A debate has been sparked in the U.S. on how to move forward in navigating the
turbulent ocea... more A debate has been sparked in the U.S. on how to move forward in navigating the
turbulent ocean of international affairs. The debate focuses on the wisdom of retrenchment on one side
and maintaining American engagement in the world on the other side. In short, the retrenchment
advocates believe that modest decline of U.S. power, combined with a relatively benign international
environment, has provided the U.S. with a unique opportunity to reduce its foreign policy commitments
in a measured manner that will not only slow down its decline but also help its recovery . While the engagement advocates argue that actively engage in global security and
promoting the liberal economic order has served the U.S. exceptionally well for the past six decades,
and a world without an engaged and liberal leading power could be a disastrous world.
t his paper reviews the arguments on this debate by discussing that the question for America has changed; from taming itself post the credibility-shattering Iraq war to realizing what are to lose if the U.S. ignore the importance of deterrence capability
as an alarm to potential foes and assurance to allies in maintaining the liberal international order .
"Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) drew a tremendous att... more "Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) drew a tremendous attention since it was incorporated as one of the core agreements constituting the World Trade Organization (WTO). Positions are mainly divided into two mainstreams: some hold that expansion of IPR is an obstacle to growth and development, while on the other hand, some believe that IPR is beneficial to both developed and developing countries. Therefore, the focus of this study is to answer the following empirical questions: How does IPR protection affect trade? Does IPR protection have the same impact on trade across countries, or are there systematic differences conditioned on the stage of development?
This study analyzes the impacts of IPR protection on international trade. We examined the effects of IPR protection index, Gross Domestic Product, population, tariffs, inflation, infrastructure, trade growth, and Foreign Direct Investment on trade volume. Our specifications also use interaction models between IPR protection index and stages of development of countries, which are classified into three different classes: factor-driven, efficiency-driven, and innovation-driven countries.
The results show that IPR protection has basically negative effects on trade volume, especially for factor-driven countries. Nevertheless, the negative effects of IPR will be diminishing as its development level higher. This demonstrates that there are different impacts of IPR protection on trade depending on economic development level. For factor-driven economies, higher IPR protection may hinder its capacity to develop their economies, but for efficiency-driven and innovation-driven economies, IPR protection would have less impact on trade by itself so these countries should look at other factors in order to consider their adequate level of IPR protection."
This paper analyzes the systemic implications of mega PTAs, from potential
gains to unintended ... more This paper analyzes the systemic implications of mega PTAs, from potential
gains to unintended political repercussions that may arise. This paper is of the view that mega
PTAs will help advance the multilateral trading system regu lations but with risks invo lved. Further on,
this paper concludes that comprehensive liberalization with openness to new members for harmonizing
rules combined with strengthening the WTO will help minimize the trade -diverting effects of
mega PTAs and increase the chances of multilateralization.
This paper aims to examine the likely evolution of these four large trading
nations and their ... more This paper aims to examine the likely evolution of these four large trading
nations and their interaction through international trade as well as the impact on global trade governance.
This paper will first discuss the evolution of international trade in brief as a background to determine the
fundamental forces shaping the future of international trade that will affect the likely evolution of the
United States, European Union, Japan, and China. Then this paper will discuss each of these four
economies separately followed by analysis on the their likely interaction and its policy implications for
the global governance through WTO.
With a market being built for REDD carbon credit, and with REDD pilot projects implementations al... more With a market being built for REDD carbon credit, and with REDD pilot projects implementations already going on in Brazil, Indonesia, and Cambodia, it is necessary to asses further the benefits of implementing REDD in Indonesia. There are opportunity costs involved, and not insignificant development, implementation, and transaction costs of the REDD program itself. This paper aims to analyze whether or not REDD is able to strike an economic balance inthe management of forests so that their formidable economic, environmental and social goods and services benefit countries, communities, biodiversity and forest users while also contributing to important reductions in greenhouse gas emissions.
This paper conducts a cost-benefit analysis comparing two scenarios: Converting 18 million ha of forests into palm oil plantations or conserving the same area (leave the area undisturbed, preserving the concessions for REDD program). The concession area of 18 million ha is based on the area of forests that are suitable for palm oil plantations (Indonesian Palm Oil Association/GAPKI, 2009).
There are various stakeholders involved in the implementation of the REDD program in Indonesia ranging from indigenous people, private sector, local government, national government, to the global community since reduction in greenhouse gasses emission benefits the whole world. However, since the objective of this paper is to be able to outline a preliminary and general finding of program implementation for the national Government of Indonesia in negotiating and shaping the development of REDD, this paper will focus on the aggregate costs and benefits for Indonesia as a whole economy to present a society wide-picture.
The paper will try to identify the underlying prospective and realized costs and benefits from implementing REDD program in Indonesia. It will be followed by explanations of the methodology used in estimating the most relevant costs and benefits identified in the previous section. The paper will then outline the ideal estimation of all the most relevant costs and benefits based on the data and information available from the literature review and various data sources. A sensitivity analysis will also be presented focusing on the sensitivity of the cost-benefit analysis to the discount rate, and price of REDD credit in the carbon market. The paper then concludes with policy recommendation, possible improvements of policy, and the needs for further study.
Globalization, with its benign and malign effects, has the central tendency to bring benefits for... more Globalization, with its benign and malign effects, has the central tendency to bring benefits for everyone. However, it poses institutional and policy challenges both at the national and international level that require coherent approaches in order to ensure the benign effects to be realized. Policies and institutions should be tailored, and nation-states should be willing to face the trade-offs of delegating national power to make it work. One thing is sure: globalization exists, despite its non-modal tendency of being bad. Just as with fire, humanity keeps on using it, despite its tendency to burn. The key is to master both the management and governance of globalization, so that the world can harness the benefits. This paper addresses the basic question why the world is still fragmented in more than 200 economies and not just integrated into a single one through globalization. In addressing this question, it is necessary to first define globalization. This paper borrows Bhagwati’s definition of globalization, focusing mostly on economic globalization, i.e. the integration of national economies into an international economy (economic openness) through trade, investment, capital flows, international flows of worker, and flows of technology (p.3 2004). In addressing the question on globalization, this paper looks at the bright and the dark side of globalization, as well as the sources of its discontents. Further, this paper also outlines the required management of globalization at two levels of analysis, national and international, and the governance that must accompany globalization to make it work for everyone is assessed.
Previous research emphasized the role of “something else” besides factor accumulation as the reas... more Previous research emphasized the role of “something else” besides factor accumulation as the reason behind economic development divergence, which could be factors such as technology, geography, demography, international integration, and institutions. These factors and institutions are mutually affecting one another. The general strategy for sustained growth in developing countries is to realize that principles of growth sources do not translate directly into specific policy recommendations and/or institutions. Local conditions matter not because economic principles change from place to place, but because those principles come institution-free, and filling them out requires local knowledge (p.55 Rodrik 2007). Finding the right package in aiming for economic development might be the way to achieve sustainable growth in developing countries. Institutional reforms are easier to undertake in an environment of growth rather than stagnation. Combined, this suggests that successful growth strategies are based on a two-pronged effort: a short-run strategy aimed at stimulating growth, and a medium to long-run strategy aimed at sustaining growth (p.44 Rodrik 2007). After its ignition, to sustain growth and economic development, developing countries need to focus on institution-building strategies. In the long run, the acquisition of high-quality institutions, which can take a multitude of forms, is needed to ensure convergence with the living standards of developed countries.
International coordination might not be the only factor in restoring global growth, but in a worl... more International coordination might not be the only factor in restoring global growth, but in a world where interdependency has reached an unprecedented level, it will help if policies are coordinated to make the global economy function for the benefit of all. For the US this must involve addressing the core problem of un-employment. The Euro-zone must realize that public and private deleveraging process should not happen at the same time. And the developing world must keep encouraging domestic consumption, raising real wages, and increasing South-South trade relations.
Although it is not the only variable that matters in restoring global growth, international coordination is vital in the effort of economic recovery, for a chain is only as strong as its weakest link.
ABSTRACT This article describes answers of two research questions. First, reasons why Sovereign W... more ABSTRACT This article describes answers of two research questions. First, reasons why Sovereign Wealth Funds (SWF) was chosen as organizer ofiiquidity surplus in Gulf Cooperation Council (GCC) are. Second, how do GCC countries' strategies to ...
A debate has been sparked in the U.S. on how to move forward in navigating the
turbulent ocea... more A debate has been sparked in the U.S. on how to move forward in navigating the
turbulent ocean of international affairs. The debate focuses on the wisdom of retrenchment on one side
and maintaining American engagement in the world on the other side. In short, the retrenchment
advocates believe that modest decline of U.S. power, combined with a relatively benign international
environment, has provided the U.S. with a unique opportunity to reduce its foreign policy commitments
in a measured manner that will not only slow down its decline but also help its recovery . While the engagement advocates argue that actively engage in global security and
promoting the liberal economic order has served the U.S. exceptionally well for the past six decades,
and a world without an engaged and liberal leading power could be a disastrous world.
t his paper reviews the arguments on this debate by discussing that the question for America has changed; from taming itself post the credibility-shattering Iraq war to realizing what are to lose if the U.S. ignore the importance of deterrence capability
as an alarm to potential foes and assurance to allies in maintaining the liberal international order .
"Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) drew a tremendous att... more "Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) drew a tremendous attention since it was incorporated as one of the core agreements constituting the World Trade Organization (WTO). Positions are mainly divided into two mainstreams: some hold that expansion of IPR is an obstacle to growth and development, while on the other hand, some believe that IPR is beneficial to both developed and developing countries. Therefore, the focus of this study is to answer the following empirical questions: How does IPR protection affect trade? Does IPR protection have the same impact on trade across countries, or are there systematic differences conditioned on the stage of development?
This study analyzes the impacts of IPR protection on international trade. We examined the effects of IPR protection index, Gross Domestic Product, population, tariffs, inflation, infrastructure, trade growth, and Foreign Direct Investment on trade volume. Our specifications also use interaction models between IPR protection index and stages of development of countries, which are classified into three different classes: factor-driven, efficiency-driven, and innovation-driven countries.
The results show that IPR protection has basically negative effects on trade volume, especially for factor-driven countries. Nevertheless, the negative effects of IPR will be diminishing as its development level higher. This demonstrates that there are different impacts of IPR protection on trade depending on economic development level. For factor-driven economies, higher IPR protection may hinder its capacity to develop their economies, but for efficiency-driven and innovation-driven economies, IPR protection would have less impact on trade by itself so these countries should look at other factors in order to consider their adequate level of IPR protection."
This paper analyzes the systemic implications of mega PTAs, from potential
gains to unintended ... more This paper analyzes the systemic implications of mega PTAs, from potential
gains to unintended political repercussions that may arise. This paper is of the view that mega
PTAs will help advance the multilateral trading system regu lations but with risks invo lved. Further on,
this paper concludes that comprehensive liberalization with openness to new members for harmonizing
rules combined with strengthening the WTO will help minimize the trade -diverting effects of
mega PTAs and increase the chances of multilateralization.
This paper aims to examine the likely evolution of these four large trading
nations and their ... more This paper aims to examine the likely evolution of these four large trading
nations and their interaction through international trade as well as the impact on global trade governance.
This paper will first discuss the evolution of international trade in brief as a background to determine the
fundamental forces shaping the future of international trade that will affect the likely evolution of the
United States, European Union, Japan, and China. Then this paper will discuss each of these four
economies separately followed by analysis on the their likely interaction and its policy implications for
the global governance through WTO.
With a market being built for REDD carbon credit, and with REDD pilot projects implementations al... more With a market being built for REDD carbon credit, and with REDD pilot projects implementations already going on in Brazil, Indonesia, and Cambodia, it is necessary to asses further the benefits of implementing REDD in Indonesia. There are opportunity costs involved, and not insignificant development, implementation, and transaction costs of the REDD program itself. This paper aims to analyze whether or not REDD is able to strike an economic balance inthe management of forests so that their formidable economic, environmental and social goods and services benefit countries, communities, biodiversity and forest users while also contributing to important reductions in greenhouse gas emissions.
This paper conducts a cost-benefit analysis comparing two scenarios: Converting 18 million ha of forests into palm oil plantations or conserving the same area (leave the area undisturbed, preserving the concessions for REDD program). The concession area of 18 million ha is based on the area of forests that are suitable for palm oil plantations (Indonesian Palm Oil Association/GAPKI, 2009).
There are various stakeholders involved in the implementation of the REDD program in Indonesia ranging from indigenous people, private sector, local government, national government, to the global community since reduction in greenhouse gasses emission benefits the whole world. However, since the objective of this paper is to be able to outline a preliminary and general finding of program implementation for the national Government of Indonesia in negotiating and shaping the development of REDD, this paper will focus on the aggregate costs and benefits for Indonesia as a whole economy to present a society wide-picture.
The paper will try to identify the underlying prospective and realized costs and benefits from implementing REDD program in Indonesia. It will be followed by explanations of the methodology used in estimating the most relevant costs and benefits identified in the previous section. The paper will then outline the ideal estimation of all the most relevant costs and benefits based on the data and information available from the literature review and various data sources. A sensitivity analysis will also be presented focusing on the sensitivity of the cost-benefit analysis to the discount rate, and price of REDD credit in the carbon market. The paper then concludes with policy recommendation, possible improvements of policy, and the needs for further study.
Globalization, with its benign and malign effects, has the central tendency to bring benefits for... more Globalization, with its benign and malign effects, has the central tendency to bring benefits for everyone. However, it poses institutional and policy challenges both at the national and international level that require coherent approaches in order to ensure the benign effects to be realized. Policies and institutions should be tailored, and nation-states should be willing to face the trade-offs of delegating national power to make it work. One thing is sure: globalization exists, despite its non-modal tendency of being bad. Just as with fire, humanity keeps on using it, despite its tendency to burn. The key is to master both the management and governance of globalization, so that the world can harness the benefits. This paper addresses the basic question why the world is still fragmented in more than 200 economies and not just integrated into a single one through globalization. In addressing this question, it is necessary to first define globalization. This paper borrows Bhagwati’s definition of globalization, focusing mostly on economic globalization, i.e. the integration of national economies into an international economy (economic openness) through trade, investment, capital flows, international flows of worker, and flows of technology (p.3 2004). In addressing the question on globalization, this paper looks at the bright and the dark side of globalization, as well as the sources of its discontents. Further, this paper also outlines the required management of globalization at two levels of analysis, national and international, and the governance that must accompany globalization to make it work for everyone is assessed.
Previous research emphasized the role of “something else” besides factor accumulation as the reas... more Previous research emphasized the role of “something else” besides factor accumulation as the reason behind economic development divergence, which could be factors such as technology, geography, demography, international integration, and institutions. These factors and institutions are mutually affecting one another. The general strategy for sustained growth in developing countries is to realize that principles of growth sources do not translate directly into specific policy recommendations and/or institutions. Local conditions matter not because economic principles change from place to place, but because those principles come institution-free, and filling them out requires local knowledge (p.55 Rodrik 2007). Finding the right package in aiming for economic development might be the way to achieve sustainable growth in developing countries. Institutional reforms are easier to undertake in an environment of growth rather than stagnation. Combined, this suggests that successful growth strategies are based on a two-pronged effort: a short-run strategy aimed at stimulating growth, and a medium to long-run strategy aimed at sustaining growth (p.44 Rodrik 2007). After its ignition, to sustain growth and economic development, developing countries need to focus on institution-building strategies. In the long run, the acquisition of high-quality institutions, which can take a multitude of forms, is needed to ensure convergence with the living standards of developed countries.
International coordination might not be the only factor in restoring global growth, but in a worl... more International coordination might not be the only factor in restoring global growth, but in a world where interdependency has reached an unprecedented level, it will help if policies are coordinated to make the global economy function for the benefit of all. For the US this must involve addressing the core problem of un-employment. The Euro-zone must realize that public and private deleveraging process should not happen at the same time. And the developing world must keep encouraging domestic consumption, raising real wages, and increasing South-South trade relations.
Although it is not the only variable that matters in restoring global growth, international coordination is vital in the effort of economic recovery, for a chain is only as strong as its weakest link.
ABSTRACT This article describes answers of two research questions. First, reasons why Sovereign W... more ABSTRACT This article describes answers of two research questions. First, reasons why Sovereign Wealth Funds (SWF) was chosen as organizer ofiiquidity surplus in Gulf Cooperation Council (GCC) are. Second, how do GCC countries' strategies to ...
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Papers by Erry Prasetyo
turbulent ocean of international affairs. The debate focuses on the wisdom of retrenchment on one side
and maintaining American engagement in the world on the other side. In short, the retrenchment
advocates believe that modest decline of U.S. power, combined with a relatively benign international
environment, has provided the U.S. with a unique opportunity to reduce its foreign policy commitments
in a measured manner that will not only slow down its decline but also help its recovery . While the engagement advocates argue that actively engage in global security and
promoting the liberal economic order has served the U.S. exceptionally well for the past six decades,
and a world without an engaged and liberal leading power could be a disastrous world.
t his paper reviews the arguments on this debate by discussing that the question for America has changed; from taming itself post the credibility-shattering Iraq war to realizing what are to lose if the U.S. ignore the importance of deterrence capability
as an alarm to potential foes and assurance to allies in maintaining the liberal international order .
This study analyzes the impacts of IPR protection on international trade. We examined the effects of IPR protection index, Gross Domestic Product, population, tariffs, inflation, infrastructure, trade growth, and Foreign Direct Investment on trade volume. Our specifications also use interaction models between IPR protection index and stages of development of countries, which are classified into three different classes: factor-driven, efficiency-driven, and innovation-driven countries.
The results show that IPR protection has basically negative effects on trade volume, especially for factor-driven countries. Nevertheless, the negative effects of IPR will be diminishing as its development level higher. This demonstrates that there are different impacts of IPR protection on trade depending on economic development level. For factor-driven economies, higher IPR protection may hinder its capacity to develop their economies, but for efficiency-driven and innovation-driven economies, IPR protection would have less impact on trade by itself so these countries should look at other factors in order to consider their adequate level of IPR protection."
gains to unintended political repercussions that may arise. This paper is of the view that mega
PTAs will help advance the multilateral trading system regu lations but with risks invo lved. Further on,
this paper concludes that comprehensive liberalization with openness to new members for harmonizing
rules combined with strengthening the WTO will help minimize the trade -diverting effects of
mega PTAs and increase the chances of multilateralization.
nations and their interaction through international trade as well as the impact on global trade governance.
This paper will first discuss the evolution of international trade in brief as a background to determine the
fundamental forces shaping the future of international trade that will affect the likely evolution of the
United States, European Union, Japan, and China. Then this paper will discuss each of these four
economies separately followed by analysis on the their likely interaction and its policy implications for
the global governance through WTO.
This paper conducts a cost-benefit analysis comparing two scenarios: Converting 18 million ha of forests into palm oil plantations or conserving the same area (leave the area undisturbed, preserving the concessions for REDD program). The concession area of 18 million ha is based on the area of forests that are suitable for palm oil plantations (Indonesian Palm Oil Association/GAPKI, 2009).
There are various stakeholders involved in the implementation of the REDD program in Indonesia ranging from indigenous people, private sector, local government, national government, to the global community since reduction in greenhouse gasses emission benefits the whole world. However, since the objective of this paper is to be able to outline a preliminary and general finding of program implementation for the national Government of Indonesia in negotiating and shaping the development of REDD, this paper will focus on the aggregate costs and benefits for Indonesia as a whole economy to present a society wide-picture.
The paper will try to identify the underlying prospective and realized costs and benefits from implementing REDD program in Indonesia. It will be followed by explanations of the methodology used in estimating the most relevant costs and benefits identified in the previous section. The paper will then outline the ideal estimation of all the most relevant costs and benefits based on the data and information available from the literature review and various data sources. A sensitivity analysis will also be presented focusing on the sensitivity of the cost-benefit analysis to the discount rate, and price of REDD credit in the carbon market. The paper then concludes with policy recommendation, possible improvements of policy, and the needs for further study.
Although it is not the only variable that matters in restoring global growth, international coordination is vital in the effort of economic recovery, for a chain is only as strong as its weakest link.
turbulent ocean of international affairs. The debate focuses on the wisdom of retrenchment on one side
and maintaining American engagement in the world on the other side. In short, the retrenchment
advocates believe that modest decline of U.S. power, combined with a relatively benign international
environment, has provided the U.S. with a unique opportunity to reduce its foreign policy commitments
in a measured manner that will not only slow down its decline but also help its recovery . While the engagement advocates argue that actively engage in global security and
promoting the liberal economic order has served the U.S. exceptionally well for the past six decades,
and a world without an engaged and liberal leading power could be a disastrous world.
t his paper reviews the arguments on this debate by discussing that the question for America has changed; from taming itself post the credibility-shattering Iraq war to realizing what are to lose if the U.S. ignore the importance of deterrence capability
as an alarm to potential foes and assurance to allies in maintaining the liberal international order .
This study analyzes the impacts of IPR protection on international trade. We examined the effects of IPR protection index, Gross Domestic Product, population, tariffs, inflation, infrastructure, trade growth, and Foreign Direct Investment on trade volume. Our specifications also use interaction models between IPR protection index and stages of development of countries, which are classified into three different classes: factor-driven, efficiency-driven, and innovation-driven countries.
The results show that IPR protection has basically negative effects on trade volume, especially for factor-driven countries. Nevertheless, the negative effects of IPR will be diminishing as its development level higher. This demonstrates that there are different impacts of IPR protection on trade depending on economic development level. For factor-driven economies, higher IPR protection may hinder its capacity to develop their economies, but for efficiency-driven and innovation-driven economies, IPR protection would have less impact on trade by itself so these countries should look at other factors in order to consider their adequate level of IPR protection."
gains to unintended political repercussions that may arise. This paper is of the view that mega
PTAs will help advance the multilateral trading system regu lations but with risks invo lved. Further on,
this paper concludes that comprehensive liberalization with openness to new members for harmonizing
rules combined with strengthening the WTO will help minimize the trade -diverting effects of
mega PTAs and increase the chances of multilateralization.
nations and their interaction through international trade as well as the impact on global trade governance.
This paper will first discuss the evolution of international trade in brief as a background to determine the
fundamental forces shaping the future of international trade that will affect the likely evolution of the
United States, European Union, Japan, and China. Then this paper will discuss each of these four
economies separately followed by analysis on the their likely interaction and its policy implications for
the global governance through WTO.
This paper conducts a cost-benefit analysis comparing two scenarios: Converting 18 million ha of forests into palm oil plantations or conserving the same area (leave the area undisturbed, preserving the concessions for REDD program). The concession area of 18 million ha is based on the area of forests that are suitable for palm oil plantations (Indonesian Palm Oil Association/GAPKI, 2009).
There are various stakeholders involved in the implementation of the REDD program in Indonesia ranging from indigenous people, private sector, local government, national government, to the global community since reduction in greenhouse gasses emission benefits the whole world. However, since the objective of this paper is to be able to outline a preliminary and general finding of program implementation for the national Government of Indonesia in negotiating and shaping the development of REDD, this paper will focus on the aggregate costs and benefits for Indonesia as a whole economy to present a society wide-picture.
The paper will try to identify the underlying prospective and realized costs and benefits from implementing REDD program in Indonesia. It will be followed by explanations of the methodology used in estimating the most relevant costs and benefits identified in the previous section. The paper will then outline the ideal estimation of all the most relevant costs and benefits based on the data and information available from the literature review and various data sources. A sensitivity analysis will also be presented focusing on the sensitivity of the cost-benefit analysis to the discount rate, and price of REDD credit in the carbon market. The paper then concludes with policy recommendation, possible improvements of policy, and the needs for further study.
Although it is not the only variable that matters in restoring global growth, international coordination is vital in the effort of economic recovery, for a chain is only as strong as its weakest link.