Delphi: Nothing in Excess

I said that this kind of place is like a “region state”, as Keinichi Ohmae stated, as my quotation in the first place of the discussion:

“Region states are not-and need not be-the enemies of central government. Handled gently, by federation, these ports of entry to the global economy may well prove to be their very best friends”

(Kenichi Ohmae, The End of Nation State: The Rise of Regional Economies, 1995, page 100).

Regions state such as Batam, Johor, Singapura; Guangdong, Hongkong, Taiwan; and other regions that reflect the economic cohesion and taking advantage each other for economic prosperity, but not in the same national or country.

The policy maker should open their eyes that in the future, when the barriers of trade among countries significantly decrease, the international trade policy perspectives will move to what so called “economic geography or economic regional perspectives”. It means that location advantage (including transportation cost), economies of scale, and agglomeration will become the most attentions of the business. The potential regions (such as the region in the regions state) should be used in taking advantage of its locations and become the hinterland or connectors to the other Indonesian regions. And China has applied the perspectives since 20 years ago by developing SEZ (Special Economic Zones) and then entering WTO in 2001, which means China put the economic geography/regional economic first before moving to the international trade. And the result: China is shaking the world both for good and bad perspectives.