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Newsletter for October 30, 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
  • Middle East Interactions: Around the World in Asian Days
  • Save the Date
  • IJEB Call for Papers
  • Headlines
  • Energy
  • ICT
  • Agriculture
  • Industrial Resources | Manufacturing
  • Environment | Climate Change
  • Corporate Social Responsibility
  • Innovation
  • Health | Medicine
  • Logistics | Transportation
  • Newsletter staff

  • Middle East Interactions: Around the World in Asian Days
    Asian Days Logo

    Join us for a Webinar on November 11

    **NOW Available in VoIP and over the phone!**

    The "Middle East" has long been an area of vital importance and a bridge between Europe, Asia and Africa. Connected by historical trade routes (Silk Route), the Middle East was part of the exchange of goods and services as well as knowledge: cultural; religious; and scientific. What is the impact of the "rise" of India and China in this region of the world in today's global economy? How is the Middle East capitalizing on the momentum created by India and China? How are Asian interactions in the Middle East different from U.S. interactions? Are there similarities in how these areas of the world conduct business? What lessons can we learn from this historically vital region of the world that can impact the success of our business ventures?

    Dr. Sangeeta Gupta is a partner in Gupta Consulting Group, a full service consulting and training organization specializing in global leadership, diversity and cross-cultural strategy and training. Dr. Gupta is a specialist in non-western history and cultures and has a deep expertise in India and Southeast Asia. She advises her clients on how to work effectively across cultural borders, regardless of where they are doing business. Dr. Gupta received her Ph.D. from UCLA and is a senior faculty member in Chapman University's Leadership Services Program. She is author or editor of several books including A Quick Guide to Cultural Competency, part of the Quick Guide Business Series for the busy professional (link to www.guptaconsulting.com/resources) and Emerging Voices: South Asian American Women Redefine Self, Family, and Community. Dr. Gupta lives in Southern California, and is a frequent speaker at conferences and seminars. No cost for VoIP.

    Title: Middle East Interactions: Around the World in Asian Days
    Date:Tuesday, November 11, 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/615975817 7


    Save the Date

    Innovation for Sustainable Energy: A Challenge for all Nations
    April 2-3, 2009
    Atlanta, GA

    A unique international conference to discuss innovative solutions and provide insightful understanding for sustainable energy in the 21st century. The issue is a challenge for all nations and a right of future generations!

    An assembly of the world's leading energy experts and thought-leaders will take a 360o view of the issues involved:
    * Natural energy resources and the race to acquire them by nations, especially the emerging economies
    * Pragmatic roadmaps to achieve long-term sustainability
    * Transition from the existing traditional toxic power generation assets
    * Challenges and viability of clean power
    * Smarter transmission and distribution
    * Regulatory and policy barriers
    * New consumer awareness towards energy consumption
    Gain a comprehensive view of the energy problem and innovative sustainable solutions.

    Save April 2-3, 2009 on your calendar for this important event: Details of Speakers and Sponsorship Opportunities will be announced shortly.

    Attendance by invitation only.

    To inquire: [email protected]


    IJEB Call for Papers

    IJEB INTERNATIONAL CONFERENCE ON INDIAN ECONOMIC AND BUSINESS ISSUES
    December 18-22, 2009
    New Delhi, India

    To be Invited Speakers: Dr. Subramanian Swamy, Ex- Union Minister of Commerce, Government of India and Harvard Professor of Economics, Dr. Narendra Jadhav, Vice Chancellor, University of Pune; Dr. Narayana Murthy, Mentor, Infosys India and many other eminent scholars, academicians, business leaders and researchers. Invited speakers will address Luncheons and Dinners meetings on the India specific topics.

    Paper & abstract submissions:
    Deadline: June 1, 2009 even if early submission are encouraged. Blind review and acceptance letters out to primary author: June 1, 2009 or earlier if possible. Full paper submission deadline: October 1, 2009. Electronic submissions may be emailed to [email protected]. All paper submissions should follow guidelines listed on the journal website http://www.ijeb.com/InstructionsForAuthors.htm .
    Selected papers will be published in the refereed conference proceedings which will be available to all participants at the conference.

    Please send papers and registration fees to:
    Dr. Kishore G. Kulkarni.
    Editor, Indian Journal of Economics and Business, (visit www.ijeb.com),
    Campus Box 77, P. O. Box 173362
    Metropolitan State College of Denver
    Denver, CO 80217-3362, USA.
    Tel: 303-556-2675. Fax: 303-556-3966
    Local arrangements in New Delhi: are handled by Serials Publications, New Delhi. Please contact Mr. Vijay Kumar at [email protected], if you have special needs call New Delhi number: (011) 2324 5225. Group trips to Tajmahal (in Agra) can be arranged if notified in advance. Participants are expected to make their own travel and health insurance arrangements.

    Conference Registration fee: US $350.00. It includes cost of all lunches and receptions on December 19, 20th and 21st December, 2009. Fees submitted before June 1, 2009 get free 2009 subscription to IJEB. Registration fee after June 1, 2009 to July 31, 2009 is $400.00 and after July 31, 2009 it is $450.00. Make checks payable to "IJEB". Registration fees for participants from India are substantially lower, but are consistent with Indian standards. Please contact Serials Publications for registration from Indian addresses. Please refer to www.ijeb.com for further announcements.


    Headlines


    Britain urges China, Gulf states to help global bailout fund (AFP, Oct 28)
    Britain pressed countries like China and oil-rich Gulf states Tuesday to contribute to a proposed new IMF fund to help poorer governments threatened by "contagion" from the global financial crisis. Prime Minister Gordon Brown said the International Monetary Fund's current 250-billion-dollar bail-out fund was not enough, calling for it to be extended rapidly to help countries in need. Proposing a new IMF funding arrangement, he said it "would draw on the resources of those countries with substantial reserves, in order to bolster the resources available to those countries in need of (IMF) support." Brown is due to travel to the Gulf at the weekend and is expected to raise his proposals with leaders there. "It's the countries that have got substantial reserves, the oil-rich countries and others who are going to be the biggest contributors to this fund," he said, adding: "China also has very substantial reserves."

    China wrestles its moment of opportunity (Asia Times, Oct 29)
    The massive bailout of Western financial institutions is remaking the international financial order, spurring debate in China about what adjustments and financial instruments need to be on the table for Beijing to address domestic challenges and the international financial crisis. These calls come amid the announcement by the National Bureau of Statistics (NBS) that the growth rate of China's gross domestic product in the third quarter of 2008 slowed to 9%, its slowest rate in five years, prompting concern from Chinese economists about whether the Chinese economy will experience a hard or soft landing.

    'Firms to cut 25 percent jobs in next 10 days' (SiliconIndia, Oct 30)
    Indicating further pressure on employees, trade body Associated Chambers of Commerce and Industry of India (ASSOCHAM) foresees that more Indian companies would come up with lay off of nearly 25 percent workforce in the next 10 days to curb the ongoing financial crisis. As companies struggle to meet their target revenue they are forced to take lay off measures to contain costs. ASSOCHAM conceives that the job cuts would mainly across the steel, cement, construction, real estate, aviation, IT-enabled services and financial service sectors. "As a matter of fact, most of the corporates had desired to start lay-offs in a phased manner much before Diwali of 2008. But these were advised to defer their restructuring after Diwali on humane ground reasons," said Chamber President Sajjan Jindal.

    India inflation eases to 10.68 percent (International Herald Tribune, Oct 30)
    Falling commodities prices continued to cool India's inflation, which has been running near 13-year highs, the Ministry of Commerce said Thursday. The wholesale price index - India's most-watched inflation measure - dipped to 10.68 percent for the week ended Oct. 18, down from 11.07 percent for the prior week. The cost of rubber, cotton, furnace oil, and diesel fell. Though inflation has been moderating since August, it remains high by historical standards. This time last year, it was just 3.11 percent. Business groups have been pushing India's central bank to cut interest rates further to stimulate economic growth, but the Reserve Bank of India says inflation remains a real concern in determining monetary policy.


    Energy


    Trans-India to buy 80% in Solar Semiconductor (The Economic Times, Oct 28)
    US-based Trans-India Acquisition Corporation (TIL) has signed a definitive agreement to acquire over 80% stake in Solar Semiconductor, a city-based solar photovoltaic modules maker. The deal is a reverse-merger agreement and valued at around $375 mn. It will be done through share-swap and the merger agreement is expected to get regulatory approvals by February next year. "The merger to will help us access the capital market as TIL is an American Stock Exchange-listed company. It will also help us get an additional cash reserve of $92 mn," said Solar Semiconductor president Hari Surapaneni.

    China Energy Self-supply Rate Hits 90% (TradingMarkets.com, Oct 30)
    China produced energy of 2.35 billion tons of coal equivalent in 2007, surging 280% from 1978, representing an annual growth rate of 4.7%, showed a report by the National Bureau of Statistics (NBS). In the year, the country produced raw coal of 2.526 billion tons, ranking first around the world, with its output swelling 310% from 1978; its power generation installed capacity reached 718,000MW, bulging 1160% from 1978, representing an annual growth rate of 9.1%; its generated electricity was 3.2816 trillion KWH, rocketing 1180% from 1978, with the growth hitting 9.2% each year.

    Russia to sign energy cooperation memorandum with China: deputy PM (Tehran Times, Oct 28)
    "A memorandum, drafted to tackle problems in the oil sector, says that a working group will be formed, to be led by Energy Minister Sergei Shmatko on the Russian side and by the head of the State Energy Department on the Chinese side, Sechin said. The Russian-Chinese energy dialogue has been developing "in the right direction," he said. Joint ventures have been set up in China and Russia. The state pipeline operator Transneft (RTS: TRNF) has drafted a plan to lay a branch of the East Siberia - Pacific Ocean oil pipeline (ESPO) to China, he also said.

    India wakes up to the potential of solar energy (The Economic Times, Oct 30)
    Here comes the sun, sang the Beatles in the 70's. Four decades later the solar industry is poised for inflexion as cost of traditional energy rises and technology improvements make the once uneconomical solar option the inevitable choice. To put things in perspective, the installed solar photovoltaic (SPV) capacity across the globe has gone up by about 11 times in the last 10 years, has shown an annual growth of about 45% during each of the last five years and is expected to be at least 20 times today's installed capacity by 2020.


    ICT


    West 'behind' in technology take-up (BCS, Oct 29)
    Small firms in emerging nations are ahead of those in the west when it comes to utilising new technology, according to a study. Research by Microsoft found that more than two thirds (67 per cent) of Chinese small businesses were interacting with customers using social networking, while the figure was only 26 per cent for the UK. Some 57 per cent in China were using the technology for business promotion, compared to just 57 per cent in the UK.

    Indians see Jamaica as US ICT gateway (The Jamaica Observer, Oct 21)
    Jamaica's Information Communication Technology (ICT) sector might soon receive a major boost from Indian investors who are visiting the island to assess the feasibility of projects including the establishment of a technology park and an offshore call centre.


    Agriculture


    Melamine Is Discovered in More Eggs From China (The New York Times, Oct 29)
    Hong Kong officials say that for the second time in a week they have found a batch of eggs imported from China containing high levels of melamine, the same industrial chemical that has been blamed for contaminating China's milk supplies. The announcement, which came late Tuesday from the territory's food safety agency, is adding to growing concerns that melamine contamination may be more widespread in China's food supplies than previously thought.

    Export restrictions on agri goods harmful for the world (Business Standard, Oct 30)
    Growing food demand may force countries to impose export restrictions on agricultural produce to facilitate supplies to domestic consumers, which would have harmful repercussions on the rest of the world, a report said. "In short run exporters in restricting countries might curb supplies through hoarding and greater reliance on futures contracts and in the long run they might decide to shift to other crops," a latest report of the Consumer Unity & Trust Society (CUTS) said.


    Industrial Resources | Manufacturing


    Optimism Runs High for Electronics Manufacturing (Tech-On, October 21)
    Infrastructure problems abound, but as far as electronics manufacturing in India is concerned, the story has just begun, according to industry experts. India's electronic equipment consumption is expected to reach US$126 billion by 2010 and US$363 billion by 2015, growing at a CAGR of 29.8%. Production, however, is expected to reach only US$150 billion.

    China finds new mineral resources nationwide (Xinhua, October 23)
    Chinese geologists have discovered 1,202 mineral fields, which could greatly reduce the country's dependence on imported minerals, nationwide since the start of 2006, the Ministry of Land and Resources announced on Thursday. "Reserves of badly needed minerals have been largely expanded, including iron, copper and bauxite, among others," said a ministry statement.


    Environment | Climate Change


    "Project India as a victim of climate change (The Hindu, October 22)
    The eminent need to make it clear that India is a victim of climate change rather than perpetrator and the country should demand a reduction in emissions from the rich world has been highlighted by a parliamentary committee.

    Danish PM says 5 elements needed for new global climate change agreement (October 24)
    Danish Prime Minister Anders Fogh Rasmussen said here on Thursday that five crucial elements would be needed for a new climate change agreement expected to be reached at the Copenhagen conference next year. The first would be a long-term vision for reducing global greenhouse gas emissions by 50 percent in 2050 from the 1990 baseline, Rasmussen said at the first Chinese-Danish Climate Change Conference that opened here on Thursday.

    Indian, Japanese industries to fight climate change (The Times of India, October 23)
    Indian and Japanese industries have formulated a joint action plan for low carbon economic growth in both countries even as debates around climate change mitigation strategies and role of businesses rage globally.


    Corporate Social Responsibility


    Whither went ethics? (The Times of India, October 21)
    The decision by the Tata Group to relocate the Nano plant in Sanand is of concern to liberal Gujaratis. The logic of business is to be competitive and profitable; as such, the move makes sense. The company was right to choose the business-friendly state and get down to the task of making the revolutionary Nano car, which promises to put India on the global map of the auto industry.

    Xiangtan Steel Releases First CSR Report (China CSR, October 20)
    The Xiangtan Iron and Steel Group has released its first corporate social responsibility report marking its 50th anniversary. The report elaborated what Xiangtan Steel has done in economic responsibility, social responsibility and environmental responsibility in the past 50 years, and unveiled important information about these responsibilities in 2000-2007.

    Edelweiss, Kubera Partners tie up for unique CSR initiative (Money Control, October 22)
    Kubera Partners, US based private equity firm and Edelweiss Capital, one of India's leading financial services firms, have come together to launch a unique Corporate Social Responsibility (CSR) initiative: Kubera--Edelweiss Social Innovation Honours (KESIH). EdelGive Foundation, the not-for-profit subsidiary of Edelweiss is managing the entire process of the initiative.


    Innovation


    Shenzhen, China's City of Innovation, Forges Closer Ties to New York Through Opening of New York Office to Promote Bilateral Business Opportunities (International Business Times, October 23)
    The City of Shenzhen, China announced thatleading government and business officials from both Shenzhen and New Yorkwill attend a luncheon ceremony on October 27 at the Marriott Marquis inNew York, to celebrate the opening of the New York Representative Office ofShenzhen and to discuss key economic developments as well as businessopportunities between Shenzhen and the U.S.


    Health | Medicine


    UN urges China to revamp food safety after milk crisis (AFP, October 22)
    China must modernise its food safety system, the United Nations said Wednesday, arguing an outdated and disjointed approach may have worsened a crisis over contaminated milk that killed four babies.

    Tele-medicine could solve India's health care woes: UN official (The Economic Times, October 22)
    With the growing cost of health care becoming a major headache for governments across the world, tele-medicine could provide a solution to India and other countries grappling with the problem. Listing the advantages of tele-medicine, Alice Lee, the chief of the UN programme on space applications said that developed countries too were now relying on tele-medicine.

    China's Health Care: A Return to Planned Economy System? (The Economic Observer, October 23)
    A health care system reform draft plan aimed at providing universal medical coverage for all Chinese citizens at reasonable prices has been labelled as "a return to plan economy mechanism" by some critics.


    Logistics | Transportation


    GE Transport, BHEL in joint venture (Sify India, October 22)
    GE Transportation, a unit of the US-based General Electric Company, has formed a joint venture with Bharat Heavy Electricals Ltd to bid for the manufacture of 1,000 fuel-efficient, environment-friendly locomotives requisitioned by the Indian Railways.

    Grand China Logistics to Buy SYMS Ships (Trading Markets, October 20)
    Grand China Logistics Holdings Co., Ltd., a subsidiary of Hainan Airlines Group, will buy five container vessels from Shandong Province Yantai International Marine Shipping Company (SYMS), instead of an overall acquisition of the latter, revealed Jia Hongxiang, president of the former.


    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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