In the state, of course, not only political content but also economic, ideological, defense, cultural, social, and security issues. Understanding economics is very important. Historical facts show that Indonesia is four years older than China, Indonesia was founded in 1945, and China was founded in 1949. Indonesia's GDP (Gross Domestic Product) per capita is currently around 4,300 dollars, China's per capita is 15,800 dollars, Singapore became independent in 1965 and was 20 years younger than Indonesia, and GDP per capita is 59,500 dollars.
Indonesia is far behind. We admit that there is indeed something wrong in managing the potential of the Indonesian state in the current seven presidencies and the direction of the state and the Nation's Interest is not yet a Work Class. But if we are a nation looking for safety, then we will compare it with other weaker countries such as saying Ethiopia is still poor, Myanmar is still poor, India is still under Indonesia, for this it is up to you to look at yourself, feel we are under-performing or feel we are enough as it is now is what is right and what is best for your country.
Studying geoeconomics, studying the state from the economic side. We go into the passage of time and go back in time, to the 1980s. The heyday of breakdancing, punk music, punk hair, over-the-shoulder suits, Walkmans, cassettes, etc.
Pop culture and the explosion of new technology occurred in Indonesia and certainly happened all over the world during the 1980s. The joy on the other side is dark. In Latin America, the 80s were a year of disaster, even Latin America called the 80s the Lost Decade.
Why? because they were facing financial turmoil, and severe financial problems, Debt Typhoon hit the Latin American economy because in the 80s there were two oil price increases, namely Oil Price Shock!! which makes many Latin American countries into trade balance deficits.
Mexico was the first country to collapse and go bankrupt in 1982, declaring that the country was unable to pay its debts, it turned out to have created a domino effect in various Latin American countries which also had huge national debts, then Brazil declared itself bankrupt, then Chile, Argentina, Colombia, Venezuela. , one by one collapsing like Domino's, their country faces a deep recession in debt as high as a mountain, high inflation, unemployment rising dramatically, and a slow-growing economy that doesn't even grow.
We Fast Forward to the time machine again, to 3 decades later to the present, will history repeat itself? we see countries around the world today, many developing countries are currently struggling to deal with sovereign debt or a crisis facing national debt, one of which is Sri Lanka.
Sri Lanka's economy has collapsed, debt has piled up, foreign exchange reserves are only one month left to buy products for national needs that Sri Lanka cannot produce, and the worst thing is that Sri Lanka's daily basic needs are 60% relying on imports, this all happened because Sri Lanka mismanagement managed the country's potential, they spend more than their country's income, the State Budget is always minus plus there are other factors that happened to other countries such as Sri Lanka, the effects of the pandemic for two years made the economy slow down around the world, increasing loans from weak countries and the invasion of Russia to Ukraine resulted in increased prices of oil and natural gas and drastically reduced food prices and world food availability.
What is happening in Sri Lanka right now? Will the mutation bring a domino effect like in the '80s, in 1982, which started with Mexico, what happened this year in Sri Lanka?
Will it become a mutation and spread throughout the world of this Sri Lanka Way? is Sri Lanka a "Canary in the Coal Mine"? this is an idiom sentence that means "Early Warning" will be a sign of danger. The canaries are birds that often sound at the beginning of the coal mine being explored, which indicates the possible danger of sulfur effects and environmental damage to the coal.
We go back to the time machine on February 9, 2022, before Russia invaded Ukraine, on February 15, 2022, where the World Bank warned the world that the debts of developing countries were in crisis due to the effects of the pandemic and economic slowdown.
The World Bank mentions 70 countries that have the potential to become pariah countries, semi-failed countries, namely debt defaults. 70 countries Low Income Country, the total interest expense alone has accumulated almost 1000 billion dollars in 2022, where in 9 days after the announcement, Russia attacked Ukraine which caused oil prices to rise, world distribution networks were disrupted, food prices increased and food availability was limited. all make economic analysis difficult to see the bright side of the economy in 2022.
In March 2022, the United Nations again announced that 107 countries were affected. One of the three world problems. What are the three world problems, namely the first: rising food prices. The second is the increase in energy prices, and the third is severe domestic economic conditions such as rising inflation, high unemployment, etc.
Of the 107 troubled countries, they represent 1.7 billion people, aka 20% of the world's population, from 107 countries affected by one of the three problems, there is an interesting one.
There are 69 countries in it that are facing these three problems at once, namely food problems, energy problems, and financial problems. So, the 69 countries can be like Sri Lanka, namely 25 countries in Africa, 20 countries in the Asia Pacific, and 19 countries in Latin America.
Economists even predict that only countries in Africa, such as Egypt, will be affected by the three world problems, especially in other countries, Egypt's main food grain has started to disappear from the Egyptian market and its price has risen by 50%.
The Egyptian government recently said food reserves last only three more months at the Egyptian Food Reserve. Tunisia, the originator of the Arab Spring, owed 100% of its GDP, and seven percent of inflation, which could cause people to take part in demonstrations on the streets because of these economic problems.
Lebanon in the past two years has increased 11 times regarding the need for these food prices, then the Lebanese Pound has decreased in value to the remaining 10% and the country's debt is 360 percent of GDP. there is another supply, Lebanon is already short of food. The news will continue to be long, and the data will continue to grow but the moral of the story is whether your country will owe China? you who can answer all that friend.
#GEOPOLITICS
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