestic supply, employee welfare and the relationship between oil palm plantations and deforestation that triggers environmental damage. Thus, Indonesia must formulate the domino effect that occurs.
One of the things that Indonesia needs to do in dealing with this problem is to reorient trade policies to maintain its position as a palm oil producer and be able to maintain the domestic demand for cooking oil (food oil). This is done so that Indonesia is not trapped in the negative impact of market liberalization in the midst of the world food crisis. To withdraw the Indonesian government’s policy in dealing with the food oil crisis by increasing export tariffs. Learning from Japan in dealing with the Covid-19 pandemic crisis, the initial effort made by the Japanese government was to seek domestic food security. Quoting from Yoshida and Yagi (2021) that agriculture has a large buffer capacity to overcome the crisis. The Japanese government is developing urban agriculture as a strategy for resilience and sustainability for farmers in the face of the Covid-19 pandemic. Therefore this policy must be an example for Indonesia
The Indonesian government is still able to control policies regarding these problems. In accordance with the opinion of K.J. Holsti that foreign policy is an idea or idea in forming a formulation with the aim of solving problems that occur in a country. Thus the reason for Indonesia to increase palm oil export tariffs. In the midst of the world food oil crisis, increasing export tariffs is an economic policy step that will certainly be carried out by any country, not only Indonesia. The increase in tariffs was also due to Indonesia following fluctuations in world market prices.
Another threat that later emerged was the world economic challenge, the world food crisis due to world political instability, the ongoing COVID-19 pandemic and global climate change, which has yet to be resolved. This later emerged as a challenge that still gripped Indonesia and the world because a number of countries did not want to export food to other countries to meet domestic needs. President Joko Widodo in a meeting with 7 Jokowi volunteers stated that there were 22 countries that stopped their food needs for their domestic needs. In addition, the threat of a world crisis is increasing, citing the International Monetary Fund (IMF) and the World Bank, there are 40 countries experiencing severe economic shocks and are certain to collapse. As the younger generation, it is necessary to have a high sense of crisis to be able to carry out policy incentives as a solution for Indonesia. Indonesia is self-sufficient in food, but has not been able to survive this crisis well. Even though President Joko Widodo stated that Indonesia had stopped importing rice in the last 3 years with the strategy of building a dam to support rice farming in Indonesia. However, Indonesia is still hampered by imports of soybeans and wheat and other raw materials. Therefore, the government must implement the same policy strategy as rice farming so that soybeans and wheat do not depend on exports.
Indonesia must be aware that one of the largest wheat producing countries is trapped in a conflict. Ukraine as a “European Bread” basket country is still in a state of chaos, political instability so that the wheat food crisis will also have more potential to occur. The world food crisis triggered by international problems, namely world political instability must be an important concern for Indonesia not to be careless with the world situation. Thus, the government must be careful in dealing with unstable world politics. Competition in the interests of big countries has triggered an extraordinary economic crisis that has an impact on emerging countries such as Indonesia and developing countries. The solution is that Indonesia must have sufficient food self-sufficiency. If Indonesia can survive for three years not import rice by increasing the construction of dams to encourage better rice farming. So the same thing must be done on corn, soybean and wheat farming so that Indonesia can survive in facing the world food crisis.
Based on data from the World Bank in June 2022, inflation in developed countries has increased to 6.95% this year and the inflation rate in developing countries has increased to 9.37%. The increase in the inflation rate is expected to last for a long time because Russia’s invasion of Ukraine has not ended yet so that world food and energy prices will continue to rise. In addition, a number of countries in Africa and the Middle East have been affected by major food shortages due to closed trade routes. Thus the surge in inflation will pressure the central bank to tighten monetary policy in order to control prices. In addition, a number of countries will restrict food exports to foreign countries to maintain domestic food security. This should be a consideration for the Indonesian government to be able to survive in the face of this crisis. The ASEAN countries that are most concerned about rising inflation are Indonesia and Thailand. If inflation is high, it will weaken the country’s economy so that the threat of poverty and malnutrition becomes a big challenge for the Indonesian government.
Another Sri Lanka?: Pakistan’s Economic Crisis
Pakistan’s Finance Minister, Miftah Ismail warned of “bad days” ahead as he highlighted the looming economic crisis that the nation finds itself in. Addressing a ceremony at the Pakistan Stock Exchange, the Finance Minister blamed the economic policies taken by the erstwhile Tehreek-e-Insaf government for the dire economic state of the country.
A Nation in Crisis
Pakistan’s foreign-exchange reserves have shrunk by more than half in the past year, to just over $9 billion, or about six weeks’ worth of imports. In 2022, the Pakistani rupee has lost about 30 percent of its value against the US dollar. Furthermore, a rise in inflation and unemployment coupled with political instability has only made matters worse. The three major global rating agencies, Moody’s, Fitch, and S&P Global have downgraded Pakistan’s long-term rating from stable to negative, citing the country’s deteriorating economic position.
The current Pakistani government has blamed former Prime Minister Imran Khan for much of its economic woes. These accusations are not entirely unfounded. While he promised to rid Pakistan of its economic troubles, Mr. Khan failed to deliver. His regime saw an increased rate of inflation and widespread economic mismanagement. By March 2022, the country’s total external debt and liabilities reached $128 billion. Unemployment also surged with Pakistan Institute of Development Economics (PIDE) reporting 31% of the youth to be unemployed. The sudden dissolution of his government added fat to the fire, leading to political instability amid grave economic troubles. However, with a tenure of less than five years, blaming Imran Khan for all of Pakistan’s economic troubles seems far-fetched. Undoubtedly, the economy suffered under the Khan administration but this crisis stems from a much larger flawed system.
Economic Fault Lines
There are various structural flaws that can be located in the Pakistani economy that have time and again led to its unmaking.
The Khan administration is not solely responsible for the ongoing debt crisis. The IMF has provided loans to Pakistan on twenty-two occasions since 1958, imposing 13 Structural Adjustment Programmes (SAP). The focus of these programmes has been to stabilise the economy while sacrificing growth in the short term. However, Pakistan’s growth rate has consistently remained the lowest in South Asia since the introduction of the first SAP in 1988. The sustainability and feasibility of these IMF bailouts have also been brought into question considering the frequent visits Pakistan makes to the IMF requesting for bailouts. For instance, the last bailout Pakistan requested was in May 2019, just three years before the current crisis. Furthermore, the China–Pakistan Economic Corridor (CPEC) created a debt of $64 billion for Islamabad which was originally valued at $47 billion in 2014. The excessive borrowing to resolve short term issues has majorly contributed to Pakistan’s economic troubles.
Another major issue with the Pakistani economy is the huge trade deficit that the country incurs. Pakistan’s trade deficit currently stands at $48.66 billion, a record high. This enormous trade deficit has resulted from lack of exports in the face of steadily growing imports. As the industries fail to meet the requirements of the domestic market, Pakistan has to rely on imports for bridging the gap. Similarly, the exports suffer due to low productivity of agriculture and industries. According to the International Labour Organisation (ILO), Pakistan is ranked 143 out of 185 countries on labour productivity, having its GDP per hour worked at a measly $6.3.
Poor fiscal management and failure of the private sector to adapt to innovations has further shackled the Pakistani economy. All of these issues have contributed to the ensuing political instability.
Another Sri Lanka?
The past few months have witnessed the collapse of Sri Lanka from one of the top performing economies in South Asia to its descent into anarchy. With Pakistan in a similar crisis, it is widely argued that the country might be on its way to follow the island nation into a harrowing economic collapse. With the fate of Sri Lanka at display, it is also feared that escalating political instability might lead to an eventual military rule, as has been the norm in Pakistan.
While the situation is bad and might worsen in the coming days, Pakistan is unlikely to follow the Sri Lankan trajectory. The revival of a 2019 bailout with the IMF on July 13, clearing the way for about $1.2 billion, comes as a relief for Pakistan. This much needed help will allow the country to look for alternative channels to bridge the financing gap. The Pakistani military has also been playing an active role in stabilising the situation, with Army Chief Qamar Bajwa seeking financial help from friendly countries including UAE and Saudi Arabia. The involvement of such external lenders should discourage major creditors like China from requesting immediate repayments, easing the pressure on Islamabad. However, this requires the Pakistani government to keep a check on the steadily increasing imports.
While the present measures are likely to provide respite for now, even in the unlikely scenario of a Sri Lanka-like complete economic collapse, the military would not let the political situation in Pakistan slide into anarchy and is likely to take over by dissolving the government in the worst case.
The Way Ahead
Even though Pakistan might just evade the crisis through IMF involvement and bettering the trade deficit by curbing imports into the country, these are measures that tend to serve short term purposes and are no guarantee against another similar crisis in the coming years. The only sustainable answer would be initiating structural reforms. A self-sufficient economy must be at the heart of a rebuilding project. Increased productivity will facilitate an increase in exports while decreasing the imports on basic commodities like food and medicines. Finding economic stability is also detrimental to which path Pakistan’s politics will take in the future as the shadow of military rule looms large on the dwindling democratic set up which has managed to keep it in the barracks since 2008.
What Is Stopping Economic Development Across The Free World?
Notice the big events of economic booms during the last century and observe the unique role of mobilization of entrepreneurialism on such trajectories. For example, the original Silicon Valley of the USA was not a technology or financial revolution but the mobilization of an entrepreneurial journey, way before the term ‘IT’ became popular, and ‘technology’ conceptualized as worthy enough to trade in billions while staying invisible. The out-of-box thinkers came out of their garages, broke old systems, created new alternates and changed the world forever. Revolution of entrepreneurs, created by entrepreneurs and for entrepreneurs. The rest is history
Today, some 100 other nations are still trying hard with their own version to become the copycats. The existing lukewarm failures around the world on the replications of “silicon valley” of sorts, already speak volumes. Remember, only measured by entrepreneurialism, such goals, unless once Mindset Hypotheses properly understood this entire subject already beyond common narratives on economic growth.
Real economic development always needs methodical advancements of national mobilization of entrepreneurialism, upskilling and uplifting SME sectors to quadruple exportability otherwise, growth and productivity remain stagnant. The big challenges are to bring the entrepreneurial thinking and job creator mindsets blend across the economic development teams on a fast track basis. Their current frame of mind critically needs uplifting so their confidence level stands up to the global quality, demands for speed and execution able to tackle the power of global competitive forces.
Neither across the world, during the entire last decade, did academia build neither the long awaited Fourth Industrial Revolution nor did the bureaucracies digitized, mobilized and uplifted SME economies. Where is the entrepreneurial mix in all such equations? What have the economic development teams really learned recently? When will they get ready to advance their thinking and blend their efforts alongside the entrepreneurial engines and right mindsets?
When 100 plus nations, talking about digitization, are still trying to figure out mobilization of large sectors of their SME economies, with little or no progress, lingering questions arise. Necessitated now, are some newly mandated activities at every stage of any economic development in progress. Identify and rearrange right mindsets, for right challenges. What worked, last many decades, today, with no results, now ready for thrown out of windows? How long unlimited printing of currencies last, how high will inflation go and how long the recessions last?
The post-pandemic technologically advanced world, Best option is to balance mindsets and cause change, adjust to global age demands on productivity and performance, otherwise accept a diaper change, surrender to face frailty of life and limits of minds. It is not the absence of expertise that is a problem, it is the mindsets unable to recognize such expertise, in the first place.
The invisible switch: There is no political power unless there is a parallel economic power; after all, there cannot be any economic power without entrepreneurial job-creator-mindset power. Economies without digitization are as if without electricity, economic development without upskilled frontline teams as if without a bulb. Study the solutions via Mindset Hypothesis
The 4B factor: Four Billion on the march; billion displaced due to pandemic, billion replaced due to technology, billion misplaced in wrong jobs now a billion on starvation-watch. The 4B Factor, this digitally connected mass of people making this now the biggest force of global opinion in the history of time.
Global opinion v/s national public opinion: Observe, how fast the world changed, how the ocean of global opinion is now drowning ponds of national opinion. Notice, nations are already so intoxicated, in joy over the popularity of their own national opinion, while having just an opposite global opinion on the world stage. Study the global tidal waves.
Study the Agrarian Age to Industrial Age, later to Computer Age, measure how most talented ‘cow-hands’ were suddenly replaced by steam power and hydraulics and later floors filled with clerks replaced by a single computer. Study “How did we arrive here so suddenly” Excerpted Source: Naseem Javed, Sunrise, Day One, Year 2000. Published, IABC Communications World, Dec. 1995, Volume 12 Issue 11, Article, ‘Chronology Charts’
Over centuries, despite, available like an open book, the government failed to create armies of entrepreneurs but was always successful in creating real armies and real combat soldiers. Simply because, soldiers trained by sleeping in the forests while digging trenches in the rain, but not trained by running around in classrooms with water pistols or drawing pictures of tanks.
Entrepreneurialism is neither academia born nor academic centric. Let the professors teaching entrepreneurialism break the furniture in protest, their contributions, as theories are excellent only when free, but not for heavy cost and creating student debts. Today business education is more a liability and no longer a real asset. The world changed, minds opened, old-systems closing, new worlds arising with new definitions erupting to manage the future better.
Go build an airline, place aeronautical engineers, and frequent flyers in the cockpits but leave qualified trained pilots in the airport lobbies. Now glued to the radio to find about a crash understand the similarity to current pending financial crashes, nation by nation. As a test, best check out what percentage of entrepreneurial job creator mindsets are in the mix with job seeker mindsets of any local, national economic ministry anywhere in the free world.
Save economies and grab the solutions: They can rapidly upgrade and acquire Mastery on National Mobilization of Entrepreneurialism,learn its pragmatism and common sense deployments within months, acquire digitization, mobilization and most importantly to articulate on such advanced new thinking across the national agenda. Learn fast, fail fast, raise fast and shine. Study how Expothon is tabling such ideas globally.
Today, a shipload of some 7000 economic development officers, representingalmostthe total of top teams spread across free economies of the world should now take a luxury cruise, relax, relearn, unlearn, as their current mathematics is causing serious maladjustments on creating grassroots prosperity for some 100 nations. How fast can this force of 7000 people on a luxury cruise be upskilled on National Mobilization of SME Entrepreneurialism?
The difficult questions: How quickly options when infused with technology lead to mobilizations to discover new paths. Which economic leadership of free nations can display such transformation or even articulate on such critical topics? Which national or global institution is bold enough to face and debate such challenges? Which economic team is ready to test, explore, or try on such forbidden topics? Nevertheless, the world changing fast and will not stop for anyone.
Observing the change, it will not be the sudden arrival of missed Fourth Industrial Revolution; but the surprised arrival of the First Industrial Revolution of the Mind. Study deeply how the mind is opening up and responding to creative entrepreneurial issues, the old concept already dead, now replaced with new thinking. Leaving behind the woman entrepreneurs is another tragedy for any nation. What are some new solutions?
Just like today, we no longer tolerate square wheels or rotary dials, or chasing a form stamped 10 times, across a 10-floor building without a lift. The post pandemic economic recovery in smoke and mirror war games, will no longer tolerate the inefficiencies and bureaucracies. Of course, today, the ability to face the truth now considered extraordinary strength. Change can be beautiful, once minds opened.
Refusing to face the truth; this is where all the hostility and hate breeds, and where without diversity and tolerance, wars and fakery declared the common games, this is when humankind left as secondary, common good declared waste, societies destroyed, so who needs economic development, anyway? A new wave of grassroots economic development will emerge as the top-level economic development almost already destroyed. Hear the sounds of distant firings. It will be the five billion connected alpha dreamers, who will develop and change the world. The rest is easy
The first Africa-Caribbean Trade and Investment Forum Comes On 1-3 September at Barbados
With the new dawn gradually unfolding, African financial institutions such as the African Export-Import Bank (Afreximbank) are making tremendous efforts and offering support for African leaders in consolidating Africa’s economy within the framework of the African Union Agenda 2063. They have consistently been pushing to transform agriculture as the safest approach to reduce imports and insure food security, improve industrialization and the raise the efficiency of human resource capital in Africa.
The Government of the Republic of Barbados will be hosting the first ever edition of the AfriCaribbean Trade and Investment Forum (ACTIF) which is being convened by African Export-Import Bank (Afreximbank) and Government of Barbados in collaboration with African Union Commission (AUC), African Continental Free Trade Area (AfCFTA) Secretariat, Africa Business Council, the Caribbean Community Secretariat, and Caribbean Export Development Agency.
The African and Caribbean ties are deep rooted and based on shared history, culture, and sense of a common identity and destiny that was forged by the slave trade creating large centres of African Diaspora in the Caribbean and elsewhere. While Africa and the Caribbean have renewed their engagement, with a Heads of State and Government Summit of the Caribbean Community and Africa, held on 7 September 2021, the relationship needs to be institutionalized through deepening of trade and investment ties between the two regions.
The holding of the inaugural Africa-Caribbean Trade and Investment Forum is, therefore, a key strategic deliverable towards the institutionalisation of the reborn relationship between Africa and the Caribbean. This Forum will further consolidate the political agreement reached by Heads of State and Government of the Caribbean Community and which aims to strengthen collaboration, unity and to foster increased trade, investment and people-to-people engagement between the two regions.
It is in this context that the inaugural Africa Caribbean Trade and Investment Forum (ACTIF), has been organized to hold during 1-3 September at Bridgetown, Barbados. The Forum dubbed: AfriCaribbean Trade and Investment Forum 2022, will hold under the theme “One People, One Destiny. Uniting and Reimagining Our Future” vividly reflecting the common cultural aspirations.
The main goal of the AfriCaribbean Trade and Investment Forum is to provide a platform for the development of strategic partnerships between the business communities in Africa and the CARICOM Region with the objective of fostering bilateral cooperation and engagement in trade, investment, technology transfer, innovation, tourism, culture and other services. The Forum will also be used as a vehicle to actively promote trade and investment opportunities among people of Africa and the Caribbean, as well as the wider diaspora which will contribute to the implementation of the African Continental Free Trade Agreement (AfCFTA) and to the Caribbean trade development agenda.
Africa leaders and its people highly appreciate the readiness of external countries, who in practical terms, engage in infrastructure development, agriculture and industry especially at the dawn of the rapid geopolitical changes possibly leading to creating a new global economic order. Noting the significance, a number of countries are simultaneously trying to understand barriers in the region and are steadily exploring ways to leverage unto the newly created AfCFTA which provides a unique and valuable platform for businesses to access an integrated African market of over 1.3 billion people in Africa.
Young workers have been hit hardest by COVID fallout
The number of young people globally who can’t find a job this year is set to reach 73 million –...
Ukraine: Amnesty International revealed the unpleasant truth
Ukrainian forces have threatened civilians by setting up bases and operating weapons systems in populated areas, including schools and hospitals,...
Dozens missing after migrant boat sinks in Aegean Sea
Dozens of people are said to be missing after a boat of migrants and refugees sank in the Aegean Sea...
Should the West Assume Collective Responsibility for the Failure of Biden’s Visit to Saudi Arabia?
In July of this year, Joe Biden visited Israel and Saudi Arabia for the first time as US president. It...
In conversation with Manasi Gupta about Hues of the Mind
Manasi Gupta is a social entrepreneur and an engineer by profession. At the age of nineteen, she founded Huesofthemind, a...
Ethiopia: Without immediate funding, 750,000 refugees will have ‘nothing to eat’
UN agencies appealed on Tuesday for $73 million over the next six months to provide food rations to more than...
Victor Orban’s eyes may be bigger than his stomach
When Prime Minister Victor Orban recently spelled out his vision of Hungary’s frontiers, he joined a club of expansionist leaders...
East Asia3 days ago
On Chinese Democracy
Science & Technology4 days ago
Expanding Information Technology: A boon or bane?
Intelligence3 days ago
Al-Qaeda, ISIS, Taliban and the Modus Operandi of Jihadi Terrorism in Africa
Russia4 days ago
The Moscow–Tehran Axis: Alliance without Rigid Obligations
Middle East2 days ago
An updated Chinese strategy towards the Arab region: Evidence from Saudi Arabia
South Asia4 days ago
The two Punjabs
Middle East2 days ago
Iraq Must Recognize Assyrians as its Indigenous People
Economy3 days ago
Seventh Package of Sanctions against Russia Presents Unaccounted-for Risks