The Pak Banker

India, Indonesia eye a world beyond US vs China

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Ware witnessing today an emerging club of nations whose leaders guide them more in a wisdom of patience, non-conflictua­l philosophy, and fusion of cultures. A bold sense of destiny directs them back to their traditions in a nonnationa­list, non-isolationi­st way. In a world characteri­zed more and more by old-style great-power competitio­n, this approach could seem an oddity. But the new way of doing geopolitic­s gives hope that internatio­nal politics is more than a one-solution, zero-sum game. Indonesia and India (and their partnershi­p) are worth studying to understand the diversity of choices in global politics in general and in Asia in particular.

India and Indonesia share some culture and history, but they will have even more in common in the future. They are two of the most culturally and ethnically diverse countries in the world. They share a colonial background. And, most important, both seem to approach the future not from a quantitati­ve growth perspectiv­e - the paradigm embraced by both the West and China - but by post-growth, "upward developmen­t," in the words of Indian Prime Minister Narendra Modi. As Indonesian President Joko Widodo, who like Modi has won a second mandate, stated the vision of transformi­ng Indonesia's economy into the fifth-largest in the world by 2045, we see that most of his measures are qualitativ­e, and his five priorities for his second term are more centered on human developmen­t than on "things." Both Modi and Widodo have put at the forefront a "prime directive" about human capital developmen­t.

In Indonesia, 42% of the population

is under the age of 25, while in India the figure is 45%. Based on a philosophy that has been germinatin­g for a couple of decades, the two countries have fixed their ambitions on leveraging the compoundin­g effect of skilling the youth bulge, on overhaulin­g their education systems and labor markets to account for the demographi­c reality, thus resulting in a knowledge and innovation premium.

Further to that, in Widodo's words, innovation should become a culture, a spiritual position also fully endorsed by Modi. Both leaders have their youth spark street protests recently and, to their credit, they are constructi­vely trying to convert their energy into positive outcomes for their countries. The changes the two countries are seeking to implement cannot be successful without the support of the most active and dynamic part of their society.

Indonesia is now crossing a bridge between a society profoundly shaped by the Suharto era toward a more modern, agile, and open society. India has the challenge of not closing itself to the world and not descending into ethnic- and religious-based nationalis­m.

Each country has upward of 200 million Muslims, and both countries are on a journey of learning how to integrate the diversity of faith and traditions, and dealing with an accelerati­ng modernity. If Indonesia can learn from India about opening up to the world, India can learn from Indonesia's Pancasila spirit of "unity in diversity."

Widodo, after a bold positionin­g in 2014 of a "Global Maritime Fulcrum" aimed at transformi­ng the country into a maritime hub, has not even mentioned it this year, triggering many analysts to criticize the apparent lack of global ambition.

In fact, the contrary is true. Amid the specter of great-power competitio­n, it is not a moment to go it alone. Indonesia has made a first and significan­t step toward showing its commitment to multilater­alism with its 2018 Outlook over the Indo-Pacific.

This year, the country committed to strengthen­ing both itself and the Associatio­n of Southeast Asian Nations (ASEAN) and to further developing a mesh of comprehens­ive economic, security, governance, political, and people-to-people architectu­res to keep the wider region safe. Much of that has to do with bilateral cooperatio­n with India. But much of its global security and economic arrangemen­ts are also based on the joint and concerted actions and positions with India.

Between the two of them and their strategic partnershi­ps, the region is well anchored in a mixture of East, West, and Third Way establishe­d and emerging powers, ranging from the US, the European Union and Saudi Arabia, to Japan, Australia, Vietnam and South Korea. Modi was criticized after withdrawin­g India from RCEP (Regional Comprehens­ive Economic Partnershi­p) negotiatio­ns early this month.

 ??  ?? India and Indonesia share some culture and history, but they will have even more in common in the future. They are two of the most culturally and ethnically diverse coun
tries in the world. They share a colonial background. And, most important, both seem to approach the future not from a quantita
tive growth perspectiv­e - the paradigm embraced by both the West and China - but by post-growth, "upward developmen­t," in the words of Indian PM Narendra Modi.
India and Indonesia share some culture and history, but they will have even more in common in the future. They are two of the most culturally and ethnically diverse coun tries in the world. They share a colonial background. And, most important, both seem to approach the future not from a quantita tive growth perspectiv­e - the paradigm embraced by both the West and China - but by post-growth, "upward developmen­t," in the words of Indian PM Narendra Modi.

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