"Japan and China have pledged to throw their combined weight behind efforts to revive the struggling world economy. Both countries also called for a resumption of stalled international talks to free up global trade and said they would for the first time launch joint assistance programs for developing countries.

The Japan Bank for International Cooperation and the Export-Import Bank of China agreed to cooperate in foreign development aid to give financial support to third countries. Both China and Japan called for an early conclusion to the Doha Round of trade talks under the World Trade Organization."

"The current downturn is hardly a full-blown repeat of the Asian crisis. That's testament to the surprising strength of the 10 countries that belong to Asean. The region's banks are virtually free of toxic assets and haven't needed government bailout money. Years of trade surpluses and high savings rates have contributed to record foreign reserves. Debt loads -- for governments, corporations, and consumers -- are a fraction of those in the US and Europe, and inflation and interest rates have fallen dramatically.

Southeast Asia's strength is an encouraging sign that the region is still a player. Though it may have been half-forgotten by many investors since the crisis, its educated workers, natural resources, and -- in some countries, at least -- first-class infrastructure make it worth paying attention to. But one of the region's greatest strengths is also a weakness: a growing reliance on exports, especially to China. What's needed is more intraregional trade in final goods."

"More than thirty percent of Filipinos currently live below the poverty threshold at which they cannot afford food combined with the essentials for life, with international estimates suggesting 44 percent earn less than $2 a day. At the bottom of the poverty pile lies Minadano, known as the country's food basket, though wracked with hunger and want. It has been the poorest of the Philippines' three major island groups for almost a decade, with fifty percent below the poverty line.

All five regions of the island are in the ten poorest regions in the entire country, and within the island itself, the Autonomous Region of Muslim Mindanao (ARMM) ranks as one of the two poorest regions. While the Philippines' record GDP growth of more than 7 percent in 2007 should have raised hope for the prospect of lifting millions out of poverty, impoverishment has only increased. The short-term prospects are bleak. Economists are forecasting a rise in food prices and unemployment over the next three years."

"Leaders of the so-called Asean+3 are pushing for the immediate setting up of a $120 billion foreign reserve fund as well as a free trade area in an effort to maintain financial stability and prevent a decline in economic growth amid the global crisis. Thailand's prime minister Abhisit Vejjajiva said in a joint statement the leaders agreed on the implementation within the year of the $120 billion Chiang Mai Initiative Multilateralisation (CMIM).

The heads of governments are also pushing for the establishment of an Asian Development Bank-backed trust fund that promotes the issuance of local currency-denominated corporate bonds, dubbed the Credit Guarantee and Investment Mechanism (CGIM). Aimed at helping develop the region's bond markets by providing guarantees for such loans, CGIM has an initial capital of $500 million that could be increased once the demand is fully met."

"A deepwater natural gas pipeline system from West Asia to India via a geo-politically safe route outside the Persian gulf may soon be a reality. A global consortium is looking to create a $3-billion natural gas transportation infrastructure linking the Gulf region with India. Its first phase would bring 31 million cub mtrs gas per day to the Indian west coast.

India has a large and ever-growing appetite for natural gas which is currently, to some extent, met by the import of LNG. However, there is still a large and unsatisfied demand which can be met only in a cost-effective manner via transnational pipelines from neighboring countries. Last year the technical and commercial feasibility reports for the pipeline were completed and it has been confirmed that the project is technically feasible."

"The biggest challenge for Bangladesh in the next fiscal year will be to prop up falling investment to cope with growing domestic demand, the Centre for Policy Dialogue (CPD) said. In spite of the global recession, the country performed quite well according to almost all major macroeconomic indicators -- export, inflation, and the exchange rate. However, gross investment as a percentage of GDP has declined for the third consecutive year since 2006.

Public investment also plunged to a historic low rate of 4.6 percent of GDP this fiscal year. Additionally, the implementation of the annual development program was only 46.3 percent in the first 10 months of this year. CPD also identified the waning trends in domestic savings as a big challenge. Domestic savings declined for the second consecutive year and stood at 20 percent this fiscal year."

"Despite the Indonesian government's much touted fiscal stimulus package, only about 27 percent of the total national budget, or $29 billion, has actually been spent this year. This is only slightly up from the same period last year when the figure was 25 percent. Economists say that much faster spending is needed to see the economy safely through the crisis.

Besides expediting the decision-making process, the government needs to streamline land acquisition for infrastructure projects. It is estimated that the national budget was actually in surplus to the tune of Rp 69.21 trillion as of May 31, primarily due to soaring government bond sales, although many commentators say it also reflected slower than expected public spending."

"Tajikistan on Friday announced a raft of newly-inked economic deals with China aimed at significantly boosting Beijing's investment in the impoverished country. Under the deals signed Thursday in Dushanbe, Chinese companies will invest more than $1 billion to build power stations, roads and factories over the next two years, raising Beijing's already significant presence in Central Asia.

Tajikistan has struggled to provide even basic services for its citizens in recent years, with blackouts the norm throughout much of last winter. The investment, which includes $650 million for the construction of a hydroelectric power station in eastern Tajikistan, is aimed at boosting Dushanbe's capacity and flagging infrastructure. The deals fit with a pattern of growing Chinese investment in Central Asia, as Beijing seeks to convert its massive foreign currency reserves into concrete assets while boosting stability along its sometimes-volatile borders."

"The Clean Development Mechanism (CDM) is an arrangement under the Kyoto Protocol allowing industrialized countries with a greenhouse gas reduction commitment to invest in projects that reduce emissions in developing countries. CDM has experienced rapid growth, beyond expectation since its inception in 1997. China's experience clearly indicates that the capacity building and the strengthening of local institutions are the key to jumpstarting CDM projects. Extensive investment between late 2001 and 2006, including from many donor agencies, has helped China.

Bangladesh has much potential for exponential development in the CDM market especially in waste and forestry sectors. But due to lack of building capacity, institutional strength, and sufficient cooperation among agencies, it has not been able to make use of the profitable opportunity. As a result, environmental degradation is being gradually aggravated and the wheel of the country's economy hasn't experienced momentum. Private-public joint initiatives and adequate attention are needed to take advantage of CDM in the country."

"China said Friday it could invest up to $50 billion in the International Monetary Fund's first-ever bonds in yet another sign of the nation's growing financial muscle. The 185-nation IMF is struggling to provide financing to countries in trouble amid the global financial and economic crisis.

The IMF has been working to issue its very first bonds, and major developing economies such as Brazil, Russia, India and China are seen as potential buyers. China's forex reserves are the largest in the world and currently stand at about $1.9 trillion. Buying a substantial amount of bonds could be the first step on the way towards expanding China's clout at the IMF, according to observers."

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