Samuel Bazzi, Arya Gaduh, Alex Rothenberg, Maisy Wong, 07 January 2018

Fostering a broad and inclusive sense of national identity is vital for long-term social cohesion, but it is difficult to achieve in light of rapidly growing local diversity. This column uses the example of Indonesia’s Transmigration Programme to show that residential mixing, linguistic differences, and the extent of political and economic competition between groups determine whether diversity leads to integration, social isolation, or segregation – all of which can be influenced by good policy. Properly implemented, such policies both increase social cohesion and encourage greater nation-building.

Benjamin Olken, 01 December 2017

Samuel Bazzi, Amalavoyal Chari, Shanthi Nataraj, Alex Rothenberg, 28 November 2017

Monica Martinez-Bravo, Priya Mukherjee, Andreas Stegmann, 27 August 2017

Samuel Bazzi, Arya Gaduh, Alex Rothenberg, Maisy Wong, 08 August 2017

Kozo Kiyota, Keita Oikawa, Katsuhiro Yoshioka, 09 October 2016

The international competitiveness of industries has received much scholarly attention, but this research has tended to focus on Europe and North America. This column examines the competitiveness of industries in six Asian countries. Global value chain income is increasing in China, India, and Indonesia. And unlike workers in EU countries, workers in the Asian countries have benefited from this increased competitiveness.

Jeffrey Frankel, 09 September 2014

Subsidies for food and energy are economically inefficient, but can often be politically popular. This column discusses the efforts by new leaders in Egypt, Indonesia, and India to cut unaffordable subsidies. Cutting subsidies now may even be the politically savvy choice if the alternative is shortages and an even more painful rise in the retail price in future. Ironically, it is India’s new Prime Minister Modi – elected with a large electoral mandate and much hype about market reforms – who is already shrinking from the challenge.

Kristin Forbes, Michael Klein, 24 December 2013

Government interventions to control capital flows and reduce exchange-rate volatility have long been controversial. The Global Financial Crisis has made the debate more urgent. This column discusses recent research that evaluates such policies against the counterfactual of no intervention. Depreciations and reserve sales can boost GDP growth during crises, but may also substantially increase inflation. Large increases in interest rates and new capital controls are associated with reductions in GDP growth, with no significant effect on inflation. When faced with sudden shifts in capital flows, policymakers must ‘pick their poison’.

Muhammad Chatib Basri, 28 April 2011

The Doha Round of trade negotiations began nearly ten years ago with a focus on lowering trade barriers, particularly for the sake of developing countries. Today, the Doha Round is stuck in limbo. This column argues that both developed countries as well as developing countries stand to gain from moving the discussions forward – particularly those in the Asia Pacific region.

Kavaljit Singh, 05 July 2010

Despite recovering faster than developed countries, many emerging markets are struggling to cope with large capital inflows. This column discusses the recent capital controls imposed by Indonesia and South Korea. It argues that while the international community is warming to these policies, it would be wrong to view capital controls as a panacea.

Benjamin Olken, 29 August 2008

Ben Olken of MIT talks to Romesh Vaitilingam about his research on bribery in the Indonesian trucking industry – and the lessons for policy efforts to reduce corruption. The interview was recorded at the American Economic Association meetings in New Orleans in January 2008.

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