"Economists define the 'poverty trap' as a self-perpetuating condition where an economy, caught in a vicious cycle, suffers from persistent underdevelopment. That is exactly what is taking place in the Philippines, according to a recent study. About 20 percent of all Filipinos now live in chronic poverty. Among Southeast Asian nations, only the Philippines has recorded an increase in the absolute number of poor people since 1990.

The slow decline in poverty rates is caused by the lack of quality employment for many poor people, especially in the agriculture sector. Other factors include inequality across income brackets, high population growth, natural disasters and long-standing conflicts in various regions. Chronic poverty results in lower education, poor health and malnutrition of children, which hamper their long-term productivity and impede their ability to manage and generate new knowledge."

"While forecasts for world economic growth remain in the uncomfortably low single digits, Asia's economies are expected to grow by up to 7 percent in 2010. Asia is playing a star role in the still faltering world economic recovery, led by China, whose economy grew 8.9 percent over a year earlier in July-September. As usual, India is trailing and Japan lagging far behind.

Crafting a sustainable recovery, despite weakness in the export markets that have long supported growth, remains the top challenge for many Asian economies. Massive liquidity flowing into Asia -- too much cash chasing too few profitable investments -- has pushed stock and property prices sharply higher in some markets, raising worries about fresh asset price bubbles and risks of fresh crises in the financial sector."

"Despite concerted efforts, South Asia remains a backward region where the largest number of illiterate live. The region represents almost 23 percent of the world population, but shares only 2.5 percent of world gross national income. It has not fully geared up to provide material benefit to more than 1.5 billion inhabitants.

A well coordinated regional approach is required to minimize the impact of a slowing global economy. SAARC as an important organization needs to show a lot of progress on the implementation of policies and programs including enhancing political, economic and cultural ties among its member states. The organization can build South Asia as one of the prosperous regions of the world promoting peace and caring for destitute and vulnerable segments of teeming millions."

"The past decade has seen a gradual shift of urban poor settlements from the center of Phnom Penh to its outskirts, where communities lack easy access to employment, schools and health services, according to a new report. The number of settlements in the city's four inner districts has more than halved since 1997, while districts on the outskirts of town have swelled with urban poor.

While poor residents have spread to the city's outskirts, infrastructure and other vital public services in the new settlements remained largely inadequate. Just 39 percent of the settlements in the outer districts have drainage systems, compared with 73 percent in the inner areas, and nearly a quarter lack road access. The state provides affordable water to 36 percent of outer district settlements and electricity to 41 percent."

"China and Central Asia opened a new 'Silk Road' on Monday when President Hu Jintao and leaders from three other nations officially opened a natural gas pipeline linking Turkmenistan to China's Xinjiang region. The pipeline -- the longest in the world -- is being seen as a sign of growing trust in Central Asia and should help China hit its goal of cutting carbon emissions, experts said.

The 1,833-km pipeline will snake through Turkmenistan, Uzbekistan and Kazakhstan, before entering China's northwest region of Xinjiang. It will be capable of delivering 40 billion cu m of gas a year, more than half of China's current annual gas consumption, once it reaches full capacity between 2012 and 2013."

"A new report reveals that 37.2% of the Indian population is living below the poverty line. Using cost-of-living index for measuring poverty, it finds that the number of urban poor has decreased overtime, while in rural areas it has gone up.

One in three Indians lives below the poverty line according to the Tendulkar Committee report which used a measurement of goods and services, rather than calorie intake, to calculate poverty. The Dandekar-Rath poverty line formula that has been used since 1971 measures only the calorie content of an Indian's diet. If it is lower than 2,250 calories per person per day, the person is declared to be under the poverty line. This norm was not revised in 35 years."

"Fiji has signed an interim trilateral economic partnership agreement (EPA) with the European Union (EU) and Papua New Guinea, effectively cementing the EU's commitment to trade relations. For Fiji, the EPA represents the continuation of preferential sugar prices. Fisheries is another sector that is bound to benefit.

The new EPA is being negotiated to replace the current Cotonou Agreement of which Fiji is a signatory. Negotiations this round may differ from previous trade agreements in that it is a specific regional agreement rather than an agreement that bundles the Pacific with African and Caribbean states."

"Vietnam will halve the subsidy provided on medium- and long-term corporate loans next year amid concern the program is stoking credit growth and inflation. The subsidy paid on these local-currency loans will be cut to 2 percent of borrowing costs from 4 percent for companies in the agriculture, forestry, seafood and processing industries.

Vietnam's inflation accelerated to a six-month high of 4.35 percent in November, and is expected by the International Monetary Fund to quicken to at least 10 percent in 2010. Credit soared 36 percent through November from a year earlier, exceeding the government's full-year target of 30 percent."

"China on Tuesday began construction of the world's longest cross-sea bridge linking its southern economic hub Guangdong province to Hong Kong and Macao, a move widely expected to bring economic ties closer. The Y-shaped Hong Kong-Zhuhai-Macao bridge will have a total length of almost 50 km, of which about 35 km will be built over the sea.

The entire project, expected to be completed in six years, is estimated to cost almost $10.7 billion. On completion, it will take about half an hour to travel from Zhuhai or Macao on the west bank of the Pearl River to Hong Kong on the east bank, compared with the current three hours."

"Almost two-and-a-half years after the Maharashtra government unveiled its show-piece project to transform Dharavi into a model township and a world-class commercial hub, not an inch of mud has moved. The red-tape, however, hasn't tired of working overtime. The bid process was delayed by almost two years and then seven qualified bidders opted out over delays in the past one year.

The original plan envisages dividing the slum into five fully self-sufficient sectors, complete with jogging tracks, open spaces, commercial set-ups, and educational and healthcare institutions. Dharavi's redevelopment was to make available five million square feet of new office and residential space in the near term and 40 million square feet over seven years."

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