Marie Pangestu on why open markets are key to the green transition
August 29, 2023
The Australian National University's East Asia Forum (EAF) have published an insightful article by Marie Pangestu, former Indonesian Trade Minister, former World Bank Managing Director of Development Policy and Partnerships, and current Professor of International Economics at the University of Indonesia.
The article highlights the importance of open and predictable (ie. rules based) international markets for securing the technology and materials needed to achieve emissions reduction goals. While on-shoring and domestic industry policies aim to increase security of supply of inputs, Pangestu argues the diversity of inputs found in multiple economies and evolving technology means on-shoring may be self-defeating.
EAF's editors preface the article with an interesting discussion on the geopolitics currently impeding trade in green technology and materials. They too make a case for open markets and a return to the rules based order.
Great pre-reading for the ACITI Conference which explores the green transition and its impact and implications for Australia's international trade and investment.