Indonesia Labor Migration

Indonesia Labor migration

One of the consequences of globalization is the interdependence of nations upon each other.  Capital and labor moves freely across borders just like goods and services.  The migration of workers from Mexico to the United States is well documented, but the migration of Indonesian to Malaysia and Saudi Arabia is more problematic.  Indonesia is the fourth most populous nation on the planet with 251 million people as of 2012 according to their census. Indonesia is the largest Muslim country in the world.  With a Gross Domestic Product that averages 5.4% from 2000 thru 2012, the country is well position for growth in the future. Indonesia has the largest economy in Southeast Asia and is considered an emerging market economy of the world.

         

Underneath this growth lie some contradictions that put Indonesia at risk for future advancement.  Indonesia has several lamenting issues such as poor infrastructures, government accountability, and large migration workforce.  In the last few years, the government has taken steps to address the infrastructure issues and the accountability issues but the migration issue remains a problem that neither the receiving country nor sending country can solve alone.  

 

 

According to the Indonesian Census Bureau, there are about 2 million new entrants to the Indonesian workforce every year.  A large number of unskilled workers that cannot find work migrate legally or illegally to other countries mostly to Malaysia and Saudi Arabia, and the vast majority is women.  They do unskilled work, such as domestic labor, and are not protected under the labor laws of the receiving country.  In several cases, they are exploited, harassed, victim of human trafficking, and/or abused physically and psychologically.  These women do the jobs that Saudi Arabian or Malaysian citizens refuse to do.  The governments involved have taken steps to remediate the problem but sometimes one cannot help to wonder if they are doing enough.  The U. S. Department of States’ Bureau for Population, Refugees, and Migration (PRM), in conjunction with Indonesian government, have taken steps to put in place clear labor policy for countries sending and receiving immigrants. Indonesian migrants remit close to $6 billion annually to Indonesia’s economy (World Bank, 2009).

According to the U.S. Department of State, there are an estimated 225,000 women and children who have been trafficked in Southeast Asia.  This is not an issue that relates to Indonesia alone, as the world is becoming a larger backyard; steps need to be taken to protect the most vulnerable in our society.  There are those always willing to take advantage of the weak whether thru modern slavery or human trafficking.  Labor migration will be greater in the future and this is not an issue that relates to Indonesia only.  Indonesia is poised to be a world leader and the migration issue is one that needs to be resolved sooner rather than later. A country cannot be at peace if it cannot protect its own citizens.

 

References

Carbaugh, R. J. (2010). Global economics (13th Ed.). Mason, Ohio: South-Western

 http://www.tradingeconomics.com/indonesia/gdp-growth-annual

Hugo, Graeme. 2005. Migration in the Asia-Pacific Region. Geneva: Global Commission on    International Migration.

WTO-Indonesia-The World Trade Organization efforts-wto.com. (n.d.). WTO-The World Trade Organization efforts-wto.com. Retrieved November 3, 2012, from http://wto.com

 

 

US Elections, Swing States and my 2 cents

US Elections, Swing States and my 2 cents

The 2012 US Presidential Elections will be the costliest in history.  The New York Times estimates that when it is all said and done, Barack Obama would have raised $934 million and spent $853 million while Mitt Romney would have raised $882 million while spending $752 million.  Those figures also take into account Super Political Action Committee or Super Pac money raised.  For the record, it breaks my heart to see how elections have become money making machines, meaning if you don’t have any money, you can’t possibly win an election.  Whether you vote Democrat or Republican, the influence of Unions, multi-millionaires, corporations, and billionaires, in our election, are sickening.

                

All the money being raised made me ask who is really benefiting from all this money besides our politicians and their cause?  Does the money spent in swing states reach regular folks like you and me?  I live in Rhode Island, so my state will definitely go blue or Democrat.  Rhode Island is not what is called a Battleground State, because of that most of the money collected will not be spent here.  But if you live in Ohio, Florida, Virginia, Wisconsin, Iowa, Colorado, New Hampshire, North Carolina, or Nevada, which are Battleground States or Swing States, do you benefit from the spending that was done by the candidates? 

    

It made me wonder, where did all that money go?  I did some research and I could not find an official study as to the economical impact of campaign dollars on local economies, but I am going to try to use my educated guess as to who got paid.  I am guessing that the bulk of the money went to campaign staffers, organizers, local media for advertising, writers, and video and print producers.  We should also not forget restaurants, hotels, caterers, bus companies,      Rental business, sound engineers, graphic designers, security guards, editors, production crews, and the transport industry.  Not a bad list at all, but I still think that all this money could be use differently. My state Rhode Island, unfortunately, will see very little of the campaign dollars, with unemployment rate at 10.7%, we could use some of that money.  I guess it pays to be a swing state.
		Whether the money trickles down or not, as a citizen, I feel like our elections are bought. Power in this country has become a marketplace, those that are willing to pay for it, will get it. What is left for citizens like me that can only afford to contribute no more than $25.00 to my candidate? I do believe that Americans are clever enough to see past the buyers. By that I mean, those contributing over $1 million to their candidate. What are they buying and what do they expect in return? All I am saying is that I cannot wait for the election to be over, I will do my patriotic duty by voting, but for heaven sake, I need my TV back. To be continued.

 

East African Community ( EAC ) Customs Union.

East African Community (EAC) Customs Union

The East African Community (EAC) is comprised of 5 countries: Burundi, Kenya, Rwanda, Tanzania, and Uganda.  The EAC is an intergovernmental organization which was established in 1967 and then reestablished in 2000.  The goals of the organization is to create one single customs territory in order for its partners to enjoy an economy of scale and a Common valuation method for goods traded for tax purposes. The EAC also wants to include some laws and policies in the countries under the regional area, facilitate customs clearance for importers and exporters; grow their market with cheaper input, and a systematic control on the exchange rate.

The EAC is a major partner of the African Economic Community (AEC).  The population of the EAC countries averages 30 million people and a GDP of about 10 billion.  On their own, the countries that are part of the of the EAC  are too small to be of great importance to major investors, but being part of the EAC, put them in a unique situation to attract investors which in return can take advantage of cheaper labor and vast resources.

The organization has enjoyed many successes, but there are some conflicts that still exist between the nations.  In fact, because of the level of non-transparency between the governments, and conflicting interest amongst the nations, the organization does not have an independent authority that can settle their disputes.  I believe that regional trades can boost a country’s growth.  For example, let’s take Kenya which is part of the EAC; since their participation in the regional trades, they have increased their exports from 650 million in 2002 to about 1 billion in 2005 and close to 1.5 billion in 2011.  Their main exports are tobacco, coffee, apparel, and tea.  Their principal problem has been to deal with the rise in imports along with taxes.

 

The question now is what does the future hold for the EAC?  Since 2005 the per capita income in the EAC nations have been increasing 3.7% on a yearly basis when compared to other African nations which only increased 3.1%.  Inflation has been kept under control with just 4%  in the last 8 years compared to 8% in other African nations. In 2012, the International Monetary Fund or IMF rated the EAC nations as one of the best places to do business and there is evidence that the growth experience by the EAC nations are enjoyed by the majority of the population.  

In conclusion, the EAC is really doing a phenomenal job in being an integral part of the African Economic Community. Regional trades can benefit developing countries because it simplify the customs procedures, increase the pool of customers, and attract foreign investments. The EAC countries are a young regional trade organization. They have room to grow. They can go only go up from there; I wish them the best of luck in their future endeavors.

References

·        Carbaugh, Robert J. Global Economics. Mason, OH: South-Western, 2010. Print.

"East African Community 2012 - Doing Business - World Bank Group." East African Community 2012-Doing Business - World Bank Group. N.p., n.d. Web. 21 Oct. 2012. <http://www.doingbusiness.org/reports/regional-reports/east-african-community