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| 1. PRC OP/ED: Healthcare reform may need rebalancing act |
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| Source: China Daily |
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"After 30 years of economic reform, PRC appears to have shifted its focus toward social issues such as a more even distribution of income, improving the quality of life for the poorest and enhancing the welfare system. Reforming the healthcare system in such a large country with such a large population is a daunting task and to find a solution the interests of all involved must be aligned: the government, pharmaceutical companies, medical equipment suppliers, hospitals, doctors and, last but not least, the patients.
Currently, the contribution of employees to healthcare funds is capped and those with incomes higher than two times a city's average do not have to contribute in proportion to their incomes. This favors high-income earners and such a cap should either be relaxed or eliminated altogether. The first stage of implementation should start in rural areas where most of the low-income families live, facilities are not often within easy reach and sometimes not adequate." |
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| 2. INDONESIA: $1 billion green investment fund planned |
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| Source: Jakarta Globe |
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"Indonesia plans a $1 billion green investment fund this year to drive infrastructure developments that aid growth and help cut greenhouse gas emissions, a Finance Ministry official said on Tuesday. Indonesia has promised to slash its emissions by at least 26 percent from its current levels by 2020 but recently re-elected President Yudhoyono has also vowed to boost economic growth to 7 percent or more by 2014.
Indonesia's sovereign wealth fund, the Government Investment Unit, will put $100 million into the fund and a further $900 million will come from foreign governments, plus institutional investors. Indonesia last year became the first country to launch a legal framework for a U.N.-backed scheme called Reducing Emissions from Deforestation and Degradation, allowing polluters to earn tradeable carbon credits by paying developing nations not to chop down their trees." |
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| 3. INDIA: Concrete roads pave a smoother future |
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| Source: Hindu Business Line |
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"Concrete roads are not new to India, but for many years cement was in scarce supply and cost considerations did not encourage its use for roads. Bitumen roads take less time to build than concrete ones and are recyclable to some extent. However, bituminous surfaces have major drawbacks. They are less durable and easily prone to damage. Such roads yield quickly to the onslaught of water, temperature, oxidation, petroleum and lubricant spills and the battering they receive from a wide range of vehicular traffic.
Poorly built roads affect the tires, fuel efficiency and the overall health of vehicles. Hence, India's roads must preferably be made of more hardwearing material than bitumen, one that can withstand harsh weather conditions and high traffic densities. Planners and decision-makers must realize that investment in roads cannot be made on the basis of initial costs but on the useful life of the roads. So, while the initial cost of concrete roads may be more, it is important to note that they help save on maintenance costs in the long-run." |
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| 4. MYANMAR: Lack of knowledge jeopardizes children's health |
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| Source: IRIN |
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"According to the Canada-based Chin Human Rights Organization (CHRO) tuberculosis, typhoid, malaria, HIV, vitamin and mineral deficiencies, diarrhea and stomach problems are common ailments in Chin State, home to some 500,000 people and nestled along the border with India. A health worker from the Department of Health said most illiterate parents did not know how to protect their children against common diseases.
Poverty, low levels of literacy, and low accessibility to health services are compounded by lack of knowledge about health, hygiene and nutrition, exposing Myanmar's poorest children to deadly diseases. Poverty and low levels of literacy contribute to the lack of information, while there is a need for more health awareness-raising campaigns in isolated, hilly areas, according to the report." |
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5. PRC OP/ED: Warnings over housing price bubbles
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| Source: China Daily |
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"Housing prices in 70 major cities in PRC increased by 7.8 percent year-on-year in December, the fastest pace in 2009, according to official data. But many people complain that price rises are much higher than indicated in the index and have become unaffordable. Economists, meanwhile, are worried about 'house price bubbles' bursting, which could affect the balance sheets of banks and the health of the overall economy.
The government has raised taxes on sales of second-hand homes and tightened land transfer rules, among others, to hold back surging prices. It is also expected to tighten monetary policy to reduce the scale of lending and prevent liquidity-fueled inflation. Last year, new yuan lending increased to 9.6 trillion yuan ($1.4 trillion), almost double that of the previous year." |
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| 6. INDONESIA OP/ED: Economic upgrade reflects wise policies |
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| Source: Jakarta Globe |
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"Reflecting Indonesia's continued economic resilience in the face of a global economic slowdown, international ratings agency Fitch has upgraded the nation's long-term foreign and local currency rating one notch from BB- to BB. The upgrade was not unexpected given that Indonesia was one of only a handful of economies worldwide to post positive growth in 2009.
Indonesia's sovereign creditworthiness is backed by its strong public finance track record relative to its peers. The good news is that the country's current macroeconomic path and fiscal policy framework indicate that there could be further improvements in its currency rating. This will allow the government to tackle tough developmental issues and address infrastructure constraints that have hampered investment and economic competitiveness." |
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DEVBlogs ROUNDUP |
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Small and medium sized enterprises, which comprise 95 percent of businesses in the Asia Pacific region and employ nearly 80 percent of the workforce, play a critical role in the region's economy and will be vital in its recovery and growth in 2010, according to a report that examines how SMEs stand to benefit from two new interlocking dynamics within the economies of the Asia Pacific region. The first is a need to rebalance economies in the region and turn their attention toward domestic demand. The second is intra-regional trade, by which SMEs in smaller markets in Asia may take advantage of increasing consumer demand in the region's developing giant economies, namely China. |
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| 7. BANGLADESH: Improving Internet access |
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| Source: Financial Express |
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"For a country which has the eighth biggest population in the world, Bangladesh would seem to be ideal for rapid growth of the use of information communication technologies, specially the Internet. But there are many barriers to the increase in the use of the computer and the Internet. Service charges by the providers are still not low enough to create greater incentives for users.
Government policies are not yet fully conducive to rapid increase in Internet use as the telecommunication system, along with supporting infrastructure, remains undeveloped. Last but not the least, the potential clients are handicapped by their low purchasing power. All of these problems will have to be addressed to make Internet use popular and widespread. Rapid privatization of the telecommunication sector may enhance the speed of renovations through open-market competition." |
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| 8. FIJI: Poor data bars growth |
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| Source: Fiji Times |
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"Small businesses in Fiji do not receive the right support for growth and development because there is no data to justify their important functions in the economy. An expert said small businesses must be supported through a structure that ensured information capture on the numbers of people involved, families who depended on it, values of trade, and the pervasive economic impact of this sector.
The small business sector was not serviced very well at the current time because it is left to market forces and larger institutions cannot justify the support as it does not necessarily make economic sense to deploy resources to encourage this sector." |
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| 9. BANGLADESH OP/ED: Getting its public investment right? |
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| Source: Financial Express |
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"It is hard to believe that in an infrastructure starved country such as Bangladesh, public investment does not matter for growth. The relation between public investment and capital accumulation can break down in the presence of significant inefficiencies or waste. The question is whether Bangladesh has been making the right kind of public investment.
Chronic gas and power shortages, low quality public roads and bridges, severe congestion in cities and ports, inadequacy of infrastructure for expanding coverage of information communication technologies services all suggest that the answer is a resounding no. The best way to ensure that the public investment program makes a significant contribution to growth is by getting its composition right through close attention to its rate of return and complimenting with private investment." |
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| 10. VIET NAM: Banks still saying no to real estate credit |
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| Source: Vietnam Net |
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"Though commercial banks still advertise real estate loans in Viet Nam , real estate investors are finding it impossible to access them. The reason? Banks simply cannot spare enough cash to lend. VietBank is now only giving loans to fund individuals' purchase of houses for accommodation. They must have a stable income to ensure their solvency. The bank is also lending to small and medium enterprises that need capital to set up workshops for their business plan.
However, banks are saying no to real estate speculators. ABBank still considers funding house purchases as one of its strategic banking products which it expects to represent 50 percent of the bank's total loans to customers in 2010. However, ABBank and other banks have shortened the lending time. Loans now are valued at up to 70 percent of a mortgaged assets' value instead of the 90 percent applied in the same period of the last year." |
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