Critical Issues for the Twenty – First Century Pertemuan 13 Matakuliah: > Tahun: >

Bina Nusantara University 3 For the first time in human history, the world is close to creating a single, unified Global System (UNDP, Human Development Report, 1992)

Bina Nusantara University 4 Material Outline The global environmental threat The economic crisis in Sub – Saharan Africa Economic transition in Eastern Europe and the former Soviet Republics Globalization and international financial reform

Bina Nusantara University 5 The Global Environmental Threat Green house Gases and Ozone Depletion MDC and LDC Contributions to Green house Gases Rain Forest Preservation as a public Good

Bina Nusantara University 6 The economic crisis in Sub-Saharan Africa An inecorable economic decline A drop in per capita incomes Rapid increase in population The loss of export revenues The curtailment of foreign investment The destruction of fragile ecosystems, and The inability of many countries even to feed their people and meet other basic human needs.

Bina Nusantara University 7 Economic decline in Sub-Saharan Arfica, Economic indicator Change (%) Per capita output ($) ,5 Per capita consumption ,0 Investment (% of GDP)20,214,2-29,7 Exports of goods ($ billions)48,731,9-34,5 Per capita food production ($) ,2 Total external debt ($ billion)56, Poverty (% below poverty line)NA39,6- Sources: UNDP and WB, African Development Indicators, 1992 Note: Amounts are expressed in US dollar at 1980 prices. NA=not available

Bina Nusantara University 8 Economic transition in Eastern Europe and the former Soviet Russia’s underlying problem is an unprecedented, all- encompassing economic-catastrophe-a peacetime economy that has been in a process of relentless destruction for nearly seven years. GDP has fallen by at least 50 percent and according to one report by as much as 83 percent, capital investment by 90 percent and equally telling, meat and dairy livestock herds by 75 percent. Except for energy, the country now produces very little; most consumer goods, especially in large cities, are imported. (Prof. Stephen Cohen)

Bina Nusantara University 9 Globalization and international financial reform 1.A reduction in the debt-service burdens of the LDC’s least able to affort continued austerity measures, especially in Sub-Saharan Africa 2.The creation of new LDC-funding sources, such as a tax on international currency transactions like the so- called Tobin tax to culb the speculative inflow and outflow of foreign capital – a central ingredient in the 1997 Asian currency crisis.

Bina Nusantara University 10 Globalization and international financial reform 3.The creation of new international institutions, such as world central bank, to help stabilize global economic activity, promote global financial stability, and assist the economic development of poorer nations. Such as entity could act as a lender of last resort to financial institution and create new forms of liquidity 4.Reform of the two major existing institutions for global economic growth and stability, the IMF dan the World Bank.