When Indian Coordinating Minister for Economic Affairs Airlangga Hartarto announced that the country had publicly expressed interest in joining the OECD, many people raised an eyebrow. & nbsp,
Given that the OECD is considered to be a” developed countries’ league” and that Indonesia’s GDP per capita andnbsp in 2022 was just US$ 4, 788 compared to the average of$ 43, 261, the walk seemed unexpected.
However, the OECD has just begun to welcome emerging economies. After welcoming eight new members since 2010, the OECD will have 38 part nations as of 2023. These include Costa Rica in 2021, Chile, Estonia, Israel, and Slovenia in 2010; Lithuania in 2016; and Colombia in 2020.
South Korea’s membership in the OECD in 1996 was the last moment the organization accepted a new Asian part. As a result, only two people from the most economically active region in the world— Japan — make up the OECD.
A” global policy forum that promotes policies to preserve individual liberty and improve the economic and social well-being of people around the world” is what the OECD & nbsp takes great pride in being. The addition of Indian viewpoints will only make it richer.
Indonesia has become a remarkable emerging politics since the 1997 Asian financial crisis. In the Economist Intelligence Unit’s & nbsp, Democracy Index 2022, it is ranked 54th out of 167 nations. & nbsp,
Joining the OECD may demonstrate Indonesia’s steadfast commitment to democracy at a time when, according to estimates, quarter of democratic governments worldwide are in decline and authoritarian regimes are intensifying their suppression.
Indonesia is one of the most significant economies in the world, ranking 16th globally and 7th in terms of purchasing power parity( PPP ) and GDP, respectively. Just three OECD nations, the United States, Japan, and Germany, have economies that are larger than Indonesia’s on a PPP schedule. & nbsp,
Indonesia is home to the & nbsp, which has 275 million members and is the fourth-largest population in the world. Just the 333 million people who live in the United States surpass this in OECD.
Indonesia is the first developing G20 business and ASEAN member to apply for OECD membership, which is important. When Indonesia was able to lead the premier website for international economic cooperation and establish the global agenda during its 2022 – 20 administration andnbsp, its significance to the G20 was evident.
According to rumors, Indonesia is also looking into joining the very different political parties known as Brazil, Russia, India, China, and South Africa( BRICS ) group, according to President Joko” Jokowi” Widdo & nbsp.
Indonesia’s interest in joining the OECD was hardly unexpected. In 2007, the OECD named Indonesia, along with Brazil, China, India, and South Africa, as a” Key Partner.”
The OECD’s 2022 – 25 Joint Work Program andnbsp support the implementation of the Medium-Term National Development Plan for Indonesia, which is set to be implemented in 2025. The Indian government hopes to finish the enrollment process by 2026 because it is already well integrated into the OECD’s work.
There is little question that Indonesia’s goal of becoming a high-income nation may be aided by OECD account. The strict accession approach examines the effectiveness of numerous policies, particularly those that promote openness to domestic and international competitors as well as state-owned enterprise management.
Additionally, new members must agree to the principles upheld by OECD users, such as the protection of personal liberty, democracy, the rule of law, and the defense of animal rights.
There are other nations in the OECD backlog besides Indonesia. Brazil, Bulgaria, Croatia, Peru, and Romania are among the five individuals whose arrival negotiations are currently in progress. Ukraine will likely be invited to join the OECD once the Ukraine conflict is over.
The OECD considers it extremely important to accept new people. ” OECD participation remains the most direct and effective way to ensure the implementation and spreading of our shared beliefs, principles, and criteria across the world ,” according to Secretary-General Mathias Cormann.
His & nbsp’s trip to Jakarta in August 2023 to meet with President Jokowi and key ministers in support of Indonesian application is a testament to the OECD.
According to Cormann,” applicant countries will be able to apply the accession process to encourage more reforms for the benefit of their individuals.” Following the alter in management following the general election on February 14, 2024, the OECD approach may be helpful to Indonesia’s elites.
Cormann, a former American minister for finance, will undoubtedly be happy if Australia’s largest cousin joins the OECD and consolidates its market-oriented politics under his view.
The group will gain a lot from welcoming Indonesia into the collapse. The largest ASEAN business will benefit from having its doors opened, which will boost the group’s monetary interactions. The action strengthens the OECD’s position as a defender of the rules-based global order while also strengthening its ties to Asia and the Global South.
John West is an adjunct professor at Sophia University in Tokyo and the senior producer of the Asian Century Institute.
This post, which was previously published by the East Asia Forum, has been republished with a Creative Commons license.