"Escalating inflation is threatening Nepal. The country cannot achieve its social and economic objectives unless there is a reform in the taxation system. Overall structural characteristics of the tax model have to be designed aiming at pro-growth, pro-investments, pro-savings and a more delivery-oriented approach that will increase tax to GDP.

A series of sweeping reforms must also involve accelerated improvements in tax administration. Policies have to be designed in such a manner so as to enhance investment in the economy to lay a robust foundation for growth. There is need for investment, public and private, domestic and foreign."

"Indonesia has launched a nationwide campaign to improve access to sanitation and clean water. Poor hygiene and sanitation cost the country $6.3 billion in 2006. Some 39 percent of urban households and 23 percent of rural households got their drinking water from a source less than 10 meters from the nearest septic tank or other waste disposal site, where the risk of contamination is relatively high.

Some 80 percent of deep wells were estimated to be contaminated with E. coli. Under the new program, the government aims to provide access to sanitation and introduce more effective water treatment methods in 10,000 villages by 2012."

"The central government in PRC has introduced a series of measures to provide much-needed financing to small and medium-sized enterprises (SMEs) facing unprecedented problems arising from surging energy and material costs and weakening overseas demand. In the first six months of 2008, about 10 percent of SMEs reported an average 15 percentage point drop in their industrial output growth from a year earlier to 30 percent.

SMEs have also been hit by the credit crunch resulting from the government's tightening monetary policy to fight inflation. A dearth of bank loans has worsened the capital shortage of many SMEs, straining their production capability and ability to make longer-term plans. Some are reported to have suspended production, having run out of working capital."

"Inflation has its way of dying out. When prices are already high, demand begins to taper off, unless there is an unlimited supply of cash. That, in fact, is the reason why the world price of oil is now down -- people in the developed world are now traveling less and are economizing on their use of energy, similar to what they did after the oil crisis in the 1970s and 1980s.

For the moment, the Philippine government should focus more on growth objectives by way of more pump-priming activities, especially to support agriculture production, which will also have the benefit of bringing down the prices of food, and building infrastructure to make the country more attractive to investors."

"The western Turkmen region where authorities are planning to establish a tourist zone is suffering from severe water and power shortages, according to observers. Several water processing plants have been put out of action in recent weeks due to cuts in power. In June, drinking water deliveries ground to a halt after the supply to the city's 100,000 residents dried up.

The shortages are blamed on an extremely outdated and damaged water-supply network, as well as the condition of the Turkmenbashi power station, which was built in 1965, and struggles to keep up with demand."

"Controlling inflation expectations has become a crucial factor in the Indonesian government's management of fiscal risk since it has become increasingly dependent on the domestic debt market to plug the deficit and repay foreign debts. Expectations of high inflation will increase the government's borrowing costs, and consequently its debt interest payment burdens, because investors will demand higher yields on bonds.

Since almost all domestic debt consists of government bonds, debt interest payments are highly vulnerable to inflation expectations which in turn influence the yield on government bonds. It is therefore vitally important that fiscal and monetary authorities improve their cooperation and coordination in controlling inflation."

"India is home to roughly one-third of all poor people in the world. It also has a higher proportion of its population living on less than $2 per day than even sub-Saharan Africa. That is the sobering news coming out of the World Bank's latest estimates on global poverty.

The rate of decline of poverty in India was faster between 1981 and 1990 than between 1990 and 2005. India, according to the new estimates, had 456 million people or about 42% of the population living below the new international poverty line of $1.25 per day."

"Inadequate routes and reckless drivers are two problems undercutting a huge drive to promote bus services for commuters in Ho Chi Minh City. The government will increase serviced routes to support a mass campaign to use public transportation.

The city administration said it would ask public officers and civil servants to use public transport to save money and curb pollution. Starting next month, around 100,000 city officers would be asked to use buses or non-engine vehicles to go to work at least once a week. The city aims to save around $278 million per year and reduce environmental pollution."

"Radio has long been an important source of news and information in Myanmar, and many listen in for news of relief and recovery efforts. However, most residents do not have a radio of their own -- a fact prompting a number of private donors to quietly distribute radios to cyclone survivors.

Radio is cheap and convenient, and requires no more than a few batteries. Even if electricity is available, purchasing a TV is out of the question for most, and transport costs to remote parts of the delta can drive up the price of a newspaper or magazine. In any case, newspapers and periodicals not only arrive late but are inaccessible to the many people who are illiterate."

"Conflict is hampering education for thousands of children in Sri Lanka's northern districts. This year, 35 temporary learning spaces have been constructed for displaced schools in Vavuniya and Mannar. Support includes provision of student kits, teacher kits, blackboards, recreational kits and tarpaulins.

In August, two important public exams were successfully held. Several examination centers that were close to areas of fighting had to be relocated to Kilinochchi for the safety of the students."

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