ADBI E-Newsline

"The much-awaited bridge connecting Mumbai's Bandra and Worli on the city's western coast is an engineering marvel, but it's also an exemple of the things that are wrong with the nation's infrastructure planning. Projects continue to be plagued by poor execution. Contracts are routinely renegotiated midway through projects, the government is tardy in obtaining required clearances and the process is mired in red tape, with various authorities competing against each other for influence.

There are already doubts about whether the Mumbai sea link will prove to be economical, given that traffic is likely to accumulate at both ends of the bridge, not saving commuters too much time. Cost overruns and delays are so common that it is no surprise that investors are wary of betting on infrastructure."

"The second price hike within a month has added credibility to China's new fuel pricing mechanism. The prices of gasoline and diesel were raised by nearly 9 percent and 10 percent, respectively, on Tuesday. This is encouraging because it highlights the government's commitment to a more flexible pricing system that can effectively adjust supply and demand with credible price signals.

More important, it shows that while being keen to revive economic growth, Chinese policymakers do not favor a fuel binge caused by low pump prices. If international oil prices go up further, the new pricing mechanism will allow Chinese authorities to impress on people the urgency of energy conservation by quickly raising pump prices further. That will not only be good for China to address the current slight consumer deflation but also push for better energy efficiency to sustain the country's long-term growth."

"Bangladesh's tax return system has remained one of the stumbling blocks to the growth of the government's earnings from income tax paid by individuals and companies. It is still complicated and not friendly to taxpayers. Recently, the government has developed a modern system of submitting tax-returns online for major tax payers, including top companies and individuals.

According to the authorities, the aim of the new system is to cover only 37 percent of the country's taxpaying population. Though the system will serve only a section of the taxpayers, it will also be a test of its efficacy. If the system works well for the targeted section of the taxpayers, then the government may think of expanding it further."

"The number of Indonesians living in rural villages outnumbers the number of urbanites. It is believed that access to electricity -- even just enough for lighting -- would drive rural economic activity, reduce the birth rate and enable these villagers to pursue an education. A more significant amount and higher quality of electrical services could later be introduced to allow for TVs, telephones and the Internet to penetrate remote areas.

From 1994 to 1998, the government launched a program to boost rural electrification, setting a target of providing power to 15,000 villages. State electricity company PT PLN was assigned the task of implementing the program. Unfortunately, the 1997 economic crisis forced substantial changes to the rural electrification program, and only 10 percent of the target has been achieved. Estimates suggest that 60-70 percent of households currently have access to electricity, and that 85 percent of villages have some access to electricity."

"Environmental problems not only affect Nepal's poor and marginalized, but every Nepali. Issues surrounding food security, health, land use and development are all directly linked to climate change. Reports say that developing nations will be hit hardest by climate change. And even within poor countries like Nepal, the poorest and most marginalized communities will be the worst affected.

Until the 1970s, Nepal was self-sufficient in its food production and supply. But today -- for various reasons, including population growth and mismanagement of resources -- food insecurity is a chronic problem in Nepal. Nepal cannot address climate change and food security without considering land-use policies."

"Local importers and exporters in Viet Nam claim they are suffering losses because of the traffic gridlocks that plague city streets. Traffic problems at Thu Duc District's Go Dua crossroad, near Binh Phuoc Port, forced local firms to carry their shipments to the port much sooner than the departure date of ships, leaving them to pay warehouse fees.

Many foreign investors said bad traffic in Ho Chi Minh City was an obstacle to their business in Vietnam, so they've switched their investments to the north. Land rentals at industrial zones in the north are getting higher than in the south because of growing demand. Traffic infrastructure has become better in the north than in the south."

"Around 50 percent of child laborers in Karnataka are working as domestic helps in defiance of law, say activists. But now a new push to end the practice will involve interactions with rural households. Groups of local residents and workers' unions will monitor neighborhoods and ensure that no household, apartment or restaurant employs child laborers.

The state government was the first in the country to prohibit the employment of children in the domestic sector. Fourteen Karnataka districts last year opened 42 special schools with 1,855 child laborers currently enrolled in it. India has the largest number of child laborers in the world today even though there is a law against it that stipulates two years in prison and a fine for the violator."

"The Thai economy might have bottomed out but it is still very fragile. Although the central bank said the worst was over, it noted that the global recession would continue to slash demand for electronics and automotive products, affecting Thailand's industrial production, which fell for a seventh month in May. All eyes are now on the government to see how it will pull the economy out of recession.

The government must urgently stimulate domestic consumption to offset the slump in the export sector. The Bt800 billion ($23.5 billion) stimulus package is not expected to bring about results until late this year. The money will have to focus on projects that can take off immediately. The government's longevity will depend on whether the loans will be able to stimulate the economy."

"Prime Minister Sheikh Hasina has urged private banks to set up branches in rural areas to help accelerate development of the rural economy. She mentioned that expatriate Bangladeshis in the past faced severe problems in sending home their remittances, but the previous government had taken effective measures so that the expatriates could send remittances through banking channels.

Hasina further said the last government had paved the way for the flourishing of banks, insurance companies, mobile phones and television channels in the private sector."

"President Yudhoyono last week issued a regulation that requires all 524 federal and municipal administrations to quickly and efficiently process all business licenses needed by an investor through a one-stop licensing center. The center will integrate the processing of applying for all business permits required by regional service agencies into a single online system.

The online system developed for the submission of applications and processing of business permits will minimize physical contact between businesspeople and officials, which is normally the point at which collusion and corruption start. More regional administrations are beginning to realize that economic records, which directly benefit the people -- meaning jobs -- are the most effective means of gaining voter support."

Please share this e-newsline with others interested in the development of Asia-Pacific.

For questions, comments, complaints please visit our online contact form

To change your email address or to unsubscribe from ADBI e-newsline please visit:
http://www.adbi.org/e-newsline/subscribe.php

Sign-up for ADBI's free e-notification service to ensure you receive an e-mail when we post new publications and opportunities.

The stories and links selected and the views expressed in e-Newsline are those of the authors and editors and do not necessarily reflect the views or policies of the ADB Institute. The Institute does not endorse them and accepts no responsibility whatsoever for any consequences of their use. Original name usage is retained in quoted articles, although it may not necessarily follow ADB naming conventions.