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Canada: Economy Likely to be One of the First to Recover

2009-12-13T02:25:00.000-08:00

The big financial crunch has bitten most economies and recovery is still a dot on the horizon. But there could be one cookie that has not crumbled. Canada has been named as one of the first economies in the world to likely come out of recession, according to Angel Gurria, secretary-general of the Organization for Economic Co-operation and Development (OECD), speaking at the 15th annual International Economic Forum of the Americas held in Montreal.

Gurria’s assessment backs up Canadian Finance Minister Jim Flaherty’s recent statement that Canada will lead the global recovery. The OECD has named Canada among four industrialized nations, including France, Italy and the U.K., that are showing signs of having reached a trough in the economic downturn. The OECD’s composite leading indicator for Canada edged up to 93.6 in April from 93.2 in March, giving rise to hopes of stabilization and recovery. There are other green shoots of recovery as well. For instance, the Canada Mortgage and Housing Corporation reported that the annual rate of housing starts increased by about 9% in May from the previous month.

It seems that Canada, a commodities based economy, is benefitting from the positive change of pace in world trade. Oil prices are climbing to more than $70 a barrel, a good indication for Canada, which has the world's second largest oil reserves and is the largest exporter of oil to the U.S. As well, emerging economies like India, China and Brazil are showing signs of revitalization. China especially is showing good potential as industrial production is picking up, pushing up demand for natural resources. This has augured well for Canada, a nation rich in natural resources like minerals, energy and forests. Chinese imports of metals like zinc and copper are positives for Canada, which rang up a brief trade surplus of $1.1 billion in March up from $262-million in February. Minerals and metals have remained one of the strengths of the Canadian economy, with the industry contributing $40 billion to Canada’s GDP in 2008.

But Canada still has a $50 billion plus deficit and an unemployment rate that hit an 11-year high of 8.4% in May. The OECD has urged Canada as well as other nations to keep their stimulus measures in place until a rebound is clearly visible. While other countries have exhausted their spending capacities, Canada is in a position to boost spending if necessary.

Canada’s GDP is expected to expand by 0.7% next year, which is a slight improvement over the 0.3% predicted in March this year. The OECD report specifies that Canada’s “recessionary conditions” will linger well into the third quarter and there will be only a slow recovery thereafter as unemployment will continue to be a problem until early 2010.

But however slow the rebound may be, as Canadian Finance Minister Jim Flaherty aptly sums up, there is “cautious optimism that a global economic recovery may not be far behind."

Taiwan: A Thaw in Taiwan-China Relations

2009-12-13T02:20:00.001-08:00

After six decades of hostility, mistrust, and animosity, Taiwan and China, once bitter foes and arch enemies, are reaching out to each other. The global economic recession has created unusual friendships, changed old ones, and created a dynamically different world. In an announcement that could have far reaching implications on Asian trade and investment, Taiwan’s Ministry of Economic Affairs has decided that it would open up Taiwan’s borders to allow for Chinese investments.

The Cabinet approval for the move marks a personal triumph for Taiwan’s President Ma Ying-jeou who has been aggressively campaigning for closer ties with China. The two sides had separated during China’s civil war in 1949, although China claims that Taiwan remains a part of its territory. At best, relations between these two nations have been fractious and uneasy. As the world grapples with the unrest of the financial meltdown and worsening relations between South Korea and the nuclear-armed North, signs of a growing friendship between China and Taiwan will only mean good news.

Under the new rules, Chinese investment will be allowed in a total of 100 categories in Taiwan’s service, industry, and infrastructure sectors, including textiles, cell phones, cars, auto parts, and building of airport facilities, resorts, and commercial ports. Service sector categories include retail, restaurants, farming and medical products.

The move will help correct a considerable imbalance in cross-strait relations. Taiwanese companies have invested in the Chinese economy since 1991, helping push the country on a trajectory to becoming the world’s fastest growing major economy. Now, it is hoping that China can return the favor. Taiwan desperately needs the boost – its economy contracted by a record 10.24% in the first quarter, and the jobless rate rose to a high of 5.84% in May.

Yet, Taiwan is still playing it safe. In an effort to avoid criticism that the government is jeopardizing Taiwan’s sovereignty, no Chinese investment is allowed in Taiwan’s core markets. Consequently, its semiconductor, solar panel making, communications, and flat panel technology industries are not open to China. No Chinese company with a ‘military interest’ will be entertained either, the Ministry warned.

Not all agree that these safeguards are adequate. The opposition Democratic Progressive Party (DPP) sharply criticized the change as a “threat to national security”. The DPP claimed that Chinese investment might hurt domestic companies and intensify competition. But in a battered economy, investors and manufacturers alike are welcoming all the crumbs they get. Since a travel ban to Taiwan was lifted a year ago, almost 350,000 Chinese tourists have made a trip to the island, providing a much needed impetus to the tourism sector.

Ultimately, both China and Taiwan stand to benefit, but they are not alone in reaping the rewards. In this closely integrated world, a strong and stable China and Taiwan may help the global economy emerge from the abyss of the recession. It appears that crisis may indeed lead to opportunity.

A Postcard from Europe Russia: Recasting Its Role in the World Kremlin, Moscow

2009-12-13T02:18:00.000-08:00

President Obama visited the Kremlin hoping to expand on Russian-U.S. trade, which currently stands at around $36 billion a year, just around 1% of all U.S. trade.

The majestic Kremlin building in Moscow, which has seen many a leader come and go over the past centuries, is no doubt looking down with an approving nod in the aftermath of the recent U.S.-Russia Business Summit between President Barack Obama and President Dmitry Medvedev. While Obama stoked the fires of free trade between the two former Cold War foes, Putin was flexing Russia’s muscles by seeking membership to the World Trade Organization (WTO) as a customs union with Belarus and Kazakhstan. Alongside, in anticipation of the G8 summit, Russia together with China and India, furiously advocated the need for a new global reserve currency. Russia is back on the world scene, clad in regalia and jostling for supremacy as emerging countries fight for a new world order.

Sitting on some of the world’s largest reserves of oil and gas, Russia is the R in the BRIC acronym; the term used to group together the fast-growing developing economies of Brazil, India, China and Russia. While these vast resources have driven much of Russia’s economic growth over the years, at the same time there is growing alarm over what is perceived as the country’s growing political, economic and military clout.

Russia, as Obama urged at the Moscow summit, must learn to use this power wisely. Its clash with Georgia last year, known as the South Ossetia War, sparked outrage and criticism in the international community. And with Russia controlling the spigot of natural gas in the region, Europe has grown wary, desperately obtaining a stake in the newly announced ambitious Sahara gas pipeline project, which will transfer Nigerian natural gas to the Mediterranean.

Despite Obama’s calls for greater U.S. - Russia trade, the nation itself is one of the world’s most closed economies. It ranked a low 114th in the Global Enabling Trade Index for 2009, just released by the World Economic Forum. And the global recession has also created more than its share of grief. Economic growth in Russia has slowed down significantly to 5.6% in 2008 after a healthy rise of 8.1% in 2007, and the economy is expected to contract further by 7.9% this year. Adding to this, Russia scuttled its chances of entering the WTO when Prime Minister Vladimir Putin said that Russia would only consider joining the organization as a customs union. The decision took the WTO by surprise as only individual countries have joined the organization to date.

Yet there are green shoots that promise that Russia’s impressive resurrection in the last decade was no flash in the pan. The World Bank recently praised the Russian government’s response to the global recession as ‘swift, coordinated and comprehensive,’ the Russian stock market has rebounded from alarming lows touched last year; and a large stimulus package appears to be working enough to ensure a ‘modest recovery’ in 2010. The U.S. and Russia have now laid the framework to reduce their nuclear arsenals, with Obama and Medvedev working together to draft a new arms control agreement that will eventually replace the Strategic Arms Reduction Treaty (Start I). On the world scene, as a permanent member of the Security Council, Russia is slowly reemerging.

And expectations are rising. The Moscow summit has not only resulted in a commitment to enlarge bilateral trade, but also an announcement of at least $1.5 billion in U.S. investment, with several U.S. companies promising to expand their stake in the Russian market over the next few years. To be sure, Russia is eager to realign the world order along with the others in the BRIC. This was evidenced in the first ever Russia-hosted summit in Yekaterinburg on June 16, which concluded with a call for greater representation for developing economies in the world’s financial institutions. With its immense resources, Russia stands to dominate as the global supplier of raw materials. The country now stands as a worthy competitor in the fierce race to the top in the BRIC league.

A Postcard from the Middle East Jordan: Medical Tourism Uplifts the Economy

2009-12-13T02:13:00.000-08:00

Jordan is growing in popularity as a medical tourism destination

The majority of the patients who visit Jordan from all around the world seek organ transplants, plastic surgery and cardiac surgery.

The doctor, dressed in a white lab coat and a matching white headscarf smiled at her American patient. Her foreign patient had come for a major surgery and was now preparing to return to the U.S., completely cured.

Medical services in Jordan are offered to foreign patients from around the world and it has developed into an industry itself known as “medical tourism.” It is such a strong sector that it has emerged from the global financial crisis without a scratch. Medical tourism brings in around $1 billion in revenue annually and has been privy to a 10% increase in the influx of foreign patients every year.

According to a study by the Private Hospitals Association (PHA), 210,000 patients from 48 countries received treatment in Jordan in 2008 compared to 190,000 in 2007. PHA President Fawzi Hammouri says that foreigners are attracted by the “high quality and competitive cost of healthcare.” Iraqi patients topped the list of medical visitors last year numbering at 45,000 followed by an approximate 25,000 people from Palestine. More than an estimated 1,800 Americans, 1,200 UK citizens and 400 Canadian citizens went to Jordan for medical treatment in 2008 – and with good reason – the expenditure is only 25% of the value of the same medical procedure in the U.S.

In 2008, Jordan was ranked number one in the Arab region by the World Bank, and number five in the world as a medical tourism destination. And now the country is aggressively touting these rankings in the U.S. with advertising campaigns to lure Americans worn out by soaring health costs. Hospitals in Jordan now offer package deals that include air travel and a list of tourist destinations in the country, a plan that promises not just physical repairs but also overall relaxation. With the advertising campaigns calling out to American citizens for medical procedures, Jordan hopes to enrich itself with some badly needed cash.

Jordan relies heavily on tourism, foreign investments and worker remittances for its revenue and surprisingly lacks the natural resources, like oil, that many of its neighbors enjoy. With this, Jordan is on a drive to promote new services and industries, especially medical tourism, which has surfaced as one of the biggest saviors of the sagging economy. Ironically, Jordan’s local medical sector is facing numerous challenges, which include rapid population growth along with a constant inflow of refugees and inefficient financing of health services. Jordan, which has an annual population growth of 2.2%, has racked up $1.311 billion in health expenditures, constituting 9.8% of the GDP.

Jordan also faces stiff competition. According to medical industry experts, the country faces a tough battle with other rival locales such as India, Costa Rica and Thailand, who are all jostling for space at the top in the world medical tourism market. Because of their proximity, the Caribbean Islands remain the top preference for American tourists.

But how will Jordan tap the lucrative U.S. market, snaring business away from its neighboring rivals? The Medical Tourism Association of Jordan has invited top healthcare specialists and insurers from the U.S. to visit the country in July and see the city’s six internationally accredited hospitals. The invitation is part of the marketing campaign that Jordan has launched to elbow its way to the top of the competition. Jordan’s visitor numbers show that the world outside the Middle East is just waking up to the services Jordan has to offer. Working in Jordan’s favor is a host of English-speaking doctors, high-quality service, as well as the promise of cheap treatment during tough times. That might just be the cure the doctor ordered.

A Postcard from the Asia Pacific Malaysia: Glad Tidings of Reform

2009-12-13T02:02:00.000-08:00

Malaysia

As the fastest growing city in Malaysia, Kuala Lumpur has attracted immigrants from around the world, resulting in the city having a diverse mix of ethnic backgrounds ranging from Chinese to Indian to Indonesian and others.

When Malaysian Prime Minister Najib Razak was sworn into office on April 3, 2009, he promised to introduce bold reforms that would transform Malaysia’s economic landscape. Few listened. Fewer still believed him. Yet barely a few months later, Najib has introduced reforms that no other prime minister before him has dared to undertake, in a sweeping liberalization program.

Chief among Najib’s changes is a repeal of laws that demanded that ethnic Malays must hold a combined 30% stake in foreign companies. Now, the quota has been cut to 12.5% for newly-listed companies, while foreign companies seeking to list on the Kuala Lumpur stock exchange are no longer bound by the quota system. Foreign investors are also allowed to own 70% of local stock brokerages, increased from the present 49% limit.

The Prime Minister is looking to restore Malaysia to its glory days in the early 1990s when the Kuala Lumpur stock exchange was the largest in Southeast Asia by market capitalization. At that time, investors were eager to enter the country but were hampered by Malaysia’s complex preference programs. These date back to 1971 when Malaysia introduced its New Economic Policy, or NEP, an experiment in social engineering. The NEP ushered in a new society where Malays or bumiputras were given a canopy of privileges including reservations, quotas and subsidies.

Ironically, it was former Prime Minister Abdul Razak, who introduced the same laws that Najib Razak, his son, is now seeking to overturn. These laws were meant to uplift the economically disadvantaged Malays but were deeply resented by the Chinese and Indian minority populations. The policy was an instant political success but economically, the results were mixed. In an increasingly globalized world of equal opportunity, the policy was proving to be slowly unsustainable.

But juggling the economic rewards and political backlash may prove tricky for Najib. Despite a surge in his ratings since the move, he has been quick to assure the Malays that they will continue to obtain preferential access to universities, cheap loans, and civil service jobs. While abandoning the NEP policy completely may well spell political disaster for Najib’s United Malays National Organization (UMNO) party, investors have welcomed the reforms. Already, the rewards are trickling in. Through its sovereign fund, Abu Dhabi has promised to increase its investments in Malaysia with a fund of $1 billion.

No doubt, Najib’s action was prompted by a deteriorating economy and declining foreign investment. Yet his bold initiatives also prove that countries are willing in these tough times to encourage reforms, and promote openness in ways that no one could ever have foreseen before the world financial crisis. Already, India is planning to introduce liberal reforms of its own under Prime Minister Manmohan Singh. Hungary also introduced several budgetary reforms, including a major overhaul of its tax system that aims to enhance the country’s competitiveness. In these times of a global recession, Malaysia has shown that rethinking old policies and enticing investors can create new era of promise and growth.

October 9, 2009 A Postcard from the Middle East Egypt: Wiring the Telecom Gap

2009-12-13T01:58:00.001-08:00

As the world becomes increasingly globalized, developing economies like Egypt are striving to create a durable information society for the future.

It is a transformation that did not seem possible, yet has become a reality. Once languishing, Egypt’s telecommunications industry, in the space of less than a decade, has changed its colors to become one of the country’s most promising sectors. Now, the Ministry of Telecommunications, an entity that only came into existence in 1999, is offering bids for two licenses for cable, internet and telephone services that are expected to attract investments of around $1 billion over the next five years.

The move could have far-reaching implications for Telecom Egypt, which until now has been the only fixed-line operator in the country. Also in play are Egypt’s nearly 50 million mobile phone users, who are currently served by three operators as well as some 13.7 million internet users. The bidding date for the new licenses has been set for January 12 next year, and work is hoped to begin in the second half of 2010.

Although the announcement is new, the decision to allow new operators is not. Last year, the National Telecommunications Regulatory Authority or NTRA was forced to postpone an auction and scuttle all plans to bring in a new fixed-line operator when economic turbulence rocked the world. With economic conditions improving now globally, the initiative has resurfaced once again. Interestingly, the successful bidders will not have to make an initial payment but instead offer around 8% of the revenues to the state, a bow to the difficult economic conditions. The Communication and Information Technology Minister Tarek Kamel has admitted that the move is intended to attract foreign companies.

Egypt has fared better than most in the global slump. The country’s gross domestic product is expected to touch 5% next year, but foreign investment declined over the past year as investors and companies alike restricted their budgets. Now, Kamel is hoping to revive investor interest.

But, there are some difficulties – will a second and third operator gain significant market share in a region that has been dominated by Telecom Egypt? For now, the two operators would be restricting their range to suburbs outside Cairo and other such communities in the country. These are small communities housing a maximum of 5,000 units, developed over the past few years as space in Cairo stagnated, and developers were forced to build housing projects further and further afield. Telecom Egypt would continue to operate in these areas as well. Kamel did not rule out prospects of additional licenses for the future, and it will be interesting to see if competition will spur a tariff or services war.

Over the years, Egyptian society has evolved as e-services have helped make life easier. From obtaining birth certificates, to official identity cards online, Egypt’s telecommunications boom has transformed a society used to long delays and longer lines to one that operates on efficiency and promptness in service. It is a revolution that continues as internet penetration increases, and mobile connections grow. Clearly, the telecom industry remains a top priority in driving development in Cairo. Egypt has now become the standard by which other countries in North Africa measure themselves. The past decade has laid the foundation for growth, and the next ten years may well decide if Egypt will move on to becoming one of the world’s most important telecommunication hubs.

October 16, 2009 A Postcard from the Asia Pacific Japan: Revving Auto Industry Boosts Export Hopes

2009-12-13T01:55:00.000-08:00

The Tokyo Motor Show, a biennial event, has been one of the world’s premier auto shows ever since its inception in 1954.

The prestigious Tokyo Motor Show, set to run from October 23 to November 4, has seen its last major foreign exhibitor pull out barely a week before its launch. This has left the show, once the glittering celebrity-studded automotive spectacle in the world, bereft of some of the biggest international global brands. Is this a sign of the times?

It would indeed appear strange that the world’s biggest auto companies are shunning a show that is showcasing as many as 39 world launches and 21 Japanese premieres. Yet, foreign automakers pulled out citing their own economic woes. Running alongside is the undercurrent that Japan has never been easy for the international vehicle manufacturer. Japan’s vehicle market has always been skewed heavily in favor of its own domestic brands – whereas in the U.S almost 55% of all vehicles sold have a foreign nameplate, in Japan it whittles down to just a tiny 5%. A discouraging import tariff barrier means that foreign vehicle manufacturers have barely managed to stake a toehold in Japan. As well, the government encourages exports of high-value manufactured goods such as cars, making it possible for Japanese vehicle manufacturers to ship and sell cars around the world at competitive rates.

Digging deeper, there is a flipside to the tale. Japan’s biggest vehicle manufacturers are all revved up and raring to go. For them, it appears to be business as usual after the serious hiccups suffered earlier this year. Despite the recent slump, Japan remains the world’s third largest auto market. Although it might soon be overtaken by speeding China, Japan also is the world’s biggest car producer having an output of 9.916 million vehicles last year. Encouragingly, for the first time in 13 months in August, the Japanese auto industry posted a year-on-year increase of 2.3%, selling 198,265 units for that month, spurred in part by ex-Prime Minister Taro Aso’s incentive measures. That trend continued in September when industrywide sales rose 0.2% over a year earlier to 477,818 units. That is quite a comeback from the industry’s 38-year low, slumped into in March as consumer confidence dipped. Yet, the Japanese government is keeping its fingers crossed that the auto sector, so crucial a cog in the country’s export wheel, will continue its revival once the stimulus effect fades. It is this – Japan’s export dependence-- that also contributed to the country’s severe fall during the ongoing global recession. Despite the late revival in domestic sales, it is clear that overall sales might fall to their lowest this fiscal. Not surprisingly, most Japanese manufacturers have set their sights overseas – to promising markets in China, India, the Philippines, and of course, the U.S., which remains one of the biggest buyers of Japanese cars.

Japan’s auto industry has for long been the pivotal force driving the country’s exports. And when its exports improve, Japan as an economy improves. The Tokyo Motor Show might be just the opportunity for Japan to burnish its former luster in the world.

November 6, 2009 A Postcard from the Americas U.S.: Orange Juice Demand Rises in Swine Flu Season

2009-12-13T01:45:00.002-08:00

Florida orange juice exports are up 24.3% on a season-to-date basis through October 3, 2009.

As winter creeps in through the U.S., concerns are being raised about another possible deadly outbreak of swine flu. Travel companies shiver at the prospect, airlines fear a massive drop in passenger traffic, and pharmaceutical companies are hoping to be boosted by the expected surge in demand for swine flu vaccines. The possible pandemic is being endlessly debated, with reams of newspaper print and online space already devoted to the topic. Yet beyond this, swine flu is impacting what seems an unlikely sector: orange juice.

With U.S. consumers guzzling down orange juice in copious amounts, hoping to keep swine flu at bay, the orange juice market finally has some reason to smile. Fear is of some value, it appears. With the flu season still in the incubation stage, demand for vitamin C-rich beverages and food is only expected to rise when winter sets in completely. And orange juice is selling. Retail sales of orange juice have just recorded their sixth consecutive month of increase this year. And the price of a pound of frozen, concentrated orange juice is up to $1.07 recently on the U.S, ICE Futures exchange, having already gained around 73% this year.

The rise on the Futures Exchange was triggered by an October 9th report by the U.S. Agriculture Department, forecasting that Florida, which is the second-biggest producer of oranges after Brazil, would see a drop of around 16% in crop output this year. The last time orange juice prices rose was when a series of hurricanes damaged crops, pushing prices up to a record $2.095 per pound back in March 2007. That also led orange juice manufacturers to hike retail prices for their products.

Concerns have been raised on the future of this $10 billion industry in Florida, which has been ravaged by the curiously-named citrus greening disease or yellow dragon disease, which has devastated orange trees even in Brazil. With no cure as of yet, these diseases, have significantly reduced citrus production in Florida, causing entire trees to wither and die within a few years of being infected.

But ironically, swine flu, another disease, has emerged as an unexpected savior for a struggling Florida. And the Florida Juice Industry is cashing in as much as it can. “Support your immune system,” their website proclaims in an obvious reference to the swine flu. During these times, when companies are hard pressed to drive up demand in a recessionary market, anything that sells, no matter the reason, helps. Oranges and swine flu may be an odd combination, but this recession has taught us, if nothing else, that unusual alliances may just be what the doctor has ordered.

November 13, 2009 A Postcard from Europe Spain: What Ails the Aeronautical Industry?

2009-12-13T01:45:00.001-08:00

Spain has significant aerospace clusters in cities like Madrid, Andalusia, Catalonia, and the Basque country to name a few.

Bailouts are not new. In fact, during the global meltdown of 2008, bailout was the catch phrase of the moment, invoking the reality of the financial crisis in the minds of many Americans. Since then, most major government’s have offered bailouts in some form or the other. Spain itself has been reeling in the aftermath of the meltdown, having entered its first recession in 15 years. The recent financial crisis has only exacerabated an ongoing correction in the construction sector. Yet, Spain’s new $5.50 billion bailout offered to its aeronautical industry comes at a time when many governments across the world are pondering withdrawing stimulus measures in the wake of positive economic data.

Although many associate Spain with olive oil exports and tourism, Spain’s aeronautical industry is fifth in Europe in terms of turnover and employment, with at least 34,000 people directly involved in the sector. With the industry posting steady growth of at least 12% in the decade from 1998 to 2007, the Spanish aeronautical market is clearly crucial in the government’s plan to revive the country’s economy. Industry turnover even in the last year totaled nearly $7.6 billion, an increase of around 25% over the previous year. Yet, with air travel dipping substanially over the past year, weary consumers have cut back on travel. With this, airlines have struggled to stay afloat, spurring a drop in aircraft demand and widespread cancellations of new orders. Spain is expected to see a year-on-year decrease in traffic of 8% in 2009 with almost all major market segments operating fewer flights than last year. The Spanish aeronautical industry has felt this aftershock.

It is a situation that is enough of a concern to the government, that a stimulus has been launched this late into the recession. The $5.50 billion aid package will be distributed between next year and 2014 towards what the Ministry of Industry, Tourism, and Trade has said will boost the ‘development of new products and maintain demand as well as aid work in Spain.’ Christened the new “Aerospace Sector Strategic Plan” or SPFS, the government is hoping that the intitiative will just be the trigger that will enhance the industry’s competitiveness. For example, the Spanish division of Airbus will receive a $748 million injection from this stimulus package to further its development of the A350 XWB model. Spain began developing expertise in carbon fiber composites decades ago and the country’s extensive research on carbon fiber is beginning to pay off. The A350 XWB model will be the first commercial aircraft to be made extensively with carbon fiber.

Decades ago, in 1919, when Juan de la Cierva flew the world’s first stable rotary-wing aircraft, few imagined that it would become the forerunner of today’s helicoper. That set a trend that has made Spain one of the leaders in technological innovation. Now the industry itself lies challenged. Much of the debris from last year’s financial wreckage has been clearing, but Spain’s aeronautical sector still has miles to go before it can fly again.

November 20, 2009 A Postcard from the Middle East Israel: Start-ups Spur Economy

2009-12-13T01:43:00.000-08:00

In 2008, over $2 billion in capital was invested in over 480 Israeli high-tech companies, an increase of 18% year-on-year with 50% of the funds coming from investors in the U.S.

The Internet is a dazzling web of innovation. There are sites that emphasize collaborative processes, sites that promise intelligent mobile and video commerce platforms, and others that recommend movies, and provide peer-to-peer sharing. There are sites that offer virtual worlds to escape to and sites that offer social networking marketing solutions.

New sites such as these and more are flourishing on the Internet, surprising seasoned technology pros with their depth of innovation, creativity and promise. And these start-ups are not being launched in the heart of Silicon Valley, not in the U.S., and not from the IT boomcity of Bangalore, India or even the financial hub of Shanghai. These start-ups are coming from Israel - a country with a population of just around seven million, almost constantly at war, and with almost negligible natural resources. Israel has more companies listed on the NASDAQ than any other country outside the U.S. How did Israel manage to achieve such high-end expertise in a way that economic powerhouses like India, China or South Korea have not?

Israel is known for its R&D but it might well surprise Americans that the country has the largest number of high-tech startups in absolute terms after the U.S. The land of milk and honey is also the land of venture capital start-ups. It is estimated that there is one start-up for every 1,844 Israelis. At a time when the U.S. is grappling with a decade-high unemployment rate and a stuttering economic revival, Israel has shown that technological expertise and innovation can chart new paths. The country attracts twice as much venture capital investment than the U.S., and almost 30 times more than Europe. There are lessons to be learned in Israel’s success – entrepreunership has its place, despite a recession. How does Israel breed so many of these successes?

Truly, Israel is undergoing one of its worst financial challenges ever. In 2008, Israel looked as if its boat was steady enough to navigate the choppy waters of the financial crisis. Its GDP rose 4% last year after five years of unprecedented growth. But things changed in the fourth quarter when the economy screeched to a halt. Industrial production fell 1% in the last two months of 2008 while retail sales tumbled 2%. The once flourishing high-tech industry, which accounted for more than 40% of Israel’s $40.1 billion in export sales in 2008, has taken a beating. What’s more, unemployment has been rising continuously, standing at 6.8% in January and expected to top 8% by the end of this year.

The answers are varied. A new book hypothesizes that Israel’s culture is wired towards thinking anew, and to thinking for the future. A nation that is almost constantly battling political crises has bred a people who are aware of a shifting present, and of a need for improvement in the future. The country’s military regimen also inculcates Israeli youth with such values as teamwork, communication and improvisation, apart from imparting mental toughness.

And the country’s isolation – surrounded as it is by political enemies – has meant that industry has had to adapt despite these barriers. In place of large, manufacturing industries with attached high shipping costs, Israeli investors and entreprenuers have started to develop smaller components and products, especially software.

Being cut-off from its land boundaries, Israel developed instead one of the most extensive and penetrative Internet networks in the world. Adversity has meant that Tel Aviv is a buzz of ideas, offering a springboard to creativity. Israelis have exported their minds in the absence of natural resources – and today, the world is learning from these skilled innovators. Take for example, one of Israel’s most path-breaking ideas – to create a world of that runs without oil using electric cars that can be easily recharged. Amazing as that idea sounds, an Israeli start-up is actively researching and developing a viable idea that may help to eventually wean Israel off its dependence on oil in the next ten years. The project includes developing a national network of battery exchange stations – where customers with an electric car can drive in, replace their weakened battery, and drive off in minutes with a new one, thus eliminating the long hours of charging that remains a major drawback of electric car technology.

The next time one sees a cutting-edge website that creates new waves in this dynamic and competitive Internet industry, chances are the portal was launched in Israel. If there is a new idea that changes the way the world thinks, chances are that spark of innovation came from Israel. And chances are that the next start-up one encounters may likely be Israeli. America and the rest of the world may find some surprising answers in this remarkably resilient nation.

November 27, 2009 A Postcard from the Asia Pacific New Zealand: Vaults over Denmark as the Least Corrupt Nation

2009-12-13T01:41:00.001-08:00

Business confidence in New Zealand is rising, hitting a 10-year high as the country continues to rebuild from the global recession

New Zealand has become accustomed to being overshadowed by its larger neighbor – Australia. Often dwarfed in terms of size and importance, New Zealand has played traditional rival to Australia but has rarely, if ever, upstaged its Aussie counterpart. So it may come as a bit of a surprise to Australians that New Zealand has recently been ranked as the least corrupt country in the world by Transparency International, overtaking Denmark in the process.

Transparency International’s annual Corruption Perceptions Index (CPI) reflects the perceived level of public-sector corruption in a country. The index is essentially what Transparency International terms as a ‘survey of surveys,’ taken from as many as 180 countries and territories around the world. This year, New Zealand pole-vaulted its way to the top after a second place finish last year with a CPI score of 9.4. Australia dropped to eighth position in the table, mirroring the heavy bureaucracy in the country. The U.S., struggling in the aftermath of the 2008 financial crisis, slipped to the 19th slot, with a score of 7.5.

Upon the release of the 2009 Index, Transparency International’s Chair, Huguette Labelle, commented that “stemming corruption requires strong oversight by parliaments, a well performing judiciary, independent and properly resourced audit and anti-corruption agencies, vigorous law enforcement, transparency in public budgets, revenue and aid flows, as well as space for independent media and a vibrant civil society.”

Against the backdrop of these rigorous criteria, what has New Zealand done to earn such high marks? Simply told, the country has emerged as a safe environment for offshore investment. Despite slipping into a recession, the country did remarkably well in fighting the onslaught of a global slowdown. New Zealand has had a politically stable government and well-performing public sector institutions. Housing prices have been on the rise, tourism has been on an upswing, and the government has succeeded in attracting a high level of trust among investors. The country also boasts a State Services Commission that monitors the Standards of Integrity and Conduct, a strict code of conduct implemented in November 2007 to replace the old Public Service Code of Conduct.

New Zealand may have well climbed out of recession but it is a common adage that getting to the top is easier than staying there. As the Commissioner of the Standards of Integrity and Conduct code observed, the country did not arrive at the top spot through complacency. And now, more than ever, the country can least afford to be complacent. Trust is a fragile virtue and ethical behavior even more so. New Zealand would do well to guard both.

ASIA PACIFIC: ECONOMIC REVIEW NOVEMBER 2009

2009-12-13T01:33:00.000-08:00

At the start of Asia-Pacific Economic Cooperation (APEC) summit, attention was focused toward the region and its ability to pull the world out of recession. It was a view that was supported by the International Monetary Fund (IMF), which projected Asia will grow at a rate of 2.75% this year and as much as 5.75% in 2010, even as the U.S. and Western Europe struggle with anemic or flat growth. At the conclusion of the gathering, the APEC leaders also promised to make it easier and faster to do business in the region by 2015.

Although Australia became the only nation in the region to raise interest rates for the second consecutive month, almost all other central banks kept their benchmark interest rates unchanged, even as the IMF warned that Asian economies may need to continue such monetary policy support until the recovery is strong and sustainable.

For the month ending November 15, MSCI Asia-Pacific Index marginally rose 1.66%.

Japan: Second straight quarter of expansion

The world’s second-largest economy appeared to be battling its way out of a prolonged recession when third quarter gross domestic product (GDP) results showed that the economy expanded 1.2% from the second quarter or at an annual rate of 4.8%. Domestic demand contributed almost half to the spurt in GDP, a clear result of the stimulus program that former Prime Minister Taro Aso pushed into place.

The various stimulus packages that are already underway in different countries have boosted demand for Japan’s exports, which also rose 6.4% for the same period from the previous three months. Imports climbed as well, increasing 3.4%, primarily led by oil and natural gas, reflecting the slow improvement in the country’s economy.

Adding to the green shoots of recovery in the land of the rising sun, machinery orders, a key indicator of the health of the economy, rose 10.5% in September over a month earlier. Year-on-year, orders were still weak, dropping 22%. While industrial production also rose 1.4% in September compared to the previous month, there are still signs of weakness when compared to year ago figures, which showed an 18.9% drop. Despite the jump in GDP and other positive indicators, Japanese Prime Minister Yukio Hatoyama commented that the economic situation remains ‘worrisome’ and has indicated that an amended budget may be needed to sustain the recovery. The economy also continues to be in the grip of deflation and the Bank of Japan has promised to maintain its accommodative monetary stance for as long as necessary.

For the month ending November 15, the MSCI Japan Index tumbled 1.95%, continuing its downward trend from the previous month’s 1.15% slide.

China: Industrial production and retail sales record growth

While developed economies struggle to emerge from a debilitating recession, China’s economy continues to leap and surge ahead. Data released from the National Bureau of Statistics shows that industrial production expanded by 16.1% in October over a year earlier, prompting the Bureau to express confidence that the Chinese economy would meet its 8% growth target this year. The 8% growth rate is considered the rate at which China needs to grow in order to keep unemployment levels down as its population grows.

Although much of China’s growth has been dependent on its export sector, there have been encouraging signs that domestic consumers may soon begin to contribute their share to the economy. Retail sales climbed 16.2% year-on-year in October to $171 billion. The country’s rural sector continued to boost retail sales, along with expected growth in China’s burgeoning property and automotive sectors. Meanwhile, the Consumer Price Index or CPI was down 0.5% for October over a year earlier. Foreign direct investment or FDI was up 5.7% year-on-year to $7.1 billion, slightly slower than the 18.9% rise recorded in September. Investors are clearly hoping that China’s economy, which expanded 8.9% in the third quarter of this year, will continue on its upward trajectory.

The FDI inflows were also boosted by speculation about China’s currency appreciation and a projected boom in the real estate market as the economy recovers and strengthens. The yuan has been pegged at 6.83 against the dollar, despite the U.S. urging to allow the yuan to appreciate. The dispute cast a pall on U.S. President Barack Obama’s first Asian visit since he took over as president earlier this year. China has thus far desisted calls for the currency to appreciate even as the dollar weakens, stating that such policies were not conducive or fair in the ongoing global economic recovery. The Chinese government also feels that a weaker dollar would make the U.S. more competitive. Chinese exports have still struggled to regain their pre-recession luster, with October shipments dropping 13.8% in October over a year earlier, the 12th consecutive month of decline.

The MSCI China Index surged 4.92% for the month ending November 15, an improvement over the 7.52% rise the previous month.

India: Inflation rises while export decline slows

Accelerating inflation continues to remain a cause of concern for the Indian economy as inflation as measured by the Wholesale Price Index (WPI) shot up 1.35% in October over a year earlier, almost doubling from September’s 0.5% gain. Despite facing a looming budget deficit that is estimated to reach as high as 6.8% of the GDP, the Indian government has indicated that it would not remove stimulus measures in place until the economic recovery stands firm. Still, India’s benchmark index, the Sensex, has reacted with jitters, fearing the government might consider revising some of its measures. In response, Indian Finance Minister Pranab Mukherjee was prompted to assure Corporate India that these economy-rejuvenating measures, which included cuts in factory duties, would remain in place for the time being. The Minister is expecting the Indian economy to grow 6% to 7% in the fiscal year ending March 2010. No doubt, he has been encouraged by recent October export figures, which showed that the steep drop in overseas shipments precipitated by the global recession may be slowing. Exports for the month of October were down 11.4% year-on-year to $12.5 billion, the smallest decline in the past 10 months. In comparison, September exports had slid 13.8%.

Advocates of the green shoots of recovery would also be heartened by the Index of Industrial Production (IIP), which rose 9.1% from a year earlier in October, slower though than an 11% expansion in September.

The MSCI India Index climbed 8.17% for the month ending November 15, continuing on its good run when it recorded a rise of 5.66% for the month ending September 15.

South Korea: GDP rises by 2.9% in third quarter

Cushioned by a 2.9% rise in GDP in the third quarter compared to the previous one, South Korea’s consumer confidence as measured by the Sentiment Index rose to its highest level in almost seven years in October. The government expressed surprise over the third quarter results, commenting that it is now hoping for full-year growth this year.

As expected, the Bank of Korea kept its benchmark interest rate again unchanged at a historic low of 2% in November. The central bank is expected to keep interest rates steady at least until next year in a bid to support the nascent revival in the Korean economy. The Bank observed that although exports, domestic demand and production have all increased recently, there still remained a degree of uncertainty about the sustainability of economic growth, and stressed that the bank’s accommodative policy stance would continue for some more time.

Consumer prices have remained stable over the past few months, allowing the bank more flexibility. Prices rose 2% in October over a year earlier, led by an increase in prices in the service and agricultural sectors. This was a slight drop from a 2.2% spike in September, which was due mainly to declining oil prices.

The MSCI South Korea Index marginally rose 1.83% for the month ending November 15, after a similar marginal rise of 0.7% for the previous month.

Australia and New Zealand: RBA raises GDP forecast; New Zealand housing prices rise

The Reserve Bank of Australia tripled the country’s growth forecast for 2009, stating that the economy is growing much faster than expected. The central bank raised its target for this year from 0.5% to 1.75%, and from 2.25% to 3.25% for next year. "Although consumption growth has moderated relative to the first half of 2009, following the end of the fiscal payments to households, spending appears to have been relatively resilient,” the bank wrote. The RBA commented that it expects Australia’s growth to be determined particularly by demand for its main resources of coal and iron ore from India and China, Asia’s powerhouse economies. Expressing confidence in a reviving Australian economy, the RBA remains one of the most aggressive central banks in raising interest rates. At its monthly policy meeting in November, the RBA decided to hike the cash rate by 25 basis points to 3.5%, stating that the global economy had resumed its growth.

Retail sales, meanwhile, unexpectedly fell by a seasonally adjusted 0.2% in September against a revised 0.7% rise the previous month. Australian inflation as measured by the CPI climbed 1.3% in September over a year earlier.

In its November Financial Stability Report, the New Zealand central bank followed its Australian counterpart by expressing confidence that the New Zealand economy and indeed the global economic outlook had improved over the past six months. “Financial market strains have eased, equity markets have mounted a recovery and confidence has improved. Economic forecasts are now tending to be revised upwards rather than downwards. However, global recovery has been fuelled by stimulatory fiscal and monetary policy settings which cannot be kept in place forever. Also, the global banking system remains vulnerable to further shocks,” the Bank observed.

The central bank also cautioned that an appreciating New Zealand dollar might hinder the country’s external balance. Underlying a gradual recovery in consumer confidence, retail sales rose for the second quarter in a row with a marginal increase of 0.1% in the third quarter. Housing prices also increased in October amidst expectations that mounting consumer confidence, which hit a 22-month high in October, would lead to an upsurge in the real estate market.

The MSCI Australia Index registered a rise of 4.92% for the month ending November 15, improving on last month’s 6.69% rise. The MSCI New Zealand Index, on the other hand, declined 0.39% for the same period after having climbed 1.94% for the month ending October 15.

Indonesia and Philippines: Bank Indonesia keeps interest rate steady; Philippines export slump eases

Bank Indonesia, the country’s central bank, kept its benchmark interest rate steady at a low of 6.5% for the third consecutive month in November. The bank has indicated that it may maintain interest rates unchanged for the rest of the year, but it may consider a rise in 2010 keeping in mind increasing inflationary pressures. Annual inflation slid to a low of 2.5% in October, allowing the central bank more room to accommodate its flexible monetary policy. Bank Indonesia forecasts the domestic economy will expand 4.3% this year and 5.5% next year.

Indeed, third quarter GDP figures were encouraging, with Southeast Asia’s largest economy accelerating at a pace of 4.2% annually. Quarter-on-quarter, the GDP increased 3.9% in the third quarter, with almost all economic sectors contributing to the rise. Indonesia has continued to recover well from the global recession. Barring the threat of inflation, the country remains poised for growth considering its healthy external payments situation, and a stable political outlook. Consumer confidence remains high with many Indonesians upbeat that President Yudhoyono, who began a second term in office, will be able to launch reforms, and fast-track infrastructure and development programs.

Meanwhile, in the Philippines, exports tumbled 18.3% year-on-year to $3.63 billion in September, precipitated by a slump in demand for electronics. The National Statistics Office, however, said that the export slump appears to be abating as overseas shipments actually gained 4.6% when compared to the previous month of August. Overseas remittances, one of the major contributors to the Philippines GDP, grew 8.6% in September over a year ago. The central bank commented that it expected overseas remittances to grow around 4% this year, which will help offset the impact of the devastating typhoons that swept through Manila and other parts of the country in the past one month or so. The bank has been doing its best to stimulate growth by keeping the benchmark interest rate unchanged at 4%, noting that current levels are appropriate to maintain growth. The World Bank recently upped its growth forecast for the Philippines economy, stating in a report that it would grow at around 1.4% this year. The World Bank criticized what it termed the ‘weak influences’ that may hinder economic growth in the Philippines in the years to come, citing dismal infrastructure in the energy and transport sector as well as a weak investment climate.

The MSCI Indonesia Index ascended 4.65% for the month ending November 15, dipping slightly from the previous month’s 5.85% rise. For the month ending November 15, the MSCI Philippines Index climbed 6.29%, a slight decline from the previous month’s performance when it had risen 7.11%.

Thailand: Central bank raises growth forecast

Following other banks in the region, the Thai central bank also raised its growth forecast for Thailand. GDP is now expected to shrink 2.5% to 3.5% this year, less than its previously forecasted 4.5% contraction. Although exports fell the least in September, the central bank said that it expects exports to drop around 13% this year before registering growth of around 10% to 15% next year. Inflation is anticipated to be in the range of around 0.5% to 1.5%. However, for the first time this year, inflation inched up 0.4% year-on-year in October, led by a rise in price in the food and beverage sector. In the first ten months of 2009, consumer prices dropped 1.5%, mainly from a fall in oil prices.

Facing constant pressure from opponents to his rule in Thailand, Prime Minister Abhisit Vejjajiva indicated that he may call for an early election once the economy stabilizes. His term ends in late 2011 but calling for early balloting may help end the churn of political instability that Bangkok has been facing of late.

For the month ending November 15, the MSCI Thailand Index rose 1.91% after an encouraging rise of 3.02% for the previous month ending October 15.

Hong Kong: GDP slows as exports remain weak

Economic growth in Hong Kong remained subdued in the third quarter, with GDP rising by just 0.4%, a drop from a 3.5% expansion the previous quarter. Despite robust domestic consumption, ongoing weakness in the export sector pulled growth down.

Although the figures dampened sentiment after the encouraging growth posted in the second quarter, the government believes that despite prevailing uncertainty in the global economic outlook, Hong Kong’s economy will contract by 3.3% this year, better than a previous forecast of 3.5% to 4.5%. Exports in the third quarter fell 13.2% from a year earlier, a larger drop than the second quarter's 12.4% decline.

Hong Kong’s jobless rate dipped to 5.2% in the August-October period, as business conditions rebounded and companies resumed hiring. Also, for the first time in almost seven months, retail sales surged 2.4% in September compared to the same period last year. Domestic tourism, one of the main drivers of retail sales, has shown consistent improvement and with the Christmas/New Year peak season looming ahead, Hong Kong retailers will perhaps have more reason to smile.

The MSCI Hong Kong Index marginally increased by 0.19% for the month ending November 15 after having registered an increase of 2.39% for the previous month.

Malaysia and Singapore: Central bank holds key interest rate in Malaysia; exports decline in Singapore

The Malaysian central bank kept interest rates steady at 2%, hoping to better stimulate growth in an economy that shrank in the first two quarters of this year. It is estimated that the economy will contract by around 3% this year.

In its most recent budget, the government moved to slash spending, aiming instead to reduce a ballooning fiscal deficit. Prime Minister Najib Razak said that although the Malaysian economy is expected to revive, the growth will be modest at around 2%. He indicated that a recent fuel subsidy, although popular with the population, is a massive drain on the state’s coffers, and may be withdrawn next year. Razak has repeatedly stressed that the downturn offers Malaysia an opportunity to adopt a new model that is based more on innovation, creativity and value-added activities. Among other ambitions, his goal is to increase domestic demand, making Malaysia more self-reliant. One way of increasing domestic demand is to provide consumers with increased spending power – and Najib offered exactly that by cutting income taxes for the second straight year.

Signs of a gradual recovery are permeating through the Asia-Pacific but in Singapore, exports unexpectedly declined in October. The country’s non-oil domestic exports plunged 6.1% for the month over a year earlier, after having fallen 7.3% the previous month as well. Singapore’s central bank has supported an economic revival in the tiny state by maintaining a zero appreciation stance in its monetary policy. The $182 billion economy is expected to have registered a modest growth of 0.8% in the third quarter compared to a year earlier, according to advance estimates. Retail sales also slumped 11.8% year-on-year in September, as automotive sales weakened. Still, there were a few positive notes, including tourism arrivals which climbed 7.1% in September and job losses which have eased.

For the month ending November 15, the MSCI Malaysia Index grew, 3.02% building on the 6.74%rise posted for the month ending October 15. The MSCI Singapore Index also climbed 4.47%, an improvement from the previous month’s 2.53% rise.

Pakistan: Terrorism strikes again

Pakistan continued to struggle with insurgency as terrorism wreaked almost daily havoc in the country. Although the Pakistan Army is engaged in a pitched battle with the Taliban, a wave of suicide bomb attacks have cast a pall of gloom on the struggling country. The attacks are having an impact, with jittery investors pulling money out of Pakistan. Foreign direct investment slumped by 60% in the three months to September.

However, South Asia’s second-largest economy breathed a sigh of relief when the latest data indicated that inflation, once the bane of the economy, slowed to a 22-month low in October. Consumer prices rose 8.87% from a year earlier in October, a decline from the 10.2% gain in the previous month. The central bank, which surprised the IMF by reducing the benchmark interest rate twice, has further room to cut rates as inflation for the first time in over a year has been lowered to single digits. The bank has said that it expects Pakistan’s economy to grow at around 3.3% in the fiscal year ending June 30, 2010. This is in sharp contrast to the forecast by the Asian Development Bank (ADB). The ADB slashed growth projections for Pakistan to 3% for the same period, noting that the economy continues to be jeopardized by the country’s uncertain security conditions.

The MSCI Pakistan Index declined 1.46% for the month ending November 15, declining after a 5.18% rise recorded in the previous month.

Taiwan: Inflation falls again

Taiwan’s CPI dropped for the ninth straight month in October despite higher oil prices. The Index fell 1.84% year-on-year in October compared to a 0.88% fall in September. The drop was attributed to a slump in vegetable prices, which collapsed 29.64% in the same period.

The country’s exports, meanwhile, fell the least in 13 months in October as demand increased for Taiwan’s main products like computer accessories and mobile phones. Overseas shipments slumped 4.7% in October over a year earlier, better than the 12.7% year-on-year drop recorded in September. This marked the smallest decline in exports since September last year and augurs well for the economy’s future. Current demand is being sustained from China as well as from the U.S., and Europe, as consumers begin to shop in earnest ahead of the Christmas season.

The MSCI Taiwan Index rose by 5.53% for the month ending November 15, after rising 1.83% for the month ending October 15.

Earmarks 'robust' in House $1T spending bill

2009-12-13T01:00:00.000-08:00

A $1.1 trillion spending bill laced with budget increases and more than 5,000 congressional pet projects passed the House on Thursday amid criticism from Republicans and watchdog groups.

The package — which combines six annual spending bills into one — includes $447 billion in operating expenses, with an average increase of 10%, and more than $600 billion for Medicare and Medicaid.

It was approved 221 to 202 and now moves to the Senate. No House Republicans voted for the bill, and 28 Democrats broke with their party to oppose it.

"At a time when we have record deficits, the American people are concerned about the deficits and the increasing debt, and yet I'll guarantee you that we found a million here and a million there to fund somebody's little pork project in some state in America," House Minority Leader John Boehner of Ohio said.

Rep. Jim McGovern, D-Mass., called the bill "an opportunity to reverse years of neglect ... to our roads and bridges, neglect to our lower-income neighbors and friends, neglect to our education system, neglect to our veterans."

Projects, known as earmarks, are inserted into annual budget bills at the request of members. Stephen Ellis of Taxpayers for Common Sense said his organization identified 5,224 earmarks in the bill worth about $3.9 billion.

"They've given earmarks a haircut, a slight trim, but they are still there, and they are pretty robust," Ellis said.

Among the earmarks:

• Democratic Sens. Daniel Akaka and Daniel Inouye, both of Hawaii, secured $3.15 million for a Financial Education and Pre-Home Ownership Counseling Pilot Program in Hawaii.

Jesse Broder Van Dyke, an Akaka spokesman, said program grants will help identify successful methods of financial education and counseling services, and establish program models for others to deliver those services.

• Rep. Dan Lungren, R-Calif., secured $930,000 for maintaining exhibits at the Aerospace Museum of California in McClellan. "This is still part of the overall property that was essentially the Air Force base that was closed ... over a decade ago," Lungren said. "So this is part of the continuing process of making that whole area viable."

Lungren, who voted against the bill, said if all members gave up their earmarks he would do the same.

• Rep. Leonard Boswell, D-Iowa, secured $750,000 for the World Food Prize Foundation, which has undertaken a $29.8 million project to convert a century-old library in Des Moines into the Norman E. Borlaug Hall of Laureates.

The federal money would go toward educational exhibits on Borlaug, a Nobel Peace Prize winner, and his efforts to end world hunger, said Jane Slusark, a Boswell spokeswoman. "The World Food Prize's Hall of Laureates will teach our children and grandchildren about the state's deep rural roots and the great men and women who have contributed to feeding the world," Boswell said.

Ellis said he is not taking issue with these specific earmarks. He added, however, "I am sure there are millions of dollars that have been wasted in this legislation on these parochial projects."

Summit talks for Obama in Beijing

2009-11-16T16:38:00.000-08:00

Barack Obama is set for a summit in Beijing with Chinese leader Hu Jintao, as he continues his first tour of Asia as US president.

Mr Obama will be given an official welcome in the Great Hall of the People, or parliament, and then have talks with the Chinese president.

Trade, climate change and economic issues are expected to dominate.

The two men have already met during the visit and had dinner together on Monday in the Chinese capital.

Mr Obama is also due to meet the chairman of the parliament, Wu Banguo, later on Tuesday and there will be a state banquet at the Great Hall.

In addition, the US leader, who is not being accompanied by his family on the tour, will fit in visits to the Forbidden City and the EU embassy.

He arrived by plane in the capital from Shanghai where he had addressed Chinese students, telling them that individual rights and freedoms should be available to all.

'Quite lively'

Mr Obama had told his audience that he was a "big supporter of non-censorship", and that unrestricted internet access was a "source of strength" that should be encouraged.

Communist China employs some of the tightest controls over internet content in the world.

Greeting his American guest in Beijing, President Hu noted Mr Obama's meeting with the students, calling it "quite lively".

Mr Obama smiled broadly as his host spoke, then told Mr Hu that the world recognised "the importance of the US-Chinese relationship" in tackling global problems.

During dinner on Monday, conversation centred upon the respective histories of the two countries, and both men outlined the economic challenges their states face.

They swapped ideas about the significance education plays in the advancement of their people, the Associated Press news agency reports.

Mr Obama visited Japan and Singapore earlier and is scheduled to fly to South Korea after leaving China on Wednesday.

Pacquiao vs. Cotto Weigh In Results, World Boxing

2009-11-15T09:28:00.001-08:00

Manny Pacquiao and Miguel Cotto Weigh in For Their Fight

Today, live from Las Vegas, Nevada, both Manny Pacquiao and Miguel Cotto weighed in for their big fight tomorrow evening. Of course, with the catch-weight stipulation, the weigh-in was highly anticipated for this match-up. Many people feared that Cotto would not be able to make weight, or if he did he wouldn’t look good in doing so.
Pacquiao vs. Cotto Weights

Manny Pacquiao: 144 pounds

Miguel Cotto: 145 pounds
Other Notes from the Pacquiao vs. Cotto Weigh In

Both fighters made weight with Cotto having a 1-pound advantage heading into the epic bout. Pacquiao, who weighed in at 138 pounds for his 2nd Round KO of Ricky Hatton in his most recent fight, weighed in at 144 pounds, the heaviest he has had to fight at in his career. Meanwhile Cotto weighed in at 145 pounds, the lightest he has been in two years.

Other Notes from the Pacquiao vs. Cotto Weigh In

So there you have it. Everybody has been eagerly waiting for this fight for months, and now the time is finally here for all of us to sit back and enjoy it. It has all the makings for a great, memorable night of action, and it should be very interesting to see how the fight plays out. Put the predictions aside, because once you step into that ring none of it matters.

ENGLAND 2018 WORLD CUP BID - YOUR VIEW

2009-11-14T08:47:00.001-08:00

WE want to know what YOU think about England's bid to host the 2018 World Cup finals.

There has been plenty of publicity surrounding the bid in recent weeks with criticism from some quarters about the way the project has been handled.

FIFA vice-president Jack Warner was vocal in his condemnation of our efforts recently but we are now approaching a critical stage of the campaign.

A key meeting took place this week to restructure the board with Lord Triesman and Andy Anson continuing to lead the project while Geoff Thompson has added his experience to the mix.

An advisory group has also been set up which includes Karren Brady, David Gill and Sports Minister Gerry Sutcliffe.

"We've got to a point where the England 2018 campaign requires focus, determination and where everybody involved has a specific purpose to help us win the bid," said Triesman.

"The new board will provide focused leadership to the team and will work closely together to maximise England's message to the world."

With fierce competition from the likes of Russia, USA, Australia and a joint-bid from Spain and Portugal, England need to pull out all the stops to convince FIFA that the tournament should be staged on these shores for the first time since 1966.

So what can we do to win the battle for votes? Do you have any ideas for how we can ensure success with the bid?

How much would it mean for you to see the World Cup finals played in England? Which cities should host the matches?

Which figures do you believe need to be involved and what lessons have been learnt from the successful Olympic bid?

What should the 'message to the world' that Triesman discusses actually be?

Thai PM hits back at Hun Sen over Thaksin

2009-11-13T22:15:00.000-08:00

วันที่ 2009-10-23 21:03:25 โดย MCOT English - Political

CHA-AM, Oct 23 (TNA) - Thailand's Prime Minister Abhisit Vejjajiva on Friday said that Cambodian Prime Minister Hun Sen may have received incorrect information about former Thai prime minister Thaksin Shinawatra, and should not allow himself to be used as a 'pawn'.

The Thai premier commented after Mr Hun Sen asserted that Mr Thaksin could remain in Cambodia as his guest and could be his economic advisor, saying he was not interfering in Thailand's internal affairs but that Cambodia has the right to exercise its sovereignty and make such a decision.

Mr Hun Sen offered his comment as he set foot on Thai soil Friday evening to attend the 15th Association of Southeast Asian Nations (ASEAN) Summit which opened Friday morning in the Thai seaside resort towns of Cha-am and Hua Hin.

In response to questions regarding his government's statement that Cambodia would reject any Thai request to extradite Mr Thaksin if he accepts an invitation for refuge in Cambodia, Mr Hun Sen told reporters to read the extradition treaty thoroughly to understand why the former Thai premier, whom he described as his friend, can stay in Cambodia as a guest of the Cambodian government.

The Cambodian government’s earlier statement said that the extradition treaty between Thailand and Cambodia clearly indicated that extradition cannot be made on the grounds of political offenses.

"A lot of people talked about Myanmar's Aung San Suu Kyi. Why not Thaksin who is also a similar victim?," Mr Hun Sen asked.

"The current situation would not have happened,” he said, “had there been no September 2006 in Thailand."

Ousted in a bloodless coup, ex-premier Thaksin jumped bail and fled his being sentenced to a two-year jail term for malfeasance in the controversial Bangkok Ratchadapisek land purchase case. The toppled Thai premier now spends most of his time in the United Arab Emirates after his status as a visitor was rejected by a number of countries including both the United Kingdom and Germany.

Mr Abhisit said Mr Hun Sen may have received incorrect information and that was why he compared Mr Thaksin to Myanmar pro-democracy leader Aung San Suu Kyi.

I don't know how many people share his view that Thaksin is like Aung San Suu Kyi. I doubt there are many in the world, for very obvious reasons. And I would say this, that he is here for an ASEAN meeting. We are here to build a community which means solidarity, which means unity. I don't want him to be a victim or a pawn for somebody that undermines the interests of this country and interests of the region and I am sure that when he is better informed, he will change his mind," the Thai prime minister said. (TNA)

Cambodia Currency

2008-09-10T05:54:00.000-07:00

On the whole Cambodia is an inexpensive place, although it is a bit more expensive than neighbouring countries like Vietnam and Thailand.

Of course you can reduce your costs by bargaining, although you shouldn't overdo this as in Cambodia foreigners are quoted higher prices, but not nearly as much as in e.g. Vietnam.

Cambodia's official currency is the riel, which is named after the fish used to make prahok, a fermented fish paste. The riel comes in denominations of 50, 100, 200, 500, 1000, 2000, 5000, 10.000, 50.000 and 100.000 (although the latter two are very rare). Coins are not used in Cambodia. The riel fluctuates around 4000 riel to a dollar.

Riels are mainly used in markets and to buy small items, like a bottle of water or to pay for small services like a moto or tuktuk ride (keep in mind, moto and tuk tuk drivers rarely have change, that is for foreigners, so be sure you have the exact amount ready).

US Dollars are widely accepted in Cambodia and actually serve as a second currency. US dollars are used for larger bills. Don't expect small shop venders to have change of anything more than a $5 note, and do expect small change in riel. Check your US dollars carefully as notes with a small tear are not accepted, especially the larger denominations of 5 dollars and more.

You don't need to change dollars into riel when enetering the country as you will inevitably pay a lot of things in dollars and receive change in riel, which you can use for smaller purchases.

Money changers are concentrated at the markets and change all well known currencies into US dollars. They usually offer a better rate than the banks.

Traveler’s cheques

Traveler’s Cheques are well accepted in Cambodia and can be cashed at money changers and most banks.

Shop around for the best rates and insist that you get small to medium denominations.

Credit Cards

Credit cards are still not widely accepted in Cambodia, but are gaining in acceptance, mostly at more expensive venues.

ATM’s

Available in Phnom Penh,Saim Reap and Sihanouk ville and now also in smaller towns like Battambang and Kompot

Western Union

Money transfers via Western Union are not cheap, so this should be a last resort, but this service is available in all major towns and cities.

Bangkok ,Thailand

2008-09-05T03:23:00.000-07:00

Bangkok (Thai: กรุงเทพฯ Krung Thep) is the capital of Thailand and by far its largest city with an estimated population of over 11 million.
Bangkok is one of Asia’s most cosmopolitan cities. Created as the Thai capital in 1782 by the first monarch of the present Chakri dynasty, Bangkok is a national treasure house and Thailand’s spiritual, cultural, political, commercial, educational and diplomatic centre.

Bangkok exceeds 1,500 square kilometres in area and is home to more than one-tenth of the country's population. Major tourist attractions include glittering Buddhist temples, palaces, timeless “Venice of the East” canal and river scenes, classical dance extravaganzas, and numerous shopping centres.

History

Bangkok (originally Bang Makok meaning ‘The Village of Olives’) was a small village on the banks of the Chao Phraya river, until a new capital was founded on the west bank (present-day Thonburi) after the fall of Ayutthaya. In 1782, King Rama I built a palace on the east bank (now Rattanakosin) and renamed the city as Krung Thep, as it is now known to Thais and which in English is tranlated to the 'City of Angels'. The full name is listed as the world's longest place name by the Guinness Book of Records; an English rendering goes like this: "Krung thep mahanakhon amorn ratanakosin mahintharayutthaya mahadilok pop noparatratchathani burirom udomratchanivetmahasathan amornpiman avatarnsathit sakkathattiyavisnukarmprasit" -- "The city of angels, the great city, the residence of the Emerald Buddha, the impregnable city (of Ayutthaya) of God Indra, the grand capital of the world endowed with nine precious gems, the happy city, abounding in an enormous Royal Palace that resembles the heavenly abode where reigns the reincarnated god, a city given by Indra and built by Vishnukarn"). The original village has long since ceased to exist, but for some reason foreigners never caught on to the change.

Modern-day is predominantly Thai-Chinese and they make up the majority of the registered Bangkokian, however the city is a second home to millions of upcountry Thai-Thai folk who come to make a living. The city is also home to a remarkable array of expats from all over the world, with districts inhabited by Chinese, Indians, Japanese, Koreans, Arabs and many more.

Vietname

2008-09-05T03:10:00.000-07:00

Vietnam(Việt Nam) is a country in Southeast Asia. Its neighboring countries are China to the north, Laos and Cambodia to the west.

* The North, around Hanoi (Hà Nội): from the Red River Delta to high mountains near China, to the World Heritage site Ha Long Bay, the North harbors some of the most magnificent views of Vietnam in an exotic context.

* The Central Coast, around the ancient city of Hue (Huế), is the home of the still recent Vietnamese kings, and features one of the nicest old seacoast towns in Vietnam: Hoi An (Hội An), A World Heritage Site.

* The Central Highlands, are hilly and covered with lush forest, features tribes and the occasional elephant, but is still accessible to the more adventurous. Dalat, the former retreat of the French is the largest city in the Central Highlands with a great golf course and the tallest mountain nearby.

* The South, is the economic engine of Vietnam, built around Ho Chi Minh City (Thành Phố Hồ Chí Minh, former Saigon) but also covering the lush and little-visited Mekong Delta, the rice basket of Vietnam.

មហាអំណាចនុយក្លេអ៊ែរ

2008-09-04T10:00:00.000-07:00

មហាអំណាចនុយក្លេអ៊ែរ សំដៅលើប្រទេស ដែលមានអាវុធនុយក្លេអ៊ែរ។ បច្ចុប្បន្នមានប្រទេសចំនួន ៩ ដែលបានបាញ់សាកល្បងអាវុធនុយក្លេអ៊ែរ ដោយជោគជ័យមាន៖ សហរដ្ឋអាមេរិក រុស្ស៊ី (អតីតសហភាពសូវៀត) អង់គ្លេស បារាំង ចិន អ៊ីស្រាអែល ឥណ្ឌា ប៉ាគីស្ថាន និងកូរ៉េខាងជើង។ ក្នុងមានប្រទេសចំនួន ៥ បានចុះហត្ថលេខាលើសន្ធិសញ្ញាមិនសាយភាយអាវុធនុយក្លេអ៊ែរ (Nuclear Non-Proliferation Treaty) គឺ៖ សហរដ្ឋអាមេរិក រុស្ស៊ី (អតីតសហភាពសូវៀត) អង់គ្លេស បារាំង និងចិន។

ចាប់តាំងពីសន្ធិសញ្ញាមិនសាយភាយអាវុធនុយក្លេអ៊ែរ បានចូលជាធរមាននៅឆ្នាំ ១៩៧០ មកមានប្រទេស ៣ ពុំមែនជាហត្ថលេខី នៃសន្ធិសញ្ញាមិនសាយភាយអាវុធនុយក្លេអ៊ែរ បានបាញ់សាកល្បងអាវុធនុយក្លេអ៊ែរ ដែលមាន៖ ឥណ្ឌា ប៉ាគីស្ថាន និងកូរ៉េខាងជើង។ កូរ៉េខាងជើង ធ្លាប់ជាហត្ថលេខី នៃសន្ធិសញ្ញាមិនសាយភាយអាវុធនុយក្លេអ៊ែរ ប៉ុន្តែបានដកខ្លួនចេញវិញនៅឆ្នាំ ២០០៣។ អ៊ីស្រាអែល ត្រូវបានគេជឿថាមានអាវុធនុយក្លេអ៊ែរ ទោះជាប្រទេសនេះធ្លាប់បានបដិសេធយ៉ាងណាក៏ដោយ។ ប្រទេសអាហ្វ្រិកខាងត្បូង ធ្លាប់ជារដ្ឋ ដែលបានផលិតអាវុធនុយក្លេអ៊ែរ ប៉ុន្តែបានលះបង់ចោលនូវឃ្លាំងសព្វាវុធរបស់ខ្លួន មុនពេលចូលក្នុងសន្ធិសញ្ញាមិនសាយភាយអាវុធនុយក្លេអ៊ែរ។

នៅឆ្នាំ ២០០៥ គណៈគ្រប់គ្រង នៃទីភ្នាក់ងារថាមពលបរមាណូអន្តរជាតិ (IAEA) បានរកឃើញថា ប្រទេសអ៊ឺរង់ ពុំបានបំពេញកិច្ចព្រមព្រៀងស្ដីពីសន្ធិសញ្ញាមិនសាយភាយអាវុធនុយក្លេអ៊ែរ របស់ខ្លួនទេ។ ក្រុមប្រឹក្សាសន្តិសុខ នៃអង្គការសហប្រជាជាតិ បានអនុម័តដាក់ទណ្ឌកម្មប្រឆាំងអ៊ឺរង់ បីដងរួចមកហើយ ចំពោះការដែលអ៊ឺរង់ បដិសេធពុំព្រមបោះបង់ចោលកម្មវិធីនុយក្លេអ៊ែរ របស់ខ្លួន។ អ៊ឺរង់ បានទទូចថាការដាក់ទណ្ឌកម្មនេះ ជាការខុសច្បាប់ ហើយជាការបង្ខំខ្លួនឲ្យបោះបង់នូវសិទ្ធក្នុងការអភិវឌ្ឍ បច្ចេកវិជ្ជានុយក្លេអ៊ែរសន្តិភាព ដែលមានចែងក្នុងសន្ធិសញ្ញាមិនសាយភាយអាវុធនុយក្លេអ៊ែរ។ នាយកនៃទីភ្នាក់ងារថាមពលបរមាណូអន្តរជាតិ លោក មហាម៉េដ អេលបារាដេយ (Mohamed ElBaradei) បានមានប្រសាសន៍ថាទីភ្នាក់ងាររបស់លោកពុំមានលទ្ធភាពរកដំណោះស្រាយ ដ៏ល្អណាមួយចំពោះកង្វល់នេះបានឡើយ នៅពេលដែលទីភ្នាក់ងារ របស់លោកពុំបានមើលឃើញការបង្វែរនូវសារធាតុណាមួយសម្រាប់ផលិតអាវុធ នុយក្លេអ៊ែរ ឬក៏លទ្ធភាពដែលអាចផលិតអាវុធនុយក្លេអ៊ែរនោះឡើយ។

2008-09-04T09:02:00.000-07:00

Phnom Penh (Khmer: ភ្នំពេញ, officia Romanization: Phnum Pénh; pronounced [pʰnum pɯɲ]) is the capital and largest city of Cambodia. It is also the capital of the Phnom Penh municipality. It is an economic, industrial, commercial, cultural, tourist and historical center.

Once known as the "Pearl of Asia" in the 1920s, Phnom Penh, along with Siem Reap, is a significant global and domestic tourist destination for Cambodia. Phnom Penh is known for its traditional Khmer and French influenced architecture.
Phnom Penh is the wealthiest and most populous city in Cambodia. It is also the commercial, political and cultural hub of Cambodia and is home to more than one million of Cambodia's population of over 14 million.

Phnom Penh first became the capital of Cambodia after Ponhea Yat, king of the Khmer Empire, moved the capital from Angkor Thom after it was captured by Siam a few years earlier. There are stupa behind Wat Phnom that house the remains of Ponhea Yat and the royal family as well as the remaining Buddhist statues from the Angkorean era. There is a legend that tells how Phnom Penh was created.

It was not until 1866, under the reign of King Norodom I, that Phnom Penh became the permanent seat of government, and the Royal Palace (pictured) was built. This marked the beginning of the transformation of what was essentially a village into a great city with the French Colonialists expanding the canal system to control the wetlands, constructing roads and building a port.
Stupas in front of Wat Phnom.
Stupas in front of Wat Phnom.

By the 1920s, Phnom Penh was known as the Pearl of Asia, and over the next four decades continued to experience growth with the building of a railway to Sihanoukville and the Pochentong International Airport.
The exterior of the Tuol Sleng Genocide Museum, Phnom Penh
The exterior of the Tuol Sleng Genocide Museum, Phnom Penh

During the Vietnam War, Cambodia was used as a base by the North Vietnamese Army and the Viet Cong, and thousands of refugees from across the country flooded the city to escape the fighting between their own government troops, the NVA/NLF, the South Vietnamese and its allies and the Khmer Rouge. By 1975, the population was 2,000,000, the bulk of them refugees from the fighting. The city fell to the Khmer Rouge on April 17. Many of its residents, those who were wealthy and educated, were forced to do labor on rural farms as "new people". Tuol Svay Prey High School was taken over by Pol Pot's forces and was turned into the S-21 prison camp, where Cambodians were detained and tortured. Pol Pot sought a return to an agrarian economy and therefore killed many people perceived as educated, "lazy" or political enemies. Many others starved to death as a result of failure of the agrarian society and the sale of Cambodia's rice to China in exchange for bullets and weaponry. Tuol Svay Prey High School is now the Tuol Sleng Museum in which Khmer Rouge torture devices and photos of their victims are displayed. Choeung Ek (The Killing Fields), 15 kilometres (9 mi) away, where the Khmer Rouge marched prisoners from Tuol Sleng to be murdered and buried in shallow pits, is also now a memorial to those who were killed by the regime.

The Khmer Rouge were driven out of Phnom Penh by the Vietnamese in 1979 and people began to return to the city. Vietnam is historically a state with which Cambodia has had many conflicts, therefore this liberation was and is viewed with mixed emotions by the Cambodians. A period of reconstruction began, spurred by continuing stability of government, attracting new foreign investment and aid by countries including France, Australia, and Japan. Loans were made from the Asian Development Bank and the World Bank to reinstate a clean water supply, roads and other infrastructure. The 1998 Census put Phnom Penh's population at 862,000;by 2001 it was estimated at slightly over 1 million.

The Preah Vihear temple; After the Olympic

2008-08-25T05:04:00.000-07:00

The article "Dispute over temple ensnared in Thai politics" (July 21) ignored some salient facts, resulting in a misleading picture of Thailand's position on the standoff over the temple of Preah Vihear.

Thailand has strictly complied with the International Court of Justice's 1962 ruling, which pertained only to the temple, not to the boundary line. In 2000, Thailand and Cambodia set up a joint border commission to survey and demarcate the two countries' common land border. Pending this work, both sides agreed not to do anything that might change the environment of the frontier zone. However, Cambodia put in troops, a community and various structures. Thailand lodged repeated protests, to no avail.

When Thailand learned of Cambodia's desire to list the temple as a World Heritage site, we strongly urged Cambodia to do it jointly. This would have made the most sense: Natural access to the temple is from the Thai side and the rest of the complex is within Thailand.

Cambodia, however, decided to go it alone. In its initial application to the World Heritage site committee, Thai territory was included in the area to be designated. After Thailand protested, Cambodia submitted a revised map, proposing for designation only the temple proper. Since it no longer intruded into Thai territory, this was the map that Thailand "signed off on." We had to withdraw our support, however, following the Thai Administrative Court's interim injunction on the issue. This had no effect on the World Heritage committee's decision. While recognizing Thailand's repeated calls for a joint nomination and withdrawal of support, the committee approved the temple's designation on the World Heritage list on its own merits

Visting Phnom Penh in the Night

2008-08-24T08:07:00.001-07:00

There are many places to go at night in Phnom Penh city during the night especially it is beautiful to go out in the evening. In every street in the city there are light and people are busy going out, hanging out with friends, family, relatives...etc. Phnom Penh today is very different from the last few years. Almost all the street in the city are not quiet anymore. You will even got stuck by the busy traffic on the road. Many main road today are very busy that shows the increase in number of relocated to settle in the city. That's the move of development in the country.

Together with many visitor come to visit Cambodia are increasing daily. This fact cannot be rejected. Most visitor are today found coming from Korea, Japan and from the western & European countries. The local people can do their business even at night. If you go out in the evening or at night you will recognize people are still busy doing their business. The sign of night time business showing that there are visitors during those time that's why they are there to serve.

With enough light on the street people do not afraid to travel anymore. They like to go out eating with their friends and family, for a party, hanging out, movie...etc. The most famous place to visit in the evening in town is the riverside. There, you will be able to see many people are coming to visit, taking picture, seating down on the garden side, chatting, eating, watching the river. Since the riverside is the famous place to go, it is also the place for celebration of cultural festival as well such as Pchum Ben, Water Festival and so so.

During the festival together with the holiday enables people to hang out a lot. That's why during those time the street are very busy, and thousand of people are coming to visit Phnom Penh including the people in the countryside. There we are, Phnom Penh is the beautiful place to visit especially in the dark evening.

Genocide, motorbikes and vietnamese rolls

2008-08-24T07:59:00.000-07:00

Today's the last day of our trip until we do our three flights in three days return to the big smoke.

Phnom Penh - the last leg of Cambodia

After taking it easy and soaking up Siem Reap we flew into Phnom Penh and boy was it different. A city with few travellers, a depressing history and busy-as-all-hell traffic—Phnom Penh isn't for the faint hearted, nor for those looking for a chillout ("happy pizza" seemingly the preferred method to relax in the big city).

Choeung Ek (killing fields) and Tuol Sleng (genocide museum) were really the main attractions, both pretty heavy but fascinating and sad. How the world allowed the Khmer Rouge exterminate 1.5 million of their own people, in the four years from 1975 to when colour television was introduced in Aus to 1979 when the Ghost Train at Luna Park killed 9 Australians, is still completely beyond me.

Not a place you'd go for a relaxing holiday, but a must-see if you want to understand Cambodia, you can see why people make a B-line for the killing fields and then move on pretty quickly. The Cambodian country-side is definitely somewhere I'll be checking out next time I'm in the area.

Canon’s Diamond Snappers Up For Charity

2008-08-24T04:06:00.000-07:00

Isn’t it sparkly? Meet the diamond encrusted IXUS 10 which will set you back a trifling £27,000.

This is the Super Diamond IXUS with 380 diamonds supplied by Antwerp-based Eddie Elzas. The camera forms part of Canon’s 10th anniversary celebrations for its IXUS range of digital snappers and this one will be sold on Ebay to raise cash for the Red Cross.

Nine others, referred to as ‘his’ and ‘hers’ models will also be up for grabs. Thankfully for us, they are aimed at the peasant end of the charity scale and, with far less diamonds, will only cost you around £2,400 each. Bargain, or what? – Martin Lynch

Living Lightly on Earth

2008-08-23T03:53:00.000-07:00

Although the interdependence of all things lies at the heart of Buddhist teaching, ecology as such is a modern formulation. We might certainly plead that it is a much needed restatement of the Buddhist vision in modern times, we might side with the poets (among them, the Buddha himself) and agree that truth gets lost in the words and therefore needs restating anew from age to age. It is still up to us, however, to prove our claim from traditional sources in order to carry everyone with us.

For such a position to be convincing we need to look at three areas. First we must prove from the Buddha's own words that an ecological vision is included in his teaching. Secondly, we must be able to point to areas of the training recommended by the Buddha where our ecological concern can be put into practice. Many would argue that, on the contrary, the Buddha's is a system of spiritual growth that trains us away from identification with the phenomenal world. In addition, then, we must look for similar interpretations of the Dhamma by earlier Buddhists. If we find that we are in fact following in the footsteps of others, then our case will be proved.

'Future leaders' heading to US

2008-08-23T03:37:00.000-07:00

TWO Cambodian youths are due to leave for the United States on Saturday to spend two months on a cultural exchange as a part of the Youth Leadership Challenge program.

Mao Pouthyroth, program coordinator of Youth Council of Cambodia (YCC), said that the televised Youth Leadership Challenges started in 2007 with the aim of creating "leaders of tomorrow" who can contribute to the Kingdom's development.
"More than 300 young people compete with each other twice a year for the opportunity to travel on this exchange," Mao Pouthyroth added.

Sreang Lalune, 21, a third-year student at the Royal University of Phnom Penh, feels proud of herself for winning a place in the Youth Leadership Challenge program. "I am so happy," she said.

"I am looking forward to telling people in America about Khmer culture such as silk, traditional Khmer clothes and the Angkor Wat temple," Lalune said.

"I will also tell them about our environment and the situation of women in Cambodia."

Cambodia to get first skyscraper

2008-08-22T07:15:00.001-07:00

Cambodian officials have attended the official sales launch of
the first-ever skyscraper in the capital, Phnom Penh.

The twin towers are to be 42 storeys high - almost three times higher than the current tallest building.
It is the first of three skyscrapers planned in the capital, where the skyline has been kept low - in part to avoid overshadowing royal palaces.
But the government has encouraged the new buildings as symbols of Cambodia's development after decades of conflict.

Although Gold Tower 42 is some way from completion, the launch of its show apartment and sales office attracted government ministers and overseas ambassadors.
The BBC's Guy De Launey, in Phnom Penh, said the launch gave a taste of the shape of things to come. He said the solid, imposing, gold-faced structure would stand out from its neighbours on Norodom Boulevard - an area of yellow-washed, wooden-shuttered French colonial-era buildings.

But Phnom Penh is in the middle of a real-estate boom - and some residents hope that building up will bring the price of homes down.
"It's more affordable for people wanting to stay in town, and I think it's good. It's secure and they have all the facilities," one resident said.But other locals worry about the effect tall buildings will have on the city'scharacter

"The original Phnom Penh city [was developed to] be horizontal, not vertical," one resident said.South Korean companies are building Gold Tower 42 and another even taller skyscraper near the Mekong River.

National Museum

2008-08-22T07:03:00.000-07:00

Housed in an airy, traditional style building finished in 1920, is the archaeological collection of the National Museum. The collection features Khmer artifacts including large statues of deities, pre-Angkorian pottery and Brahmanist stone phalluses called lingas.

The museum's exhibits are poorly labeled and fairly incomprehensible to those not versed in the subtleties of Cambodian culture so it is worth taking advantage of the guided tours offered in French or English. Even if such artifacts are not of interest, the museum is worth a visit for its architecture including high ceilings, glassless windows and a serene inner courtyard.

Happy everyday infront of Independence Monument.

2008-08-22T06:34:00.000-07:00

oung residents of Phnom Penh take advantage of a break in the rain and the last light of the day to play a game of badminton in Hun Sen Park, in front of the Independence Monument.

This 20-metre tall, red-stone monument was erected by King Sihanouk's father, King Norodom Suramarit, who reigned as King from 1955 until his death in 1960. The monument was built in 1958 to commemorate Cambodia's independence from France, which was granted in 1953 following Sihanouk's declaration of a "royal crusade for independence." Today the monument serves as a memorial to Cambodia's war dead. It also serves as a place for youth to hang out and catch the cool evening breeze which blows off the Tonle Sap River in the hot season.

Public, private ports divided on regulation as exports rise

2008-08-22T06:13:00.001-07:00

SOARING exports have led to what officials say is a chaotic and cutthroat system of private and public seaports that needs to be better regulated.

About 22 ports dot Cambodia's rivers and seashores, with few rules governing competition, quality, logistics or safety.

The state-owned Phnom Penh and Sihanoukville ports, meant to be key trade hubs, complain that they cannot compete against smaller private facilities that have few standards and frequently engage in what they say is price-dumping.

"Ports are no longer competing fairly and must upgrade their services and management," said Hei Bavy, director general of the Phnom Penh Autonomous Port.

"Some business people have created confusion by trying to adopt Cambodia's 'Open Skies' policy to the Kingdom's waterways," he told the Post.

Open Skies deregulated flights for international carriers to Phnom Penh and Siem Reap, greatly increasing business to these transport centres.

"But [Open Skies] didn't authorise the unrestricted building of new airports. Any move towards an 'open water' policy in Cambodia should follow the same pattern," Hei Bavy said.

Even with cutthroat port competition, businesses complain exporting from Cambodia is more expensive and slower than from neighbouring Vietnam and Thailand.

"All private ports should function under the same set of rules. Singapore has many port terminals, but all of them operate under the Port Authority of Singapore. The same is true of Hong Kong. In Cambodia, it's much different."

Officials say Cambodian law has failed to keep pace with changing trade patterns and rising exports, estimated at just over US$4 billion last year.

Debating a new law
Lawmakers are expected later this month to debate legislation that exporters and port operators hope will bring some order to the export sector.

The law is being made with help from Belgium and would include provisions to coordinate Cambodian and Vietnamese ports.

"We have to put all port operators on track and every port, both private and state-owned, needs to compete based on proper regulations," said Mom Sibon, secretary of state for the Ministry of Public Works and Transport.

"I think we need to control all ports to make sure they are operating fairly and according to the law," he said.

But some private operations say they are concerned about increased government control over Cambodia's ports. Greater port competition would improve services overall, they argue, while more scrutiny could eventually discourage trade.

"This is a free market. If there are no private ports to compete with state-owned ports, the price of services will not be competitive," said So Nguon, co-chairman of the Government-Private Working Group on Electricity and Transportation. "I would oppose any move to discourage the opening of new ports.... The more ports there are in operation, the better the competition and the more port users benefit."

Khmer Apsara

2008-08-21T06:24:00.000-07:00

The Traditional Khmer Apsara Dancer is at the heart of Traditional Khmer Classical Dance, the enchanting Apsara character, with graceful hand gestures and refined swaying body movements bring a special charm to the religious ambiance of Khmerart and culture. The slow graceful movements that correspond to the character are vastly intricate, representing a plethora of meanings which require years of study to fully grasp.
The Apsara dancer plays a dominant role in Cambodian Culture, both modern and traditional, as images of her can be found throughout Cambodia. Adorned with gold headdresses, silken tunics, skirts and lush jewelry the Apsara character is one of the most beautiful and identifiable characters in Cambodian Dance and History.
This particular piece has a exquisite, glow which the artist has adeptly captured. Smooth paint strokes with fantastic use of subtle shading makes this an wonderful painting for any collection.
This particular painting measures approximately 39 X 27 inches. The leading sleek looking Apsara dancer is eloquently decorated in Customary Jewelry, a traditional Silk Kaben with white top.

THE FAMOUS OF ANGKOR WATT, CAMBODIA

2008-08-20T07:00:00.000-07:00

Everyday hundreds of people came to visit the Great Angkor Watt in Cambodia. The first place you must see.

KHMER NATIONAL FLAG

2008-08-20T06:48:00.000-07:00

Cambodia Flag [ Click to enlarge flag ]: The flag was designed arround 1850 that has three horizontal bands of blue (top and bottom) and red (central) with a depiction of Angkor Watt in the center. The flag was abandoned in a few years during the Khmer Rouge and the occupation of Vietnamese in Cambodia. The flag was readopted in 1993 after the first general election with the returned the monarchy.