Indonesia is a market economy in which the state-owned enterprises SOEs and large private business groups conglomerates play a significant role. There are hundreds of diversified privately-held business groups in Indonesia a tiny fraction of the total amount of companies active in Indonesia that - together with the SOEs - dominate the domestic economy. As such, wealth is concentrated at the top of society and not unoften there are close links between the corporate and political top of the country.
This implies that these micro, small and medium sized companies are the backbone of the Indonesian economy. There are signs that Indonesia's economic growth is starting to accelerate again after the economic slowdown in the years As such we may be at the beginning of what can become another period of substantial economic growth. However, it should also be pointed out that Indonesia is a complex country that contains certain risks for investments and experiences difficulties due to the nation's unique dynamics and context.
In order to be aware of the risks involved we advise you to read our Risks of Investing in Indonesia section and to keep track of Indonesia's latest economic, political and social developments through our News section , Business section and Finance section. This section provides an outline of the current state of the Indonesian economy and discusses a number of important chapters in the economic history of Indonesia:. This section offers a detailed account regarding Indonesia's current economic structure and composition based on recent macroeconomic indicators, developments and achievements.
It also presents an introduction to the three main economic sectors of Indonesia agriculture, industry and services and expounds on the contribution of these three sectors to Indonesia's national economy. Read more about Indonesia's General Economic Outline. President Suharto's New Order government was characterized by rapid economic growth and a remarkable reduction in absolute poverty.
Both these achievements were reason that Indonesia became known to the West as an 'Asian Miracle' in the s and s. The ability to attract Chinese supporters is reinforced through technical cooperation and financial support to poor countries for implementation of development policies and social protection for their populations, such as building schools and hospitals in Peru, Ecuador, Africa, and of course in the same BRIC area, that's means Brazil or India. Growth in the middle class will be led by China, where we expect the number of people entering the middle class to peak during this decade.
Meanwhile, middle class growth in India will accelerate throughout this decade. As China and India are the world's two most populous countries, rising incomes there will have much greater impact on global demand than any other countries could Goldman Sachs, For Ferguson, China is doing a sort of altruism without conditioning countries: "The message is clear. The Chinese government in Africa is saying we will build up roads, and certain facilities for you, but you make sure that we will have access to the commodities and primary sources.
As to your domestic politics and human rights you do whatever that you like.
Emerging Markets: Definition, Characteristics, List
So, it seems to me that in terms of soft power China is making a rapid strikes and strong allies. China's influence worldwide is growing and in some parts of the world is greater than the USA" Ferguson, In agreement with Joseph Nye , the ability to establish preferences tends to be associated with intangible assets such as attractive personalities, culture, political values and institutions, and policies that are seen as legitimate or having moral authority. In this sense, China is creating an image to promote not only a positive attitude, but also a new system of allies, attracting countries that do not buy the idea that Western culture is the only model to follow.
Montbrial mentions that the BRIC's countries try to increase its power, through the extension of membership to other strategic countries such as Turkey or Egypt. The action of BRIC suggests that the relation of forces in medium and long term can tip over into the international arena in favour of a club of states that do not share the same history, the same feelings and values than the west countries Montbrial, a: 2. For Dodd, China is showing that it is possible to modernise without westernising a country: "This is a very attractive message for 1.
Therefore, the western soft power has been damaged, and the crisis of has undermined this power: "The interference of the USA in other countries has also weakened the American soft power. The damage is so severe that it can damage the whole of the west countries and democracy itself.
Now USA has one billion enemies in the world and China has not. If China continues growing in the region and in the rest of the world, democracy becomes less important" Dodd, b. The undermining of western soft power and the empowerment of BRIC is accelerated by the fact that the population is better educated than before, and the technology make easier to show abuses of governments. So, the whole world can see the weakness of the USA such as the poor conditions of prisoners, the high level of incarceration and the death penalty, and poor health care services.
The world of the twenty-first century seems to be more complex and unpredictable than even before. Multiple poles of power along with multicultural realities are the new variables that can define this new century. In this context, the objectives and hypothesis set out at the beginning of the text were analysed in terms that observe the presence of more actors in the global political system coming from different parts of the planet. The world has change irrevocably; the world has more than one soft power. The western has not finished yet, but "something profound" has changed as Dodd b says.
Financial and global power including, soft power not longer belong to one single country, and the BRIC is a new reality that we need to study deeply. The tragedy is that many western countries do not want to accept the changes of a new international reality, where they do not have a hegemonic position any more.
It is also observed that the BRIC is creating a new consensus among emerging economies and attracting more and more dissidents from western countries worldwide. Finally, it can be said that the new international transformations are been generated in the turbulent seas of globalization, technology and development of internet. The political, economic and social indicators are moving in different directions simultaneously, which give as a result a world full of risks and challenges. The global political system has five distinctive characteristics: complexity and diversity; intense patterns of interaction; the permeability of the nation-state; rapid and cascading change; and the fragility of order and governance.
The global political system embraces international organizations, bureaucratic fragments of governments, subnational government agencies, and a diverse ensemble of non-state bodies from transnational corporations to individuals, including social and class forces as well as transnational pressure groups and Non-Governmental organisations Mc Grew, They are countries in transition and they represent the most important emerging economies and potential markets including India, Brazil and Russia.
China alone, according to Khanna, is becoming a superpower Khanna, Economist, 15th April It is useful as a rational basis for justifying policies, and occurs as a natural outcome of international politics, whether or not diplomats or statements intend such as outcome. A dynamic equilibrium refers to an inherent systemic tendency to return to equilibrium each and every time the balance is upset.
Viotti and Kauppi In other words, this soft power -getting others to want the outcomes that you want- co-opts people rather than coerces them. Soft power rests on the ability to shape the preferences of others and selling the attractiveness of the country model Nye, 5. The globalization of world politics: an introduction to international relations. Oxford: Oxford University Press, Globalization and fragmentation: international relations in the twentieth century.
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World orders, old and new. New York: Columbia University Press, The globalisation issue. Independence , Cambridge, v.
DODD, P. Documentaries: soft power. Access: Dec. The ascent of money. London: Penguin Books, Global business: the history man. A historical perspective on the global financial crisis. Introduced by Peter Day. Access: May 15, Dreaming with Brics: The Path to Global Economics Paper , New York, n. BRIC Monthly. Global Economics , New York, n. Rethinking international relations. London: Macmillan, HILL, C. The changing politics of foreign policy. Why do well-established products fail in emerging markets? Is it lack of sensitivity to local culture or lack of adaptation to local marketing infrastructures?
Why do companies underestimate the cost of entering the emerging markets? What strategies can companies adapt to reduce these costs? Should a company extend its marketing mix or should it adjust it to suit the local markets? Is there a single recipe for all the emerging markets? How to put theory practice and develop a realistic and viable international marketing plan.
We shall use a 4-prong learning process for this course. Lectures by Faculty supported by readings 2.
Lectures by industry practitioners 3. Case Analysis 4. The companies can be from any sector and can vary in their size small, local or international. As the course requires students to make a marketing plan for a company, they will get feedback on the initial marketing plan proposal 1 hour per group during office hours.
The information for meeting hours and place will be uploaded on Canvas. Stephanie Jones