"In spite of SAARC's emphasis on trade as one of the major priority areas of economic cooperation, total external trade of the region amounts to a mere 1.6 percent of world trade, 1.4 percent of world exports and 1.8 percent of world imports. The region has not developed the required technological knowledge and skill-base to become competitive in the global market due to which, productivity per worker is low and the cost of doing business in the region is very high.

SAARC countries need to respond to the emerging situation in a holistic manner by forging a common strategy by exploring options to safeguard regional interest through joint ventures, and technology transfer among its member countries."

"Products made in PRC with a total value exceeding $11.68 billion have been subject of 101 trade remedy investigations launched by 19 countries and regions in the year till Nov 3, statistics show. Rising commodities and labor costs have also eaten into some exporters' slim profit margins. Chinese exporters previously had a low-cost advantage, but this is being diminished by raw materials and labor cost spikes, a senior official says.

The challenge for China is to increase the value-added elements of products, primarily through technology and branding. Only this will enable companies to pay higher wages to workers, whose buying power will stimulate and sustain the economy."

"Signs are showing that if Bangladesh needs to import food on a large scale, it could be a great financial drain. Traditionally, India is the biggest or main supplier of rice to Bangladesh. But India has declared a ban on rice exports as a consequence of suffering a very bad and long drought that caused production to dwindle. Furthermore, it has taken steps to import rice for the first time in many years. The Philippine government has also called international tenders for supply of more than half a million tons of rice.

Against this backdrop, Bangladesh needs to be very watchful about these developments to hedge itself from any food shortage shocks. Authorities need to take immediate measures to help farmers overcome this problem. For the mid term, the supply of all indispensable agro-inputs to farmers will have to be absolutely ensured without any snags on a sustainable basis to maintain the trend towards higher production. Operating efficient price supports and incentives to farmers will be crucial to keep them motivated to produce in greater quantities."

"With India's urban population growing up to 3.8 percent annually urban areas will be short of an estimated 26.53 million dwelling units by 2012, according to a technical group. The number of jobs created in urban areas during 1991-2001 is 19.3 million as compared to 5 million jobs created in rural areas. This has led to gaps of demand and supply of housing units in urban areas and a shortage of housing, particularly for the urban poor.

The government has formulated the first urban area-focused policy to set in motion a process to provide affordable housing for all, particularly economically weaker sections and low income groups. This policy seeks to reserve 10 to 15 percent of land in every new housing project or 20 to 25 percent of floor area ratio for economically weaker sections."

"The Indonesian government remains upbeat the country's manufacturing sector growth will rebound in 2010, despite warnings from some industry players that a free-trade pact with PRC, which takes effect on Jan. 1, will seriously hurt the sector. The manufacturing sector is expected to grow 3.8 percent next year, rebounding from a projected growth rate of 1.9 percent this year.

Local manufacturers have been struggling to overcome the impact of the global economic slowdown. Soon they will face increased competition from Chinese producers, with cost advantages, as a result of the Asean-China Free-Trade Agreement. The Finance Ministry said the sector would benefit from a global and domestic economic recovery."

"Sri Lanka's private sector borrowing is showing signs of recovery that could help to achieve a 3.5 percent economic growth target now that interest rates have come down, a central bank official said. The island nation's private sector credit growth has recorded negative growth of 5.2 percent in September year-on-year, the latest data from the central bank shows, despite a continuous reduction in policy rates.

The central bank has so far in 2009 cut the repurchase rate by 300 basis points to 7.5 percent and the reverse repurchase rate by 225 basis points to 9.75 percent, both multi-year lows, to stimulate credit growth and spur a faltering growth. The central bank expects the $40 billion economy, still struggling after the global financial crisis and a civil war, to expand to an eight-year low of 3.5 percent this year, compared to 6 percent last year."

"To ensure a smooth flow of heavy traffic from Peshawar to Afghanistan and onwards, the government has planned the Peshawar Northern Bypass with boosted expenditure of Rs 9.6 billion ($114 million), sources said. The revised scheme envisages construction of a 32.20 km long, 4 lanes bypass with service roads either side, on the northern side of Peshawar city. The bypass would be constructed along a new alignment passing through agricultural land.

The scope of work included the construction of interchanges at the bypass junctions, 12 bridges, two flyovers and six grade intersections at the major road crossing a cross drainage structures with allied facilities."

"Viet Nam's efforts to renovate and globalize its education system must go together with better policies that make teaching a more rewarding job, experts say. Viet Nam spends about 20 percent of its annual state budget of approximately $20 billion on education. Currently, the country has about 1.5 million teachers at all levels with an average monthly income of VND2.1 million ($115), which forces many to seek other sources of income like teaching extra classes.

Many good high school students shy away from pursuing education majors as they fear low salaries and bad working conditions. Some have suggested giving more autonomy to schools in terms of recruiting, hiring, and paying good teachers."

"Sri Lanka should focus attention on skills development in the hospitality industry to compete with regional destinations. An essential ingredient in this regard is to upgrade the expertise in the industry in all sectors and provide professional training and exposure, said an expert in the field. Since the war ended there has been a euphoria in the industry and gradual building of confidence.

The results are already being felt over the past six months with an upward trend in hotel occupancy and increase in the number of arrivals. However, a great deal of work remains to be done. Upgrading tourism-related infrastructure such as roads, hotels and lodging facilities, the transport system including domestic air travel, entertainment and other facilities that add to value is vital, he said."

"The increase in money supply due to the record rise in foreign currency reserves coupled with the presence of a substantial amount of idle money in the banking sector is likely to create inflationary pressure on the economy, according to a Ministry of Finance report. The report highlighted almost all the major sectors in the macro economy.

It underscored the need for implementation of the Annual Development Program, enhanced investment in power and infrastructure and vigorous efforts to enhance revenue income to achieve six percent GDP in the current fiscal year. According to data, foreign currency reserves crossed the $10 billion mark for the first time in the country last November."

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