The Intelligence from The Economist Get-rich-quick scheming: India and Indonesia
Apr 3, 2023
Join Avantika Chilkoti, an International correspondent for The Economist specializing in India and Indonesia's economies, and Eleanor Whitehead, who reports on Australia's environmental crises. They discuss the contrasting economic paths of India and Indonesia as they grow, with emphasis on their reliance on services and natural resources. The dire state of Australia's Darling River, marked by a catastrophic fish kill, underscores urgent environmental reforms. The conversation also touches on the challenges of confiscating luxury yachts owned by Russian oligarchs amid sanctions.
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Traditional Growth Model
- Developing countries traditionally relied on a trusted growth formula: rural workers moving to city factory jobs.
- This fueled booming export markets and economic modernization, seen in South Korea, Taiwan, and China.
New Growth Models Needed
- India and Indonesia are exploring new growth paths, diverging from the traditional labor-intensive model.
- Factors like slowing globalization and rising automation necessitate this shift.
India and Indonesia's Strategies
- India leverages its engineering graduates and English speakers, focusing on IT service exports.
- Indonesia capitalizes on its natural resources, refining commodities like nickel for export.