Friday, August 24, 2007

FEUI: The greatness of the past and the challenge of the future

This is derived by the discussion about the condition of FEUI in mailing list. I think it is an opportunity for me to share my opinion in this blog instead of having discussion that will cost the mailbox of others.

First, I want to emphasize that the greatness of the past of FEUI were created by the location (in Jakarta , the capital city) and as “first mover” advantage in economics. Some big names that represents the architect of Indonesia economic development since the early of our independence, have been in this campus either as the founder or the professor. Those big names are the other advantages for FEUI to attract the top high school students around Indonesia : as the marketing/selling point. It is better to give special opportunity for students to have a public lecturing from those big names in economic policies in Indonesia , not the advance theory or methodology. This public lecturing will give advantages for FEUI as marketing media. Remember that the students and their parents will inform to their fellows about the speaker (ministry or high rank official) and the economic theory will work: the people will respond to incentive.

Second, we have to remember that there are competitors out there. It is a good signal for the development of economics of education in Indonesia . In the past, FEUI was the trend setter that led the other universities in Indonesia to be developed. During the last fifteen years there are massive movement of lecturers/students from many universities studying abroad (for business and economics), especially that were derived by foreign scholarships that has given focus on developing human capital of the universities in Indonesia. It means that other universities also get the same sources of the education with the lectures in University of Indonesia . In addition, the typical services, like education is very easy to be adapted by others as long as access opened. I have to examples that the universities other than Indonesia has succeed in increasing their capabilities.

First example, I was in the one of the state university outside Jakarta for doctoral promotion occasion. I got the information that surprised me that the student that will be given cum laude should have high GPA and already got approval of his/her publication from the international journal based in the developed countries.  The second condition is not applied in University of Indonesia yet as far as I know. It means they already set a higher standard.

Second example, during the debate of the increasing of oil prices policy between the IPB team and LPEM team, I discovered two interesting things: first, the IPB team has already in the well developed in the CGE modeling which is not easy to be done; second, the advantages of the LPEM team was the capabilities in explaining very well about the economic intuition and policies beyond the economic model rather that the model itself. This is good news: the others have been well developed, but FEUI still have a very well resource in economic analysis.

Third, the best part of FEUI is the input: the student itself. As far as I know, the student in FEUI only categorized into two groups: first, the higher GPA student caused they have high motivation for self learning; second, the lower GPA student that have high motivation in doing thing other than self learning. Both of them are smart students with the different way of life. Probably that there is no positive and significant relation between the capabilities of lecturers and the students’ capabilities (should be tested econometrically). The only role of the lectures is giving motivation and good direction to the student to learn by themselves. I see some of former FEUI student that got PhD or Master Degree from top rank Universities in the world was included into the second group student:  the lower GPA student that have high motivation in doing thing other than self learning.

Again, the input (students) from the best resources that make FEUI still in the high position. The students only need four conditions to increase their capabilities: (1) Mathematics, because economist wants to be seen as scientist, (2) English, because most of the knowledge (especially economics) in English language, (3) Computer, because no one could resist from the computer revolution (IT), (4) Motivation&Direction. This is the internal of the student as the human being that should be encouraged by the lecturer. FEUI has the best resource of Indonesia students (from best high school) from 1, 2, and 3 category, but number 4 that should be provided by the lectures sometimes abandoned. The failure of FEUI in increasing number 4 will vanish the opportunity of the FEUI to be the centre of excellent.

Four, according to me, the way in dealing with the increasing the future of FEUI is upgrading number 4 as shown above itself. There is only one way: increasing the incentive for lecturer who has motivation in lecturing. If it is necessary, the incentive to be the campus administrator should be decreased because it will only create political tensions that will lead to a bad atmosphere of lecturing condition in the FEUI. The incentive for lecturer itself will absorb the best resource for lecturing, not for being the administrator. Otherwise, FEUI will experience Dutch Disease problem: all best resources will move to the administrator sector.    

At the end, we should not exaggerate the dichotomy between FEUI and non FEUI, what we should do is increasing our FEUI as best as we could do by using all resources.

Posted by Maddaremmeng Panennungi at 10:19:07 | Permalink | No Comments »

Expecting global inflation?

What will happen if the most of the big central banks in the world pouring the money into the money market? What will happen if the country that will face presidential election (for example US and Indonesia) will expand the money and the government budget? There is only one short answer: expecting global inflation in the one or two years ahead.

Inflation policy is a deliberate policy that is caused by the consideration of the evil of unemployment (Mises (2005), Economic Policy: Thought for today and tomorrow). Inflation policy is the cheating policy for the workers.

Posted by Maddaremmeng Panennungi at 10:02:29 | Permalink | Comments (1) »

Wednesday, August 8, 2007

Indifferent

I was asked why I did not choose the governor candidate on 8 August 2007. I just answer with a short sentence: It is indifferent for me either X or Y win the election. After thingking for a while, I could give the same point for the both candidates. Then if I choose, it will not fair because I will choose both. It is better not to choose than chosing both, it is an inefficient way!
Posted by Maddaremmeng Panennungi at 12:18:29 | Permalink | Comments (1) »

Tuesday, August 7, 2007

A Trade War?

There are increasing tensions among nations facing the export of the Giant, China. If you look at the data on the WTO, there is an increasing anti dumping case againts China and also what we have seen today could be part of it. Sooner or later, the trade war will happen. Trade war has just  been started and the consumers will be the victims…
Posted by Maddaremmeng Panennungi at 07:59:44 | Permalink | Comments (2)