"Asia's rapidly expanding middle class is likely to assume the traditional role of the United States and Europe as primary global consumers and help rebalance the world economy, a study released Thursday said. The Asian Development Bank report said annual consumer spending by Asia's middle class was 4.3 trillion dollars in 2008 but was likely to touch 32 trillion dollars by 2030, comprising 43 per cent of worldwide consumption.

Consumer spending in Asia had shown surprising resilience even during the recession. With appropriate middle-class friendly policies, Asia would be able to move away from export-oriented growth and reduce its exposure to external shocks such as the 2008 financial crisis, the report said. It would also help correct the global imbalances that contributed to the crisis."

"A railway system connecting more than 300 million people who live around one of the world's great rivers, the Mekong, will come a step closer on Friday. A plan for connecting regional rail lines is expected to be endorsed in Vietnam by ministers from Cambodia, China, Laos, Myanmar, Thailand and Vietnam.

Except for a line that connects China and Vietnam, the six nations' national railway systems do not link up, and Laos has no rail network at all. The plan cites four possible ways of connecting the region but it says one is most viable. It would stretch from Bangkok to Phnom Penh, Ho Chi Minh City, Hanoi, and up to Nanning and Kunming, largely using existing lines or those already under construction. The only missing link on that route is between Ho Chi Minh City and Phnom Penh."

"There's a debate brewing in the world of do-gooder banking, pitting the father of microfinance Muhammad Yunus against a few entrepreneurs who have put an unlikely spin on Yunus' model of lending to the poor. Earlier this week, India's biggest microlender, SKS Microfinance Ltd., made its debut on the Bombay Stock Exchange. Shares surged 18% on their first trading day.

An IPO is a rare and controversial step for a major microfinance company to take, since these lenders typically rely on donations, governments and international organizations for funding. Only a handful have raised public money on the idea that helping small entrepreneurs like farmers and basket weavers gain access to financing is not only the right thing to do, but also a profitable venture."

"The water came in the morning, quietly sweeping across the rice paddies and into the village. Within hours, it was as high as a man's shoulder and Abdul Nabi had lost his harvest, his mud home and all 10 of his buffalo. After years of low rainfall that had left many farmers struggling at the edge of financial survival, they face the worst floods in generations. Most of the people living in the flood zone are villagers who have little they can afford lose.

Seen from the air, a huge swath of Pakistan has become an archipelago of misery, a vast lake of brown water dotted with islands of high land. Some of the islands are small stretches of road that now come from nowhere and go nowhere. Some are marked by the husks of ruined mud homes, or small concrete buildings with collapsed walls."

"Today, some of those who left years ago now look at Vietnam as a land of opportunity. At least 500,000 Viet Kieu, as they are known, return every year to this nation of 86 million, some to stay. As Viet Kieu flock to Vietnam, the government is encouraging them to start up businesses and buy real estate to power the economy. It's also stepping up efforts to attract foreign companies.

As a growing number of Viet Kieu invest in Vietnam, it's creating jobs and fueling the country's economy. Entrepreneurs are captivated by the business opportunities stemming from a third-world country transitioning into one of the region's most promising economic powerhouses. As the country booms, its largely cash society will transition to electronic payments, benefiting many companies."

"With a large base of low-cost labor, a rapidly growing domestic market of 150 million and positioned in the heart of Asia to access nearly three billion people, Bangladesh has the potential for rapid growth. But before realising such unprecedented growth, the government must be quick to respond to the global opportunity of China's declining competitiveness.

The power crisis, transport and other infrastructure bottlenecks are of course the pressing issues of the day that shape and characterise the overall competitiveness of the investment climate of Bangladesh. Investors are not easily discouraged by the high cost of starting a business, but an uncertain investment climate in the country, as a result of a complicated regulatory regime that requires innumerable lengthy decisions, does tremendous damage to the image of Bangladesh as an investment destination."

"The Indonesian government will soon offer five Public Private Partnership (PPP) projects worth billions of dollars as part of the governments program to accelerate the development of the countrys infrastructure. In order to cut bureaucratic lines and in a bid to further smoothen the process for bidding and project implementation, the government has agreed to name the Investment Coordinating Board (BKPM) as the only agency authorized to process investment permits for the PPP projects.

Under the new mechanism, investors may get their investment permits through quicker, simpler and more efficient procedures. It is estimated the government would need up to Rp 1,500 trillion for the infrastructure development for the period between 2010 and 2014. The government will allocate Rp 500 trillion to Rp 600 trillion from its state budget, but still need about Rp 900 trillion to Rp 1,000 trillion from the private sector."

"China's government said this week it still is a developing country despite becoming the second-largest economy, reflecting its reluctance to take on new obligations on climate change and other issues. Beijing needs to improve life for millions of impoverished Chinese, said a Commerce Ministry spokesman, Yao Jian. It was the government's first public reaction to news Monday that China passed Japan in economic output in the April-to-June quarter, confirming its arrival as a global commercial power.

With a population of 1.3 billion, China ranks among the poorest countries per person, with an average income of $3,600 last year, compared with Japan's $37,800. China's government is in the midst of a marathon effort to spread prosperity from its thriving eastern cities to the poor countryside and west."

"Indonesia is giving the private sector an opportunity to develop 14 new airports the government will build starting in 2011. The new airports will mostly be built in the eastern parts fo Indonesia, like West Nusa Tenggara and Bali.

A fund of Rp 198 billion ($22.10 million) has been earmarked from the 2011 state budget. Minister of Transportation Freddy Numberi made the remarks in a response to President Yudhoyono's statement that the government will build 14 new airports and renovate 118 airports."

"People's Bank of China (PBOC) announced Tuesday a pilot scheme for the Renminbi Clearing Bank and other eligible institutions outside the mainland to invest in the interbank bond market. Under the pilot scheme, central banks and monetary authorities outside the mainland can make use of their RMB funds to conduct trading in the mainland's interbank bond market.

The central bank said the move aimed to boost China's program to encourage the use of the yuan in settling trade, thus broadening the international role of the currency. Analysts believe the launch of the scheme will increase investment channels for overseas RMB funds, and further promote the development of RMB settlement outside the mainland."

"The rise of unemployment is a worrisome development. The rate of unemployment in Bangladesh has now risen to some 11 percent from what was 8.0 percent in 2002 and 2.4 percent in 1990. This is only official data. The unofficial but reliable estimates of unemployment are higher.

The government should pursue more energetic policies to help create a synergy so that more investments take place within the economy, on one side, and more people can also be sent abroad with gainful jobs, on the other. Providing training at publicly-run training centers to impart effective training to young persons for jobs which have good demand abroad can be quite useful here, because the returns in remittances from skilled labor are substantially higher than unskilled ones."

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