President Joko Widodo highlighted the relations between developed economies which have recently experienced a breakdown. He asked world countries to reverse the trend and prioritize cooperation.
"The lack of cooperation and coordination has caused many problems, such as the drastic increase in crude oil prices and the chaos in the currency markets of developing countries," President Jokowi said at a speech at the opening of the IMF-World Bank Group Annual Meetings in Nusa Dua , Bali, Friday (12/10).
Continuing the trend of his international speeches, President Jokowi again used terms from popular culture to highlight world problems. This time, he used the example of the US fantasy television series to illustrate that the kingdoms needed to unite against greater evil forces.
Jokowi also quoted the words of the International Monetary Fund (IMF) Managing Director Christine Lagarde who said that the current world economy was overshadowed by uncertainty. On the one hand, the United States enjoys rapid growth. However, on the other hand, economic growth in many countries is weak and unstable.
The trade war that took place, said President Jokowi, was increasingly widespread, while technological innovation made many countries shaken. This means that countries experiencing growth continue to carry considerable market pressure.
"With so many problems in the world economy, it is enough for us to say that winter is coming," Jokowi quoted the famous adage from the series.
Jokowi closed his speech with a question for key officials from the 189 countries present. "Is now the right time for competition or is it the right time for collaboration?" Jokowi said.
Jokowi stressed that there is a greater threat that could attack any country, rich or poor country. The threat is not only a matter of economics, but also a matter of the environment, such as climate change that is inevitably faced together, regardless of the country's background. Jokowi took the example, the great storms that are increasingly intense attacking the US to the Philippines.
On the same occasion Christine Lagarde also reminded the countries that were present at the Annual IMF-World Bank Meeting in Nusa Dua Bali related to the challenges of an economy that was facing a standstill. The IMF boss called it the term 'new multilateralism', whose direction was more oriented to the world community.
The first challenge he called concerns macroeconomic stability, with fuel, namely the trade sector. According to him, throughout the past 70 years, the trade sector has encouraged growth and prosperity for all countries in the world.
However, his condition now turned around. He realized, too many people did not enjoy the benefits of this interstate trade practice. "We do not expect the current escalation of trade tensions to reduce global GDP (gross domestic product) by one percent over the next two years," Lagarde said in her speech at the Plenary Meeting on Friday (12/10).
Lagarde's statement seemed to touch the current trade tension between the United States and China. The trade war both affected the economic policies of other countries in the world, especially developing countries.
Lagarde also said, countries in the world need to unite to escalate existing disputes. Global trade, he said, must aim to improve the welfare of the world community. That is, the trading system must be repaired, not even damage it.
The next challenge is the risk and vulnerability to increasing debt. Citing IMF data, global government and private debt touched 182 trillion US dollars, equivalent to 224 percent of world GDP. This figure was also recorded 60 percent higher than the achievement in 2007.
"When the financial condition gets tighter, the wind can spin especially for emerging markets, encouraging a return of capital," he said.