Publication

This paper gives an overview of the state of the global economy, with a focus on the three most important risks currently facing world growth: rising oil prices, trans-Pacific trade imbalances and low long-term real interest rates globally. The paper then focuses on the longer-term issues facing Indonesia such as rising energy use and greenhouse emissions and the serious depletion of natural resources. The paper also outlines how these two issues can be dealt with within a single framework which focuses on creating property rights and clear incentives to manage forests and greenhouse gas emissions.