Minister Suharso Highlights Brazil’s Experience as a Guide for Indonesia to Avoid Economic Traps
Minister of National Development Planning/Head of Bappenas Suharso Monoarfa revealed a number of things that can be learnt from Brazil’s experience, so that Indonesia can get out of the middle-income trap. The minister explained this when delivering a keynote speech at Economic Perspective 2025, Monday (26/08/2024).
In his speech, Minister Suharso outlined the economic journey of Brazil, which had reached the status of a high-income country twice, namely in 1989 and 2013.
According to him, Brazil’s per capita income during its status as a high-income country in 1989 reached US$ 9,090. Meanwhile, per capita income in 2013 reached US$ 12,750.
The minister said that Brazil’s economic journey was not always smooth. A year after achieving high income country status, Brazil’s economic status declined again in 1990 to upper-middle income. In 1991, its economic status declined again to lower-middle income.
During the period 1980 to 1992, the Minister highlighted a downward trend in Brazil’s economy with the share of manufacturing falling from 34% in the mid-1970s to 28% in 1990. In addition, Brazil’s Total Factor Productivity (TFP) continued to decline over the period.
In addition to the above, the Minister also explained that Brazil has been stuck in middle income status for 33 years. 5 years as a lower middle-income country and 28 years as an upper middle-income country.
‘Brazil’s experience provides valuable lessons on economic dynamics and challenges in shifting income status. For Indonesia, it is important to understand these patterns and design effective strategies so that we do not fall into the middle-income trap,’ said the Minister.
‘By learning from Brazil’s economic journey, Indonesia can devise better policies and spur sustainable growth,’ he added.
Minister Suharso hopes that a deeper understanding of these international experiences will help Indonesia achieve high-income status on a permanent and sustainable basis.
Source: Bappenas
