"Foreign ministers of the Association of Southeast Asian Nations are starting talks this week on what could turn out to be a more realistic attempt to liberalize trade relations among its 10-member countries. ASEAN representing ministers will likewise continue discussions to push ahead with free trade agreements with Australia, India, New Zealand, Canada, Russia, the European Union, and the US.

The most recent country to join in the discussions is Japan. About 90 percent of trade between Asia's largest economy and the ASEAN bloc will be tariff-free within 10 years. Tokyo already has signed bilateral deals with ASEAN members Brunei, Indonesia, Malaysia, Singapore, Thailand, and the Philippines."

"Viewed as a curse by those in Myanmar who lost their homes and loved ones to Cyclone Nargis, heavy rain in recent weeks is proving a savior of sorts to thousands of cyclone survivors in need of safe drinking water. On 10 July the UN reported that 74 percent of people in the cyclone areas had inadequate access to clean water, with rainwater collection viewed as critical in reducing the risk of disease outbreaks.

Various water purification systems in the storm-affected area have also been put in place -- in an effort to mitigate the risk of water-borne diseases -- an approach that so far appears to be working. Moreover, significant efforts are now under way to pump contaminated water out of ponds so that they can be replenished with this year's monsoon rains."

"Official statistics show that Beijing is solvent, but they substantially understate the country's obligations. The rest of the world should be concerned because a financial shakeout in China undoubtedly would have global consequences. Based on official numbers, the debt equaled 21.1% of GDP at the end of 2007, well below the internationally recognized alarm level of 60%.

Yet we should perhaps add to the ratio three percentage points for Beijing's obligations to multilateral institutions and foreign governments and maybe 10 percentage points for central government debt incurred for lower-tier governments. Local provinces, cities and municipalities have incurred substantial indebtedness, and such debts, at least theoretically, are also obligations of the central government."

"One of the reasons why SAARC has hardly left the starting blocks while ASEAN has forged ahead is that ASEAN economies were liberalized much earlier. In fact Sri Lanka was the first South Asian nation to liberalize its economy post-1977. While most ASEAN nations took advantage of that opening up to hasten trade not only within itself but with the world outside, South Asia was still adhering to its autarchic approach to economic policy and management, a remnant of the old socialist philosophy.

While India's presence has dominated SAARC, no single nation in ASEAN has done so. Though Indonesia in terms of geographical size, population and resources outdoes its other member states, it has not tried to assert itself as the predominant partner in the arrangement. If SAARC is to prove itself as a positive regional grouping then it must go beyond internal trade agreements and there needs to be even-handedness and no bureaucratic barriers."

"Indonesia last week finalized an amendment to the income tax law, which, when enacted next month, will cut taxes and offer incentives to businesses. Income tax for businesses will be set at 28 percent next year, replacing the current progressive system, and will be further reduced to 25 percent at the start of 2010.

The new arrangement will not only benefit firms with big earnings, but also micro, small and medium businesses, which will have their income tax slashed by 50 percent."

"More inclusive business models recognize the poor not only as consumers, but also as drivers of growth. A new UNDP report offers strategies and tools for companies to bring in the world's poor as partners in growth.

The report highlights five strategies used successfully to overcome the most common obstacles to doing business with the poor. These include investment in infrastructure or training to remove constraints; leverage the strengths of the poor to increase labor and management pool and expand local knowledge; work with similarly-minded businesses, non-profit organizations or public service providers; and engage in policy dialogue with governments."

"A mammoth project to cost $20 billion will develop Vietnam's Thu Thiem peninsula into a new urban area across the Sai Gon River as a future commercial, service and financial hub of HCM City. As an extension to the current city center, the Thu Thiem new urban area will accommodate the expected increase in the city's population and would add much-needed public works, such as squares, convention centers and multi-functional recreational centers, among others.

Site clearance is already halfway completed and the city government has ordered local authorities to complete compensation by the yearend. The city aims by 2010 to develop the main infrastructure, such as transport, a water and power supply network, waste water treatment system and communication."

"The valuation of Indonesia's bonds will become more transparent when bond pricing agency PT Penilai Harga Efek Indonesia comes on line next year. The agency will establish benchmark prices for all obligation products issued in Indonesia, by both government and corporate bonds, including conventional and Islamic bonds.

The benchmark system, which will be based on a standard-value calculation formula, is expected to boost the transparency of bond prices, and will replace the current over-the-counter pricing system. The agency will also be responsible for rating bond issuers."

"China's banking regulators have urged financial institutions to speed up innovations and mechanism reform in rural areas to make credit more accessible to farmers. The country had made progress at extending financial services in rural areas, but financial institutions still need to raise their coverage of outlets, increase credit supply and improve financial services to meet diversified demands in rural areas.

A total of 2,868 counties or villages have no financial institutions, most of which are located in the country's west. Another 8,901 counties or villages have only one financial institution."

"Papua New Guinea's economy, in the last 30 years, is very much dependent on the world market price for gold and copper, and this indicates a fragile economic base for the country. Current projections indicate that revenues from the mining sector will peak at K14 billion ($5.43 billion) within the next three years prior to the scheduled closure of OK Tedi Mine in 2013 and is also expected to climb to K16 billion for the next five years from 2015 2020.

The commencement of the Ramu Project in PNG's Madang province will prove significant for the country as it will mean a move towards diversification of the country's mineral export base, with the addition of nickel and cobalt."

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 unsubsribe from ADBI e-newsline please visit:
http://www.adbi.org/e-newsline/subscribe.html

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.