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Newsletter for October 2, 2008


A weekly sampling of news, analysis and opinion on economic issues of India, China and the U.S. Articles and opinion pieces are from a variety of sources and viewpoints and do not necessarily reflect those of ICA Institute. Access to some articles may require free registration to the site or may not be cited to the original source. Access archive.

In this issue
  • Africa Rising: Around the World in Asian Days
  • China and the Great Divergence: An evening with Dr. Kenneth Pomeranz
  • Meet the Artist Dinesh Sharma
  • Atlanta Indo-American Film Festival
  • Headlines
  • Energy
  • ICT
  • Agriculture
  • Industrial Resources | Manufacturing
  • Environment | Climate Change
  • Corporate Social Responsibility
  • Health | Medicine
  • Logistics | Transportation
  • Newsletter staff

  • Africa Rising: Around the World in Asian Days
    Asian Days Logo

    Join us for a Webinar on October 13

    With more than 900 million consumers, the continent of Africa is one of the world's fastest growing markets. In Africa Rising, Vijay Mahajan reveals this remarkable marketplace as a continent with massive needs and surprising buying power.

    Crossing thousands of miles across the continent, he shares the lessons that Africa's businesses have learned about succeeding on the continent...shows how global companies are succeeding despite Africa's unique political, economic, and resource challenges...introduces local entrepreneurs and foreign investors who are building a remarkable spectrum of profitable and sustainable business opportunities even in the most challenging locations...reveals how India and China are staking out huge positions throughout Africa...and shows the power of the Diaspora in driving investment and development.

    Vijay Mahajan holds the John P. Harbin Centennial Chair in Business at McCombs School of Business, University of Texas at Austin. Mahajan is author or editor of nine books including his recent books on the developing countries, The 86% Solution and Africa Rising. He is one of the world's most widely cited researchers in business and economics and has been invited by more than 100 universities and research institutions worldwide for research presentations. He has consulted with Fortune 500 companies and delivered executive development programs globally.

    The only cost is the long distance phone call to dial in.

    Title: Africa Rising: Around the World in Asian Days
    Date:Monday, October 13, 2008
    Time:11:00 AM - 12:00 PM EDT

    System Requirements
    PC-based attendees
    Required: Windows� 2000, XP Home, XP Pro, 2003 Server, Vista
    Macintosh�-based attendees
    Required: Mac OS� X 10.3.9 (Panther�) or newer

    Space is limited.
    Reserve your Webinar seat now at:
    https://www1.gotomeeting.com/register/94744186 7


    China and the Great Divergence: An evening with Dr. Kenneth Pomeranz


    The China Research Center is proud to begin its annual event series with a special presentation by Dr. Kenneth Pomeranz, Chancellor's Professor of History at University of California, Irvine.

    Dr. Pomeranz will lecture on China's historic role in the world economy at Atlanta's High Museum, Rich Auditorium, on Wednesday, October 15th, 2008 at 7:00 p.m.

    The well-known, award-winning author of The Great Divergence: China, Europe, and the Making of the Modern World Economy (Princeton University Press, 2000) will discuss his recent work on China's state, society and economy in a presentation entitled
    "Chinese Development and World History: Putting the East Asian Model in Perspective."

    This event is co-sponsored by:
    ▪The School of History, Technology and Society at Georgia Tech
    ▪ The Sam Nunn School of International Affairs at Georgia Tech
    ▪ The Program in World History and Cultures, Department of History at Georgia State University
    ▪ The Stetson School of Business and Economic at Mercer University
    ▪The Confucius Institute of Atlanta

    The High Museum of Art will host this event in conjunction with their fall exhibition, The First Emperor: China's Terracotta Army.

    This event is free and open to the public.

    The High Museum address is 1280 Peachtree St. NE, Atlanta, GA 30309; directions are available at www.high.org or 404-733-4444.


    Meet the Artist Dinesh Sharma


    Studio Clout presents:

    ::A Conversation with Dinesh Sharma::

    Saturday
    October 4, 2008
    6:30pm
    Free Admission

    : : Limited Seating : :
    RSVP
    [email protected]
    404 . 688 . 2787


    Atlanta Indo-American Film Festival


    Special Screening: Two Million Minutes and Khayal Darpan
    October 3, 2008, 7:30 p.m.
    Rich Theatre, High Museum, Atlanta
    $8 general admission, $4 for students, seniors and Museum members, free for Patron-level members. One ticket includes admission to both screenings.

    The Atlanta Indo-American Film Festival comes to the High for two screenings on October 3: Two Million Minutes: A Global Examination and Khayal Darpan: A Mirror of Imagination.

    Two Million Minutes: A Global Examination
    Screening begins at 7:30 p.m.

    This film takes a deeper look at how three superpowers of the 21st century -China, India and the United States- prepare their students for the future. Follow two students from each of these countries as the film composes a global snapshot of education, from the viewpoint of the children themselves.

    Khayal Darpan: A Mirror of Imagination
    Screening begins at 8:30 p.m.

    This documentary explores the classical musical traditions of urban Pakistan. Indian filmmaker Yousuf Saaed traveled to large cities in Pakistan to interview musicians and scholars, attend music concerts and observe the teaching of music in various institutions.
    The film documents the music of the area while raising vital questions about cultural identity, nationalism, and music's role in religion and current affairs.

    AIAFF is co-sponsored by the Indo-American Film Society, High Museum of Art, Georgia Department of Economic Development, Global Teachers Research and Resources, Inc., and Kapoor and Associates.


    Headlines


    China, Australia, India tipped to limit global fallout (The Australian, Sep 29)
    The world's "new economies", including China and Australia, are being tipped to take on more responsibility in the wake of the global financial carnage. Long Yongtu, secretary general of the Boao Forum for Asia (famous in China as the negotiator who landed World Trade Organisation accession in 2001), said the market turmoil would lead to a slowdown globally, but emerging economies would limit the fallout. "The new economies -- China, India, Russia, Brazil and Australia -- will take on more responsibility to keep a reasonable growth rate to help those countries in trouble through these difficulties. This is the future of globalisation," he said.

    India's ruling party hails nuclear deal approval (International Herald Tribune, Oct 2)
    India's government on Thursday hailed U.S. congressional approval of a civilian nuclear pact between the two nations, calling it a "monumental achievement," and an official said Secretary of State Condoleezza Rice would visit New Delhi soon to sign the accord. The U.S. Senate on Wednesday voted overwhelmingly in favor of overturning a three-decade ban on atomic trade with India, allowing American businesses to begin selling nuclear fuel, technology and reactors in exchange for safeguards and U.N. inspections of India's civilian nuclear plants.

    China's economy shows signs of weakening (The Vancouver Sun, Oct 2)
    While China's official statistics show the economy is still steaming ahead, there are other signs the pace of economic growth is already slowing down as many observers have long feared it would. According to the Purchasing Manager's Index, published Wednesday by the China Federation of Logistics and Purchasing, the country's manufacturing output expanded for the first time in three months.

    India Banks Capitalize on Wall Street Crisis (Business Week, Oct 1)
    A sign of the times: Mumbai-based banks have recently poached top talent from such firms as Bear Stearns, HSBC, and Merrill Lynch. Compared with its Wall Street rivals, India's Ambit Holdings has long been considered small fry. Launched in 1988, the Mumbai-based investment bank has just 180 employees. With the financial crisis engulfing the big Wall Street firms, though, Ambit executives want to grab the opportunity to gain ground on their better-known competitors. Over the past year and a half, Ambit has expanded into wealth management, private equity, and insurance brokerage. The expansion has helped it emerge as one of the top five banks in the Indian league table.

    Europeans weigh a shift in banking landscape (International Herald Tribune, Oct 1)
    Shocked by the sudden exposure of several of their banks to the global financial crisis, European governments have begun discussing a far-reaching revamp of rules for lenders that could change the regulatory landscape for European banking. In Brussels, the European Commission on Wednesday proposed new rules aimed at toughening supervision, and approved the nationalization of the British bank, Bradford & Bingley, in a record 24 hours, brushing aside fears that the rescue might distort competition. But France, which holds the rotating presidency of the European Union, suggested going much further by strengthening cross-border cooperation among regulators, unifying rules on bank deposit guarantees, altering accounting standards to no longer require banks to write off all their losses immediately and possibly suspending state aid rules.

    Indian bankers count on HK's advantages (Hong Kong Trader, Oct 2)
    When the State Bank of India (SBI) opened its Hong Kong office 30 years ago, it was only one of a handful of Indian financial institutions in the city catering to Indian businesses trading in Hong Kong. "Indian banks follow Indian traders. Wherever they go, we follow," said R.G. Subramanian, CEO of SBI, India's oldest bank.

    India's future (The Economist Intelligence Unit ViewsWire, Sep 29)
    India's growing power will reshape the world as we know it... How will the rest of the world react?


    Energy


    Beijing, Riyadh Buttress Oil Prices (The Wall Street Journal, Oct 2)
    Two stalwart forces are still standing between the world's slumping economies and a steep drop in oil prices: China and Saudi Arabia. The credit crisis and fears of a recession have sparked some predictions in recent weeks of an imminent plunge in crude prices. A global recession could clobber demand, causing a surplus in supply and a swift fall in oil prices, the argument goes. But so far, prices have been surprisingly resilient, bobbing around $100 a barrel for weeks, despite the U.S. stock-market turmoil and congressional wrangling over a financial-rescue package. Two of the main forces keeping oil aloft, analysts say, are China's continuing thirst for oil and the ability of Saudi Arabia to tighten the spigot on world supplies when it pleases.

    Pressure mounts on uranium sales to India (The Age, Oct 3)
    THE Opposition has stepped up pressure on the Federal Government to allow the sale of Australian uranium to India now that the US Senate has given its support to a resumption of nuclear co-operation between Washington and Delhi. WA Premier Colin Barnett says he will allow mining of his state's uranium deposits. "Labor's blind ideological objection to Australia concluding a similar arrangement with India is a missed opportunity to generate jobs and build the economy," Senator Coonan said. Critics of the US arrangement say that an agreement to sell nuclear material to India without it signing the nuclear Non-Proliferation Treaty will badly weaken international efforts to stop the spread of nuclear weapons.

    France to sell India nuclear reactors (The Australian, Oct 2)
    India signed a historic deal with France last night for the supply of nuclear reactors and fuel, thereby signalling its entry into the global nuclear marketplace for the first time and the end of more than three decades of isolation. The deal, concluded during talks between Prime Minister Manmohan Singh and President Nicolas Sarkozy, ties India's civilian nuclear future firmly to France and its extensive use of nuclear power, though another similar agreement with Russia is on the cards for signature before the end of the year.

    Google unveils $4.4 Trillion Clean power by 2030 plan (Silicon India, Oct 2)
    Search engine giant Google has unveiled a $4.4 trillion plan dubbed Clean Power by 2030 that calls for all energy in the US to come from renewable sources. The web giant in a release posted on its site said: "While this plan will cost $4.4 trillion (in undiscounted 2008 dollars), it will ultimately save $5.4 trillion, delivering a net savings of $1 trillion over the life of the plan". The three basic elements of the clean energy plan are new transmission lines and policies like national renewable portfolio standard, new generation vehicles running on non-oil fuels and greater energy efficiency by installing smart meters and real time pricing.

    China open to renewable energy (Sydney Morning Herald, Oct 1)
    The solar power magnate and Chinese-Australian billionaire Zhengrong Shi has not made his fortune by being pessimistic. Dr Shi believes China is well on the road to becoming a renewable energy superpower. He said he would not be surprised if China did commit to binding targets for reducing its soaring emissions at the United Nations climate negotiations in Copenhagen next year. "I think China will be heavily involved. It is already very high on the Government agenda," he said.

    Off-Shore Wind Power Set to Expand (Worldwatch Institute, Sept 29)
    Denmark, China, Germany, and South Korea all share an interest in off-shore wind power. Strong ocean winds mean one off-shore turbine can generate substantially more power than its on-shore counterpart. Despite more difficult maintenance and higher costs, off-shore wind has the potential to provide significant energy without disrupting inland communities.


    ICT


    Data theft more common in India, China (Business Standard, Oct 2)
    Enterprises in emerging countries including China, India and Brazil - where IT adoption is at a nascent stage - are more prone to loss of company data and other sensitive information due to flouting of company rules by employees. Even though the behavioural risks of employees behind the data loss are common across different countries, certain practices that result in a serious breach of company policies are more common in China and India, according to a recent study by US-based market research firm InsightExpress. Employees in this region, for instance, carry company data on portable devices and alter the security settings on work devices to access unauthorised websites.

    South Asia making great progress in mobile connectivity (Silicon India, Oct 2)
    South Asia is making rapid progress in the field of telephony, specially mobiles, with even smaller countries in the region throwing up some unexpected facts and figures. The island-nation Maldives, Asia's smallest country in terms of population, has more than 100 SIM cards per 100 people and all the major islands are covered. Maldives is spread over 26 atolls and 1,192 islets, out of which around 250 are inhabited. Bangladesh has 98 percent of the population covered by mobile telephone signals. Nepal is seen as a "laggard" though, according to a South Asian ICT (information and communication technologies) policy and regulation think tank called LIRNEasia.

    Innovation May be the Big Loser in the Financial Meltdown (IT Business Edge, October 2)
    Yesterday, IT Business Edge blogger Ann All offered a sobering look at prospects for IT as the economy melts down. Ann concluded that hard times are ahead, and that it may not be a bad idea for IT folks to brush up on job-seeking strategies.

    Skype messages being monitored in China, researchers say (cbcnews.ca, Oct 2)
    University of Toronto researchers have uncovered a huge filtering system in China that tracks and keeps records of text messages containing politically charged words sent through the internet phone application Skype. The system keeps track of text messages, but not voice calls, sent through TOM-Skype, a joint venture between the Chinese wireless company TOM Online - a division of the Hong Kong-based TOM Group Ltd. - and eBay, the web auction company that bought online phone service Skype in 2005.


    Agriculture


    India: Self-sufficiency in vegetables (Fresh Plaza, Oct 1)
    It was encouraging to learn of last week's initiative, announced at a workshop by Finance Minister T.M. Thomas Isaac, Local Administration Minister Paloli Mohammed Kutty and Cooperation Minister G. Sudhakaran, of around 300 representatives from 100 panchayats having adopted the "Mararikulam Declaration for Self-Sufficiency in Vegetable Production". The Declaration, which will anchor Kerala's efforts to achieve food security in the foreseeable future, lists 16 resolutions that will form the foundation of a multi-pronged campaign to increase the State's annual vegetable production from 10 lakh tonnes to 20-30 lakh tonnes.

    Chinese peasants explore new path to development (China View, Oct 2)
    "In recent years, we peasants have become more clear that farming individually cannot bring us a prosperous life," Yan Hongchang says. |"It's an inevitable trend to amass the land and combine production forces. " He Kaiyin, an expert on rural issues from Anhui, considered it reasonable to aggregate the land for better utilization, as a lot of farmland remained idle and irrigation and other rural infrastructures were left dilapidated after farmers swarmed into cities.

    The need to feed (part one) (chinadialogue, Sept 22)
    Forty years of cheap, abundant food supplies are over. As the world consumes more each year than it produces, panic is sparking calls for a second "green revolution".

    Consumers must say no to additives (chinadialogue, Sept 26)
    The dairy scandal that has poisoned thousands of children raises difficult questions about food safety regulation, manufacturers' responsibility and consumer awareness.


    Industrial Resources | Manufacturing


    India Sept manufacturing PMI at 14-mth low (Reuters India, October 1)
    India's manufacturing output expanded at its slowest pace in 14 months in September as domestic demand cooled in the face of seven-year high interest rates, a survey showed on Wednesday.

    China's manufacturing sector worsens (The Star, October 2)
    Business conditions within the Chinese manufacturing sector deteriorated for a second consecutive month in September, according to the latest survey data from CLSA Asia Pacific Markets.

    Manufacturing slows, but does better than rest of the world (Livemint, October 2)
    The growth of output has cooled somewhat in recent months as have output prices, but the big fall has been in new orders.


    Environment | Climate Change


    China is open to renewable power (The Sydney Morning Herald, October 1)
    The solar power magnate and Chinese-Australian billionaire Zhengrong Shi has not made his fortune by being pessimistic. While China's attitude to cutting its greenhouse gas emissions loomed large over Ross Garnaut's climate change report, Dr Shi believes China is well on the road to becoming a renewable energy superpower.

    India, EU leaders talk on economy, climate change (The Hindustan Times, September 29)
    India and the 27-nation European Union began their ninth summit on Monday in this port city of France. The two-day talks will culminate in the signing of a joint statement and a revised plan of action to improve their relationship.

    Fostering Global Climate Change Cooperation: How Can China Help Reduce Emissions Policy Costs? (Resource Investor, October 1)
    Policymakers seeking to fight global warming need to reach an international agreement for post-2012 climate change policy, but developing countries seem unlikely to immediately participate. This article explains the importance of full global participation in reducing greenhouse gas emissions and proposes means of inducing developing countries, most notably China, to participate in an international agreement.

    China Needs New Environmental Policies, SEPA Says (Worldwatch Institute, Sept 25)
    At a Green China Forum meeting earlier this month, Pan Yue, the vice president of China's State Environmental Protection Administration (SEPA), made an unequivocal statement about the need to address the nation's mounting environmental challenges.

    China Launches Energy Conservation Guide for Citizens (Worldwatch Institute, Sept 13)
    China's Ministry of Science and Technology (MOST) has launched a new energy conservation guide for citizens in an effort to promote the twin goals of saving energy and reducing emissions.

    A mountain's "revenge" on people, pollution and power? (chinadialogue, Oct 1)
    Experts attribute the melting of the Mingyong glacier to climate change, but the Tibetan villagers who live in the area have a different explanation.


    Corporate Social Responsibility


    PICC Releases Corporate Social Responsibility Report In China (China CSR, September 30)
    The People's Insurance Company of China has released its first corporate social responsibility report in Beijing, summarizing the accomplishments PICC has made in recent years.


    Health | Medicine


    India latest to ban smoking in public places (The Associated Press, October 2)
    India banned smoking in public places on Thursday, leaving public health officials with a much tougher task: get the nation's estimated 120 million smokers to stub out their cigarettes.

    Lack of medical workers causes new health crisis in developing countries (International Herald Tribune, October 1)
    When her baby turned blue, Nivetha Biju rushed the child to the emergency room of an Indian hospital and watched helplessly as the baby lost consciousness because the nurses on duty had no idea what to do. Eventually, a doctor saved the baby's life. But many patients are not so lucky in India and in other developing countries, where a scarcity of doctors and trained nurses means there is often no helping hand in times of need.

    Big Pharma Ranks China as Number One Destination in Asia for Pharmaceutical Outsourcing (MarketWatch, October 2)
    Big pharmaceutical companies now rank China as the best location for outsourcing in Asia, followed by India, Korea and Taiwan, respectively, according to a newly released PricewaterhouseCoopers index. The index evaluates Asian countries according to cost, risk and market opportunity for the pharmaceutical industry.


    Logistics | Transportation


    China sees 55.5 mln travellers on 2nd day of "golden week" (Xinhua, September 30)
    Some 55.5 million people traveled in China on roads on Tuesday, the second day of the "golden week" travel peak, an increase of 7.4 percent year on year, said He Jianzhong, the Ministry of Transport spokesman on Tuesday.

    Indian Railways to levy busy season surcharge (Steel Guru, October 2)
    It is reported that Indian Railways have decided to levy a busy season surcharge of 5% to 7% on transportation of all products. Under the decision, the transportation of goods on trains will be costlier by 5% to 7 % with effect from October 1st.

    China Keeps Car Rules Imposed for Olympics (The Washington Post, October 2)
    The government began taking 30 percent of its cars in the capital off the roads Wednesday in an attempt to make permanent some of the traffic restrictions imposed during the Olympic Games, officials and media reports said.


    Newsletter staff


    International Contributors Editorial Board
    RJ Paulsick - Co-Editor
    Roxanne Russell - Co-Editor
    Geoff Hiscock - Australia
    Harsha Harjani - Hong Kong
    Dr. Nilay Yajnik - India
    Farhad Mirzaei - Iran
    Ajay Sharma - Netherlands
    Melissa Steinmetz - UK
    Dr. Daney Jackson - USA
    Dr. John R. McIntyre - USA
    Dr. Sudhanva Char - Academic Resources
    Shree Pandya - Engaging Youth
    Laurel Askue - Environment & Conservation
    Christopher Chan - Intellectual Property


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    The ICA Institute is a non-profit research institute working to foster research and dissemination of knowledge on the rise of China and India and their impact on global markets, global resources and geopolitics of the world. The ICA Institute's mission is to generate new perspectives on the role of market and resource driven economic development. ICA Institute fosters interaction and dialogue between academic scholars, industry leaders and policy makers on the impact of emerging economies in general and China and India in particular. Specifically, The ICA Institute is positioned to be a catalyst between faculty and students in International Business and industry leaders and managers.

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