GLOBAL ECONOMIC DEVELOPMENT ON UNITED STATES POLITICAL ECONOMY POLICY

GLOBAL ECONOMIC DEVELOPMENT ON UNITED STATES

POLITICAL ECONOMY POLICY

Introduction

Globalization is a historical determination that cannot be avoided for every nation or

state, so whether we want it or not, like it or not, ready or not, each of us must follow the flow

of globalization with all its power and capabilities. For countries that are ready with

economic, human and technological resources, they certainly have a greater chance of facing

such sharp competition. Globalization that is accompanied by competition which so intense

competition between countries, forcing poor countries and Countries developing countries to

compete with developed countries. With various shortcomings and weaknesses as well as the

chaos of social, economic and political life, poor countries and developing countries are

forced to compete with developed countries developing countries must face this global

competition. Globalization, which is characterized by the diminishing role of the State in

economic activity and is replaced by market forces, has a significant impact. Significant for

emergence of new structures and actors in economic and political life. The growth of

multinational corporations has become a force in international political and economic

relations. The process of globalization has also integrated nation states towards a borderless

state. Globalization also has very complex implications, namely the emergence of

interdependence in almost all dimensions of life In relations between nation-states and

transnational relations. transnational relations.

But along with The development of globalization in the neoliberal view, the world

situation is also followed by uncertainty, the widespread inequality of income distribution

among nation states, widespread unemployment, environmental degradation, and the

damaging effects of globalization, namely the economic destruction of many countries due to

the absence of regulation of global capital flows and the tendency of developed countries to

lust to strengthen their political and economic hegemony in poor countries and developing

countries. This paradox of the globalization process has led to the view that globalization has

given rise to a new form of imperialism. There are countries that are able to take advantage

of the process of economic globalization, but also not a few countries that become the victims

of globalization marginalized, eroding the national economic structure and followed by

widening social and economic disparities. As part of the world's nations, United States is

certainly impacted by economic liberalization, the impact can be positive or negative.

Globalization economy which presents economic liberalization can affect various aspects of

the life of the United States people, including the direction of United States economic policy.

Literature Review

The Heart of the Issue of Globalization and Economic Liberalization

Although globalization has a multidimensional face, economic globalization is always

the most dominant form in the development of the world today. This condition occurs because

economic globalization has a real and most significant impact on governance mechanisms at

the State level compared to non-economic forms of globalization. The structure and actors of

economic globalization certainly cannot be separated from the existence and role of

international financial institutions such as the World Bank, IMF, and other international

financial institutions. International financial institutions such as the World Bank, IMF and

WTO as well as economic and trade cooperation institutions that cover some regions of the

world. International financial institutions and trade institutions that are multilateral and

regional in reality work only in the interests of member countries and their members region

alone. In reality, developed countries also have a tendency to use their influence for their

economic and political interests.

Not only globalization, there are also derivative policies to fully support the operation of

economic liberalization including privatization and deregulation, all of which cannot work

partially. Under these conditions, the phenomenon can be interpreted as an opportunity and

even a reward for anyone who is inefficient in producing economic resources. Even with the

motive of protecting the domestic economy, a country is no longer allowed to make protective

policies because international agreements do not require such practices. It is no exaggeration

when economic liberalization is likened to two sides of a coin that can have opposing effects.

Some countries, including China (now China) is a testament to the progress of a country that

has taken advantage of its immersion in the world economy. The success of China's economic

development should be seen as the country's success in creating a clear vision. This includes

the implications for the existence of a clear political-economic "blue print", not being swayed,

and seeing the "global factor" as not a threat for China's domestic economic and political

conditions.

United States as part of the global community has also ratified a series of free trade

agreements. United States participation in economic liberalization has been subject to various

interpretations. First, it can be interpreted that the government considers domestic conditions

to have a strong foundation for further competition at the global level. Second, there are

pressures at the global, regional and bilateral levels that urge United States to ratify various

cooperation at each level. Third, internal influences due to the government's inaction to hasten

the welfare of its citizens as well as self-development so that it tries to reap improvements

through economic liberalization (Yustika, 2014).

At the end of 2015, in the region ASEAN has been enacted Asean Economic

Community (AEC) agreement which is estimated to open the market to more than 600 million

people in the ASEAN region, of which 43% are in United States. United States and the other

nine ASEAN members are entering a very tight competition in the economic field. United

States not only has great opportunities to become a developed country, but also many

challenges to be competitive in the Asean Economic Community.

The ASEAN Economic Community or AEC is broadly focused on four things, namely:

(1) Creating a single market and a unified production base by removing restrictions on the

flow of goods, investment, capital, services, and professionals between countries in Southeast

Asia, (2) Forming a highly competitive economic region with policies, consumer protection,

and various agreements to create fair economic conditions, (3) Realizing equitable economic

growth, and (4) Improving the ability to integrate with the global economy ability to integrate

with the global economy. To realize the four main pillars of the AEC, it certainly requires a

joint commitment and capacity building in various sectors in each of the ASEAN member

countries.

Given that United States has United States has the largest population in Southeast Asia.

United States total population is almost 40% of the total ASEAN population. This fact can be

used as a reference to dominate the ASEAN market if supported by high productivity. In

addition, United States also has potential natural resources (SDA) and human resources (HR).

The challenges we face with the flow of free trade in both goods and services will lead to

competition risk. This means that in addition to being an exporting country, United States is

also an easy target for exporters from other countries Other. This has resulted in the

introduction of a wide variety of foreign products into United States.

Based on the Kompas Daily report which was later booked into Menatap United States

2015 Antara Harapan dan Tantangan, it is explained that in general the obstacles faced by

United States to be able to compete in free trade in the ASEAN region are related to the weak

infrastructure, the weak quality of human resources, the low quality of the labor force, and the

existence of regional inequality. Specifically in the Kalimantan region, the obstacles faced are

the low quality of human resources, limited road infrastructure development, and limited

access between regions and many are still isolated. With the various challenges and obstacles

that exist, like it or not, we must participate in undergoing economic globalization and free

trade in the ASEAN region.

Globalization and its Impact on Democracy

Almost all facets of people's lives are affected by the influence of globalization, social

behavior, welfare, political dynamics, and others. The debate on the relationship between

globalization and democracy boils down to two contradictory issues. The first opinion says

that globalization threatens democracy. On the contrary opinion second opinion states that

globalization fosters democracy. In that context, we can measure whether globalization will

be regarded as an enabler or an inhibitor of democracy depending on whether it promotes

greater autonomy and equality among individuals and communities in the life of the state.

In the context of politics in developing countries, globalization has transformed the

political power of modern states and citizens. There are several scholars who claim that free

market globalization will encourage political democratization such as (Anthony Giddens,

David Held, Francis Fukuyama). (Anthony Giddens, David Held, Francis Fukuyama). In

history, democratic systems have recorded historical victories over other systems in running

the wheels of government. Globalization and welfare state are factors that give color in

encouraging democratization today.

According to Giddens (2000), Globalization is not just about economic interdependence,

but about the transformation of time and space in human life. As exemplified by the fact that

events in the same places far away, whether economic or not, affect people directly faster than

ever before, and conversely, decisions taken by individuals often have global implications.

Globalization also presses upon the very nature of creating demands and opportunities for

generating local identities. Globalization is understood to be a complex series of processes

within the state that are driven by various influences, especially political and economic ones.

In line with Giddens, Held (1995) explains that globalization is reflected in two

phenomena that have a real influence on state life. First, the loosening of chains that shackle

political, economic and social activities so that all these activities now span the globe. Second,

the increasingly intense level of interaction and interconnectedness within and between

countries. Countries and societies.

Globalization is believed to be globalization is driving the wave of democracy in

various parts of the world, although on the other hand there is a tendency that the political

economy impact of globalization threatens the future of democracy. There are dynamics in the

global political-economic structure Developing countries cannot escape the influence of

globalization. The influence of globalization has an impact on countries that the state is no

longer the sole actor in the international political economy. Its role has been replaced by new

actors who are under the banner of international institutions, corporations multinationals, as

well as countries that embrace openness.

Even in this era of globalization, talking about the nation state seems less relevant

because its role is replaced by international institutions and regional states. Conventional

democracy such as the existence of political representative institutions, elections, and citizen

participation is only intended within the framework of a sovereign territorial State. However,

when the structure of the international political economy changes, political institutions and

elections in one country are strongly influenced by external forces, and even in certain cases

institutions such as the WTO, IMF and World Bank and have very strong coercive power in

influencing the political decisions of developing countries and especially those experiencing

economic and political crises.

In the end, all movements These changes have implications for the capacity of the State

to regulate. Nation states are no longer autonomous in making decisions by having to pay

attention to other actors outside themselves, both in a regional context. It is in this context that

according to Held (1995) globalization has reshaped the political community, and specifically,

the modern state. Although a rather skeptical view says that globalization has more or less

reduced the sovereignty of the state. State national as hyperglobalists believe. However, the

problem is that globalization has articulated the obligations and powers of nation states in a

complex way, involving developments towards the spread of world power and accompanied

by the spread of authority and increasingly complex forms of regulation (Winarno, 2012).

Fukuyama (2003) says that the end of civilization is capitalism. The competition now is

not capitalist with socialist, but capitalist with capitalist, and capitalism will be the ideology

of civilization in the 21st century and even in the future. Democracy today has indeed moved

in one direction, namely liberal democracy, because only democracy in this pattern of

capitalist society is most suitable for the liberalization of world trade, because only this

democracy is most suitable for the current state order. Of course, this movement towards

democracy must be supported by various sophisticated approaches, one of which is good

governance, which is used as software for modern democracy.

United States Public Administration through the (LAN) Institute of Public

Administration, United Statesizes good governance as good governance and defines good

governance as the administration of a solid and responsible State, as well as efficient and

effective, by maintaining the synergy of interactions that constructive between the domains of

the State, the private sector and society. The concept can be accelerated when there are

liberalization processes between several stakeholders and this is part of the effects of

globalization. In the current development, good governance has developed into dynamic

governance, which requires the ability to always adapt to rapid developments. The role of

government in executing policies and providing fast public services is important in a world

that is always changing, full of various challenges to face globalization and the relentless

development of cutting-edge technology.

Change is the essence of The basis of dynamic governance, because to be able to adjust

the way the government runs the wheels of government with the dynamics of environmental

change requires various changes in both the planning and implementation aspects

implementation. Planning and implementation must be adaptive to the size of the uncertain

future of the global environment. The change itself is generally the result of a combination of

two elements, namely: culture and capability (government organization).

Research Methods

This paper uses a descriptive qualitative research method. Data collection was carried

out by conducting a literature review through various reference sources ranging from books,

journal articles, legislative documents, and reliable internet articles. The author triangulates

sources to ensure data validity.

Discussion

The Global Economy on United States Politics and the Role of the State

Politics is one of the fields of life that cannot be separated from the rapid influence of

globalization. The positive impact of globalization in the political field is very useful in

carrying out state politics, but the negative impact can threaten the sustainability of a country.

Then what are the impacts of globalization in political life in United States? The positive

impact of globalization in politics is often associated with freedom of mass media and

politics. This certainly has a positive impact on the formation of a political system in a

country. The presence of globalization in the political field also triggers the creation of a

democratic system of government, where people are given the opportunity to participate and

influence the government's political policies.

However, the presence of This democratic system that gives freedom can has a negative

impact. Misused freedom of speech can lead to political unrest and the influx of foreign

ideologies that are not in line with our own With Pancasila. Social and political disharmony

and the presence of foreign ideologies have the potential to create disintegration and eliminate

the sense of nationalism. Excessive political freedom that is not based on United States

political culture will certainly have a negative and destructive impact on the integrity of the

Republic of United States. In the name of democracy, political patronage between the elite

and the political masses is not merely a patron-client relationship, but has become

increasingly fragmatic. The implication is that political competition in elections and regional

elections for money support is one of the determinant factors. The high cost of politics in

elections is allegedly one of the reasons why more and more politicians and regional heads are

involved in acts of corruption.

Although in many cases Globalization is characterized by the diminishing role of the

State in economic activity and is replaced by market forces, according to Bob Jessop (in Aziz

SR editor, 2019) that the economy is not a variable that is independent of the State variable.

Not all economic problems and matters that occur in market life can be resolved through

market mechanisms alone, but also need non-market mechanisms. In this regard, Jessop

proposes There are four reasons why the State still needs to intervene in the economy.

According to Jessop, the presence of the State in the economy does not mean that the State

goes too far in regulating market life, but rather to ensure and guarantee that market

mechanisms and economic life can run healthily.

Meanwhile, according to Pieron (in Aziz SR editor, 2019), the large hemisphere of the

state in relation to the economy, namely the State as an economic actor and the State as a

policy maker. As an economic actor, the State plays four important roles, namely first, the

State as owner; second, the State as owner-producer; third, the State as employer; and fourth,

the State as redistributor. As a policy maker, the State plays two main roles, namely the State

as a regulator and the State as a policy maker or decision maker.

Related to the role of the State and United States socio-economic conditions amidst

economic liberalization, one of the problems we face is the high socio-economic inequality

marked by a wide gap between the rich and poor, unbalanced asset ownership and land tenure.

According to BPS data, in early March 2017, Minister of Finance Sri Mulyana stated that the

Gini Ratio must be watched because it concerns social inequality in society. In March 2019,

the level of United States population expenditure inequality as measured by the Gini Ratio is

0.382. This figure decreased by 0.002 points compared to the September 2018 Gini Ratio of

0.384 and decreased by 0.007 points compared to the March 2018 Gini Ratio of 0.389. The

Gini Ratio in urban areas in March 2019 was recorded at 0.392, an increase compared to the

September 2018 Gini Ratio of 0.391 and a decrease compared to the March 2018 Gini Ratio

of 0.401. The Gini Ratio in rural areas in March 2019 was recorded at 0.317, down from the

September 2018 Gini Ratio of 0.319 and the March 2018 Gini Ratio of 0.324.

Economic growth that relatively high but not followed by equitable distribution still

makes the gap continue to widen. Oxfam and INFID also noted that the wealth of the four

richest people in United States is equivalent to the combined wealth of the poorest 100 million

people. A Swiss financial institution, Credit Suisse has released the results of its survey that

United States is one of the categories of countries where the level of inequality between the

rich and the poor is still very high, where the richest 1% of United Statess control 49.3% of

national wealth.

In the context of vigilance We can identify national security threats in the form of Proxy

War, showing that foreign control over natural resource management is quite large. In the oil

and gas and coal sectors between 70-75 percent, telecommunications between 70 percent. The

impact of control of natural resource management in United States is very risky in terms of

foreign domination of strategic decisions and political and security instability. Another impact

is that there is a high chance of foreign intervention in various regulations made by the

government.

The 1945 Constitution is quite explicit in laying down economic principles that should

be a reference in formulating national economic policies. Article 33 of the 1945 Constitution

states:

 The economy is organized as a joint venture based on the principle of kinship.

 Branches of production that are important to the State and that control the lives of many

people are controlled by the State.

 The earth, water and natural resources contained therein shall be controlled by the State

and utilized for the the greatest prosperity of the people.

 Economy The national economy is organized based on economic democracy with the

principles of togetherness, equitable efficiency, sustainability, environmentally

sound, self-reliance, and by maintaining a balance of progress and national economic

unity.

 Further provisions regarding the implementation of this article shall be regulated by

Law.

In reality, Article 33 of the 1945 Constitution does not appear to be placed as a

paradigm in building the national economic system. It is not becoming the spirit of the

national economy. Traces of Article 33 of the 1945 Constitution in economic policies have

been very difficult to find. An indicator that can be put forward to support the lack of Article

33 as the spirit of the national economy is the absence of a law on the economic system as a

derivation of Article 33 of the 1945 Constitution. This is important because it relates to four

things, namely first, the fundamental interests of all United States people; second, for the sake

of socio-economic justice; third, for the livelihood of many people; and fourth, as an effort to

prosper the community. Therefore, globalization with a market economy that has become part

of our economic policy does not necessarily have to abandon the role of the state. The way we

manage resources in the perspective of Article 33 of the 1945 Constitution is a form of the

State's presence in the economy. The government's failure to realize article 33 and not being

able to create high added value from its resources is a misguided policy. Facing the dynamics

of the changing times that continue to occur, the spirit and backbone of the United States

economy must not be separated from the big vision of the prosperity and welfare of the

people. What's more, don't until the grand vision is held hostage by foreign interests.

The Condition of West Kalimantan in the Era of Global Economy

The cohesiveness between regional autonomy and globalization is a necessity for the

process and implementation of development in a region, including West Kalimantan. This

means that globalization is no longer talking at the level between countries that have no

barriers at all (state borderless) but has moved to a smaller level, namely a region, such as a

province, district or city in a country. This raises serious issues that can become obstacles for

decentralization and regional autonomy because it takes place in an era of globalization that is

fast-paced, open and broad.

In such a situation, The autonomy possessed by the region will greatly determine the

local government in encourage development. Regions that are able to work efficiently will be

able to maximize every opportunity offered by globalization so as to encourage regional

development that provides welfare for its citizens. Conversely, inefficient regional

governments will be swallowed up by globalization through multinational companies

operating in these regions. As a result, defeat at the national level will transformed quickly to

the regions. Therefore, each region must utilize regional autonomy as a way to improve

regional competitiveness in accordance with their respective potentials. "Regional autonomy

must be able to foster innovation and good practices. Measures of regional competitiveness in

the current era of economic globalization refer more to paratmeter made by regional and

international institutions.

West Kalimantan Region which It has a strategic position because it has land and sea

borders with Malaysia. Thus, in the current era of economic globalization, it certainly has its

own bargaining value in accordance with the conditions, characteristics and economic

potential it has. Of the 17 (seventeen) economic sectors that make up GRDP in West

Kalimantan, there are 4 (four) sectors with the largest contribution, namely the Agriculture,

Forestry and Fisheries Sector with an average annual contribution of 21.08 percent; the

Manufacturing Industry sector with an average annual contribution of 16.18 percent, the

Wholesale Trade, Retail, Car and Bicycle Repair sector with an average annual contribution

of 14.49 percent; and the Construction sector with an average annual contribution of 12.40

percent.

PMDN investment realization, in 2017 amounted to 20.68 percent. Meanwhile, the

realization of FDI investment in 2017 only reached 36.38 percent. The issue of availability

Infrastructure is one of the reasons for the lack of interest from investors. For example, the

primary sector with the plantation business still dominates the most attractive business fields

because the infrastructure is relatively available. As for the secondary sector, its development

has not been significant because adequate infrastructure (roads, electricity and ports) is

needed. West Kalimantan's economic growth averages 5.3 percent annually.

In the second quarter of 2019, West Kalimantan's economy grew by 5.08 percent. The

Williamson inequality index (Regional Inequality Index) in 2018 was 0.328. The average

number of years of schooling is only 7.48 years. In accordance with the West Kalimantan

Provincial RPJMD target, regional economic growth in 2020 is targeted to grow by 5.35

percent, and the human development index figure is 67.87 percent. West Kalimantan's HDI

position is currently ranked 29th out of 34 provinces in United States. The poverty rate in

2018 was 7.37, including the highest in the Kalimantan region. In 2020 the poverty rate is

targeted to reach a maximum of 6.43.

Currently Today globalization, Decentralization and regional competitiveness are part of

the main issues that affect the order of the economic and trade system, both in production,

marketing, distribution, and other activities. The era of globalization requires every economic

actor to improve the ability to compete, both in producing, marketing, and penetrating markets

whose boundaries are increasingly unclear, as well as in a highly competitive framework. This

is where the important role of local governments is to continue to improve institutional

capacity, the capacity of apparatus resources, improve public services and improve various

infrastructure capable of supporting regional economic development.

Based on the results of the power analysis competitiveness of provinces in United States

survey results in 2019 conducted by the Asia Competitiveness Institute (ACI) Lee Kuan Yew

School of Public Policy National University of Singapore, West Kalimantan's competitiveness

ranked 23rd, an increase compared to 2018 which ranked 28th out of 34 provinces.

Macroeconomic Stability of Provinces in United States in 2019, West Kalimantan ranked

18th, an increase when compared to 2018 which ranked 26th. While the quality of life and

infrastructure development of Provinces in United States in 2019, West Kalimantan ranked

31st, which in 2018 ranked 33rd out of 34 provinces.

Departing from objective conditions Especially in West Kalimantan, the challenges

faced by local governments in the era of the global economy are quite severe. Limited human

resources and infrastructure as well as the distortion between the center and the regions in

various regulations and policies are enough to affect the capacity of regional regions in facing

the dynamics of the global economy. Indeed, the regions currently have the freedom to apply

their various political aspirations in line with decentralization and regional autonomy, but the

center always dominates various resources, both economic, financial, legal, and political. One

of the main obstacles to decentralization is the issue of central justice towards the regions.

Conclusions

Globalization Economic globalization is a process of economic activity and trade in

which countries around the world become one increasingly integrated market force without

any territorial boundaries. When economic globalization occurs, the boundaries of a country

become blurred and the interconnectedness of national economies is reduced national

economy with the regional economy regional and international economies will become

closer. Economic globalization on the one hand will open up market opportunities for

domestic products to international markets competitively, on the other hand it also opens up

opportunities for the entry of global products into the domestic market.

Today, globalization accelerated which requires every country to prepare strategic

tools to win the "field of global battle". Global economic-political relations in general and

economic-political relations between United States and the world in particular, will have a lot

of influence on United States readiness to face the challenges of globalization. Currently,

there are dynamics in the global political-economic structure of developing countries that

cannot be separated from the influence of globalization. The influence of globalization has an

impact on countries that the state is no longer the sole actor in the international political

economy. Its role has been replaced by new actors under the banner of international

institutions, multinational companies, and countries that embrace the open system.

Although in many cases Globalization, marked by the diminishing role of the State in

economic activity and replaced by market forces, is not a variable that is independent of the

State variable. The presence of the State in the economy is important to ensure and guarantee

market mechanisms and economic life can run healthily and in accordance with article 33 of

the 1945 Constitution.

Globalization no longer speaks at the level between countries that have no barriers at all

(state borderless), but has moved to a smaller level, namely a region, such as a province,

district or city in a country. This raises a serious issue that can be a hindrance for

decentralization and regional autonomy if it is unable to improve the competitiveness of the

region, because it takes place in an era of globalization that is fast-paced, open and broad.