Indonesia’s national statistics agency (Badan Pusat Statistik, BPS) released quarterly national accounts statistics on February 5. Any quarterly data release creates a flurry of interest (well, at least amongst macroeconomists and economy-watchers hungry for the latest update on near-term growth trends). But this is a particularly important release because, as well as providing data for the final quarter of 2014, it also incorporates two significant revisions to Indonesia’s GDP statistics: (1) it shifts the basis of the computation from the year 2000 to 2010, and (2) it adopts a significantly updated methodology and presentation of the statistics (updating Indonesia’s national accounts from the 1993 System of National Accounts [SNA] to SNA 2008).
What do these revisions tell us about Indonesia’s economy that we didn’t know before? One change immediately stands out: total output in current prices is about 4.4 percent larger than previously estimated in 2014 (and 5.2 percent larger on average over 2010-2014). This is a significant change, adding IDR 448 trillion, or about USD 35.5 billion at the current market exchange rate, to the estimated size of the economy as of 2014. Roughly a third of the extra measured output is due to the incorporation of new kinds of economic activity under SNA 2008, and about two-thirds comes from more accurate measurements of previously-measured kinds of output, according to BPS.
East Asia and Pacific
For older generations of Lao citizens, the streets of Vientiane must be nothing short of unrecognizable. Over the past fifteen years, Lao PDR and its capital have enjoyed strong economic growth on the heels of a natural resources boom and closer regional integration. The result has been an undeniable if only gradual trend toward modernity for a country once completely shielded off from the outside world. With some of the world’s fastest growing economies right in its backyard, Lao PDR has benefited significantly from external demand for tradable goods and services and increased foreign direct investment inflows. Cooperation and coordination with development partners has intensified, leading to progressive efforts to reform and increase openness. What’s more, strong growth in real GDP (averaging over 7 percent throughout the two decades to 2014) has been accompanied by a reduction in poverty from 46 percent of the population in the early nineties to 23 percent in 2013.
Back in 2009, Ratih Purwindah, a 25-year-old newly appointed sanitation district facilitator, was not invited to sit in the car to travel with delegates from Indonesia’s Ngawi District to participate in the East Java province rural sanitation review meeting. Instead, Ratih was asked to take a bus the 180 km to Surabaya, even though there were vacant seats in the delegation’s car. She also did not get a desk at the district’s office. Five years onwards, this has changed and Ratih is now the provincial coordinator for the government’s sanitation program in Central Java. District sanitation facilitators working with her are recognized and empowered within District Health offices. Ratih’s personal journey is a testament to the systemic changes that have taken place in Indonesia. With a focus on district-wide sanitation service delivery, Indonesia is accelerating access from below 1% to 2-3% a year and catching up to achieve the sanitation MDG.
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- East Asia and Pacific
- The World Region
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Myanmar is embarking on a triple transition: from an authoritarian military system to democratic governance; from a centrally directed economy to market oriented reforms; and from several decades of conflict to peace.
Since 2011, leaving behind decades of isolation, fragility and conflict, a reformist government has steered unprecedented political and economic reforms intended to open Myanmar to the global economy, boost growth, and reduce poverty.
As part of its economic reforms, and has taken a series of actions including the issuance of two Presidential Instructions and two directives on Public Procurement to establish the basis for an open and competitive public procurement system.
If you could make one New Year’s wish for your country, what would it be?
For many Malaysians, Prime Minister Najib Razak’s wish for “a safer, more prosperous, and more equal society” likely resonated with their hopes for 2015.
Malaysians appear to be increasingly concerned about income inequality. According to a 2014 Pew Global survey, 77% of Malaysians think that the gap between the rich and poor is a big problem. The government has acknowledged that inequality remains high, and that tackling these disparities will be Malaysia’s “biggest challenge” in becoming a high-income nation.
How can Malaysia narrow the gap between the rich and poor? Global experience suggests two possible levers to achieve a more equitable income distribution.
Buildings now dot the skyline of Bonifacio Global City in Metro Manila, which hosts, among others, the offices of the World Bank and the International Finance Corporation. Who would have thought that this former military camp could be transformed into a bustling economic center in less than ten years? And, with the rise of commercial buildings and residential condominiums following the area’s fast-paced growth, we see a growing demand for electricity that causes stress on the environment and resources.
Every minute, dozens of people in East Asia move from the countryside to the city.
The massive population shift is creating some of the world’s biggest mega-cities including Tokyo, Shanghai, Jakarta, Seoul and Manila, as well as hundreds of medium and smaller urban areas.
This transformation touches on every aspect of life and livelihoods, from access to clean water to high-speed trains that transport millions of people in and out of cities during rush hour each weekday.
A well-established correlation in trade economics is the connection between gross domestic product (GDP) and openness to trade: as countries become wealthier, they tend to trade more as a percentage of their gross domestic product (GDP). The correlation is complex and not fully understood. As the authors of the World Bank’s Trade Competitiveness Diagnostic put it: “This relationship runs in both directions: the richer countries become the more they tend to trade; more importantly, countries that are most open to trade grow richer more quickly.”