PowerPoint Presentation

The arab spring

How it affects the economy of Indonesia

Composed by:

Astrid Nadya Rizqita

Muhammad Yusup

Taufiq Achmaruddin

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Presentation overview

What Sparked The Arab Spring

The Jasmine Revolution in Tunisia

The Lotus Revolution in Egypt

The revolutions afterwards

An analysis of what really happened

Problems ahead

The Arab Spring: Impact on Oil Production

Security within the region

Economy of the region post revolution

The ongoing conflicts in the MENA region: A chance for Indonesia?

Indonesia

How Indonesia can be a model for the MENA countries

How the Arab Spring advantaged Indonesia in terms of economy

The Islamic Development Bank and Indonesia: An Outlook on Islamic Economics to face the AEC

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What Sparked The Arab Spring

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Jasmine Revolution

Popular uprising in Tunisia that protested against corruption, poverty, and political repression.

Forced President Zine al-Abidine Ben Ali to step down in January 2011.

Unrest began after Mohammed Bouazizi, an unemployed 26-year-old, protested against the corrupt regime by burning himself to death outside a government office on December 17 2010.

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Lotus revolution

Also called as the Egypt Uprising of 2011.

Began on 25 January 2011.

Forced one of the regions longest-serving and most influential leaders, President Hosni Mubrak, from power.

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The uprisings post Egyptian revolution

Protests in Oman, Yemen, Egypt, Syria, & Morocco commenced in 2011.

On February 15 2011 - The Libyan Civil War - ended with the killing of Gaddafi

On 15 March 2011, protests began in Syria - still ongoing, with ISIL

On 3 June 2011, the President of Yemen Ali Abdullah Saleh was injured in a failed assassination attempt - currently facing ongoing clash between the two major Islamic sects

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What really caused the Arab Spring

Unemployment

Poverty

Corruption

GDP

Population growth rate.

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Unemployment, poverty and corruption

Oppressive regime - provides very minimum standards of quality of life and social services.

Rising food inflation - millions of the poor live at or below subsistence levels.

The highest 20 percent income group in Tunisia received 47.9 percent of the countrys total income, while the lowest 20 percent received 5.9 percent of total income in 2009, and likewise in Egypt and Syria.

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GDP and population growth rate

In 2009, the MENA countries combined produced only 3.8 percent of the worlds GDP.

At the same year, Arab World (AW) countries (combined) produced only 2.9 percent of world GDP.

As for Egypt, before the revolution in 2011, there was 10 percent unemployment and 25 percent youth unemployment.

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The human development index - the basis of data from 2007

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Problems ahead

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The Arab Spring: Impact on Oil Production

Oil production has fallen by over 2 million barrels per day in five MENA countries (Libya, Syria, Yemen, Tunisia and Sudan)

The loss of this production has had surprising little effect on international oil markets.

The loss of Libyan and Sudanese exports has likely been cancelled by increased production in North America.

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Regional security

Internal

Clashes between the secularists vs. The Islamists in Tunisia.

Chaos between the Muslim Brotherhood supporters and the Egyptian army.

External

Terrorist supporters in Algeria as threat to the North African security

Internal and External

The rise of ISIL

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Economy of the region post revolution

Tunisia

The economy grew by 3.6% in 2012, slowed down to 2.6% in 2013, for 2014 growth remain modest at 2.2%.

Unemployment remains at 15.3% from 16.7% in 2011, but slightly above above the pre-revolution level of 13%

Egypt

GDP per capita = 3,256.02 USD (2012), 3,314.46 USD (2013)

GNI per capita = 10,610 PPP dollars (2012), 10,790 PPP dollars (2013)

Population = 80.72 million (2012), 82.06 million (2013)

Syria

The conflict has pushed millions of people into poverty, with four in five Syrians estimated to be living in poverty in 2014 (SCPR).

GDP falling to 38% (SCPR) or 48% of 2010 GDP (ESCWA).

Growth averaging a modest 0.5% in 2014.

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The ongoing conflicts in the MENA region: does indonesia have the upper-hand?

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why indonesia can be a model for the arab countries

Indonesia....

is the most populous predominantly Muslim country in the world that has undergone political transition from authoritarian regime to democracy.

has maintained political stability despite the ethnic conflicts and religious riots in the first years of its political transition.

has demonstrated stable economic performance.

is an interesting case for anyone to study the interplay between Islam and democracy.

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How the Arab Spring advantaged Indonesia in terms of economy

The value of trade between Indonesia and Tunisia resulted in a surplus of USD 88,7 million or approximately Rp. 887 billion. The total trade between Indonesia-Tunisia in 2011 reached USD 106,7 million atau sekitar Rp 1,06 trillion.

In Egypt, the trend of total value of trade with Indonesia rose up to 20,79 percent during five years back.

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The islamic development bank

A multilateral development financing institution located in Jeddah, Saudi Arabia.

Founded in 1973 by the Finance Ministers at the first Organisation of the Islamic Conference

Began its activities on 20 October 1975.

Has 56 shareholding member states.

Major shareholders include:

Saudi Arabia (26.5%)

Libya (10.7%)

Iran (9.32%)

Egypt (9.22%)

Turkey (8.41%)

United Arab Emirates (7.54%)

Kuwait (7.11%)

Pakistan (3.31%)

Algeria (3.31%)

Indonesia (2.93%)

(as of August 2012)

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ISlamic Development bank and indonesia

Having IIIB in Indonesia will help build infrastructure, bring in capital and boost Islamic banking assets.

The nation is also aiming to catch up as a finance hub with Malaysia, where Islamic banking assets are eight times larger.

The IDB may set up its infrastructure funding unit in the Southeast Asian nation in 2016 with capital of $1 billion.

This syncs with the aim of the current goverment's aim, that is, to boost the development of infrastructure and to raise the rate of economic growth by 7 percent by 2019.

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