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TOP HEADLINES 29 May 2008
1. INDONESIA: Responsibility to reign in inflation
2. PRC: 'Quake lake' fears force new evacuations
3. INDIA: Bicycle bank helps girls get an education
4. PNG: Bid to expand agriculture
5. SRI LANKA: Price rise a boost for struggling tea industry
6. BANGLADESH: Need to create additional refining capacity
7. PAKISTAN: Juvenile delinquency reaches epic proportions
8. NEPAL: Fuel shortages add to food insecurity
9. PHILIPPINES: Urban farms bloom in Manila
10. VIET NAM: Honey exports fall due to less output, poor quality
IN DEPTH
1. INDONESIA OP/ED: Responsibility to reign in inflation
Source: Jakarta Post

"Following an increase in fuel prices, the burden has shifted to Bank Indonesia to control the resultant price inflation which many expect to run into double digits this year. The task for the central bank is getting more difficult though, especially after increased fuel prices which are likely to spark a chain of price increases for other products and services.

Higher global food prices have introduced external inflationary pressures, with the cost of domestic cooking oil, soybean and wheat flour nearly doubling since last year. Judging from past experiences, any increase in fuel prices causes inflation to rise. The last time, in 2005, when the government raised fuel prices by more than 155 percent, inflation shot up to 17 percent."



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2. PRC: 'Quake lake' fears force new evacuations
Source: Reuters

"PRC has evacuated more than 150,000 people living below a swollen lake formed by this month's devastating earthquake amid fears it could burst and trigger massive flooding, state media has reported. The Tangjiashan lake was created when landslides caused by the May 12 quake blocked the Jianjiang river above the town and county of Beichuan in mountainous Sichuan province, near the epicenter of China's most destructive earthquake in decades.

The official death toll from the 7.9 magnitude quake is already more than 68,000 and is certain to rise further, with nearly 20,000 listed as missing. Aftershocks on Tuesday toppled 420,000 houses, many already uninhabitable. The earthquake will also make it difficult for China to meet its target of limiting inflation this year, a senior official said, because of the damage to agricultural production and heavy investment in reconstruction work."



3. INDIA: Bicycle bank helps girls get an education
Source: One World

"A bicycle bank has been set up to reach out to young girls who had decided to opt out of schools because they had no means to attend institutes which were in far-flung areas. Before the implementation of the program, most girls were forced to leave their education mid-way because they had to walk up to 10 kilometers for higher classes.

Parents were concerned for their safety and therefore would rather get their girls married at early ages than run the risk of securing education and special skills. Many of the girls who began using the bicycles in 2002 are now on the verge of completing their degree courses in such fields as law, commerce, pharmacy and agriculture."



4. PNG: Bid to expand agriculture
Source: IRIN

"Only 30 percent of Papua New Guinea's 46.2 million hectares of land was considered suitable for agriculture. In addition, a combination of factors was causing a deterioration in PNG's agricultural productivity, including a decline in soil fertility and overall farm size, falling commodity prices and migration from rural areas.

There had been insufficient investment in agriculture and where there had been investment, it had not been supported by infrastructure such as roads. A new four-year assistance strategy will be introduced to help improve livelihoods in agriculture and service delivery and provide financial support for the sector."



5. SRI LANKA: Price rise a boost for struggling tea industry
Source: Daily Mirror

"A four percent increase in the price of tea is predicted in Sri Lanka in the next twelve months, which is a continuation of the price increase experienced in 2007 of 6.5%, and the 11.6% registered in 2006. This news is very encouraging to Sri Lanka's tea industry which is facing hard times due to rising costs due to the electricity spike hike, staggering productivity levels and the spiraling costs of fertilizer.

Sri Lanka's recent replanting rate has been at a low 0.7% while global averages are at 2%. The new planting rates are only at 5-15 hectares per annum, which is an indication of the short sighted approach of the tea industry. The global competitiveness of Sri Lanka's tea industry is under threat and with the emerging food crisis it's time to refocus national policy on agriculture, and the first beneficiary should be the tea industry."



6. BANGLADESH: Need to create additional refining capacity
Source: Financial Express

"The poor refining capacity of Bangladesh's lone oil refinery -- the Eastern Refinery Limited (ERL) -- in the public sector is the most disturbing aspect of the current situation relating to the petroleum, oil and lubricant (POL) sector. The import of refined POL products in such large quantities has been costing a substantial amount of foreign currency annually. The average gap between crude and refined oil prices was $14 a barrel in the international market in 2004. But it has now increased to $30-$35.

The ageing refinery often encounters technical problems and its refining capacity has also gone down. The government has ignored for too long the need to create an additional refining capacity to help narrow the losses incurred on account of the greater import of refined POL products."



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Sub-contracted workers in Thailand will be entitled to the same wages, welfare and benefits as those extended to regular workers who perform similar work under the amended Labor Protection Act. Sub-contracted laborers account for 42% of the Thai workforce. Currently, many businesses avoid the labor protection law by setting up a new division for sub-contracted staff to work in.


7. PAKISTAN: Juvenile delinquency reaches epic proportions
Source: Pakistan IAT

"The state of juvenile delinquency in Pakistan is reaching drastic levels with serious dangers being rendered to the health, social and moral development of these children and society. By treating these juvenile in a class with adults, it is creating a never ending breed of hardened criminals that are only a menace to an already crime ridden society. Out of Pakistanfs population of 165 million almost half are under the age of 18 years while 22% are adolescent (10-18 years).

Five out of seven children are denied the right to an identity by means of registration at birth and hence are not even counted as citizens. According to estimates, some 3 million children in Pakistan are engaged in child labor. When such a huge number of the population is juvenile and the majority of them are living below the poverty line, then it is only normal that these kids would have more than their fair share of run-ins with the law. But in Pakistan there is no system of juvenile law in practice as such."



8. NEPAL: Fuel shortages add to food insecurity
Source: IRIN

"Millions of farmers in Nepal have been hit by an acute fuel shortage. According to dealers, the state-run Nepal Oil Corporation (NOC), which imports all its fuel from India, has not been able to supply even 50 percent of the required diesel and petrol. NOC has failed to pay outstanding dues of about $30 million to Indian Oil Corporation, and hence the shortage, according to officials.

NOC, which sells fuel on the local market at a highly subsidized rate, is running at a loss and is unable to get any more financial support from the government. Local petroleum dealers said the situation could get worse if the government does not find a solution soon. Farmers depend on diesel to be able to use their water-pumps and tractors. The harvesting and planting season has already started and there is concern that fuel shortages could not only affect harvests but also lead to price increases for fertilizer and food."



9. PHILIPPINES: Urban farms bloom in Manila
Source: Reuters

"An agriculturist in the Philippines who heads a model farm for urban communities says no space is too small, or weather too harsh, for planting vegetables in the city -- especially if you are poor. David Balilla heads Gulayan at Bulaklakan, a model farm that grows various vegetables using space-friendly techniques such as hanging sacks, tires, plastic bottles and bamboo containers.

He gives seminars on urban farming in poor areas, showing residents that many vegetables can grow in any weather. Other urban farmers regularly harvest their lunch from their backyard. Not only do they save money, they harvest enough vegetables to sell at a local market, giving them funds to help put their children through college."



10. VIET NAM: Honey exports fall due to less output, poor quality
Source: Vietnam Business News

"Last year Viet Nam exported 14,000 tons of honey worth $25 million, a reduction of 2,000-3,000 tons compared to previous years. The decrease was partly caused by the reduction of honey output and the EU's temporary halt on importing honey from Viet Nam as of mid 2006. In 2002, Viet Nam ranked second worldwide for honey exports, but it had fallen by 5-6 grades last year. Since the beginning of 2008, honey output has continued to slide because of unfavorable weather and poor harvest of fruit trees.

Many batches of exported honey have been returned because they contained false honey, sugar and antibiotic residues. In the local market, honey prices have increased sharply and beekeepers have been committing fraud by mixing sugar and treacle into honey. Of even greater concern is that Viet Nam is becoming an intermediate country for the export of Chinese honey, which has been banned by importers."



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