Navigating a Fragmented World: Green Transition Strategies in the Face of Geoeconomic Fragmentation?

The 12th Annual International Forum on Economic Development and Public Policy (AIFED) in Nusa Dua, Bali, brought together academics, economists, professionals, and policymakers to address the challenges and opportunities arising from the current geopolitical climate. This year's theme, "Fragmented World: Recalibrating Development Strategies," focused on the intertwined aspects of geopolitics, climate change, technological advancements, and their impact on global geoeconomics.??

?Minister Sri Mulyani Indrawati, of MoF highlighted the current era's defining features: increasing economic fragmentation, shifting paradigms in international relations and trade, and a disturbing rise in nationalism. These factors necessitate recalibrating development strategies for a more resilient future.??

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Climate Change and Geoeconomic Fragmentation??

Following are the pointers, as the distinguished speakers from the forum brought to the discussion:? ? Thomas Heller (Stanford University):??

• The Indonesian government needs to explore diverse solutions beyond traditional macroeconomic modeling to address the challenges of fragmentation and climate change.??
• Combining various financing and investment instruments is crucial for effective action.??

Michelle Lyon (Lowy Institute Australia):??

• Governments must establish frameworks and taxonomies for businesses to assess and disclose their climate risks, facilitating a smooth transition.??
• This fosters transparency and accountability, encouraging businesses to embrace sustainable practices.??

Claudia Vasquez (World Bank):??

• The green energy transition necessitates a holistic approach considering inclusion, job creation, affordability, and environmental sustainability.??
• Upskilling and reskilling programs are critical to ensure a smooth transition while minimizing job losses in the fossil fuel sector.??
• Addressing the potential rise in energy bills through carefully designed carbon pricing schemes and targeted social safety nets is essential.??
• Responsible mining practices that respect indigenous communities and minimize environmental impact are crucial for a sustainable transition.??

?Collaborative Solutions for a Fragmented World:??

Budi Kuncoro (PERFORM Project):??

• Addressing the intertwined challenges of green transition and climate change in a fragmented world requires a collaborative approach.??
• Governments, private sectors, communities, and development institutions must work together to formulate and implement effective solutions.??

Key Takeaways:??

1. Geoeconomic fragmentation presents significant challenges to achieving sustainable development and addressing climate change.??

1. Collaborative approaches that consider diverse perspectives and prioritize inclusion are essential for success.??

1. Governments have a crucial role in creating frameworks and incentives to facilitate a smooth transition to a low-carbon future.??

1. Innovation, technological advancements, and responsible resource management are crucial for achieving sustainability in a fragmented world.??

??This AIFED seminar provided a platform for constructive dialogue and collaboration, paving the way for more informed and effective development strategies in a rapidly changing world.??

?About the AIFED??

This event was organized by the Ministry of Finance in cooperation with the German Government under Deutsche Gesellschaft fur Internaitonale Zusammenarbeit (GIZ) through the PERFORM project with the Fiscal Policy Agency, the Indonesian Ministry of Finance, the Australian Government, and the Asian Development Bank (ADB). Budi Kuncoro, as Principal Advisor, views the issue of green transition and climate change in this era of geoeconomic fragmentation as one that can only be resolved by formulating solutions and implementing them together - among countries, private sectors, communities, and development institutions.??

More information can be access here: 12th AIFED 2023 - The Fragmented World: Recalibrating Development Strategies (kemenkeu.go.id)?