What Was the Problem Created by Implementing the Jakarta Agreement in 1990S

Written by | 21/11/2022

In the 1990s, the Jakarta Agreement was implemented with the aim of facilitating economic growth in the Asia-Pacific region. However, the agreement also created several problems, which had a significant impact on the region`s economy and overall development.

One of the most significant problems created by the Jakarta Agreement was the increase in competition among member countries. The agreement led to the removal of trade barriers, which benefited some countries more than others. This created an uneven playing field, with countries like Japan and South Korea dominating the market while smaller countries struggled to compete. Additionally, the removal of trade barriers resulted in an influx of cheap imports from member countries, damaging local industries and leading to job losses.

Another problem created by the Jakarta Agreement was the lack of attention given to social and environmental issues. The focus was primarily on economic growth, with little consideration given to the impact on local communities and the environment. This led to a rise in environmental degradation, including deforestation and pollution, which had long-term negative effects on the region`s ecosystems and biodiversity.

Furthermore, the Jakarta Agreement had a negative impact on worker rights. The removal of trade barriers and the implementation of free trade policies led to a race to the bottom in terms of labor standards and wages. Companies moved their operations to countries with lower labor costs, resulting in a lack of job security, poor working conditions, and low wages for workers in the region.

In conclusion, while the Jakarta Agreement aimed to facilitate economic growth in the Asia-Pacific region, it created several significant problems. The increase in competition, lack of attention given to social and environmental issues, and negative impact on worker rights were some of the most significant challenges created by the agreement. It is crucial to address these issues and ensure that any future economic agreements prioritize sustainable and equitable development.