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TOP HEADLINES 2 February 2010
1. ASIA: Growing urbanization brings business risks
2. SINGAPORE: Clocking up the hours -- and productivity
3. PRC: Gov't to raise support for rural areas
4. ASIA: Free trade and the role of financial globalization
5. BANGLADESH: For an investment-friendly policy framework
6. LAO PDR: Work to start this year on largest power plant
7. PHILIPPINES: Remittances not sufficient for long-term growth
8. PRC: More Tibetans shake off poverty as economy grows
9. VIET NAM: On track for full industrialization by 2020
10. PRC: Clever water use boosts food yields
IN DEPTH
1. ASIA OP/ED: Growing urbanization brings business risks
Source: lloyds.com

"The growing drift of people into cities from rural areas has been a key factor in the increasing modernization of developing countries. But although urbanization is crucial to a nation's economic growth and development, it also brings with it increasing risks to businesses. Much of this growth will be in coastal cities, whose growing affluence and development act as a magnet to migrants. But the effects of climate change are set to put these cities at growing risk from natural disasters.

Most of the expected population growth will be in conurbations in less developed regions. Urbanization will present both threats and opportunities to international companies. Rural migration to cities will increase the pool of labor from which a business can choose. But social tensions between city dwellers and migrants for scarce resources and jobs could become an increasing problem."



2. SINGAPORE: Clocking up the hours -- and productivity
Source: AsiaOne

"Singaporeans may not be aware that they have, for the past two years, overtaken the industrious Koreans in notching up the highest number of hours worked per year, worldwide. Clocking 2,307 work hours in 2009, the average Singaporean surpassed the other East Asians, the most hardworking globally.

Koreans had been the undisputed workhorse world champions for three decades. But -- as is the trend worldwide -- annual working hours have fallen over the decades, including Korea's. For 2009, Korea's 2,259 work hours fell behind even Hong Kong's 2,287 hours. Japan's 1,722 is close to the US level of 1,742 hours."



3. PRC: Gov't to raise support for rural areas
Source: Shanghai Daily

"China is to increase its support for rural areas this year to better coordinate urban and rural development, the central government said Sunday in its first policy document of the new year. The document, issued by the Central Committee of the Communist Party of China and the State Council, promised to improve the livelihood of rural residents, one of China's main tasks.

Expanding rural demand should be the key measure in boosting domestic demand, it said, while developing modern agriculture should be considered a major task in transforming China's economic growth pattern. It called for more efforts to maintain grain production, increase farmers' incomes and develop rural areas."



4. ASIA OP/ED: Free trade and the role of financial globalization
Source: Jakarta Post

"The ASEAN-China Free Trade Agreement has sparked controversy in Indonesia because many believe the agreement will be detrimental to Indonesia's domestic industry. During last year's summit, APEC reiterated their commitment to liberalizing trade in the region, setting the European Economic Community (EEC) as the benchmark of Asia Pacific community. There are, however, some marked differences between the EEC and the proposed Asia Pacific community.

Europe, led by France, England and Germany, already had one voice to establish a global community before trade liberalization was implemented. More importantly, most members of the EEC already enjoyed levels of advanced cooperation and development. Capital mobility played a more pivotal role than labor mobility in boosting such development. If the Asia Pacific intends to integrate as Europe did, it is important to note that trade liberalization was not the first step. It was just the fog after the fire."



5. BANGLADESH OP/ED: For an investment-friendly policy framework
Source: Financial Express

"Bangladesh is recognized as the cheapest place for doing business in Asia. However, this recognition as the lowest cost investment decision ought not to breed any self satisfaction among the policy planners. For a short term advantage acquired mainly from hiring workers cheaply, is no guarantee of its continuing in the medium and the longer terms.

It is important to search for other durable ways and means of enhancing the competitiveness on a sustainable basis. This will require making good progress in other very important areas such as infrastructure. The caretaker government did some good work to upgrade infrastructure which is pivotal for the economy, including the Chittagong port that handles the greater part of the country's external trade. The present elected government should follow up this good work and build an expressway between Dhaka and Chittagong for exclusive use by businesses."



6. LAO PDR: Work to start this year on largest power plant
Source: Vientiane Times

"Construction of the largest electricity power plant in Laos will kick off at the end of this year. Construction of the $3.5 billion electricity generating facility is expected to take five years to complete, with commercial operations beginning in 2015.

Land clearance and resettlement of about 259 families in the project area is expected be completed on time. The government believes a project of this scale will yield high revenue while providing Lao people with jobs and income, one of the main factors in helping them to shake off poverty."



 DEVBlogs ROUNDUP
With rapid urbanization in Pakistan, Karachi has become the world's biggest city with a metro area population of 18 million people, according to Citymayors stats published recently. The level of urbanization in Pakistan is now the highest in South Asia, and its urban population is likely to equal its rural population by 2030. There are many benefits of rural to urban migration for migrants' lives, including reduction in abject poverty, empowerment of women, increased access to healthcare and education and other services.


7. PHILIPPINES: Remittances not sufficient for long-term growth
Source: Manila Times

"Remittances from overseas Filipinos can lick poverty in the Philippines, but cannot rebalance economic growth, according to an Asian Development Bank study. The bank did not find evidence to support the widely held belief that money sent home by millions of overseas Filipino workers enhances human or physical capital development.

As of third quarter last year, the Bangko Sentral ng Pilipinas reported that out of the households that received remittances, 93 percent spent part of the money for food and other household needs, 72 percent for education and 63 percent for medical expenses. The ADB also said that while remittances shielded the economy during crisis situations in the past, the current global economic crisis has brought a new challenge to the role of remittances. Toward the end of 2010, the Philippines will have completed a generation of international migration and remittance experience."



8. PRC: More Tibetans shake off poverty as economy grows
Source: Xinhua

"More than 1 million Tibetan herders and farmers have shaken off poverty as the regional economy has grown in southwest China's Tibet Autonomous Region, officials said Monday. The proportion of Tibetans in poverty has fallen from 67 percent to 10.5 percent.

Last year, Tibet invested a record 10 billion yuan to foster agriculture, improve social welfare in rural areas, as well as to subsidize rural education and rural consumption of household electric appliances, furniture and motor vehicles. The regional government also spent 830 million yuan to foster eco-tourism in Tibet's rural and herding areas. The new industry has brought a 20-percent income rise and involved 42,000 people."



9. VIET NAM: On track for full industrialization by 2020
Source: VietNamNet

"Vietnam's scientific and technological standards have improved greatly, reaching those of the region and the world in some areas. Investment in science and technology accounts for around 2 percent of the total budget spending (0.5 percent of the GDP). This figure is modest in comparison with many countries in the region and quite far from that of developed countries (3 percent of GDP), but it shows that Vietnam is determined to make efforts for sci-tech development.

Thanks to sci-tech progress, Vietnam's average rice productivity has increased remarkably in the last 20 years to reach 5.22 tons per hectare in 2008, 2.03 times over 1990. Vietnam has become the second largest rice exporter in the world. Vietnam has also reached a high level in the region in aquaculture."



10. PRC: Clever water use boosts food yields
Source: scidev.net

"China produces more food for the same amount of water than other countries in Africa and Asia, researchers have found. China produces 1-1.5 kilograms of wheat and corn per cubic metre of water, compared with Ethiopia's 0.1-0.2 kilograms, India's 0.2-0.7 and Kazakhstan's 0.2-0.3.

China's success is down to its multi-cropping practice, effective farm management and water-saving techniques. Techniques include reusing wastewater for irrigation, plastic and straw mulching -- growing crops through openings in thin plastic sheeting or a layer of straw to reduce evaporation -- and fostering drought-tolerant species."



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