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TOP HEADLINES 29 May 2009
1. INDIA: New pension scheme to tap into vast market
2. CAMBODIA: Urgent need for education reform
3. INDONESIA: In need of a health plan for the poor
P O V E R T Y   S P O T L I G H T
AFGHANISTAN: Risking one's health for a pittance
4. PRC: Big plans to expand railway system
5. BANGLADESH: Plan to update aging power plants
6. INDONESIA: Biofuel program stalls on poor planning, low prices
7. VIET NAM: High yields, low quality spell trouble for rice farmers
8. THAILAND: Central bank says smaller firms struggling for credit
9. PRC: Boosting investments in Central Asia
10. VIET NAM: Returning jobless workers worsen situation in rural areas
IN DEPTH
1. INDIA: New pension scheme to tap into vast market
Source: Rediff

"Some 284 million working age people in India lack formal pensions. Pensions are limited to government workers and, to a lesser extent, companies that employ more than 20 people. However, nearly 90 percent of India's working population is in the 'unorganized sector' without a regular salary and benefits of formal employers.

To tackle this looming problem, India has designed a voluntary National Pension Scheme open to all. The NPS allows any Indian between 18 and 54 years old to open an account at designated outlets including major banks, mutual funds and insurers. Post offices should eventually join the list. The scheme requires a minimum contribution of Rs 6,000 ($127) each year that cannot be withdrawn until age 60."



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2. CAMBODIA: Urgent need for education reform
Source: Phnom Penh Post

"Cambodia needs to urgently reform its education system to improve workforce productivity and attract the investment needed for economic growth, a UN Development Programme report said. Reform in the education sector must be a priority if Cambodia is to create jobs and compete successfully in the global economy.

The study looked at the economy both sector by sector and in comparison to other countries. A lack of skills and a poorly trained workforce were among the most commonly cited constraints by businesses, leading to labor being three times less productive than in Thailand. Viet Nam has also opened up a lead on Cambodia in productivity after being at a similar point in 1993."



3. INDONESIA: In need of a health plan for the poor
Source: Jakarta Post

"The government is in need of a subsidized health insurance scheme that will provide all Indonesians, particularly those living in impoverished communities, with real benefits, a study reveals. Two schemes popularly adopted in developing nations across the world could be considered by Indonesia.

The first refers to a single national mandatory health insurance system, where the government subsidizes programs for the poor and other disadvantaged groups. Such a system is currently running in Thailand. The second scheme has actually been run in Indonesia before under the Community Health Insurance program, which is fully financed by the government. Around 50 percent of Indonesia's population of about 230 million has access to health insurance, double the figure of 2004."


P O V E R T Y   S P O T L I G H T
AFGHANISTAN: Risking one's health for a pittance
Source: Irin

"Hundreds of child laborers in informal and/or illegal coal mines in Bamyan and Sar-e-Pol provinces, in central and northern Afghanistan respectively, have respiratory and eye infections and are exposed to other dangers, according to health officials in both provinces. Most child laborers said they were working in the mines to help their families but only got 150-300 Afghanis ($3-6) a day.

Coal mining in Afghanistan is a largely unregulated affair. Production is about 200,000 metric tons a year, but only about 20 percent is from government mines. Domestic demand for coal remains high, however, and this explains the large number of illegal and/or informal, small, artisanal mines, which use primitive methods and where health and safety, or environmental concerns, are barely a consideration."


4. PRC: Big plans to expand railway system
Source: China Post

"PRC plans to expand its urban rail system nearly fourfold as it aims to ease traffic congestion and boost economic growth, state media revealed. By 2015, 19 cities will have new rail systems totaling about 2,100 kilometers. The investment will be on top of the 778 kilometers of urban rail lines China currently has in 10 cities such as Beijing and Shanghai.

The project will involve an investment of at least $117 billion. The increase is a result of government measures to boost the economy. The move marks an expansion of a previously announced plan to build 1,700 kilometers of rail in 15 cities, and reflects growing willingness to approve infrastructure projects as a way of lifting growth during the economic crisis."



5. BANGLADESH: Plan to update aging power plants
Source: Financial Express

"The Bangladesh government is now actively working to regenerate the country's aged power plants, now running below capacity, to augment electricity supplies, officials have said. The power ministry has recently asked the state-owned Power Development Board to provide necessary information including the requirement of components and spare parts so that once rehabilitated the plants could produce electricity at capacity levels.

The country currently has five power plant units aged over 40 years, 11 units between the ages of 31-40 years, 23 units between 21-30 years, 19 units between 11-20 years and 69 units between 1-10 years of age. The economic life of any power plant is usually 30 years. The aged power plants consume more energy than the new ones, which has been threatening the country's energy security."



6. INDONESIA: Biofuel program stalls on poor planning, low prices
Source: Jakarta Globe

"The Indonesian government program to blend bioethanol and biodiesel with subsidized fossil fuels has floundered on lack of preparation and falling biofuel prices and won't meet its target production level before at least 2011, an official said. The biofuels industry, complaining that prices are insufficient to cover production costs, suspended sales to PT Pertamina in February.

The state-owned oil and gas company, mandated by the government to blend the biofuels with fossil fuels for sale at its gas stations, used the Platts Singapore benchmark price for its purchases from biofuels companies. However, industry officials say the actual biofuel price was anywhere from 40 percent to 130 percent higher than the Platts price, causing investors to halt production in February until the government issued a decree to base the benchmark price on actual prices."



 DEVBlogs ROUNDUP
A new plan would require automakers in PRC to improve fuel economy by an additional 18 percent by 2015. Many in the government see a strategic and geopolitical need to reduce China's reliance on oil imports, the official said. China was self-sufficient in oil until 1995, but soaring demand means that China now imports nearly three-fifths of its oil.


7. VIET NAM: High yields, low quality spell trouble for rice farmers
Source: Thanhien News

"The Vietnam Food Association has warned of a surplus in poor-quality rice since the country's two largest export markets -- The Philippines and Malaysia -- will mainly buy high-grade rice in the second half of this year. Although the association has advised farmers about this, many of them still chose to plant IR 50404 for their summer-autumn crop.

The IR 50404 variety is easy to plant and high-yielding but produces low-quality rice of the cheapest kind with a usual broken grain rate of 15-25 percent. High-quality rice has a 5-15 percent broken rate after processing. The Philippines and Malaysia have almost imported all their requirement of low-quality rice and would mainly buy high-quality rice during the rest of this year."



8. THAILAND: Central bank says smaller firms struggling for credit
Source: Bangkok Post

"Small businesses continue to face credit constraints associated with poor confidence in the economy, according to a Bank of Thailand survey on lending. Lenders expected loan demand from the private sector to remain low and delinquency risks to increase. The respondents expect corporate loan demand to remain sluggish in line with soft investment trends.

Meanwhile, they anticipate rising delinquency risks among hotels and restaurants, following by electronic and electrical goods producers and vehicle and parts makers. Most banks expect the government's plan to borrow heavily in the domestic market to affect liquidity, interest rates and private-sector loan demand slightly."



9. PRC: Boosting investments in Central Asia
Source: Daily Star

"PRC is using its deep pockets to bolster its position in strategically vital Central Asia, analysts say. In recent months, Beijing has been on a spending spree among the Central Asian states to its west, handing over a $10 billion loan to cash-strapped Kazakhstan in April and stepping up construction projects and investment in the region.

Although experts say the recent Chinese splurge is part of a long-term strategy for the region, few question the fact that Beijing's hand has never been stronger. China's investment pattern in Central Asia fits with a broader strategy that has seen Beijing snap up assets across the world in a drive to convert its massive foreign currency reserves into concrete holdings."



10. VIET NAM: Returning jobless workers worsen situation in rural areas
Source: Thanhien News

"The economic downturn in Viet Nam has seen production fall in the countryside, sending incomes plunging and increasing the jobless rate, according to a recent report. This has been worsened by the return of many native residents who lost their jobs elsewhere.

The study polled residents in 584 communes in four provinces -- Nam Dinh in the Red River Delta, Lang Son in the northern mountainous region, Binh Thuan on the central coast and An Giang in the Mekong Delta. More than 21 percent of domestic migrant workers hailing from these provinces have returned home this year. Seventeen percent of those who had gone abroad to work also returned in the first quarter. An average of 85.3 percent of farm workers in the four provinces have lost their jobs."



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