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TOP HEADLINES 24 May 2012
1. INDIA: Mixed report card on rural health
2. PRC: New plan to reduce income inequality
3. TURKMENISTAN: Signs contracts for ambitious pipeline
4. INDONESIA: Don't tie the hands of nation's industry
5. THAILAND: Toshiba to build its largest air conditioning plant
6. TAJIKISTAN: Divorce spurs female labor migration
7. SOLOMON ISLANDS: Mining a leading driver of economy
8. VIET NAM: Auto manufacturers insist on tax, fee reductions
9. CAMBODIA: Malnutrition affecting development
10. INDIA: Uncertain time ahead for IT sector
IN DEPTH
1. INDIA: Mixed report card on rural health
Source: Hindu Business Line

"The Indian government's National Rural Health Mission (NRHM) has been hailed as one of the most ambitious rural health initiatives ever. The stated goals of the NRHM were to provide effective healthcare to the rural population, especially women and children, with special focus on eighteen states. Progress across states is varied and there is considerable debate about whether the resources were efficiently utilized. Judgments on the successes or failures of NRHM have to be read in context.

The total numbers of primary health facilities in India (excluding both sub-centers and district hospitals) is about 30,431. Of these, only 2,243 facilities -- about 7 percent -- could qualify as 24-hour facilities when measured at the baseline. Over the last seven years, this number has grown to 14,676, but is still a net achievement of only 48 percent of the target. Thus, it would be legitimate to call the one-third achievement in high-focus states a failure, but it would also be equally correct to call this over 500 percent increase a success."



2. PRC: New plan to reduce income inequality
Source: China Daily

"A new income-distribution framework is set for approval to redress the growing gap between rich and poor, PRC government officials said. The framework comes at a time when the most affluent 10 percent of the population make 23 times more than the poorest 10 percent. In 1988 it was seven times. The framework, eight years in the making, has been tabled for approval by the State Council and is likely to be introduced in the second half of this year.

As part of income-distribution reform, government agencies, at both central and local levels, will be urged to pass legislation to cut taxes and regulate executive pay in high-profit monopoly industries and private companies. The framework will see an enlarged middle-income group and high earners will pay more in tax."



3. TURKMENISTAN: Signs contracts for ambitious pipeline
Source: Dawn

"Turkmenistan has signed agreements with India and Pakistan to deliver gas through a new pipeline that will transit Afghanistan, the first contracts in the ambitious project. The 1,700-kilometer TAPI pipeline aims to transport more than 30 billion cubic meters of gas annually from Turkmenistan to energy-hungry consumers in Pakistan and India as well as relieving shortages in Afghanistan.

The sale-purchase agreements were signed at a ceremony on the sidelines of the annual Turkmenistan oil and gas congress in its Caspian Sea resort of Avaza by the head of the state gas company Sakhatmurad Mamedov with his Indian and Pakistani counterparts. Turkmenistan and Afghanistan signed a memorandum of understanding for cooperation on the gas sector but no contract. Negotiations were continuing with Afghanistan on the price of deliveries."



4. INDONESIA: Don't tie the hands of nation's industry
Source: Jakarta Globe

"In an environment where the global economy faces great uncertainty, regulatory certainty at home should be a top priority. Unfortunately, the Indonesian government in recent months has added to the uncertainty by issuing regulations that have made life difficult for businesses. This was the warning from the Indonesian Chamber of Commerce and Industry, which said that high production and logistical costs, weak competition, red tape and high interest rates were to blame for a slowing economy.

One official pointed out that various ministries had issued too many regulations that were weighing down the economy. While regulations are needed to maintain economic order and to create a level playing field, over-regulation strangles an economy. The government must get the balance right and ensure that businesses are not encumbered by red tape."



5. THAILAND: Toshiba to build its largest air conditioning plant
Source: Bangkok Post

"Toshiba Carrier Corporation is spending 2 billion baht ($63 million) to build a second air-conditioner plant that will be the company's largest worldwide. The two-story building, which will sit next to the existing plant at Bangkadi Industrial Park, should begin operating next February. The new plant will double production capacity in the next three years. The existing plant makes 1.6 million residential air conditioners a year.

The factory will produce light-commercial and commercial units, of which 97 percent will be exported. Thailand has an edge in terms of export taxes, with a 10 percent rate for exports to India and 3 percent to Europe. The investment is the first official announcement of expansion by Toshiba since last year's floods. The current plant, which resumed full operations in April, is Toshiba's largest outside of Japan."



6. TAJIKISTAN: Divorce spurs female labor migration
Source: Eurasia Net

"Four years ago, Farida Hajimova's husband left Tajikistan to work in Russia. After a time, he stopped calling. Ultimately, he never returned. She was left at home in Dushanbe with two daughters and not a lot of options. Now she says she has no choice but to follow in her ex-husband's footsteps -- not to find him, but to find work herself.

Hajimova is one of an increasing number of Tajik women journeying abroad, mostly to Russia, as labor migrants. Until relatively recently, the overwhelming majority of migrant workers leaving Tajikistan were men. But desperation and poverty are forcing tens of thousands of women to hit the road."



 DEVBlogs ROUNDUP
Something that was previously unthinkable has been happening in Viet Nam in the last few years: prominent retired officials, national assembly deputies and bloggers are coming together to argue for private land ownership as a remedy for land disputes. As in China, industrial parks, transport infrastructure and urbanization is encroaching on Vietnamese farmland and sparking increasingly violent disputes with farmers. Calls for private ownership to increase famers' property rights challenge one of the last remaining socialist tropes -- 'protecting the results of the land revolution.'


7. SOLOMON ISLANDS: Mining a leading driver of economy
Source: Solomon Star News

"The mining industry is projected to be the Solomon Island's leading economic driver this year since it's mineral production is expected to double that of last year. The Central Bank reported that recommencement of mining activities in 2011 accounted for a total gold production 51,054 ounces of which 39,429 ounces were exported in 2011.

The upward trend of international gold prices in 2011, averaging $1,568 per ounce, accounts for a 28 percent increase from the average price of $1,225 per ounce in 2010. It was reported the mining industry is a significant employer in the country and second only to the palm oil industry. The country's major mining company employed 1,166 workers in 2011, of which 900 were locals and 266 expatriates, representing 2.7 percent of the estimated Solomon Island workforce."



8. VIET NAM: Auto manufacturers insist on tax, fee reductions
Source: Vietnam Net

"Car sales dropped dramatically in Viet Nam in the first four months of the year, which, according to the Vietnam Automobile Manufacturers' Association (VAMA), should not be blamed on the economic downturn, but on unreasonable policies. VAMA has reported that the number of cars sold by its 18 members in the first four months of 2012 decreased sharply by 21,331 units in comparison with the first four months of 2011.

With forecast car consumption of 140,000 cars in 2012, manufacturers ordered enough car part sets in late 2011 for production. However, sales in the first four months of 2012 dropped dramatically by 42 percent in comparison with the first four months of last year. While the low sales of cars over the whole year could be foreseeable, it is estimated that 20,000 cars and car part sets have been put in stock."



9. CAMBODIA: Malnutrition affecting development
Source: Phnom Penh Post

"A 50 percent stunting rate among Cambodian children contributed to lower-skilled labor and slower economic development for the country, a senior government economist recently said at a workshop on food security. Stunted growth as a result of malnutrition led to ineffective learning among children and low work productivity among adults, Mey Kalyan, a senior adviser on the Supreme National Economic Council, said.

Stunting was pervasive, and not only among poor families, he said. The condition also resulted in a smaller stature and early death. Relieving the country of the 'vicious cycle' of malnutrition could raise Cambodia's gross domestic product by up to three percent, Mey Kalyan said, citing reports by other economists."



10. INDIA: Uncertain time ahead for IT sector
Source: The Hindu

"Since the global financial crisis of 2008, India's IT industry has been unable to recreate the magic of its halcyon years from 2003 to 2008, when exports grew at a phenomenal 26 percent compounded annual growth rate. Intensified competition within the sector is exacerbating the pressure, which has impacted growth in billing rates and, consequently, revenues.

These factors are taking a toll on the Indian IT industry's growth, and causing a shakeout at the top, if the January-March 2012 quarterly results of leading players are any indication. For the first time in 47 quarters, Infosys, hitherto the bellwether of the sector, missed its revenue growth target. Although India's IT services exports grew by a robust 19 per cent year-on-year in dollar terms in 2011-12, the trends in the last two quarters are worrisome."



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