"The world's largest free-trade area (FTA) came into being last Friday, an initiative that analysts said gives a shot in the arm for global trade troubled by rising protectionism. From Friday, most goods traded between China and the 10-member Association of Southeast Asian Nations (ASEAN) attracted zero or little tariff.

Experts have predicted the removal of trade duties will prompt China-ASEAN trade to grow 40 to 50 percent. Trade between China and ASEAN declined 16.7 percent year-on-year to hit $165.7 billion in the first 10 months last year."

"The Philippines, which has lagged behind most other Asian nations in reducing poverty, is taking a new tack by giving money to poor families on condition they participate in educational and health programs. More than 30 million people, or a third of Filipinos, live below the poverty line of about 5,000 pesos ($105) a month for a family of five.

Manila is imposing some unique conditions on its cash subsidies: children aged three to five must be enrolled in day care and mothers must attend a monthly parental education seminar. Manila is also exploring different distribution channels, including using mobile phones to transfer money. Pakistan, Bangladesh, Mongolia, Cambodia and Indonesia have also been adapting the conditional cash transfer approach."

"It is reported that Indonesia will allow some infrastructure projects deemed in the public interest such as toll roads and geothermal energy plants to operate in protected forests. Under Indonesian law, it is currently forbidden to undertake any kind of activity that could impact on a forest conservation area. But the government is set to issue a new rule to allow some development in forests.

Indonesia desperately wants to speed up spending on airports, roads, ports and other infrastructure to help reduce inefficiencies and speed up economic growth in order to reduce poverty and unemployment. On energy, Indonesia has established two crash programs to increase power generation by 10,000 MW in a bid to resolve chronic power shortages in the country."

"Vietnam is in the midst of a 'demographic bonus' period in which the number of people of working age is more than double the size of those who are of dependent age. The proportion of the population under 15 years of age declined from 33 percent in 1999 to 25 percent in 2009.

This period usually happens only once in the demographic history of a nation, and can present a great opportunity for socioeconomic advancement if appropriate policies are established for human resource development. The educational system must focus more on encouraging innovation and creativity."

"The world is briskly recovering from its economic slump this year and next. Yet, the Asian Development Bank has issued a report warning that developing countries, including the Philippines, may still experience a rise in unemployment in 2010.

Labor force statistics must be taken seriously. Correct numbers are vital to proper planning, accounting and auditing. Some things are puzzling about the unemployment and labor force figures from the National Statistics Office. It is difficult to believe only 7.1 percent of working age Filipinos are unemployed. Only about two-thirds of the almost 60 million Filipinos of working age are in the labor force."

"In the Bangladesh context, there are four major economic institutions that, among others, have a huge impact on development. These are: (1) the national budget; (2) the banking system; (3) local government; and (4) land administration. It can be argued that 'the corruption problem' in Bangladesh is directly correlated with weaknesses in these institutions.

A well managed national budget is a key institutional development challenge in Bangladesh. Ongoing reforms in taxation and expenditure management are welcome, but there is a long way to go. Bold reforms are needed to put this core institution on a truly sound footing. Ensuring better accountability for public spending and stronger relationship with outcomes requires efforts to strengthen local governments and to assign them the responsibility for such services as basic health, education, water and sanitation."

"Cambodia has until 2015 to drop tariffs under the terms of a major regional free trade deal that has taken effect this year. Cambodia will gradually reduce its levies with China until most goods become duty-free in 2015. While leading interest groups are welcoming the FTA, they have asked whether Cambodia's poorly developed trade infrastructure will make it difficult for exporters to use the opportunity to muscle in to new markets.

While the FTA could make it harder for domestic industries to develop in future, there are doubts that trade across the border would really change that much. Given how porous Cambodia's borders are, enforcing duties, tariffs and trade restrictions are very hard."

"There are a number of risks and policy challenges that need to be addressed for Asia to sustain its growth momentum in the coming decade. With inflationary pressures rising in parts of the region, especially in South Asia, the policy environment is becoming highly challenging. Governments will have to find a new balance in macroeconomic management to maintain stability while not adversely affecting rather weak growth momentum.

The other policy challenge arises from the need to manage portfolio capital inflows resulting from easy monetary policies in the West that are leading to the build-up of asset-price bubbles and putting upward pressure on exchange rates. In that context it is important to consider capital controls on short-term capital inflows."

"Low salaries are partly the cause for the inability of many firms based in Hanoi industrial parks to find workers and meet the increasing orders coming in following the economic recovery. Firms have begun to receive more orders as exports rebound on the back of the economic recovery, but rural people now prefer higher-paying jobs in the city instead of working at industrial parks unlike in the past.

Some firms are also grappling with a labor shortage because they axed a large number of workers in late 2008 at the height of the recession. Most firms are seeking to employ mainly women workers for seasonal work in the garments, woodwork, footwear, steel, and electronic sectors."

"Education improvement, healthcare projects and road access are the most urgent needs of the poorest people living in Laos' southern Xekong province. Forty-five projects to fight poverty in the province have been approved in the effort to help local people and provincial authorities to combat poverty.

The projects will take place in the two poorest districts of Kaleum and Dakcheung. These two districts are on the government's list of the 47 poorest districts in Laos."

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