Indonesia

An important lesson from the 2008-2009 global financial crisis and its aftermath is that the world economy is highly interdependent with multiple sources of growth and new powerful links, both between developed countries and developing countries and among developing countries. A new structure of the world economy is underway, and the crisis has obviously accelerated the change in the global economic landscape in which the developing countries have acquired greater importance in global economic growth and a greater share of the global economy. Nearly half of the growth today is created by the developing countries. By increasing their importance in the global economy, developing countries have a bigger role in determining the state of the global economy. The current recovery process will not follow a smooth path as uncertainties are increasing. Hence it is very important for developing countries to respond and navigate through the current turmoil because any crisis (for instance, the ongoing European economic crisis) has the potential to escalate and derail the recovery process in the developing world.

Related Subject(s): Economic and Social Development

Countries: Indonesia