"Self help groups are a transformational phenomenon which has swept the Indian countryside over the last decade and a half. The groups are India's own social innovation. In a country where almost two-thirds of the population have no access to formal financial services, SHGs are a unique route to financial inclusion, increasing incomes and helping build productive assets among the poor.

Despite India's network of around 30,000 bank branches in rural areas, a majority of the poor still remained outside the fold of the formal banking system. Between 2006 and 2008, more than 600,000 new self help groups were linked to banks. Self help groups have also emerged as a critical vehicle for creating social equity and empowerment."

"Despite numerous challenges and difficulties in 2009, Vietnam has successfully weathered the global financial and economic storm and is now back on the road to recovery. 2009 was a successful year for the national poverty reduction program as the rate of poor households fell to 11 percent compared to 22 percent four years ago.

However, the national economy revealed some foreseeable shortcomings, including poor infrastructure. The economy experienced bottlenecks in its growth due to poor planning. The economy needs to be restructured with a focus on quality, efficiency and the stability of growth, while developing human resources, upgrading the infrastructure and speeding up administrative reforms."

"Bangladesh's economy is on track to achieve six percent growth in the 2009-10 fiscal year to June despite the global downturn, central bank governor Atiur Rahman said. His projection is a touch more optimistic than forecasts by the Asian Development Bank and other finance agencies for Bangladesh's gross domestic product growth to slow to just over five percent.

Poverty remains a major challenge along with efforts to speed up and widen development, including infrastructure and energy. Poverty still grips more than 40 percent of Bangladesh's 150 million people. Power shortages have prevented new businesses from starting production and often threatened to close existing industries."

"When Muhammad Yunus set up his Grameen Bank for microcredit in Bangladesh in 1976, his aim was to give people at the lowest level of society the chance to rise above the abject poverty in which they were living. Thirty years later, micro-finance is a global success story. But are those most in need being left by the wayside?

Given its popularity, surprisingly little reputable research has been conducted into microfinance and the impact of small loans. But this year, the results of two large-scale studies were published: one in India and one in the Philippines. They show that a microloan does not make families less poor. Between 12 and 18 months after receiving a loan, the level of consumption remains the same."

"Indonesia has notified the Asean council of its plan to modify the implementation of the Asean-China Free Trade Agreement. The government is seeking to delay the implementation of tariff cuts on 228 categories of products to give local industries a chance to become more competitive to withstand the onslaught of cheap Chinese imports. The trade deal took effect last Friday.

The government is also planning to form a team to monitor and accelerate the competitiveness of local industries. Since 2000, Asean's trade deficit with China has increased by more than five times, to $21.6 billion, stoking fears that many local industries will be badly hurt by the agreement."

"Bangladesh and India are planning to sign a free trade agreement as early as 2011. The drill for the FTA is expected to gain momentum after the visit of Prime Minister Sheikh Hasina to Delhi.

Her visit is expected to speed up the FTA process that will open up duty-free export of garments, leather, jute and ceramic products from Bangladesh. Trade between the two countries is likely to grow fourfold in five years once the pact is in place, according to experts."

"As the Tajik authorities prepare to issue shares in a giant hydroelectric scheme which could eliminate power shortages for good, there are concerns that people are being coerced into contributing funds for the dam. When it is finished, the country will have the world's highest dam.

President Imomali Rahmon appealed to the nation on December 2 to buy shares in the plant. He set a target of $600 million, enough to finish the dam, fill the reservoir and get two out of what will ultimately be six generating turbines going."

"After dealing with the polemic sparked by the ASEAN-China free trade agreement, Indonesia also faces ASEAN-India and ASEAN-Australia-New Zealand FTAs. Through the ASEAN-India FTA, more than 80 percent of tariffs will be liberated, including special products like crude palm oil, coffee, tea and pepper.

Unlike China who has been taking on the market with its mass production, India's power lies within its technology and information sector. The country is also facing challenges similar to Indonesia in the banking sector. In 2008, the trade balance of ASEAN countries and India reached $47 billion in which Indonesia ranked third below Singapore and Malaysia."

"Remittance crossed $10 billion mark for the first time in Bangladesh history in the year 2009 because migrants, a main driver of the country's economic progress, sent more money home despite all odds during global recession. With 20 percent growth, remittance inflow reached $10.72 billion last year.

Economists and bankers think the financial crisis worldwide has opened up the scope for Bangladesh expatriates to send more money home, as they lost confidence in depositing hard-earned money with foreign banks during their stay in middle eastern and other countries."

"The Peru-China Free Trade Agreement will come into force on Jan 15, slightly earlier than planned, after Peru accelerated the ratification process in hopes of reaping early benefits from the bilateral accord. Peru hopes the FTA will deliver an additional $800 million worth of exports and imports in trade with China in the first year of the FTA pact.

China is Peru's second largest trading partner, with two-way trade in 2008 reaching $7.5 billion, a $2 billion rise over the previous year."

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