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TOP HEADLINES 24 December 2009
1. BANGLADESH: Better understanding the problems of poverty
2. NEPAL: UN stops food aid to over half a million Nepalis
3. INDONESIA: Facing the ASEAN-PRC free trade deal
4. BANGLADESH: Set to build $2.4 billion bridge
5. CAMBODIA: Financial crisis forces more teenage girls into labor
6. ASIA: Is microfinance truly effective?
7. INDONESIA: Low output a wake-up call for coffee industry
8. VIET NAM: Healthy despite deficit fears
9. ASIA: Poor weather drives tea prices to record high
10. CAMBODIA: Gov't plans maternal health centers
IN DEPTH
1. BANGLADESH OP/ED: Better understanding the problems of poverty
Source: Financial Express

"Bangladesh has undertaken many projects for addressing the problem of job creation. Traditional tools to poverty reduction have, however, bought about only peripheral changes in the situation. They are proving to be largely unsuccessful. Occupational mobility matters very little these days as the low-productive non-farm sector can hardly sustain livelihoods.

A shift from agricultural labor to farming has not served the soup to the poor in the presence of low return from tenancy. This makes the case for successful strategies that encompass, among other things, geographic mobility, increase in education for earning members, and improved access to electricity."



2. NEPAL: UN stops food aid to over half a million Nepalis
Source: Dawn

"The United Nations has been forced to stop feeding over half a million people in Nepal due to a critical funding shortfall caused by the financial downturn, a World Food Program official said on Wednesday. The UN agency says it needs $20 million to continue feeding 600,000 people -- more than a quarter of the total number it was assisting -- in the impoverished Himalayan nation over the next three months.

The agency faces a major funding shortfall as donor governments are hit by the financial crisis, and in November it directly appealed to one billion individuals on the internet to give small amounts of cash to beat hunger in many countries. Despite the end of the conflict in 2006, the number of people at risk of hunger has tripled to more than 3.7 million -- 16.7 percent of the rural population."



3. CAMBODIA: Financial crisis forces more teenage girls into labor
Source: IPS

"Until the global financial crisis hit, a journey out of poverty for women in rural Cambodia was assured by the vibrant garment sector that had taken root in the country's capital. But after the global financial crunch struck, the U.S. market, which accounted for nearly two-thirds of Cambodia's garment exports, began to dry up.

The consequence, say experts studying the impact of the crisis on a mainstay of the Cambodian economy, is an increasing number of teenage girls from the provinces heading to Phnom Penh to seek jobs to make up for the loss of income that has hit their families. Most female employees in a factory earn a monthly wage of $73, which includes the minimum wage, overtime payments and cost-of-living allowances."



4. BANGLADESH: Set to build $2.4 billion bridge
Source: AFP

"Bangladesh is to build the country's biggest bridge at a cost of $2.4 billion in a bid to spur economic growth in its impoverished southwest. The government is set to invite international tenders for the 6.15-kilometer road and rail bridge over the river Padma in February.

Construction of what will be the longest bridge in Bangladesh is set to begin in the second half of 2010. The bridge over the Padma -- the local name for the Ganges -- would be Bangladesh's costliest infrastructure project to date and would facilitate economic growth in the south and southwestern regions."



5. INDONESIA OP/ED: ASEAN-PRC free trade deal: Let's face the music
Source: Jakarta Post

"In the last few months, Indonesia's domestic business players, industry associations, policy makers and analysts are discussing the potential threat from the zero percent tariff implementation on China's products under the ASEAN-China Free Trade Agreement (ACFTA) scheme, effective starting Jan. 1, 2010. Most people would concur the implementation of ACFTA would adversely impact Indonesia's manufacturing and trade performance.

Would a delay help? Even with a delay, various Indonesian industries would face the same problems, particularly given that some products from China are state-subsidized. To counter this, Indonesia needs to make structural changes impacting upon the country's manufacturing sectors. These include dealing with mark-ups and inefficiencies, which result in lack of competitiveness for Indonesian products."



6. ASIA OP/ED: Is microfinance truly effective?
Source: roubini.com

"For the past two decades, microfinance institutions have been claiming that they lend small amounts of money to the poor, especially women, who are able to start new businesses and come out financially successful as entrepreneurs. Many have described these for-profit ventures as the long-sought panacea to eliminate poverty.

It is increasingly clear that the recipients of loans are mostly those well above the $2 poverty level, and the high repayment rate is facilitated by their increased borrowing from local money lenders at exorbitantly high interest rates. There is very little evidence that these loans have made any noticeable impact on poverty."



 DEVBlogs ROUNDUP
There have been reports of a surge in the number of respiratory infections among evacuees staying in 26 evacuation centers around restive Mayon Volcano, while at least six medical teams from Manila have arrived to augment local health service providers. Latest disease surveillance data from the evacuation camps reveal that there are 101 cases of respiratory diseases, including coughs and colds and difficulty of breathing, among the evacuees.


7. INDONESIA: Low output a wake-up call for coffee industry
Source: Jakarta Globe

"Indonesia's coffee sector is struggling with low productivity due to aging trees and under-capitalized farmers, hampering the ability of the country to lift coffee exports. One hectare in Indonesia produces an average of 700 kilograms of beans a year, less than a third of the 2,500 kilogram of beans per hectare produced in Vietnam.

Most coffee plants were more than 25 years old, and some even dated back to the Dutch colonial period, while the ideal age for a coffee plant is no older than 20 years. Local coffee growers have also been hit by a worldwide drop in prices due to the global economic slowdown. The price of a kilogram of robusta beans has dropped from $2.20 last year to $1.40 now."



8. VIET NAM: Healthy despite deficit fears
Source: Thanhnien News

"Vietnam's economy has 'all the hallmarks' of an emerging markets crisis, with growth poised to overheat as inflation quickens and foreign-exchange reserves fall, according to bankers. The recent widening in Vietnam's monthly trade deficit is making investors 'nervous'. The shortfall rose 23 percent in November from October to the highest monthly figure since the first half of 2008.

While pledges of foreign investment this year are down more than 70 percent from a year ago, actual disbursements for overseas-backed projects are only down about 10 percent. The devaluation of Vietnam's currency last month by the central bank was also aimed largely at narrowing the trade deficit."



9. ASIA: Poor weather drives tea prices to record high
Source: APP

"Tea prices reached a record high in 2009, but should ease next year as weather improves in the main tea-producing regions in Asia and Africa, the UN Food and Agriculture Organization reported Tuesday. The price of black tea reached a high of $3.18 per kilogram in September as India, Sri Lanka and Kenya experienced droughts while demand surged, compared to an average price of $2.38 a kilogram in 2008.

Higher prices have not impacted consumers in developed countries due to intense competition in the beverages market. However, the rise in prices will likely be transferred to those in developing nations because tea procurement costs account for a major share of the final retail price. For example in India, average retail tea prices were some 15 percent higher in September 2009 than in the same month the previous year."



10. CAMBODIA: Gov't plans maternal health centers
Source: Phnom Penh Post

"New maternal health centers are to be built in a number of Cambodia's provinces in order to reduce the country's high maternal mortality rate. The centers, called 'waiting houses', will be located near rural health centres and referral hospitals, and will be in addition to the 28 already built in Stung Treng, Oddar Meanchey, Kratie, Pursat, Preah Vihear, Preah Sihanouk and Battambang provinces.

They will be used to accommodate pregnant women leading up to the birth of their babies so they do not have to travel long distances on difficult roads to receive treatment."



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