Page 41 - AEI Insights Vol. 7 2021

Estrada, 2021

module focuses on administrative procedures, legal framework, and institutional organizations
to help improve the environment and uses of natural disasters, respectively.

Additionally, it is proposed here that specialized R & D centres be set up to provide
consultation and advice to solve environmental and natural disaster management issues. At
least three categories of R&D with their respective centres should be put in place:

1. Information and education about the environment
2. The creation of public, legal and institutional platform pro-environment and natural
resources management

3. New technologies to benefit the environment and natural resources management

How the NDEAS-Model Works?

For demonstration, this study presents two countries, Country-A and Country-B and two
scenarios (S), S1 (without pandemics), and S2 (with pandemics) in the application of the
NDEAS-Model.

The Country-A with a secure link with globalization (attached firmly to free trade). The
Country-B is also connected to globalization with a higher dependency on the free trade than
Country-A ruling under the application of the GATT-international legal framework and the
World Trade Organization (WTO) institutionally.

Country-A

It is postulated that the higher free trade. In the case presented here, however, Country-A is
trying to attempt to attach more to the dynamic worldwide trade process under the framework
of Globalization. The Country-A produces raw materials and some manufacturing products,
that is, agricultural products in raw forms. As raw materials, Country-A has low added value
and thus commands low prices in the international market. Similarly, the industrial structure of
Country-A is minimal and limited in number. Although country-A exists relatively less
environmental and pollution problems than Country-B in the short run, it lacks continuous
massive exploitation of its natural resources exist a high probability of getting high levels of
pollution in Country-A. The deficit in the balance of trade shows the trade dependency level
of capital goods and intermediate goods imported from Country-B. In this case, we don’t have
any massive pandemic. Therefore, Country-A would have to depend on the Country-B for
capital goods and intermediate goods. As a result, Country-A always has a higher deficit in its
balance of trade about Country-B. Thus, Country-A still has a high debt in its balance of
business, respectively.
Besides a high deficit in its balance of trade, Country-A also has a low income with low national
productivity. Consequently, both the national saving level (saving = investment) and the
domestic investment are low. In the case of investment is expensive and difficult to obtain by
the private sector at the national and regional levels, because the interest rate is higher for the
limited nationwide savings in Country-A. The limited savings face a series of obstacles in its
attempt to increase investment for domestic production. Therefore, the export supply is smaller.

Additionally, the small export supply is also affected by poor add value and diversity of
products and services. The high cost of production stems from the higher production cost. The

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