A recent study conducted by Oxfam has shown that in the very near future the world’s richest 1 percent will control almost 50 percent of global wealth. This obviously is not a good news for the rest 99 percent of the world population. Having this in mind, the effort of enhancing the global economic resiliency will be a lot more complex than ever before. Especially if it is conducted without a synergy from all parties.
Let us now imagine what would be the world’s next economic turbulence. A little research would show that the looming WTO’s free market in 2020, the ASEAN Economic Community, China’s stagnant economy and Russia’s future crisis are some potential factors of turbulence.
Of course, some scholars and schools of thought would insist that free market, for instance, is a blessing. However, unfortunately, seeing the current trends on how countries around the globe design their public policy towards regional integration, it is rather safe to say that there is a looming danger of having pre-mature, free-trade areas. ASEAN Economic Communities, for instance, with the deadline passed, had not been able to catch up with its own time frame, making it lagging behind its own schedule of integration.
Now, the big question is how to prepare the world, especially the least developed and developing countries, in facing this turbulence? From the financial regulation perspective, the world needs a legal reformation. The world needs a legal platform which could assist the distribution of wealth among nations in order to fill the economic gap or at least minimizing it, this platform would be a very important milestone in building a healthier international financial architecture.
A better international tax mechanism is what the world needs to accelerate the distribution of wealth, this could be done, for instance, by strictly enforcing the tax law especially within the 1 percent elite group as mentioned above.
A proactive anti-corruption mechanism which involves the tri-sectors (civil societies, private corporations and governments) synergy is also urgently needed. The ugly truth is that corruption is still the biggest issue faced by many countries in the world especially in Africa and South East Asia. In ASEAN for instance, based upon Transparency International’s data, there are still two countries in the list of the 23 most corrupt countries in the world, while many others South East Asia countries are still in the 100 most corrupt countries in the world.
Corruption is particularly dangerous because it affects many sectors nationally. It does not only affect the national economy of one’s country, it also affects the health systems, education systems, and basically ruins the future of a nation. Moreover, corruption in a large scale also affects regional and international community, therefore it is also a big international problem.
There must be an active and concrete actions carried out by countries in the region in order to tackle these issues. With regard to the potential solutions, firstly, a better education systems to educate young people on the destructive effects of corruptions as well as to teach them how to prevent corruptive actions need to be established. Secondly, there must be a legal reformation in order to build a better legal regime on the prevention of corruptive actions conducted by government agencies or individuals.
It is very obvious that what is written in this note is too short to explain what the world needs to do to become more resilience and to be more prepared for the next global economic turbulence. However, let this note be a kind reminder and a bird overview on steps that need to be carried out while engaging on a more thorough discussion in the subject.