Nigeria, Mexico, Indonesia and Turkey billed the world’s next economic giants

• CP-Africa.com
•  4 Jan, 2014

Jim O’Neill, the Goldman Sachs economist who coined the now famous acronym BRIC (Brazil, Russia, India & China) in his 2001 Goldman Sachs report “The World needs better Economic BRICs” has coined a new term to describe the world’s next economic giants – Mexico, Indonesia, Nigeria & Turkey (MINT).

According to him, the MINT could become the new name on people’s lips, and further overturn the old world order.  O’Neill is particularly  bullish on Nigeria;  a nation of young, vibrant, natural entrepreneurs despite its history of corruption, crime, and mismanagement.

In a new column for Bloomberg View, O’Neill wrote on the MINT economies as a potential new investment destination for global investors:

I spent last week in Indonesia, working on a series for BBC Radio about four of the world’s most populous non-BRIC emerging economies. The BRIC countries — Brazil, Russia, India and China — are already closely watched. The group I’m studying for this project — let’s call them the MINT economies — deserve no less attention. Mexico, Indonesia, Nigeria and Turkey all have very favorable demographics for at least the next 20 years, and their economic prospects are interesting.

Mexican envoy positive about role of a network of middle-power nations

Foreign ministers of MIKTA pose for a photo during the first meeting in New York, Sept. 25. / Courtesy of Ministry of Foreign Affairs

By Kim Se-jeong
 koreatimes.co.kr
 

Mexican Ambassador Jose Luis Bernal

MIKTA is a new acronym in diplomatic circles.

It represents five countries — Mexico, Indonesia, Korea, Turkey and Australia — a group of “middle power” nations that recently launched a dialogue forum.

The official opening was in September in New York where five foreign ministers met on the sidelines of the United Nations General Assembly.

Amid the strong presence of BRICs — Brazil, Russia, India and China — will MIKTA be able to survive, and have long-term influence?

The ambassador of Mexico in Seoul says he is positive about the future. His country is the first to hold the secretariat role in MIKTA.

“We share what we have in common, although we are not similar. And together we can get our act together to solve issues like climate change,” Ambassador Jose Luis Bernal told The Korea Times last week.

He also noted the gap-bridging role some members of MIKTA are playing, which to him is a significant contributing factor in increasing cooperation in global affairs.

The five countries are currently brainstorming on issues of shared interest about which all five can speak together. The members are also working to come up with a framework for the group.

Climate change, democratization, United Nations reform and nuclear disarmament are very much shared, while issues such as cyber space security and international development were sought by the Korean govern in particular.

As a consultative body, MIKTA remains without a specific interest as seen in the Asia-Pacific Economic Cooperation (APEC) or ASEAN with a strong economic interest.

Ambassador Bernal also reiterated the importance of different networks in contemporary-era diplomacy.

There is an increasing number of nation groupings based on geographical and economic interests. The most dynamic stage is international trade where new bilateral and multilateral tariff-free, or reduced, trade partnerships are formed.

Korea and Mexico are part of APEC and the Pacific Alliance, a group of four Latin American countries on the Pacific Rim — Mexico, Colombia, Chile and Peru — with a focus on Asia. Korea is an observer at the Pacific Alliance. The Trans-Pacific Partnership negotiations involving 12 countries are currently underway, and Korea is reportedly contemplating joining.

As far as bilateral relations are concerned, the ambassador, who is three months into the job in Korea, signaled a shifted priority in signing the free trade agreement with Korea.

In bilateral trade, Mexico has suffered a significant deficit for a long time, and has sought to narrow the deficit gap via the accord.

“Mexico has its own source of surplus with other countries,” he said. Korea’s exports to Mexico are around $11.5 billion, whereas Mexico is at $3.5 billion.

A meeting between presidents of the two countries last week in Bali agreed on finding ways to restart the negotiations which have been on hold since 2008 after the second round of negotiations.

A trade ministry official following the issue and the leaders’ Bali meeting said that Korea is willing to resume negotiations, whereas Mexico is confronting political challenges domestically.

Mexico’s strong agricultural sector, including cultivation of avocados, onions, limes and lemons and asparagus, is anticipated to be the biggest beneficiary of the accord. However, so far, the endeavor to open the Korean market has been unsuccessful due to strict quarantine requirements.

Peña touts gains at APEC summit

Wednesday, 09 October 2013 01:10
thenews.com.mx

 President says he accomplished his major goals

BY CIRCE VARGÓN
The News

President Enrique Peña Nieto says his official visit to Indonesia, which ended on Tuesday, was a success.
Peña Nieto traveled to the southeast Asian country to participate in the 21st Asia-Pacific Economic Cooperation (APEC) summit, as well as to take part in negotiations regarding the proposed Trans-Pacific Partnership (TPP) — a free trade area that currently encompasses New Zealand, Chile, Singapore and Brunei, which eight other Pacific countries are hoping to join.

During Peña Nieto’s visit, the negotiating countries signed a joint statement declaring their desire to reach an agreement on the TPP before the end of the year. According to Peña Nieto, this joint statement reaffirms “the commitment, the political will and the interest of the countries that form part of the TPP negotiation process to conclude negotiations as soon as possible.”

U.S. Trade Representative Michael Froman said Tuesday that he hopes negotiations will be completed by the end of the year.

Peña Nieto said that he accomplished all of his major goals for his Indonesia trip. His accomplishments, he added, included signing a series of memorandums of understanding with Indonesia that are designed to promote tourism, update financial and legal regulations to avoid double taxation and ensure that banks in both countries can protect their small- and medium-sized businesses while promoting bilateral trade and increasing the presence of Mexican products in the Indonesian market.

“This comes in the framework of the 60th anniversary of diplomatic relations between Mexico and Indonesia,” Peña Nieto said. “I believe this has been a positive encounter, above all because it was the only meeting that had this character in the framework of the APEC summit, here in Indonesia.”

The 19 countries participating in the APEC Summit, he added, reaffirmed their commitment to keep promoting free trade around the world. “We have been insisting on trade liberalization, eliminating barriers and avoiding borders so that Mexican products can have a better presence in other latitudes, in other countries,” Peña Nieto said. “We all have the conviction that, through free trade, we can truly promote economic growth and create jobs.”

Mexico, Indonesia to establish comprehensive partnership

English.news.cn   2013-10-07 11:53:26

BALI, Indonesia, Oct. 7 (Xinhua) -- Mexico and Indonesia have pledged to set up a comprehensive partnership in the Indonesian island of Bali on the sideline of the ongoing APEC meeting, according to a press release of the APEC media center Monday.

The agreement was reached during a meeting between Indonesian President Susilo Bambang Yudhoyono and his Mexican counterpart Enrique Pena Nieto, who arrived in Bali for the annual APEC summit as well as a working visit to the host country.

The working visit is made as part of the 60th anniversary of the establishment of Mexico-Indonesia relations in their joint drive toward fostering a dynamic, progressive and mutually cordial relationship.

The two leaders agreed to establish a comprehensive partnership between the two countries as recognition of the strategic value of the bilateral relations, said a joint statement issued after their meeting.

"In this context, they agreed to enhance political dialogue at all levels, promote connectivity and increase trade, investment and tourism, as well as expanding technical cooperation, social- cultural exchanges and health, sports, education and people-to- people contacts," the statement said.

To enhance their role as economic powerhouses in Asia and Latin America, the two countries will also promote connectivity of the two regions through air service linkages, eliminating trade barriers and facilitating business communities, the statement added.

A package of bilateral agreements and memorandum of understanding (MOU) on air services, avoidance of double taxation, health and tourism operation were signed during the Mexican president's visit.

‘Common Interests’ for Mexico, Indonesia

By Jakarta Globe on 12:50 pm October 5, 2013.
 

Mexican President Enrique Pena Nieto. (Reuters Photo/Henry Romero)

Mexican President Enrique Pena Nieto is among the world leaders attending the APEC summit in Bali. Ahead of the meeting, he talked with the Jakarta Globe about similar financial frameworks between Indonesia and Mexico, cooperation and Mexico’s social progress.

Mexico is a fast-emerging economy, as is Indonesia. In what areas do you think the two economies can cooperate in a more focused way?

The remarkable transformation of the Indonesian economic and social landscape is comparable to what we have witnessed in Mexico. Indonesia’s leadership role in the Asia-Pacific region is also similar to Mexico’s in Latin America. These resemblances encourage our governments to work together to increase bilateral trade and investment in order to boost economic growth in both countries. We also believe our governments can cooperate in areas of common interest, such as sustainable development, climate change, tourism, and health.

In this regard, over the course of this year, my administration has held numerous high-level meetings with our Indonesian counterparts. Mexican secretaries of Foreign Affairs and Economy visited Indonesia to develop a comprehensive agenda to strengthen the ties between our nations. In May, we had the honor of hosting Minister Marty Natalegawa in Mexico City, to commemorate the 60th anniversary of the establishment of diplomatic relations between our countries.

During these meetings, Indonesia and Mexico have agreed to intensify their bilateral political dialogue, taking advantage of multilateral forums and mechanisms to promote our common interests and influence the international agenda. Furthermore, we have agreed to prioritize bilateral trade, and redouble our efforts to further attract foreign investment.

Emerging economies have been the main drivers of global growth over the past five years. Do you think the next five years will be the same? Or will developed economies recover and take back the lead?

Emerging markets will continue on the path of growth. Experts indicate they will further benefit from a recovery in advanced economies. Economists agree that although there has been a global slowdown, emerging markets will still grow faster than advanced economies in the decades to come.

However, emerging economies are not necessarily destined to grow and lead the world economic recovery. We must make that happen. Internal adjustments are needed to make them more vigorous, stable and competitive.

For instance, in order to achieve higher levels of productivity and competitiveness, Mexico is promoting a strong structural reform agenda, through what we call the Pact for Mexico: an extensive agreement between the country’s three main political parties. Among other reforms, we have already promoted changes to increase educational quality, to open the telecommunications sector, and increase economic competition. In the near future, we expect changes to our financial, energy, and tax systems. This will help Mexico to achieve higher growth rates and create more jobs.

As far as APEC is concerned, how can it play a greater role in determining global economic direction? Or is it just a forum to exchange ideas?

APEC has proved to be an influential forum that brings together 21 economies, with the purpose of exploring concrete economic and technical cooperation initiatives that enable a better business environment, and open trade and investment. By acting together, our economies can exert greater influence on the direction of the global economy.

For example, by avoiding protectionist measures amongst our economies, we can send a clear message regarding our commitment to free and open trade, as they are effective tools to achieve economic resilience and growth.

Countries like Indonesia and Mexico are helping to create a new international financial architecture, and the forum contributes to this goal. Indonesia’s Summit priorities are similar to the development objectives that my administration established when I assumed office: further trade liberalization by lowering trade barriers, support for the multilateral trading system, as well as the creation of the necessary conditions to facilitate investment and promote the efficient integration of regional supply chains.

Additionally, I support the APEC objectives of creating greater prosperity in the region and boost[ing] inclusive, equitable, sustainable and innovative economic growth.

How do you measure social progress? What has Mexico achieved that can be an example for other countries?

In my view, social progress is achieved when all sectors of society have access to basic social welfare. That is why my administration launched a National Crusade against Hunger, a strategy to promote social inclusion and well-being. Through this strategy, we aim to reduce acute infant malnutrition, increase food production and help small agricultural producers prevent food losses. Many of the Crusade’s actions are carried out through community participation.

Additionally, the tax reform that we are promoting includes a universal pension plan that will give all Mexicans a pension to cover their basic living expenses during retirement. Also, the reform creates an unemployment insurance program. With these social programs, all Mexicans will have greater opportunities. These policies are measures of social progress that we would like to extend to the population in the years to come.