Six-Party Talks Hopefully to Open in December

BEIJING (Xinhuanet) -- The second round of the six-party talks on the Korean nuclear issue will hopefully be held in December, said a Chinese Foreign Ministry spokesman here Tuesday. During a regular press conference, Liu Jianchao said that if all sides work together, and preparation goes well and differences reduce, the second round of talks is very likely to be held before the end of this year. China hopes it can be held "as early as possible", he said. Chinese Vice Foreign Minister Wang Yi discussed this issue with the US side last Thursday and Friday. Dai Bingguo, another Chinese vice foreign minister, met with related officials of the Republic of Korea (ROK) Monday and will visit Japan Wednesday. Liu said China and the United States have reached consensus on peacefully resolving the Korean nuclear issue and pushing six-party talks. They also exchanged views on preparation for the second round of talks. The two sides agreed to maintain contact and hoped all sides would contribute to an early opening of the talks. China and the ROK, Liu said, reiterated that peacefully resolving the Korean nuclear issue is their common goal and they are willing to push the progress forward. The six parties, which are the Democratic People's Republic of Korea, China, the United States, Russia, the ROK and Japan, held the first round talks in Beijing last August.

From http://www.chinaview.cn 11/11/2003

TOP↑

China-ASEAN: Tariff of 500 Products to Be Cut Next Year

Starting next January, the plan of Early Harvest under the framework of China-ASEAN Free Trade Zone will be carried out. Tariffs of over 500 varieties of products (mainly farm produces) will be lowered, and will drop to zero by 2006. Upon the establishment of the China-ASEAN Free Trade Zone, an economic area with 1.7 billion of consumers, nearly RMB2 trillion of GDP and US$120 million of trade aggregate will be formed. Since the first China-ASEAN Entrepreneur Exchange Seminar was held in 2001 in Chengdu of China, China and ASEAN have concluded a series of agreements and announcements. This October, leaders of both sides signed a joint declaration, defining the contents of economic cooperation between both sides. It is expected that the trade volume between China and ASEAN will total more than US$100 billion in 2005.

From FDI 11/12/2003

TOP↑

SAARC Countries Agree on Liberal Visa Norms for Journalists

* Conference decides to set up information centre in Nepal
* Vajpayee calls for reaping benefits of cooperation

NEW DELHI: South Asian Association for Regional Cooperation (SAARC) countries agreed on Tuesday to liberalise visa norms for free movement of media persons in the region. At the end of the one-day SAARC Information Ministers' Conference, representatives from India, Pakistan, Bangladesh, Bhutan, Nepal, Sri Lanka and Maldives decided to set up a regional information centre in Nepal and train media persons in India. The representatives from Nepal and Bhutan were divided over setting up the SAARC Information Centre. Bhutan said since the SAARC Secretariat was in Kathmandu, the information centre should be set up in Thimpu. Pakistan had already withdrawn its claim in favour of Nepal. After a two-hour heated debate, Bhutan agreed to withdraw its claim. The conference could not decide the issue of adopting model trans-national guidelines on broadcasting suggested by India as all member countries, except Bhutan, failed to provide their proposals. Opening the conference, Indian Prime Minister Atal Behari Vajpayee warned that "other alignments" would develop to seize the economic opportunities, if South Asian countries did not stand up to reap the benefits of cooperation. Mr Vajpayee said, "If SAARC cannot organise itself, it will simply miss the boat." Stressing that there was an "overwhelming desire" for friendship and cooperation at the level of people in the region, Mr Vajpayee said, "We as politicians should respond to this demand." Soon after his address, Pakistani Information and Broadcasting Minister Sheikh Rashid warmly shook hands with Mr Vajpayee as the representatives posed for a group photograph. Before emplaning for Moscow, Mr Vajpayee told reporters at Delhi airport that they did shake hands. "There was no conversation today", he said. Mr Rashid said he had conveyed President Pervez Musharraf's message of good wishes to the Indian prime minister. He said a good environment to boost cooperation and development among the SAARC countries was possible only if a determined effort was made to "resolve disputes" and "allow them to simmer". Talking to reporters, Indian Information and Broadcasting Minister Ravi Shankar Prasad said all member countries would provide technological inputs for the information centre. On setting up a SAARC Media Development Fund, Mr Prasad said Bangladesh was asked to put up a revised draft, which would be studied by all members. He said India had offered to train 12 journalists from the SAARC countries. (by Iftikhar Gilani)

From http://www.dailytimes.com.pk/ 11/12/2003

TOP↑

Japan Will Ink ASEAN Peace Pact

Bowing to strong overtures from the Association of Southeast Asian Nations, Japan has decided to sign a regional nonaggression treaty, Chief Cabinet Secretary Yasuo Fukuda said Tuesday. Deputy Foreign Minister Hitoshi Tanaka reportedly conveyed the decision to senior ASEAN officials in Tokyo for preparatory talks ahead of next month's Japan-ASEAN summit. The ASEAN side welcomed the move, according to a Japanese government official. "Japan deemed it beneficial to sign, as there were strong requests from ASEAN members" as well as China and South Korea, Fukuda told a regularly scheduled news conference. The Treaty of Amity and Cooperation in Southeast Asia, crafted in 1976, aims to solve regional disputes through peaceful means. Although China and India put their names on the treaty during last month's ASEAN summit in Indonesia, Prime Minister Junichiro Koizumi expressed reluctance to follow suit, saying Japan-ASEAN ties are already solid without Tokyo joining the pact. The noncommittal stance prompted resentment from ASEAN, which sought another major power to become a signatory to maintain the balance of power within the region in the wake of China's participation. Tokyo, for its part, was apparently concerned that given China's rising presence, Japan's political and economic influence in Southeast Asia would decline if the government failed to show its commitment to the region. (by Kanako Takahara)

From The Japan Times 11/19/2003

TOP↑

China, Japan, ROK Hold Policy Dialog on Intellectual Property

Top intellectual property watchdogs from China, Japan and the Republic of Korea (ROK) held the third trilateral policy dialog meeting in Beijing Friday, discussing new cooperation and the possibility of arranging talks with Southeast Asian countries. Wang Jingchuan, commissioner of China's State Intellectual Property Office (SIPO), said that the trilateral cooperation in trade, economic and other fields was greatly promoted in recent years. During the "10+3" meeting October in Indonesia, which was attended by 10 members of the Association of Southeast Asian Nations (ASEAN) and China, Japan and the ROK, leaders from the three sides agreed to strengthen intellectual property protection and coordination, Wang said. Yasuo Imai, commissioner of the Japan Patent Office (JPO), said that the three countries are playing key roles in many fields in Asia, including intellectual property. The three sides have conducted many concerted projects and cooperated widely, he said. In the 21st century, said Dong-Man Ha, commissioner of the Korean Intellectual Property Office (KIPO), high-profile dialogs among the three countries on intellectual property are particularly important. He hoped the three sides would discuss more substantial issues. The three commissioners agreed to set up an information-exchange platform, to experiment on electronic document exchange in 2004, to explore the possibilities of sharing a patent search and examination database among the three sides, and to compile a technical dictionary. The trilateral policy dialog was initiated in 2001. JPO hosted the first meeting in Tokyo, where the three sides agreed to host the meeting in turn since then.

From http://fpeng.peopledaily.com.cn/ 11/14/2003

TOP↑

CHINA: Funds Law Passed

China's lawmakers voted 146-to-1 for the securities investment fund law yesterday, with one abstaining, according to China News Services. The law, which will take effect on June 1, 2004, lowers the threshold for the establishment of the funds. It has no rules governing private funds while allowing open-end funds to decide for themselves on short-term financing. The law does not stipulate whether open-ended funds can apply for short-term loans from commercial banks, which leaves space for further amendments according to the developing needs of the situation.

From http://www.Eastday.com 10/29/2003

TOP↑

Wu Bangguo on Legislative Work to Serve Market Economy

China's top legislator, Wu Bangguo says legislative work must serve the goal of developing the socialist market economy. Speaking at the fifth meeting of the NPC Standing Committee, Wu Bangguo says legal construction provides basic guarantees for the establishment of an ordered and matured market economy. Thus, he asserts, the quality of legislation must be ensured. Wu Bangguo also notes the legislation in economic fields should be the key task of NPC and its Standing Committee. The legislation on property rights, social insurance, labor and employment must be strengthened. He also calls on the People's Congresses at all levels to strengthen supervision on the implementation of laws. During the session, two new laws have been approved. The first was a law on Road Traffic Safety while the second concerned securities investment and funds.

From http://www.crienglish.com/ 10/28/2003

TOP↑

Laws on IPR to Be Extended

The Ministry of Science and Technology is looking at law drafts for protecting intellectual property rights covering biological and information technology. The ministry is also considering legal proposals to protect property rights on large instruments and animals used in experiments related to State-level research programmes, said Li Xueyong, vice-minister of science and technology. Li made the comments at a conference on scientific systems and intellectual property which opened on Nov.3 in Beijing. The Legislative Affairs Office of the State Council has been charged with drafting frameworks for the proposed laws, he said. The concept of protecting intellectual property rights (IPR) on new technology has become a major consideration in scientific research. Scientific departments which undertake the so-called "863 Programme" (China's high-tech development plan initiated in March 1986) and other national scientific programmes are required to submit IPR protection strategies before they apply for project implementation, Li said. As a result, some projects have gained patented technologies. A new technology for growing genetically modified pest-resistant cotton, for example, was granted the "Golden Award of Invention Patent" by the World Intellectual Property Organization last year. Li said his ministry's preparatory strategies for intellectual property protection will be made in parallel with the development of new scientific projects. According to the State Intellectual Property Office, patent protection has been strengthened to spur the development of cutting-edge technology in China, and has been linked with 12 key scientific projects launched last year by the Ministry of Science and Technology. The State Intellectual Property Office has also launched patent protection programmes in large firms in more than 20 provinces, municipalities and autonomous regions and will continue to supervise patent systems in these regions.

From China Daily 11/04/2003

TOP↑

China Reacts to Bush Remarks on Democracy, Saying It Follows Its Own Path

BEIJING: China said Saturday it will pursue its own path to democracy, reacting to remarks by US President George W. Bush that the Chinese people will eventually want their liberty "pure and whole." "The Chinese people know how to cherish and develop the socialist democracy which best suits the real condition of China," the state-run Xinhua news agency said, citing foreign ministry spokeswoman Zhang Qiyue. "(They) will continue to follow their own way under the leadership of the Communist Party of China," she said according to the agency. She said the Chinese government is committed to promoting democracy and protecting human rights, adding 25 years of efforts in the field has been "paying off." The remarkably mild Chinese reaction came after President Bush warned on Thursday that economic reforms in China would unlock a mass yearning for personal freedoms. Bush criticised the tight control exercised by its communist leadership. "Our commitment to democracy is tested in China," Bush said in a speech to the non-profit National Endowment for Democracy. "The nation now has a sliver, a fragment of liberty. Yet China's people will eventually want their liberty pure and whole." The United States has seen its geopolitical interests coincide with Beijing in several areas since the September 11 attacks, notably in anti-terror cooperation and efforts to ease the North Korea nuclear crisis. But it is still at odds with Beijing over its political system, and what it says is "backsliding" on human rights commitments and a poor record on religious tolerance.

From http://www.channelnewsasia.com/ 11/08/2003

TOP↑

China to Unify Organic Food Standards

China is trying to set a unified organic food standard to improve the authentication of such products. A press release from the organization committee for the China AG Trade Fair (ATF) noted that China now has many authentication organizations in this field, and the standards they adopt differ. Some use standards of the United States, while some use Japanese ones, and some European. The ATF, sponsored by the Ministry of Agriculture, will open on Nov.12, featuring an exhibition of green food and organic food products in the country. Organic food are agricultural products grown without use of genetic projects or chemical products, such as fertilizers and pesticides. China is now lagging behind in the production of organic food, according to the release. By 2002, China had only some 50 varieties of organic agricultural products growing on 700,000 hectares of land. But the export of organic food is ever increasing to 25 million US dollars in 2001 from 10 million US dollars in 1998. In the world, the total land used for organic food production has reached 23 million hectares. The consumption of organic food is expected to reach 100 billion US dollars in 2010, with the United States, European countries and Japan as the major organic food markets.

From China Daily 11/10/2003

TOP↑

China Plans Shake-Up for State Enterprises

China yesterday announced a bold new drive to reform its state-owned enterprises, building on an ideological breakthrough at a key Communist party meeting last month which banished much of a residual antipathy towards selling state assets to foreigners and private Chinese companies, the Financial Times reports. The new policy meant the party has decided that in order to retain a key role in the economy, it must sell parts of its biggest companies to foreign or private companies, officials said. Smaller companies could be released from state ownership. The Washington Post adds that the privatization campaign also ushers in a new phase in China's fitful transition from a planned economy in which workers were guaranteed employment to a market economy in which they are forced to fend for themselves. More than 25 million state workers have already lost their jobs. The government hopes private owners can help turn around money-losing companies that have been a drain on the nation's booming economy. In addition, some officials have said proceeds from the sales could be used to repair China's tattered social safety net, including under-funded health care, pension and welfare systems. Business Daily Update meanwhile notes that China's strong economic performance will help shore up sluggish global growth and create an expanding market for regional economies, financial thinkers said. The country's Asian neighbors, who most feared China's export power, have already been the biggest gainers from China's robust development, said Huang Yiping, a researcher with Salomon Smith Barney. Huang's opinion was supported by a recent World Bank report, saying China's sustained robust economic growth will support East Asia, already the fastest growing region in the world, to record strong growth in the coming year. The region's rosy outlook is underpinned by its booming trade with China, said Jemal-ud-din Kassum, the World Bank's regional vice-president for East Asia and the Pacific. Martin Wolf of the Financial Times writes in a commentary that a World Bank study notes that between 1985 and 2001, exports from other east Asian emerging market economies to China grew from $5.9 billion to $83.5 billion. In 2001, 15 percent of east Asia's exports to China consisted of parts of office machines and telecommunications equipment and electronic microcircuits, all of which were for assembly and re-export. How should other countries respond to the Chinese shock? "Calmly" is the best advice. One reason is economic: the most adversely affected countries can do little about China's rise, while those that can do something also benefit most from it. But the bigger reason for calm comes from history. If China is permitted to thrive as a dynamic exporter of cheap manufactures, its people will obtain the prosperity they want. If China is thwarted by protectionist barriers, its people will be correspondingly frustrated and dangerous. Finally, Dow Jones reports that in a sign of strong foreign interest in China's distressed-debt market, more than 12 investors have paid hefty fees for access to information about the country's biggest auction of bad loans, the seller of the loans said. The sale process "is moving smoothly," Han Sheng Qi, senior deputy manager at China Huarong Asset Management Co. in Beijing, told The Asian Wall Street Journal via e-mail Wednesday.

From http://web.worldbank.org/ 11/12/2003

TOP↑

China Warns Chen Pushing Taiwan 'to the Brink of Danger'

BEIJING: China warned Taiwanese leader Chen Shui-bian his efforts to promote independence were pushing the island towards "the brink of danger," and the mainland was ready to crush any attempt to split the country. "Chen Shui-bian has been pushing the island closer and closer to the dangerous brink of Taiwan independence," Li Weiyi, a spokesman for the State Council's Taiwan Affairs Office was quoted as saying by the Xinhua news agency. "This will ultimately drag Taiwan compatriots into a disaster, and will prompt Chinese people to make preparations to crush the conspiracy to achieve Taiwan independence," Li said. He warned efforts to push for independence were doomed to fail and would not be tolerated by China. China has considered Taiwan part of its territory awaiting reunification since the Nationalist government fled to the island in 1949. "Taiwanese independence is not in accordance with the people's will. Taiwan separatism has nowhere to go. The Chinese people will never allow the attempt to split the country to be successful," Li said. The spokesman did not elaborate on what measures Beijing might take to crack down upon on Chen's activities, although China has said in the past it would use force to reunify the island with the mainland if necessary. Beijing considers the Taiwan issue linked to its sovereignty and territorial integrity. The China Daily cited political analysts as saying Chen's increasingly radical campaign, which Beijing interprets as advocating separatism, is an effort to boost his chances of re-election in next year's presidential campaign. During a stopover last week in New York en route to Panama, Chen "beat the drum hard" for his plan for a new "constitution" and an island-wide referendum, the paper said. It cited experts as saying the referendum was aimed at paving the way for formal independence. In one of the key policy positions for his re-election bid, Chen asserted that Taiwan and China were "one country on each side" of the Taiwan Straits. The "provocative" definition of cross-Straits ties goes against Beijing's one-China principle, that the mainland and Taiwan are the same country. The state-run paper also criticized Chen's move to "instigate" his pro-independence Democratic Progressive Party to put forward a draft law on the referendum, which makes it clear a future plebiscite can be held on any issue, including the island's independence. Li said Chen's recent pro-independence moves had demonstrated that the Taiwan leader was failing to honour his earlier pledges not to include the concept of "state-to-state" relations in Taiwan's "constitution." It also indicated he was retracting from his promise not to promote any referendum on changing the status quo on independence. "So Chen's promises to not push for Taiwan independence during his term have proven to be nothing but an outrageous lie," Li said.

From http://www.channelnewsasia.com/ 11/13/2003

TOP↑

Financing Rules Announced

China has issued follow-up rules on auto financing, detailing regulatory requirements and procedures for the establishment of auto financing companies in the country, one of the world's fastest-growing car markets. The rules, announced by the China Banking Regulatory Commission (CBRC) on Nov.12, require such companies to have capital adequacy ratios of 10 per cent, which is stricter than the 8 per cent requirement for commercial banks. Total guaranteed outstanding loans must not exceed 200 per cent of the financing company's registered capital, nor can they offer preferential treatment to related parties, according to the new regulations. Interest rates can be up to 10 per cent less or 30 per cent more than the base rate set by the central bank, the same standard for commercial banks' loan operations. China issued auto financing regulations in October under its World Trade Organization (WTO) commitments. The regulations require at least 4 billion yuan (US$483.2 million) in assets, though this was relaxed from earlier guidelines stipulating minimum assets of 8 billion yuan (US$963 million). A release from the commission said the stricter rules aim to ensure the stability of the burgeoning industry, as China still lacks a personal credit record system and related laws. There is still a gap between the commission's rules and those in developed countries in terms of business scope and supervision, the statement said. It added that the moves have been put in place in order to maintain the stability of financial markets, and ensure the steady development of China's auto financing industry. US auto giant General Motors Corp became the first overseas car maker to apply to offer auto financing in China on Wednesday, which executives have said could boost its already booming sales by another 20 per cent, Reuters reported on Nov.13. Sales from GM's four ventures in China soared by almost 38 per cent year-on-year in the first nine months to 267,395 units, already overtaking 2002's total of 264,101.

From People's Daily 11/14/2003

TOP↑

New SFC Appointments Announced

Christopher Cheng and Jasper Tsang have been appointed and re-appointed respectively as Non-Executive Directors of the Securities & Futures Commission. Mr Cheng will take over Henry Fan's seat. Secretary for Financial Services & the Treasury Frederick Ma announced the appointments today, adding they will be for two years from November 15. The commission is served by six executive directors, including the chairman, and seven non-executive directors, which include Raymond Kwok, Thomas Stevenson, Anna Wu, Daniel Fung, and Dr York Liao. Mr Ma said Dr Liao will also replace Mr Fan as an ex-officio member of the Process Review Panel from November 15 to October 31, 2004. Mr Ma said Mr Fan's work has been instrumental in enhancing the commission's corporate governance, accountability and transparency. Commission Chairman Andrew Sheng welcomed the appointments. "I am particularly grateful to Mr Fan for his exemplary contribution to the commission and the development of our market in the past eight years. I would also like to welcome Mr Cheng who will bring with him a wealth of professional expertise and public service experience, which will be of tremendous help to the commission," he said, adding he is pleased to be able to continue working with Mr Tsang.

From http://www.news.gov.hk/ 11/14/2003

TOP↑

Favorable Policy for Multinationals to Base Headquarters in Beijing

Beijing is to introduce a favorable policy to encourage multinationals to base their China headquarters in Beijing. At the First Forum on International Investment Promotion, Director of Beijing Municipal Bureau of Investment Promotion Qiu Shuiping disclosed relevant departments are wasting no time formulating the preferential policy attracting multinationals to set up their China headquarters in the city so as to draw more multinationals to invest in Beijing. It's learned the number of multinationals basing China headquarters in Beijing has totaled 24 to date. Around 120 of Fortune top 500 enterprises have invested in Beijing.

From FDI 11/17/2003

TOP↑

Overhaul of Nation's Tax, Fiscal Systems Announced

China will reform its fiscal and taxation systems, officials announced over the weekend. The fiscal reforms, revealed at a finance forum in Beijing, will firmly support the development of social undertakings, strengthen direct subsidies to farmers and back the go-west programme and old industrial bases in Northeast China. They will also help solve the problem of export rebates in arrears, and increase input into environmental protection, CCTV news said, quoting sources from the Ministry of Finance. The reforms include improving the personal income tax regime, switching from production-based value-added tax to consumption-based value-added tax, amalgamating enterprise income tax and adjusting consumption tax. Improving the personal income tax system is regarded as a key area of reform, as it still falls short of the role it is expected to play in narrowing the gap between the rich and poor. Transforming the value-added tax is also necessary for economic restructuring. Under the current system of production-based value-added tax, fixed assets are classified as consumer goods and are subject to value-added tax. This increases the tax burden on capital- and technology-intensive enterprises that cannot claim tax deductions for the purchase of fixed assets. The reform will unify the criteria on who is liable to pay the tax and how the pre-tax cost and other details will be calculated, to standardize income tax for domestic and foreign enterprises. The reform will also remove consumption taxes on commodities that have become mass consumer goods. A consumption tax will be imposed on new luxury goods instead.

From http://english.peopledaily.com.cn/ 11/17/2003

TOP↑

China to Issue New Policy on Auto Industry

China will issue a new industrial policy to relax control on automobile makers and avoid duplicated projects, said Shen Ningwu, vice secretary-general of the China Association of Automobile Manufacturers, on Nov.18. Shen said at a China-Japan-Korea business forum being held in Beijing that the new policy is expected to be issued in two months. According to the policy, China encourages private and foreign capital to enter the automobile sector, but the floor share for the Chinese side in foreign-funded car-makers will remain 50 percent. China will encourage individuals and families to buy cars which are energy-saving, less-polluting and cheap, Shen said. An irrational limitation on car purchase will be eliminated and the service sector, including credit loans, sale of used cars and components will be enhanced to boost the market, Shen noted. The China Banking Regulatory Commission agreed last October that companies with total assets over four billion yuan (480 million dollars) and registered capital over 500 million yuan (60 million dollars) are eligible to provide auto loans to customers. China's auto production will hit 4.2 million to 4.3 million vehicles this year and six million to seven million in 2005, Shen said.

From People's Daily 11/19/2003

TOP↑

China to Reform GDP Calculation and Statistics Release

China will reform gross domestic product (GDP) calculation and statistics release based on international standards, so that the statistics objectively reflect the performance of the economy. Li Deshui, director of China's National Bureau of Statistics (NBS), said in Beijing Thursday that the reform plan had been approved bythe State Council, and will be implemented by NBS. He pointed out China's GDP calculation method, initiated in 1985, had been improved gradually. However, the calculations still had some problems due to the lack of a regular adjusting and revising mechanism. Some traditional methods did not comply with international norms, arousing some criticism from the international community. Li said the reform plan will mainly focus on the annual and quarterly GDP calculation. Important statistics relevant to GDP and the method of calculation will be announced to the public if necessary. Monthly GDP figures would no longer be released except in special circumstances. Li Deshui said that the statistical methods China is adopting have met international standards, providing reliable figures. Li denied that China has deliberately lowered the GDP figure for the first three quarters of the year, saying China conducted the statistics in accordance with the existing methods and rules, in response to a foreign journalist's question at a press conference held by the Information Office of the State Council. Some people believe that the figures were underestimated, he said. The director noted that the economic growth rate cannot be reckoned simply through single indices that the NBS has announced.Investment for fixed assets, for example, jumped 30.5 percent on ayearly basis from January to September, but one could not say thatthe GDP increased about 12 percent since investment contributes to40 percent of the GDP, because some investment -- for the purchaseof land, old factories and equipment -- do not contribute to GDP growth on a timely basis. He said that the SARS epidemic affected China's economy "very severely", citing that the value of social services declined year-on-year 14.8 percent in the first half of the year and the combined traffic volume decreased for the first 10 months. Due to frequent natural disasters, the agricultural value recorded only a slight increase -- 2.8 percent -- for the first three quarters, which also brought down China's economic growth rate. China's economy grew 8.5 percent from January to September according to the NBS figures. Li Deshui said that China will, however, seek to improve statistical methods, catering to domestic conditions and the socialist market economy.

From http://english.peopledaily.com.cn/ 11/20/2003

TOP↑

Measure to Protect Farmers' Land Rights

No requisition of rural land will be approved without the endorsement of affected farmers, the Ministry of Land and Resources announced yesterday, abolishing a decades-old practice of only publishing plans after they had been approved by the central government. Wang Shiyuan, head of the general office of the ministry, called the new measure "a solid step forward" in protecting farmers against governments abusing their land requisition rights. Although the country's current Land Managerial Law does require publishing the scale of the land requisitioned and the compensation involved, it has proved hard for farmers to get the plans changed once they have been approved by the central government. From now on, Wang said, all rural land requisition should be subjected to discussions with farmers and undergo public hearings on its compensation before being submitted to the ministry for scrutiny. Wang admitted at yesterday's press conference that abuses of land requisition powers have become a major factor of instability in Chinese society. Not only are a few Chinese governments at various levels free from farmers asking for their requisitioned land back, but some staggering cases are deeply rooted in the unfair treatment of farmers involved in land requisition. One such farmer burned himself on Tian'anmen Square earlier this year. The crux of the issue is the compensation for farmers who lose their land to requisition. In most cases, the farmers complain about compensation which is much lower than the true market value of their land. Although the government is entitled to requisition land for the benefit of society at much lower costs than those in a comparable case of commercial development, Wang said the government is obliged to secure those farmers' livelihoods in the long term. And the livelihood of most of them hangs on their small pieces of land, he said. Statistics from the ministry indicate local governments can requisition 1 mu or 0.07 hectare of cultivated land from farmers at a compensation varying from a meager 300 yuan (US$36.20) in comparatively backward places to a rare 5,000 yuan (US$603.90) in more advanced regions such as Beijing. Although the revolutionary move of the ministry has been warmly received, doubts were surging regarding the execution of the new stipulation considering that local land authorities are actually subordinates of various local governments as well.

From China Daily 11/20/2003

TOP↑

SASAC Announces Five Measures to Promote China's SOE Reform

A senior Chinese official said on Nov.19 that China will take five measures to promote the restructuring and reorganization of the country's state-owned enterprises (SOEs). Li Rongrong, minister in charge of the State-owned Assets Supervision and Administration Commission (SASAC) of China's State Council, made the remark at an international merger and acquisition summit, which opened in Beijing on Nov.19. Li said China welcomes more foreign and domestic private capital to participate in China's SOE reform, as China's market economy advances, reform and opening expand, legal systems and capital market improve. According to Li, the first of the five measures is to encourage more SOEs to list in the domestic market by introducing domestic and foreign investment. The second is to give full play to the role of China's large SOEs in the process of merger and acquisition, striving to cultivate and develop some enterprise groups with international competitiveness, Li said. Thirdly, more SOEs who lose to the competition on the market will have to leave the stage. China will speed up the process by establishing a quitting mechanism and a system of elimination through selection or contest specially for the SOEs. China will continue to encourage more SOEs to invest abroad, set up branch factories in other countries and participate in international merger and acquisition. To that end, China will further improve consultation service, legal protection and the international adjustment system for overseas investment, said Li, when listing the fourth measure. Li said the last measure is to create opportunities for foreign enterprises to participate in the merger and acquisition of China's SOEs, by improving relevant merger and acquisition laws and establishing a modern property rights system and market. Li said great achievements have been made in the process of adjusting the layout and structure of China's state economy, an important part of China's economic reform started in the late 1970s. According to Li, at present, a group of large enterprises have emerged in China, and by 2002, 11 Chinese SOEs have entered the global top 500 list. China's SOE reform has also made progress, said Li. By 2002, more than half of China's 159,000 SOEs had launched their enterprise reform, with some enterprises suffering long-term losses and in heavy debt and some exhausted mining sites having all quit the market. About 85 percent of China's small SOEs have realized multi-level property rights through reforms, said Li. He added that though nearly half of China's SOEs have been closed, the total profits they made had increased from the 83.8 billion yuan (10.1 billion US dollars) in 1995 to 220.9 billion yuan (26.7 billion US dollars) in 2002. Li said China is facing many favorable conditions for the adjustment of the layout and structure of the state economy, like the establishment of the SASAC, the increasing proportion of the non-public economy, and the abundant capital for merger and acquisition from global investors. But he also mentioned some irrational problems existing in the economic reform process, such as the still high proportion of processing industry and common service industry in the state-owned economy, the small scale of China's SOEs and the bankrupt SOEs that have not yet closed.

From People's Daily 11/20/2003

TOP↑

Hong Kong New Power Co. Provisions Set for January 1

Improvements have been made to the Scheme of Control Agreements with Hong Kong's two power companies and they will take effect from New Year's Day. The Economic Development & Labour Bureau today said the upgrades are the result of the second interim review of the current Scheme of Control Agreements. The improvements will benefit consumers. The objective of the agreements is to ensure that electricity is supplied adequately, reliably, efficiently and at reasonable cost to consumers. The current agreements were signed in 1992 and 1993 for China Light & Power (CLP) and Hong Kong Electric (HEC) respectively. They are valid for 15 years and provide for two interim reviews, each of one-year duration.

Main improvements
On financial and administrative issues:
* the depreciation periods for certain CLP assets will be extended; and,
* the excess capacity penalty for HEC's generation projects approved from 2004, will be increased.
For both CLP and HEC:
* there will be a mechanism to keep the Development Fund balance at a reasonable level;
* there will be a mechanism to deal with balances in the Development Fund and Rate Reduction Reserve upon the expiry of the agreements;
* both companies will provide three-year rolling forecasts to the Government at the time of the Annual Tariff Review to facilitate monitoring of the Development Fund, the Fuel Clause Account and Rate Reduction Reserve over a longer timeframe; and,
* both will segregate and present data pertaining to generation, and transmission and distribution in the Financial and Auditing Reviews for the Government's consumption.
On environmental issues:
* both companies recognise the Government's efforts in improving regional air quality and exploring alternative power generation sources, including renewable energy, to supplement conventional power generation from fossil fuels; and,
* both will inform the public of their environmental performance on a regular basis.

Good news for consumers
The change in the depreciation period for certain fixed assets of CLP will lead to savings of about $650 million (or 0.3 to 0.6 cents per kWh) for their customers between 2004 and 2008. The deduction for the mechanical and electrical equipment costs from the average net fixed assets for excess capacity, arising from HEC's generation projects approved as from 2004, will be increased from 40% to 50%. As the average net fixed assets is the basis on which Permitted Return is calculated, the new arrangement is an alternative approach to containing the Permitted Return available to the company. The bureau said there will be a cap, equivalent to 12.5% of the company's annual local sales, on the balance in the Development Fund. Excess above this level will be returned to consumers in the immediate following year in the form of a one-off rebate or tariff reduction. This trigger mechanism should go some way towards addressing the long-time concern that CLP has been accumulating excessive 'reserves' and keeping to the company monies that belong to the consumers. There will be an additional provision to the effect that the Government and the company concerned will have specific discussions with regard to arrangements to deal with any balance in the Development Fund, and the related Rate Reduction Reserve, 12 months before the expiry of the current Scheme of Control Agreements. This additional provision should again go some way towards addressing concerns that consumers' money might be taken up by the power companies when the agreements expire.

From http://www.news.gov.hk/ 11/21/2003

TOP↑

JAPAN: Key Points Worked Out for Scenic Beauty Law

TOKYO - The land ministry has drawn up key points for legislation aimed at creating urban towns with scenic beauty by way of zoning to regulate development, ministry sources said Saturday. The bill requires that municipal governments designate scenic beauty zones and regulate building construction and that both municipal and prefectural governments formulate plans to enhance scenic beauty, according to the sources.

From Kyodo News 11/03/2003

TOP↑

Support for New Constitution

About 90 percent of Liberal Democratic Party candidates, 60 percent of those from Minshuto (Democratic Party of Japan), and more than half of New Komeito candidates in the Lower House election favor revising the Constitution, an Asahi Shimbun survey found. But views over what parts of the 57-year-old Constitution should be revised varied along party lines, the survey found. LDP candidates overwhelmingly favor changing the war-renouncing Article 9 and security-related articles. Minshuto candidates, meanwhile, are split between those who back such revisions and those who seek an amendment to include stipulations on expanding human rights and introducing a direct election system for the prime minister's seat. New Komeito candidates mainly wanted amendments to address new rights. The survey was distributed from late September to all 1,159 candidates running in the Lower House election. Valid responses were received from 1,101 candidates, or 95 percent. Respondents were asked to clarify their stances on revising the Constitution using a five-level scale. Those who supported revision were asked to specify what they thought should be changed. Among LDP candidates, 63 percent supported revising the Constitution, while a further 26 percent said they were ``relatively in favor.'' About 61 percent of Minshuto candidates said they were for or relatively for revision, compared with 21 percent opposed or relatively opposed. Fifty-five percent of New Komeito candidates backed revising the Constitution, while 23 percent did not. With one exception each, all Japanese Communist Party and Social Democratic Party candidates opposed any revision. That one candidate instead reported being ``relatively opposed.'' All Hoshu Shinto (New Conservative Party) candidates favored revision. The results suggest more politicians lean toward revising the Constitution than during a similar survey before the 2000 Lower House election, although the outcome is not directly comparable because candidates at that time were asked only whether they were for or against revision. In that survey, 75 percent of LDP candidates said they supported revision, while 29 percent of Minshuto and New Komeito candidates answered similarly. In the current survey, 80 percent of LDP respondents called for Article 9 and other articles related to national security to be revised. Some said the Constitution ``was forced upon Japan'' by occupation forces after World War II. Nearly half of Minshuto respondents also pointed to Article 9, while 30 percent suggested introducing new stipulations on rights related to environmental issues and information disclosure. Twenty percent said revisions should give the Cabinet more decision-making power and introduce a system that allows the public to directly elect the prime minister.

From http://www.asahi.com/ 11/04/2003

TOP↑

Drastic Easing of Monetary Policy Urged for Japan

With an apology for a radical -- even "shocking" -- approach to solving Japan's economic problems, British economist Andrew Smithers dismissed the strategies put forward by proponents of a supply-side driven recovery as well as those advocating fiscal stimulus measures, during a recent symposium in Tokyo. Instead of these approaches to reversing the decade-old recession, the founder of Smithers & Co. told the Nov. 10 symposium, organized by Keizai Koho Center, that Japan should dramatically ease monetary policy. But before it can do that, Japan first needs to overcome its reluctance to face up to the problems that confront the nation, he said. "The key problems are awkward ones," he conceded. "The ultimate problem today is a widespread refusal to discuss the key issues and thus never to face them." Smithers opened the symposium, titled "Japan's past decade -- bad luck or poor policy?" by laying out the supply siders' case, which states that inefficiencies at the micro-economic level are the problem, with supply rather than inadequate demand at the heart of the problem. "Its proponents emphasize some key points: massive inefficiencies are supported by government regulation and 'zombie' companies by the banking system; inefficient 'zombie' companies reduce the returns on efficient ones; and privatizations, deregulations and the euthanasia of zombie companies would increase investment and growth," he said. This argument, however, cannot be fitted into mainstream economics as it involves a "fallacy of composition," he said. "At a micro-economic level the bankruptcy of a weak company reduces competition and should thus increase the profitability of the survivors," he said. "But such bankruptcies also reduce demand, as unemployment rises, which reduces profits." Emphasizing Japan's declining birth rate and the impact that will have on the labor force, productivity and profitability over the next 20 years, Smithers said the supply siders assume that Japan can grow significantly faster than, for example, the United States. "Without a dramatic change in immigration policies, faster growth in Japan than in the U.S. require an even more dramatic gap in terms of the growth in output per head," he said. "In short, a productivity miracle. "That would be nice," he added, "but it's not a sound assumption for economic policy." Turning to the proponents of fiscal stimulus measures, Smithers said this group's theory is that Japan is suffering from inadequate demand rather than inefficient supply. That problem, they claim, would be rectified by creating a larger budget deficit. "Fiscal enthusiasts face the problem that this policy appears to have been tried -- and failed to get the economy moving," Smithers countered. And while Keynesian economic theory states that fiscal stimulus is appropriate for a cyclical recession, Japan's problems are structural, he added. Smithers then turned to his own "pet solution." "I apologize for saying that Japan needs to run a much higher current account surplus; it's a shocking thing to say, I know," he said. "The idea that countries should neither run large current account surpluses nor deficits is deeply ingrained in popular economics. It is, however, dangerous nonsense today. "Demographic differences between Japan, Europe and America mean that such deficits and surpluses are the natural equilibrium position," he pointed out, before underlining the importance of reducing the corporate sector's debts. "It is often remarked that inflation provides the only long-term solution to Japan's public sector debt," he said. "I suspect that it is also, and probably more urgently the only realistic solution to the corporate debt problem." "Japan needs inflation," he added. "It shouldn't be rapid, but the deflation problem must not get any worse. Japan needs inflation of around 3 percent a year to get the economy back in shape." Setting out the ways that the economy could receive that shot in the arm, Smithers suggested increasing the monetary base at an even faster rate than the present 20 percent; weakening the yen by massive market intervention -- which would be "very aggressive internationally," he admitted; or using funding policy to increase the money aggregates directly. The most effective of these approaches would be the third proposal, he said, which would see the Finance Ministry stopping funding the deficit and borrowing short term. (by Julian Ryall)

From The Japan Times 11/17/2003

TOP↑

Pension System Proposal Meets Criticism

A much-awaited proposal to reform the nation's pension system met criticism Tuesday that it would place too heavy of a burden on future generations and hurt the nation's economic power. The debate heated up the day before when the Health, Labor and Welfare Ministry announced a proposal to reform the existing pension system. It submitted the proposal to the Council on Economic and Fiscal Policy, a key policy-setting panel headed by Prime Minister Junichiro Koizumi, on Tuesday. The proposal was spotlighted during the campaign for the Nov. 9 Lower House election. Japan faces a rapidly aging population, declining birth rate and growing concerns over the sustainability of the current pension system. Under the proposal, the health ministry calls for pension premiums to be raised to 20 percent of the annual income of salaried workers by fiscal 2022 from the current 13.58 percent. The premiums are currently equally shouldered by companies and employees..Benefits would be lowered to around 50 percent from the current 59 percent of an employee's averaged preretirement salary, it says. The proposal would serve as the basis of a government plan to be mapped out by the end of the year. "The 20 percent premium proposed by the health ministry is very high, and not sustainable. It would not regain young generations' trust in the nation's pension system," said a statement jointly released by four panel members from the business sector and academics, including Hiroshi Okuda, chairman of the Japan Business Federation (Nippon Keidanren) and chairman of Toyota Motor Corp. The statement said the proposed burden would hurt the nation's economy and that the premiums should be limited to around 16 percent. "The figure of 20 percent is very close to the upper end of the limit," Finance Minister Sadakazu Tanigaki said. The Finance Ministry said in a report to the key panel that the government needs to make efforts to limit the future financial burden. It said the total financial burden on Japanese should also regard tax and the country's fiscal deficits. Such a burden should be limited to around 50 percent of people's income, it said.If these factors are included, according to an estimate by the four panel members, the total burden of the health ministry's scenario would reach 63 percent in 2025. (by Hiroko Nakata)

From The Japan Times 11/19/2003

TOP↑

Gov't to Cut Local Subsidies by Y1 Tril

TOKYO - Government officials began discussions Saturday on how to implement a 1 trillion yen cut in state subsidies to local governments being planned by Prime Minister Junichiro Koizumi for fiscal 2004. The Ministry of Health, Labor and Welfare has been told to cut up to 250 billion yen, the Ministry of Land, Infrastructure and Transport about 350 billion yen, the education ministry nearly 300 billion yen, government sources said.

From http://www.japantoday.com/ 11/23/2003

TOP↑

SOUTH KOREA: Customs Clearance Reforms Sought

Korea will collect customs duties on a monthly lump-sum basis, instead of the current system whereby customs duties on each import item must be paid individually. The Ministry of Finance and Economy on Sunday (Nov. 2) said a revision to the current customs law will be sought to expedite import and export clearance procedures. Under the proposed amendment, the Korea Customs Service will exempt model companies from being subject to having their customs duties records audited. Companies and individuals will be immune from penalties when they voluntarily report wrong trade statements within three months following the transaction, the ministry said.

From http://search.korea.net:9000/ 11/03/2003

TOP↑

Gov't Moving to Curb Housing Speculation

The government has decided to impose a heavy economic burden on multiple-home owners and create more luxurious residential complexes, in a bid to curb sky-high housing prices. It will also introduce a legislation, under which all housing transactions in speculation-prone zones are to be reported to local governments upon finalizing contracts, a move seen as the precursor to controlling property use. Under a new set of anti-speculation measures unveiled on Wednesday, those who own three or more houses or apartments will face the maximum tax rate of 82.5 percent on capital gains they accrue through the sale of properties, including 75 percent of capital gains taxes and local taxes. The capital gains taxes will also be raised up to 51 percent in the country's 53 high-speculation zones from the current range of 9-36 percent. The drastic tax hikes are aimed at promoting the role of real estate as a program for the public good, and keep properties from being used as a speculative tool, government officials said. President Roh Moo-hyun also said in a Cabinet meeting on Wednesday (Oct. 29) that "the government will try to collect all capital gains from property transactions that exceed interest rates." He added that even single-home owners might be subject to heavier capital gains taxes in selling their homes, if it is used for speculation. Cheong Wa Dae explained that Roh's remarks reflect his resolution to root out property speculation, as skyrocketing housing prices are behind rising wages, a key factor undermining national competitiveness. The government also plans to take various financial and systemic measures to plug loopholes in fighting against property speculators. The loan-to-value (LTV) ratio will be lowered to 40 percent from 50 percent in speculation-prone areas, especially for apartments south of Seoul's Han River. "In addition, the government will set up a database for the records of property holdings across the country within this year," Finance-Economy Minister Kim Jin-pyo told reporters after a meeting of economic ministers. He added that related ministries are to establish the Real Estate Trading System next year to hunt down property tax dodgers. Korea's top economic policymaker made clear that the government will seek additional measures including higher taxes and the restriction of property rights, if the measures fail to stabilize the property market. "We are consider banning the re-sale of rights to buy newly-built apartments across the country," he said, "In speculation-prone areas, apartment transactions might be restricted without government approval." Kim, however, stressed that the main focus will be placed on addressing the chronic shortage in housing supply. The housing supply ratio in Seoul and surrounding Gyeonggi Province will be increased from the current 92 percent to 115 percent by 2012, he added. To that end, the government plans to designate 12-13 new sites for new towns in northern Seoul next month, while speeding up the project of turning Pangyo, south of Seoul, into a new city with high quality living conditions, which includes the so-called Edu-Park area packed with special purpose high schools and private tutoring institutions. Huge housing complexes will be developed from 2005 in two cities with easy access to bullet train stations _ Gwangmyeong, Gyeonggi Province, and Asan, South Chungcheong Province.

From http://search.korea.net:9000/ 10/30/2003

TOP↑

Assembly Passes Counsel Bill

The National Assembly yesterday passed a bill authorizing an investigation by an independent counsel into corruption allegations involving aides to President Roh Moo-hyun. A total of 184 of the 193 lawmakers present voted for the controversial bill proposed by the majority Grand National Party. Two opposed it and seven abstained from voting. Lawmakers of the pro-government Uri Party walked out of the main chamber to protest the vote. The new party accused the GNP of trying to shield itself from the ongoing prosecution probe into the illegal fund-raising scandal and plotting to undermine Roh ahead of the general elections in April. Most of the lawmakers from the two other opposition parties - the Millennium Democratic Party and the United Liberal Democrats - supported the bill. The three opposition groups have cooperated to secure two-thirds of lawmakers' support - enough to nullify a possible veto by the president. Angered by the parliamentary decision, Justice Minister Kang Kum-sil said she would ask Roh to veto the bill. In a meeting at Cheong Wa Dae with floor leaders of the four major parties, Roh said he was pondering his decision seriously, explaining, "We have to consider the morale of the prosecution and the nation's image." If he refuses to accept the bill, a two-thirds majority of lawmakers in the National Assembly can override his veto. Currently, the GNP holds a majority in the 272-member legislature with 149 seats, while the MDP has 61. The Uri Party has 47 seats. Political watchers said passage of the bill would likely put Roh under pressure to sign it into law, creating a quandary for him as it would mandate a special prosecutor to hone in on his key aides, possibly damaging him and the Uri Party ahead of the April parliamentary elections. The GNP submitted three separate special counsel bills last month that would make Roh and his aides the main targets of investigation, apparently in retaliation for what it called an unjust probe by the prosecution to "destroy the party" in connection with an election-funding scandal. A special prosecutor will look into an allegation that Choi Do-sul, Roh's former secretary on general affairs, took an inappropriate gift of 30 billion won after Roh clinched the presidency last December, as well as investigate two other bribery cases implicating Lee Kwang-jae, a former key aide to Roh, and Yang Gil-seung, the former personal secretary of the president. After the bill is sent to him, Roh will have 15 days to make a decision to accept it or send it back to the Assembly for a second vote. The Korean Bar Association recommends two candidates for the special prosecutor post, and the president chooses one. Initially, the independent team would be granted two months to conduct its investigation, but if necessary the deadline could be extended by an additional month. (by Joo Sang-min)

From http://www.koreaherald.co.kr/ 11/11/2003

TOP↑

Assembly Passes Special Probe Bill

The majority Grand National Party (GNP) and the Millennium Democratic Party (MDP) on Monday (Nov. 10) joined forces to push a bill sanctioning special investigations into President Roh Moo-hyun's aides through the National Assembly. Out of 192 legislators in attendance, 184 cast votes in favor of the bill, while two voted against. There were six abstentions. The pro-government Uri Party, comprising 47 lawmakers loyal to President Roh, boycotted the vote, but the GNP, which holds 149 seats in the 272-member National Assembly, passed it with the MDP's support. Roh has 15 days to decide whether to accept or veto it. During a meeting with floor leaders of the four major political parties at Cheong Wa Dae, Roh replied negatively to the bill's passage. "I am giving careful consideration to the matter, taking into account the morale of the prosecution and the national prestige," he said. If he accepts it, the Korean Bar Association will recommend two special counsel candidates, from which the president will choose one for the post. The independent counsel would be guaranteed an initial two-month period to conduct his investigations, and will have an additional 30 days with the consent of the President. The bill is aimed at facilitating a special inquiry, focusing on three alleged influence-peddling cases involving the head of state's former aides _ Choi Do- sul, Lee Kwang-jae and Yang Gil-seung. Choi, Roh's former secretary for general affairs, faces allegations that he pocketed about 30 billion won from Busan-based construction companies around last year's presidential race. He is currently in custody for receiving 1.1 billion won from SK Group, the nation's third largest conglomerate. Lee, former senior presidential secretary for information and policy monitoring, allegedly hid money from Sun & Moon, a leisure company in return for business favors. Yang, Roh's former personal secretary, was wined and dined by a nightclub owner under investigation from the prosecution who asked the politician to exert influence on his behalf. Shortly after the bill was passed, the GNP and MDP pressed Roh to accept the outcome as the voice of the public. "President Roh should humbly accept the will of the people," the party statement said. "He pledged during last year's election that he will have an independent counsel investigate corruption and irregularities by those wielding power." The GNP has been pursuing the special legislation on the grounds that the prosecution unfairly singled it out in its investigations into the illegal campaign funding scandals. Faced with harsh opposition from the Uri Party, however, the bill last week failed to reach the main floor. The Uri Party members heaped scorn on the GNP-led passage of the bill saying it is seeking to divert public attention away from its own illegal fundraising.

From http://search.korea.net:9000/ 11/11/2003

TOP↑

President Roh Urges to Accelerate Regulatory Reforms

President Roh Moo-hyun presided over a policy review meeting on regulatory reforms Thursday (Nov. 13) at Cheong Wa Dae. At the briefing on the performance of the Regulatory Reform Committee, the President gave instructions to actively go ahead with deregulation to facilitate foreign investments. Specifically, he directed to improve the nation's regulatory standards both in its volume and quality up to the levels of Korea's economic rivals within three years. Roh emphasized reasonableness in carrying out deregulation measures. "Even though the Regulatory Reform Committee's deregulation efforts have been carried out actively over the years, the results fell short of public expectations because the greatest priorities were placed on reducing the number of regulations," the President said. "It is more important to take a balanced perspective. Rushing to abolish or ease regulations thinking that all regulations are bad is not necessarily desirable," he said.

From http://www.kois.go.kr/ 11/14/2003

TOP↑

Six Cities Blacklisted as Speculation Zones

Six cities have been added to the list of areas named as property speculation zones and subject to heavy taxation. The Ministry of Construction and Transportation (MOCT) announced on Monday (Nov. 17) Busan, Daegu, Ulsan, Gwangju, Changwon and Yangsan as among those now blacklisted from Wednesday. As a result, Seoul and six other metropolises, including Incheon, Busan, Daegu, Daejeon, Gwangju and Ulsan, all are bound by the restrictive regulations in taxation and trading of new apartment rights. Yangsan and Changwon in South Gyeongsang Province have also been on the list as competition has intensified for the subscription rights for the new apartments, the MOCT said. In June, Cheonan, Asan, Cheongju cities and Chongwon, where land prices have jumped in keeping with the new administrative capital relocation plan, were also designated as inflamed markets. The MOCT showed its continuing resolve to designate more areas as speculation zones as soon as they show signs of what it deems excessive speculation. The measures are seen as a final attempt to stabilize the housing market before the government resorts to the introduction of a housing transaction permit system.

From http://search.korea.net:9000/ 11/18/2003

TOP↑

Cut in Corporate Income Tax Gets Green Light

A subcommittee of the National Assembly's Finance and Economy Committee passed on Thursday a revision bill, setting forth a 2 percent cut in the current corporate income tax starting 2005. The bill is now to be reviewed by a plenary session of all the National Assembly's standing committees. An member of the subcommittee said that the subcommittee reached an agreement to cut the corporate income tax from the current 27 percent to 25 percent for firms with a taxable profit of over W100 million, and from the current 15 percent to 13 percent for those with less than W100 million in taxable profit. The member said that because the ruling and opposition party members on the subcommittee agreed on the tax cut, the revision bill would not face roadblock during its screening by the main session of the Assembly. He added, however, said that when the bill takes effect in 2005, the government is likely to have its tax revenue cut by about W1.8 trillion a year. The nation's corporations have been demanding the cut for several years, saying income taxes in advanced countries are far lower than in Korea. (by Lee Myung-jin)

From http://english.chosun.com/ 11/20/2003

TOP↑

MONGOLIA: Draft Laws on Exemption from Customs Dutywere Presented

On Monday, U.Enkhtuvshin, Chief of the Cabinet Secretariat, submitted to S.Tumur-Ochir, Speaker of the State Great Khural, draft laws on Exemption from Customs Duty, on Making Changes and Amendments to the Law on Archive, on Making Amendments to the Law on Courts and on Repealing the Laws. In addition, a draft Parliamentary Resolution on Approving the Development Loan Agreement of the Economic Capacity Building Technical Assistance Project concluded on September 23 of this year between Mongolia and the International Development Association was presented. Also a draft resolution on Development and Adoption of Main Guidelines on Social Economic Development and a procedure for implementation of them were also submitted to the State Great Khural for discussion. After receiving these draft laws, S.Tumur-Ochir, Speaker of the State Great Khural, has decided to present them to the respective Standing Committees.

From http://open-government.mn/ 11/04/2003

TOP↑

Law on Water Transport Approved

A draft law on water transport was discussed and approved at a united meeting of the Parliament autumn session on November 13. Under the law, activities to transport passengers and freight by a way of exploiting the water of rivers and lakes and relations related water transport action will be coordinated. As a result of the new law, an economic favorable environment for development of the water transport is being expected to be comprised.

From http://www.montsame.mn/ 11/18/2003

TOP↑

INDONESIA: Government Completes Autonomy Revision

The government has completed the draft revision of the 1999 autonomy law, which will take back some of the power it dispensed to local authorities. Minister of Home Affairs Hari Sabarno said on Wednesday that the revision would ease difficulties facing the central government in managing the country with autonomy placed in the hands of regents. "It is impossible for the central government to supervise 416 regencies at the same time, so we decided to expand the role of the governors," Hari said before meeting with President Megawati Soekarnoputri. "With the revision, we will have a stronger administrative hierarchy and therefore the authority of provinces will be expanded." He said that since its implementation in 2000, regional autonomy had resulted in many flaws. Megawati ordered the revision of the law when she assumed power in July 2001, on the grounds autonomy threatened national unity. She has repeatedly said that regencies had excessively exercised their authorities for the sake of revenue, but failed to improve people's welfare and preserve natural resources. The revision plan has been met with strong resistance from regents across the country. Hari said the revision was not aimed at weakening regional autonomy, but to correct mismanagement taking place in the past three years. "We have to provide a clear outline of what the authorities of the regencies and governors will be." Apart from the controversial plan to curb the power of regional administrations, the draft stipulates direct election of regents, mayors and governors, reminiscent of the landmark direct presidential election to be held next year. With the change in the election system, articles on the relations between the regional heads and the local legislature need revision too. The government has also revised the articles on the financial allocation between Jakarta and regencies, as well as articles on the sea borders between the regencies. Hari said the draft would be presented to the President and Cabinet before it was submitted to the House of Representatives, the dates of which were undecided. (by Fabiola Desy Unidjaja)

From http://www.thejakartapost.com/ 11/06/2003

TOP↑

New Govt Ruling on Procurement Signed

President Megawati Soekarnoputri has signed a ruling which tightens procedures for procurement in the public sector, to help curb flourishing corruption, according to a government official. Signed on Monday, the new ruling could in turn help Indonesia secure more loans from the country's creditors, such as the World Bank, Mahendra Siregar, an advisor to the office of the coordinating minister for the economy said on Wednesday as reported by Dow Jones. Details of the ruling were not available, except that it would promote transparency and efficiency in the procurement of goods and services. It should underline the government's commitment to fight rampant corruption in the public sector. International institutions -- such as the World Bank and the Asian Development Bank -- have often stated that corruption is mostly evident during the procurement of goods and services for state institutions. The World Bank had even suggested that leakage in the process could account for up to 50 percent of any project's value. The bank is currently one of Indonesia's major traditional lenders, providing $400 million in loans annually to help finance various development projects across the country. The amount is a far cry from the some $1.5 billion disbursed annually in the early 1990s. Many analysts attribute the decline in the bank's loans to rising concerns about the misuse of loans by corrupt officials and business players. The new ruling would come ahead of the government's plan to propose a law on public procurement, which is now in the drafting stage. The law, which will replace Presidential Decree No. 18/2000 on public sector procurement, will ensure severe punishment for corruption in the procurement process.

From http://www.thejakartapost.com/ 11/06/2003

TOP↑

House Passes 2004 Budget Bill into Law

The House of Representatives passed on Monday the government-proposed 2004 state budget bill into law, despite objections from some individual lawmakers who criticized the budget as lacking in stimulus and not doing anything to improve the well-being of the people. The House plenary session endorsed the budget, which sets the deficit at Rp 24.4 trillion (US$2.89 billion), or 1.2 percent of the country's gross domestic product (GDP). The figure was higher than the Rp 23.02 trillion, or some 1.17 percent of GDP, agreed to last week by the government and the House budget commission. This year's deficit is estimated at 1.9 percent of GDP. The government is aiming to balance the budget by 2006. Still, it drew objections from a dozen lawmakers, who said that the higher deficit would only force the country to ask for more overseas loans as well as put more local assets up for sale to cover it. Even without new loans, they argued, the annual state budget was already heavily burdened by the repayment of foreign debts, which in turn limited the government's ability to allocate more money on subsidies and development spending. They said in a statement that the budget did nothing to promote the welfare of the average person. Under the 2004 budget, the government will need some Rp 26 trillion in foreign financing to help cover the deficit, which will probably mostly come from the Consultative Group on Indonesia (CGI) -- the country's traditional lenders, which will convene next month to determine the exact amount it can give Indonesia. However, all the factions in the House said that the budget had heeded these concerns as could be seen from the subsidies allocated to ease the burden on the people despite the huge pressure from debt repayments. They said the higher deficit was in part the result of higher subsidies. In 2004, the budget sets subsidy spending at Rp 26.4 trillion, higher than the government's proposal of Rp 23.3 trillion, mostly caused by higher spending on fuel subsidies. Meanwhile, the budget also highlighted optimism that the economy would fare better next year than previously forecast. It sets a higher growth target (4.8 percent compared to 4 percent previously), and lower inflation (6.5 percent compared to 7 percent).

From http://www.thejakartapost.com/ 11/11/2003

TOP↑

Government to Tighten Labor Export Rules to Minimize Abuses

This is the third and the last of a series of articles on Nusa Tenggara Barat villagers employed overseas. Following the steady stream of workers returning home with stories of the abuses that they suffered abroad, our reporter Ridwan Sijabat visited the province last month and talked with some of the villagers about their experiences.Given the large number of complaints about the mistreatment of migrant workers abroad, the government has no other alternative than revise the current labor export procedures to provide proper legal protection for Indonesian workers employed overseas, according to labor activists. Endang Sulistiyani, coordinator of the Panca Karsa Foundation in Mataram, West Nusa Tenggara, has campaigned against the current procedures, which she said failed to provide assurances that workers would be fully protected during their recruitment at home and employment overseas. "First of all, there is no standard recruitment system to regulate how the workers are recruited, trained and placed overseas and, simultaneously, prevent unauthorized parties from taking advantage of their situation," she told The Jakarta Post recently at her office in Mataram. She explained that many workers were subject to various forms of extortion prior to their departure overseas and after their return home because the current regulations did not stipulate how workers should be recruited or the standard training the workers should receive before been sent overseas. Ministerial Decree No. 104A/2002 provides that only labor export companies that are licensed by the Ministry of Manpower and Transmigration are allowed to recruit workers and send them overseas. Before their placement, labor export companies are required to provide one month of training in certain fields and foreign languages, and prepare employment contracts to be signed by the workers and their employers. Besides this, the government has also appointed a consortium of five insurance companies to provide legal protection for workers. License revocation is the maximum sanction that can be applied against companies violating the decree. According to Endang, the government should enact legislation to regulate the standard procedures governing labor recruitment and placement overseas, and impose harsh sanctions on companies that violate the procedures and unauthorized parties that smuggled workers overseas. "We need a harsh law to prevent labor abuses and human trafficking otherwise the violence against migrant workers will continue," she said, adding that local governments should issue similar bylaws to help minimize labor abuses. Wahyu Susilo, coordinator of the Consortium for Legal Aid for Migrant Workers (Kopbumi), said that while working out the legislation, the government could immediately issue a regulation in lieu of a law (Perpu) because like terrorism, the question of abuses against migrant workers needed an urgent response. "Compared with the massive number of Indonesian workers working overseas, the number of those who have died, been extorted, tortured or raped is quite small, but such human rights abuses cannot be tolerated, and the nation's dignity is at stake. If, for example, the United States makes a storm over human rights violations in the case of the killing last August of two of its citizens in Timika, why do we remain silent at the killing and torture of dozens of Indonesians overseas?," he said angrily. He said that besides issuing an immediate regulation in lieu of law, the government should enter into bilateral agreement with countries where Indonesian migrant workers were employed to ensure their right to fair payment and maximum legal protection. Both Endang and Wahyu agreed that the government ought to be proactive in supervising labor exports to avoid violence against them and widespread people trafficking. The two said that more than two million Indonesian workers were working overseas and hundreds of others were on their way overseas. They were all under threat of mistreatment if adequate supervision was not conducted. "The practice in the field has been that many labor exporters have sent workers abroad without adequate training so that they have got into trouble with their employers, or on their way overseas or home. No serious action has ever been imposed," said Endang. Many others have also called on the government to suspend labor exports while working out labor protection legislation and revising labor export procedures. Deputy speaker of the House of Representatives Muhaimin Iskandar strongly criticized the government for its failure to provide legal protection for workers, saying it had to investigate abuses and overhaul the system so as to reduce the number of such cases in the future. Former president Abdurrahman Wahid called on workers who found themselves in difficulties to report their cases to his office, saying he would go to embassies of the relevant countries to have the cases solved. Minister of Manpower and Transmigration Jacob Nuwa Wea, who was recently asked by President Megawati Soekarnoputri to revise the labor export procedures, said in an interview with The Jakarta Post that the government had decided to act resolutely to solve the problem. "Following a series of meetings, five ministers under the coordination of the coordinating minister for people's welfare have agreed to issue a joint decree to form an advocacy agency and design a special passport for workers to provide legal protection for them during their employment overseas," he said. A number of advocacy teams consisting of government officials and lawyers would be set up and they would be stationed in the countries where most Indonesian workers were employed. Meanwhile, the special passport would only be valid for three years, and would only be available to workers sent by authorized labor exporters, he explained. "For the first step, we will form five advocacy teams to be stationed in five cities in Saudi Arabia to take over the protection program for more than 35,000 workers in that country," he said, adding that the teams would be assigned offices in buildings belonging to the Ministry of Religious Affairs in those cities. He said he would leave for Saudi Arabia next month to seek a bilateral agreement with the Saudi government to forge cooperation in the labor field. "If Saudi Arabia refuses to enter into a labor agreement, we will consider stopping the supply workers to that country," he said. Nuwa Wea said, however, that this was only one part of the new approach the government would adopt regarding labor exports. Other measures would be as follows: ú Labor exporters to be made responsible for the recruitment process, placement of workers overseas and their return home ú All workers to be employed overseas to be required to possess skills and be able to speak the language of the country where they are to be employed ú Workers to be required to receive certification from an independent body tasked with testing them before their departure abroad. ú The use of Terminal 3 at Soekarno-Hatta International Airport for workers returning home will be ended and, instead, workers will be pooled by the Ministry of Manpower in Ciracas, East Jakarta, before leaving for their home villages. ú The government to set up an advocacy agency and issue special passports to workers ú The government to enact legislation to better regulate labor export and provide maximum legal protection for workers.

From http://www.thejakartapost.com/ 11/12/2003

TOP↑

House to Speed Up Law Revision to Build Better Judiciary

A House of Representatives (DPR) committee is speeding up its revision of law No. 14/1970 on the judicial power, saying that the country can no longer wait for an integrated judicial system. After amending the law, the committee will set its sights on reviewing four related legislations on the Supreme Court, State Administrative Court, Public Court, and State Prosecutors. "We hope the revision of the law will be completed by early December. From Dec. 5, we will then discuss the revision of the Supreme Court Law," committee chairman Zain Badjeber told The Jakarta Post on Saturday. The amendment of the law was proposed by 42 inter-faction legislators in June last year. Zain asserted that the revision would put an end to interference of the executive body with judicial affairs. Currently, the Ministry of Justice and Human Rights and the Ministry of Defense play pivotal roles in determining which court will hear cases involving both civilians and military personnel. Under the revision, the appointment of judges presiding over joint civilian-military courts will be in the hands of the Supreme Court, Zain said. A committee member Agun Gunandjar Sudarsa said amendments to the Law No. 14/1970 remained a necessity, although the government of President B.J. Habibie had enacted the Law No. 35/1999 to revise the 1970 law. The 1999 law stipulates that the establishment of an integrated judicial system under the Supreme Court should come into effect within five years of its enactment. Agun stressed that the establishment of an integrated judicial system could not be delayed further. "Legal reform, in the form of an integrated judicial system, should be completed before elections in April next year," he told the Post. Meanwhile, the director of Indonesian Judiciary Watchdog (MAPPI), Asep Rahmat Fajar, said that the draft revision ignored the recruitment and promotion of judges. "We know that the problems facing our judicial system lie in the quality of human resources. If the revision does not improve the recruitment and promotion of judges, the legal reform will not work," Asep said. (by Kurniawan Hari)

From http://www.thejakartapost.com/ 11/17/2003

TOP↑

MALAYSIA: Bankruptcy Act to Include All Civil Servants

The Government will amend the Bankruptcy Act 1967 to bar bankrupt civil servants from remaining in office, said Minister in the Prime Minister's Department Datuk Seri Dr Rais Yatim. Currently, under Section 36 of the Act, the disqualification only applies to Sessions Court judges and magistrates and those nominated or elected to or holding or exercising the office of a councillor of a local authority. Dr Rais said the provision needed a closer look to embrace all public servants and the ministry's legal department had been instructed to study the matter. It is a public policy that a bankrupt should not serve in the public office. This is due to the pecuniary indebtedness position one is in, he said in a telephone interview. Dr Rais was responding to a report that the Jasin district council secretary, Abdul Manaf Jaffar, had had his contract renewed on Jan 1 this year although he had been declared a bankrupt three months earlier. Malacca Chief Minister Datuk Seri Mohd Ali Rustam had said that there was nothing wrong in a bankrupt holding the post as no rules had been broken. He added that the Official Assignee had also not stated that Abdul Manaf could not hold the post. Dr Rais said Abdul Manaf's case was covered under Section 36 of the Bankruptcy Act because he was nominated to the post. Some people may split hairs over the fact that he is not a councillor but just a contract secretary. However, the key word is that he is nominated to the office of a local authority and he forms part of the council administrative structure. When asked to comment on the amendment to the Bankruptcy Act, Cuepacs adviser Datuk N. Siva Subramaniam said it would be unfair to dismiss all public servants who were declared bankrupts. Some became bankrupts not by their own fault but because of being guarantors for loans taken by others. The current regulations that allow disciplinary action based on the merit of the case is sufficient to deal with the situation, he said when contacted. Siva Subramaniam said the proposed compulsory dismissal for bankrupt public servants could push hard pressed civil servants to the edge and seek help from loan sharks instead. This will open the opportunity for loan sharks to threaten civil servants, he added. In Malacca, Mohd Ali said he would submit a report to Prime Minister Datuk Seri Abdullah Ahmad Badawi this week on the matter. 揑 will abide by any advice given by the Prime Minister, he added, saying the state government was ready to rescind Abdul Manaf's contract. Abdul Manaf, 47, was declared a bankrupt on Sept 11 last year for standing as a guarantor for a company over a RM2.5mil loan. He said yesterday that he had nothing to hide. I am not a criminal. Everyone in the council and my friends know that I am a bankrupt. I am also a victim here, said the former Jasin Umno committee member. (by Lam Li )

From http://thestar.com.my 11/18/2003

TOP↑

PHILIPPINES: Congressmen Tackle P864-B National Budget

Congressmen who spent eight hours of marathon session deliberating on the Davide impeachment issue last Monday will start today another series of prolonged debates when they resume legislative work for the P864.8-billion budget proposed by the government. However, despite the 115-77 vote to uphold Speaker Jose de Venecia's ruling to recognize the Supreme Court decision on the impeachment issue, congressmen who sought Davide's ouster vowed to move today for the transmittal of the Articles of Impeachment to the Senate. The House leadership declared not to hold session yesterday in order to give lawmakers time to rest and be prepared for another grueling task of debating on the budget. Budget hearings were stalled for at least three days after the impeachment controversy hit the Lower House and after solons decided to adjourn early last October. Speaker Jose De Venecia presided over the marathon session that saw members of the House of Representatives vote on the Speaker's ruling that the House will recognize the High Court decision that declared as unconstitutional the second impeachment complaint against Chief Justice Hilario Davide Jr. De Venecia said the 115-77 voting "decisively defeated the impeachment complaint" against Davide and ended the impending constitutional crisis that would have pitted the Lower House and the High Tribunal against each other. Majority of the solons present at the resumption of session last Monday opted to use the three minutes allotted for each of them to explain their vote during the nominal voting that sealed the fate of the impeachment bid. Majority Leader Neptali Gonzales II confirmed the Speaker's stand that the impeachment is water under the bridge, saying that "as far as the House is concerned the issue has come to an end." "The House majority voted to respect the decision of the Supreme Court. We have decisively defeated the moves of those who wanted to impeach Chief Justice Davide," De Venecia said. But the House leadership's stand failed to move staunch impeachment supporters who vowed to take the floor today to press for the transmittal of the Articles of Impeachment to the Senate. Minority Leader Carlos Padilla said he will push for reconsideration of his motion to transmit which Gonzales, who was then acting as presiding officer, rejected. "The impeachment complaint is not yet dead, it is just in the ICU. But it is alive," Padilla stressed. Together with Rep. Rodolfo Albano (Lakas, Isabela), Padilla noted that the motion to overrule De Venecia's ruling to yield to the High Court decision received 77 votes which is more than the required votes that would result to the transmittal of the complaint. Albano said the "unconstitutional decision" of the High Court is a temporary setback. "Not even the most painfully convoluted legal acrobatics can justify the anomaly that a public official refuses to be accountable to the people for his stewardship of funds," Albano said. Party-list Rep. Loretta Ann Rosales, who campaigned openly for support of the High Court's decision, appealed to backers of the impeachment to respect the voting. (by Ben R. Rosario)

From http://www.mb.com.ph/ 11/11/2003

TOP↑

SINGAPORE: Govt Revises Tax System for Developers Enhancing Land Value

The government is revising the way it taxes developers for enhancing the value of a plot of land. This is because its current system is quite antiquated, in some cases based on valuations that have remained unchanged for almost 50 years. National Development Minister Mah Bow Tan, in moving an amendment to the Planning Act in parliament on Tuesday, says we should move with the times. If a developer takes an old parking lot and want to transform it into a housing block, for instance, the value of the land shoots up. And developers like Far East and CapitaLand are taxed 50 per cent on how much they have increased its worth. The original valuation of the land is called a "development baseline". And under the current Planning Act, this is calculated by looking at the site's valuation in the government's 1958, 1980 and current Master Plans. It picks the highest of these three valuations. With the latest change, old valuations from 1958 and 1980 will be history. Only the government's latest Master Plan will now be used. Mr Mah said: "Any enhancement in value arising from the redevelopment would be above this base, and not that above a historically prescribed base that has no direct link with the actual development history of the site." Developers are being given four-years advanced notice to adjust. And according to analysts, some developers may be bringing forward certain developments if they think they can pay a lower tax. (by Frederick Lim)

From www.channelnewsasia.com 11/11/2003

TOP↑

Parliament Approves Consumer Protection Bill, Cap on $20,000 Claims Remains

Parliament has approved the Consumer Protection (Fair Trading) Bill to protect consumers from errant retailers. But the Government turned down requests from MPs to raise the $20,000 cap on claims and to set up a Fair Trading Office to enforce the new legislation. Mr Raymond Lim, Minister of State for Trade and Industry, said: "We were concerned in creating another regulatory agency which might add another layer of bureaucracy to businesses." If you have the time and would like to look at some jurisdiction, you find this voluminous demand of directives that you have to comply with for consumer protection. So we were mindful of that." As for the cap on claims, Mr Lim pointed out that between 1999 and 2001, 99 percent of complaints to the Consumers Association of Singapore (CASE) were for claims of between $7,000 and $12,000.He said the $20,000 cap was more than adequate. Mr Lim also felt the same way about the three-day cooling-off period, which he said was long enough. Mr Lim said: "It is a significant departure from the sanctity of contract...it is a cooling-off period, not a see-and-decide period. "The issue here is really high-pressure sales. Because of high-pressure sales, you are forced to buy a vacuum cleaner for instance which you do not want. So you have three days away from the pressure to review your decision." (by Ken Teh)

From http://www.channelnewsasia.com/ 11/11/2003

TOP↑

THAILAND: Ministry to Draft Bill Legalising All Gambling

The Justice Ministry has indicated that it will draft legislation to legalise all types of gambling so that the government can use the proceeds to benefit social development, a senior official said yesterday. Pongpat Riangkrua, director of the ministry's legal office, said Justice Minister Pongthep Thepkanchana would invite concerned parties to help draft the bill during a brainstorming session in December. Pongthep is the chairman of the sub-committee charged with revamping the anti-corruption law. Pongpat said that legalising gambling would put an end to underground mobsters and corruption. He said the government should accept the fact that illegal gambling exists. "We have been turning a blind eye to gambling dens and prostitution problems. We just sweep the dirt under the carpet and are too naive to accept it," he said. "We also haven't accepted the fact that social and legal mechanisms can help control it. We do not believe that we can stop children and poor people from gambling.'' The present gambling law makes it tough for gambling operators, he said. They have to deal with many different agencies and pay huge sums of money under the table. But it's cheaper for them to pay the bribes than seek licences legitimately. The law should be amended to make licensing easier, he said, so that the government can establish controls and tax the operators. The Anti-Money Laundering Law should also be amended to include gambling-related offences, he said. The government should legalise casinos by giving them concessions. Meanwhile, the Thai Research Fund organised a seminar that discussed possible abuses of funds raised through legalised gambling. Participants suggested the government issue laws to ensure transparency in the management of gambling funds. Prof Pasuk Pongpaijit, from Chula-longkorn University's Faculty of Econo-mics, said legislation should be drafted to manage all gambling revenue, and the Office of the Auditor-General should be employed to ensure there is transparency in the bookkeeping. "The Government Lottery Office is generating huge revenue from the new two- and three-digit lottery game, but there is no mechanism to monitor the funds. Politicians could easily pocket some of the money,'' she said. Gambling should also be legalised, she said, because it has become a way of life as our lives are dominated by capitalism and speculation. "People nowadays want to get rich quick and try their luck without working. It would be an up-hill task to stop gambling. It's better to bring it out in the open and control it properly,'' she said. Extensive research should be carried out before implementation, Pasuk said, to find out what kind of people gamble, why they gamble, where they get their income from and if they have family problems. "Laws must be strong enough to prevent money laundering in gambling dens,'' she said. According to statistics compiled by researcher Dr Sangsit Piriyarangsan, Bt1.8 trillion was circulated through illegal gambling last year - 8 per cent of the gross domestic product. Gamblers lose Bt353-Bt415 billion a year by gambling. More than 21 million people bought underground lottery tickets in 1995, he said, a number which had risen to almost 24 million in 2001.

From http://www.nationmultimedia.com/ 11/12/2003

TOP↑

Govt Pushes Village Fund Bill Through

By a vote of 265 to five, the government yesterday pushed for the first reading of a draft bill on village funds, although the opposition claimed the legislation was redundant. "The village funds have been in existence since 2001, and the country has no need for additional legislation to validate them," Democrat MP Nipit Intarasombat said. Nipit argued that the government had already issued an executive decree to disburse Bt1 million to every village, so there was no need for an Act of Parliament on the topic. Deputy Prime Minister Suwit Khunkitti countered that the draft bill was meant to encourage villages and communities to become selfreliant. "The spirit of the bill is to ensure the access of villages and city communities to roving funds aimed at enabling them to develop work skills and create jobs," he said.

From http://www.nationmultimedia.com/ 11/13/2003

TOP↑

BOI Reviews Policy on Public Housing

The Board of Investment will on Wednesday review three major investment promotion policies in the areas of technology and innovation, state enterprises and lower-income housing projects, said Sompong Wanapa, secretary-general of the BOI. Newly-appointed Industry Minister Pinij Charusombat yesterday chaired a BOI sub-committee meeting that considered guidelines in granting investment promotion privileges emphasising skills development, technology and innovation, Sompong said. The panel also considered an adjustment in investment promotion policy towards projects proposed by state enterprises and privatised state-owned companies. "BOI will suggest that the Cabinet relax regulations for state enterprises which have undergone privatisation to become corporate or public company entities to qualify for BOI privileges," he said. "We will propose an amendment to the 1998 cabinet resolution which prohibits investment promotion to state enterprise projects." In addition, the BOI sub-committee rejected a request from property-development companies to increase the price of homes in projects eligible for promotion from the current limit of Bt600,000. "Even though building material prices have gone up, the cost of land and interest charges on loans are still low compared with the pre-crisis period. The total cost of constructing a house should not change that much," Sompong said. The meeting agreed to maintain the maximum price of houses eligible for BOI investment promotion privileges at Bt600,000 in line with its policy to assist lower- and medium-income earners, he said. The three resolutions will have to be approved by the BOI's main board, chaired by Deputy Prime Minister Somkid Jatusripitak, on Wednesday.

From http://www.nationmultimedia.com/ 11/17/2003

TOP↑

VIETNAM: Deputies Endorse Revised Law for State-owned Firms

The National Assembly on Thursday passed amendments to the State-Owned Enterprise Law, promulgated in 1995, to make it easier for State-run firms to operate competitively in a market-driven economy. The Assembly's Deputy Chairman, Truong Quang Duoc, presented the response of the NA Standing Committee to suggestions and comments made earlier by deputies, and read out the proposed new version of the law. The revised State-Owned Enterprise Law was approved by 421 of the 425 deputies present at the session. The new law, which has 11 chapters comprising 95 articles, will come into force on July 1, 2004. The first chapter deals with general regulations on State-owned enterprises (SOEs) which, it says, are economic entities organised in the form of State firms, stock or limited liability companies in which the State holds the entire registered capital or the total stock or majority share of capital. Article 5 in the chapter states that political and social organisations in SOEs must operate within the framework of the Constitution, the law and their own statutes in line with the law. Chapters 2 and 3 dwell on the establishment and registration of SOEs, and their rights and responsibilities. Article 17 in Chapter 3 rules that pay rises and rewards for leaders and workers of an SOE should be considered only after all mature debts have been paid. Chapter 4 defines the way to run SOEs, with clear stipulations governing enterprises with or without management boards. Rights and duties of the management council chairman and those of the general director, deputy general director, chief accountant, and employees are specified. Article 27 in the same chapter says that the director's spouse, parents, children and siblings are not allowed to hold the post of chief accountant or chief cashier of the SOE. The form, organisation and operation of State-owned corporations are detailed in Chapter 5. Corporations set up and financed by the State are required to operate in key industries and sectors to play a pivotal role in stimulating economic growth and contributing to the State budget revenue. The rights and responsibilities of those State institutions which own SOEs are described in Chapter 6, together with their rights and responsibilities when dealing with State capital in other firms. Chapters 7 governs SOEs' reorganisation, abolition and bankruptcy, and Chapter 8 deals with the transfer of their ownership. The State management of SOEs is defined in Chapter 9. Chapter 10 explains rewards and punishments which may result from SOEs' production and business activities, and Chapter 11 deals with the execution of the revised law.

From http://vietnamnews.vnagency.com.vn/ 11/07/2003

TOP↑

NA Passes Much-Awaited Amendments to Land Law

The National Assembly passed the long-awaited revised Land Law on Thursday after the Standing Committee told the deputies that it had amended eight controversial provisions. The new law won the approval of 84.94 per cent of the 429 delegates. The law will become effective from April 1 next year and is the fourth revision since the Land Law was first promulgated in July 1993. It was previously changed in 1998 and 2001. It has seven chapters and 146 articles; 99 of these went unchanged, the remainder went through several re-writes. More than half the 32 registered speakers had no time to put their views because of the prolonged arguments put by those able to speak when the revisions were previously debated on October 27. Those unable to take the floor were advised to put their recommendations in writing to the Draft Committee for consideration. The Standing Committee's report, delivered by Deputy Assembly Chairman Truong Quang Duoc, says the Standing Committee had asked the Draft Committee and other relevant authorities to sum up all the recommendations raised at the previous debate in the new draft. Duoc said the new amendments govern the definition of land ownership; land-use rights, the transfer, certification and dimensions of land as well as the settling of disputes. He said some suggestions made by the deputies had been accepted and some had not. An example was definitions of land ownership. Some delegates had suggested the phrase "land is owned by the entire people but that ownership is vested in the State which acts as the people's representative" should be changed to "Land is owned by the State." These deputies argued that their change was necessary because the proposed phrase could be understood to mean the giving of privileges to some officials and public employees while the majority of the people were not asked for their opinion about the use of land. But the Standing Committee refused to give ground saying the phrase should go unchanged to conform with the 1992 Constitution. This says: "Land, forests, mountains, rivers, lakes, water resources, natural resources under the ground, sources of income from the sea, the continental shelf and the sky... are all owned by the entire people." The Standing Committee also stood firm about the price for land; land-use certificates and the settling of land disputes. Duoc said some delegates had proposed that the law should specify the relationship between land prices fixed by the Government and those by the market with the meticulous calculation of the price remaining the prerogative of the Government. But the Standing Committee held that the fundamental basis for calculating land prices should be "close to the price for the transfer of land-use actually conducted in the normal market" and should "not take into account irregular factors caused by land hoarding and other land-related price fluctuations. It said the provision would eliminate the weaknesses in the State's land price fixing system that failed to take into account actual market prices.

From http://vietnamnews.vnagency.com.vn/ 11/07/2003

TOP↑

Delegates Deliberate on First Civil Procedures Code

The National Assembly is considering Viet Nam's first civil procedures code to help the courts deal with the growing number of disputes in the country. Chief judge of the Supreme People's Court, Nguyen Van Hien, presented the code to the National Assembly on Monday, saying it would help Viet Nam fill a large legal gap. Hien said Viet Nam urgently needed to implement civil procedures to settle business and investment disputes, especially as the country has signed many international treaties and conventions, and is applying for membership of the World Trade Organisation. Hien, who is also head of the committee drafting the code, said Viet Nam has guidelines for criminal procedures but none to govern civil cases. Family, business and labour disputes have been settled according to three different ordinances governing civil cases, economic fraud and workplace relations. Even though all civil cases have been conducted in line with a number of principles, he said, the different rules applied under the three ordinances had led to dissatisfaction among the involved parties. And the principles are insufficient for dealing with the rapid growth in the number of civil disputes in the country. Hien said the three ordinances, issued separately in 1990, 1994 and 1996, only provided general instruction rather than specific procedures for settlement. The draft presented to the National Assembly on Monday is the 11th version. It draws upon current court operations as well as other countries' civil code. The code covers fundamental principles of civil procedures, the powers of the District Court and the Court of Appeal, evidence, subpoenas, procedures to solve civil problems involving foreigners and international co-operation. Chairman of the Assembly's law committee, Vu Duc Khien, said the committee had evaluated the draft code and found it had been meticulously re-written to cover all aspects of civil code. He said the draft code was "more systematic, adequate and specific" than the existing three ordinances. But Khien said the law committee had still asked the draft committee to clarify a number of points. These included procedures to solve industrial actions, complaints about voter registration, residency registration offices and the execution of court verdicts. Khien said the committee also wanted more discussion about the decen-tralisation of power to the District Court to solve all civil court cases, particularly those involving foreigners. Although, he said the law committee fully supported the draft's proposal to allow Vietnamese courts to solve civil lawsuits involving foreigners. More debate was also needed to decide the number of jurors and judges to be included in the Court of Appeal and Supreme Court hearings. Khien said the new code should be issued quickly so it will be in place by the beginning of 2005.

From http://vietnamnews.vnagency.com.vn/ 11/11/2003

TOP↑

BANGLADESH: ADB Accord Specifies Long-Term Goals to Reduce Income Poverty

Asian Development Bank (ADB) and the Government of Bangladesh signed the Partnership Agreement on Poverty Reduction (PAPR) on April 2000. Consistent with the millennium development goals (MDGs), the PAPR specifies medium-term (up to year 2005) and long-term (up to year 2010) goals for reducing income poverty, and improving other social indicators such as primary education, gender disparities, maternal and infant mortality rates, malnourishment, and access of women to reproductive health services, said the Quarterly Economic Update released on Thursday. In order to prepare a comprehensive agenda for the implementation of PAPR, and ADB's new Country Strategy and Programme (CSP) for Bangladesh, the bank has undertaken several studies on the different aspects of poverty reduction, and reviews work undertaken by others, which is also relevant to the PAPR and preparation of the new CSP. "Women in Bangladesh remain particularly vulnerable to living in conditions of poverty. Socially prescribed roles have limited women's access to economic resources such as capital, skills and marketing know-how. These same social norms limit women's participation in political and other forms of decision-making that affects their lives. These restrictions are particularly hard to overcome for women who head households, whether as widows or through divorce or abandonment". " However, changes in social attitudes are taking place, and some women have taken new opportunities for economic and social development with far reaching effects, improving their potential for taking greater control over their own lives as well as accessing the resources necessary to remove themselves and their families from poverty in a sustained manner", the ADB report observed. The report said, contributions from women have been vital for improvements in some key development indicators over recent years. Participation of women in the wage labour force has increased, particularly into the ready-made garment (RMG) sector that currently brings in approximately 70 per cent of foreign currency earnings to the economy and increasing income 'levels for many families. Through increased access to micro-finance, women's labour at the household level has been transformed into cash contribution to household income. Through improved services and access to cash incomes, more women are able to use health services and female life expectancy rates have increased. Social mobilisation of women has contributed to overall reductions in fertility and improved health of family members and some women have been able to take greater control over their own lives. Girls are enrolling in primary school on an equal basis with boys, indicating a significant change in family attitudes towards the value of girls, not only economically, but as individuals with a right to education. It is anticipated that as these girls become adults, higher levels of education will bring significant economic as well as overall gains to their households and communities. "The government's increased recognition of women's human rights has also contributed to these changes in attitudes towards women and girls. Some reservations placed by the government when ratifying the Convention for Elimination of Discrimination against Women have been lifted, and there have been legal reforms concerning gender-based violence (domestic violence and acid throwing). But there remain continuing challenges", the ADB report added. Despite the increase in number of women in the paid workforce, there remain many aspects of the labour market where gender disparities are marked. The gap in wage rates between men and women is still significant. Women's employment is also concentrated in sectors with low returns on their labour and characterised by temporary terms. These trends mean that in 1999-2000 according to Labour Force Survey of Bangladesh Bureau of Statistics, 41.7 per cent of women drew a salary less than 750 Taka per month compared to 7.3 per cent of men and 71.5 per cent of women were earning less than 1,500 Taka per month compared to only 26.4 per cent of men. Women are also concentrated in low or unpaid agricultural work in the rural areas, with almost 75 per cent of women reporting underemployment (working less than 35 hours per week) intensifying urban-rural inequalities in income and poverty levels, the repot said.

From http://www.bangladesh-web.com/ 11/01/2003

TOP↑

VoIP Legalisation Finally Gets Cabinet Nod

The cabinet on Monday approved a bill for legalising voice over Internet protocol (VoIP) operations in the country. According to the proposal submitted by the Bangladesh Telecommunications Regulatory Commission (BTRC), operators will be given licences on the basis of their prescribed criteria and a certain fee. Industry insiders had earlier expressed their doubts about 'frivolous' licensing and suggested limiting of the number of licenses to ensure quality of service. Akhtaruzzaman Manju, president of the Internet Service Provider's Association of Bangladesh, told New Age Monday, "The decision to legalise VoIP will prove to be a milestone in the economic growth of the country. I am grateful to the prime minister and her Cabinet on behalf of ISPA for approving the bill." But Manju struck a note of caution, saying that the authorities concerned should ensure fair competition among the VoIP operators and hinted that certain quarters should not be allowed to run monopoly businesses in this sector. He also pointed out that the specified criteria should ensure the quality of service. Syed Marghub Murshed, chairman of the BTRC, told New Age on November 8, "There will be a mandatory licensing fee in order to discourage frivolous licensing." He said that once the cabinet agreed to the proposal submitted by the commission, they would move ahead on the matter in consultation with the genuine operators. Concerned quarters believe that the legalisation of VoIP will substantially decrease the cost of business since this technology allows overseas telephonic conversations at a much cheaper rate than is currently offered by the Bangladesh Telegraph and Telephone Board, the national operator. Manju told New Age earlier on November 8 that, with the VoIP being legalised, the exporters can easily arrange video conferencing, 'which is as good as meeting the clients in person'. Besides reducing the cost of business, VoIP is considered to be a vehicle for other businesses including international calling centres, which is said to be a billion dollar industry. There will also be substantial gains in the country's foreign reserves as operators will remit their earnings through the formal channels. According to inside sources, there were numerous questions at the Cabinet meeting as to why the bill had been delayed for such a long time before finally being submitted to the Cabinet for approval. The regulatory commission had submitted three proposals before the current one since last year but had been rebuffed each time. It is widely believed that this bill has so far been stalled in order to benefit the cartels, close to the powers that be, that had been running illegal VoIP operations in the country worth crores of Taka.

From http://www.bangladesh-web.com/ 11/11/2003

TOP↑

President Assents to Civil Procedure (Amendment) Bill

President Dr Iajuddin Ahmed on Saturday assented to the Code of Civil Procedure (Third Amendment) Bill 2003 passed in the just-ended 10th session of Parliament, reports UNB. The parliament passed the bill on Wednesday (November 19) to discourage filing of false cases and quickly settle huge backlog of civil cases. It provides for increasing compensation up to Tk 20,000 from Tk 5,000 for filing of a false case on false deeds and documents. Under another provision, the court may fine either party in a case up to Tk 2000 as cost of delay in making application in respect of interlocutory matters.

From http://www.bangladesh-web.com/ 11/23/2003

TOP↑

BHUTAN: Draft Constitution on Firm Foundation

The draft Constitution of Bhutan is on firm foundation but it requires careful whetting to ensure that it serves the purpose and objectives declared by His Majesty, said Mr K K Venugopal a distinguished and renowned constitutional expert from India. "What His Majesty desires is a democratic constitution which will serve the needs of the people not only today but for the long future," said the senior advocate of the Supreme Court of India who is in the country to share his expertise and comment on the draft Constitution. Mr Venugopal who was granted an audience by His Majesty on November 7 said that it was a matter of considerable significance that the sovereign should want to give to the people the right to govern themselves through their elected representatives. "His Majesty expressed concern for the people and wanted a constitution which would meet their hopes and aspirations," said Mr Venugopal. Mr Venugopal said that he was confident that the people of Bhutan would implement the Constitution to ensure that it would serve the purpose which His Majesty had in mind at the time it was decided that Bhutan should have a constitution of its own. A widely respected personality who has represented many landmark constitutional cases in India, Mr Venugopal has served in several important public posts in India and a few foreign countries. He was conferred the 'Padma Bhushan' in India and received prestigious awards and medals from abroad in recognition of his achievements in human rights and legal multi-lingualism and multi-culturalism. The Chairman of the Constitution drafting committee, chief justice Lyonpo Sonam Tobgye, said that Bhutan will benefit from the professional expertise of Mr Venugopal "so that the draft Constitution would be strengthened and avoid weaknesses". "The Constitution of Bhutan is a product of peace. Therefore, the Constitution must strengthen sovereignty, security and stability, ensure peace and prosperity to promote goodness and make the kingdom of Bhutan a great nation," said Lyonpo Sonam Tobgye. A 39-member Constitution drafting committee comprising elected members of the people, monastic body, the judiciary and the executive arms of the government was formed soon after His Majesty commanded the drafting of a Constitution on September 4, 2001. After six meetings, the drafting committee formally submitted the first draft of the Constitution to His Majesty in December last year. On the command to make further improvements the Constitution committee submitted the second draft in June 2003. (by Kinley Y Dorji)

From http://www.kuenselonline.com/ 11/08/2003

TOP↑

INDIA: SEZ Rules Put Off Again

NEW DELHI - The government has once again put off implementation of the rules and regulations regarding special economic zones till December 1, mainly due to reservations expressed by several units on certain aspects of these rules. The Council for EOUs and SEZs, however, wants the government, in the meantime, to consider framing such rules for EOU units as well after the SEZ rules have been made effective. Implementation of the SEZ rules, originally scheduled for August 15, was first postponed to October 15. According to Council for EOUs and SEZs director-general LB Singhal the delay has been caused by some SEZ units which have expressed reservations on certain provisions of the rules. The council, therefore, wants to ensure that the viewpoints of these members are also taken into account before finalising the rules, says Mr Singhal says, adding there has been no difference of opinion between the finance and commerce ministries on the rules. In fact, the issue of framing the SEZ rules was discussed threadbare at a high-level meeting held recently. It was attended among others by additional commerce secretary Vinay Bansal, customs department director AK Prasad, Kochi SEZ development commissioner Paul Antony, and Kandla SEZ development commissioner Yogendra Garg, besides Mr Singhal. Mr Singhal says the council has been working out rules and regulations for some time now with a view to make these applicable to the EOU units on the lines of SEZs. Both the EOU and SEZ schemes have a great potential as their combined contribution to exports was nearly 32 per cent during the past decade. There is, therefore, a need for making coordinated efforts by all concerned to achieve a quantum jump in exports by these units. The SEZ scheme became effective from April 1, 2000. So far, 21 SEZs have been approved on the basis of proposals received from states/private promoters. Of these, the SEZs at Indore, Salt Lake (Kolkata) and Jaipur are ready for operation. Those at Navi Mumbai and Maha Mumbai, Visakhapatnam, Hassan (Karnataka) and Jodhpur (Rajasthan) have made substantial progress and sizeable land has also been acquired. Under the current policy, supplies from domestic tariff area (DTA) units to SEZ units will be considered as exports by DTA units and supplies to DTA units from SEZs will be considered as imports by DTA units. The government has also clarified that supplies from SEZ units will be governed by the provisions of the Customs Act and not by the provisions of the Central Excise Act. (by S Venkitachalam)

From http://www.financialexpress.com/ 11/03/2003

TOP↑

Cabinet Defers Decision on Unorganized Workers' Bill

THE Union Cabinet has deferred its decision on the Unorganized Sector Workers' Bill that seeks to extend minimum wages and other social benefits to labourers in 122 sectors. The Bill has been sent back to the Ministry of Labour for "fine-tuning". Speaking to newspersons here on Thursday after the Cabinet meeting, Ms Swaraj said the Group of Ministers (GoM) has already cleared the Bill and the Cabinet will again take it up in a week to 10 days. "The Cabinet today discussed the Bill and it was felt that it needs to fine-tuned and loose ends tied up," she said. The Bill seeks to bring 75 per cent of the country's workforce under the social security net by providing pension, health and welfare schemes at nominal costs. It is also envisages that no worker will have to work for more than eight hours a day. Ms Swaraj said the Cabinet has decided to permit opium processing in the private sector, as there is a shortage of processed opium in the country. The move will help the domestic pharmaceutical industry, as drug manufacturers now have to import processed opium for use in many medicines. "The opium processing has been under the control of the Central Government and we have only two factories processing opium. This has created a shortage for processed opium though India produces some 700 metric tonnes of raw opium a year," the Minister said. Now anyone can process opium after obtaining necessary approvals and licences as stipulated in the Narcotics Act. Ms Swaraj also stated that the Cabinet Committee on Economic Affairs, which also met today, approved continuation of the Centrally sponsored scheme of restructuring and reorganisation of teacher education.

From http://www.thehindubusinessline.com/ 11/06/2003

TOP↑

Govt Seeks Higher Payout from Public Sector Banks

THE Government has set its sights on the large treasury profits generated by the public sector banks and asked them to make interim dividend payments. Highly-placed banking sources said that the PSU banks were told to alternatively to increase the quantum of dividends paid out for the current fiscal year. For the year, the estimates for dividend receipts from public sector banks, financial institutions and the Reserve Bank of India is Rs 10,700 crore. But the sources said that the Ministry of Finance has already indicated that the Government would like to have a higher dividend receipts. This is despite the fact that in some of the banks, the Government equity holding has already been diluted through further equity issues and partially through equity buyback. The sources said that the Government had made this demand in view of the expected revenue short falls during the current year from both tax and non-tax sources. The demand for additional dividends was to partially offset this anticipated fiscal slippage, the sources added. Besides, the sources said, that the Government had also pointed out that some of the banks were likely to show large profits on account of the securities buyback in July. Many of the banks, which had participated in the securities buyback are expected to be using the profits earned for creation of floating provisions. This essentially implied they were doing this as a contingency against any future asset stress. Only a handful of banks actually needed the funds to make provisions. Besides, most of the PSU banks have conservative accounting system and have already made provisions on the basis of the income recognition guidelines to come into effect from March 31 2004. These guidelines prescribe that debt servicing dues beyond 90 days would have to be treated as non-performing assets. Consequently these surpluses are now expected to become part of the reserves. Further the sources said the MoF had also pointed out that banks had made large trading profits due to the soft interest rate regime. In fact, the sources said that the government move had come close on the heels of the second quarter of the banks. Most of them had shown large increases in profits and almost 50 per cent of these profits were driven by the treasury operations. When the dividend estimates for the current year were made, the ten-year yield on gilts was in the region of about 6.2 per cent. Currently it is in the region of about 5.1 per cent, implying an appreciation in the value of investments part of which had translated to trading profits. The sources said that each of the banks was expected to make recoveries to the extent of at least Rs 250 crore to Rs 300 crore of non-performing assets. Consequently, the sources said that estimates in the Ministry were that the banks could afford to foot a higher dividend bill, without impairing the capital adequacy. (by C. Shivkumar )

From http://www.thehindubusinessline.com/ 11/18/2003

TOP↑

India Not Looking for Bargaining Chip on Agriculture at WTO

India has let it be known that its position on agriculture at the World Trade Organisation negotiations has nothing to do with gaining tactical or bargaining advantage. The country's approach will be purely dictated by its development strategy to provide employment and eradicate poverty. "To us, this is a moral and ethical imperative, and we hope that the rest of the world appreciates the gravity of the situation," visiting Planning Commission chairman KC Pant told US policy-makers and experts here on Monday. Pant, addressing the Centre for Strategic and International Studies, said Indian agriculture will have to grow by at least 4 per cent per annum over the next decade to reduce poverty and provide full employment. Exports are deemed critical since domestic demand for farm products is estimated to grow by only 3 per cent. "Anything that retards our rate of progress will eventually have repercussions on the pace of growth and stability of the larger system," he said, stressing that India, along with China, is potentially the future market driver for the word economy. "These are not issues of tactical manoeuvring, but of long-term strategy." Pant pointed out that trade issues impeding India's development efforts are not confined to agriculture. In the manufacturing sector, tariff peaks and escalations on goods limit the extent of value addition. Similarly, trade in services is still tied up in debates on modes of delivery, especially in such services where countries like India have a comparative advantage. India, Pant said, was on course to achieve its millennium development goals. The incidence of poverty is expected to be brought below 15 per cent by 2015, and the literacy level taken to 90 per cent by the same year. On the infrastructure, he said the new moves to involve the private sector have begun to bear fruit. Shortcomings are now being addressed in power, roads, telecom and ports sectors with the help of private participation. (by S Rajagopalan)

From http://hindustantimes.com/ 11/18/2003

TOP↑

Government to Expand Open-Sky Policy to Attract Foreign Tourists

NEW DELHI - With India now being one of the most sought after tourist destinations, government is planning to cash in on the opportunity by giving a fillip to the civil aviation sector to further boost tourist inflow into the country. According to civil aviation ministry officials, government is contemplating allowing foreign tourist charter flights on major airports in the country. As per the open sky policy the government has been gradually liberalising the conditions for allowing chartered flights at a larger number of airports. Except for popular destinations like Goa, Jaipur, Agra, etc., charters are now permitted to fly Indian nationals as well, to other tourist destinations, officials said. The government has already allowed new points of call for foreign airlines and has agreed to the utilisation of the Indian landing entitlement in other countries by foreign carriers on mutually beneficial terms. A meeting of empowered group of ministers (GoM) would be meeting on Wednesday to discuss various issues including selection of a financial consultant to advice the government on airport modernisation, strategic partnership and private participation. The GoM had shortlisted ABN-Amro, Ernst and Young and KPMG, for appointment of the financial consultant for privatisation and modernisation of the Mumbai and Delhi airports. The empowered GoM comprise Finance Minister Jaswant Singh, Disinvestment Minister Arun Shourie, Law Minister Arun Jaitley and Civil Aviation Minister Rajiv Pratap Rudy. The government had decided to restructure and modernise the international airports at Mumbai and Delhi through formation of joint ventures between the Airports Authority of lndia (AAI) and private players, to be selected through an international competitive bidding process. The ministry had also constituted a committee to prepare a roadmap for the civil aviation sector covering all relevant aspects including restructuring of airports with a view to developing a world-class airport infrastructure with one or more international hubs; affordability and connectivity in the domestic aviation sector and development of regional air connectivity within the country. India has a well-developed and large civil aviation network. There are 122 airports in the country, controlled by the AAI, of which 11 are international airports. The air services of the country were liberalised in 1994 through a move towards an open-skies policy of the government. The total passenger traffic handled by Indian airports in 2001-02 was over 40 million, while the cargo traffic handled was around 854,000 tonnes.

From http://timesofindia.indiatimes.com/ 11/19/2003

TOP↑

SRI LANKA: Supreme Court Opinion on Defence Powers Be Non-Binding

The opinion of the Supreme Court on the question of law relating to exercise of executive powers of defence will be a non-binding opinion stated Attorney General K.C. Kamalasabeyson PC in his submission before the specially constituted five member bench. He was making his submission on the determination sought by the President Chandrika Bandaranaike Kumaratunga over her executive powers relating to defence of Sri Lanka. The bench comprised Chief Justice Sarath N. de Silva PC, Justices Shirani Bandaranayke, Hector S. Yapa, Asoka de Silva and Nihal Jayasinghe. He further submitted that in terms of Section 44 (1),(2) of the constitution the President shall in consultation with the Prime Minister appoint ministers and shall retain the portfolios that have not been assigned and remain in charge of those subjects. He said that the President shall activate his/her executive power through the constitutional mechanism and that is through the Cabinet of Ministers headed by the Prime Minister. The Attorney General stated that the President has invoked the consultative jurisdiction of the Supreme Court under Article 129 (1) of the Constitution on a matter of law relating to her executive power of defence of Sri Lanka and that the Courts' opinion will not be a binding one. Making a lengthy submission, counsel for the President H.L. De Silva PC stated that the present constitution is a prototype of a presidential constitution and for the first time in history of constitutional development, after the General Election of December 2001, majority of the Government were drawn from a coalition of political parties of which the Executive President is not a member. Tracing back to the geneses of the constitutional evolution of the country, the Counsel submitted that the 1978 Constitution was a watershed in our constitutional evolution where the Parliament deligeted its executive powers to a Executive President. He further submitted that in terms of the Section 5 of the 1972 constitution, the National State Assembly shall exercise the executive power of defence of Sri Lanka through the President and the cabinet of Ministers. According to the Section 46 - sub-section 4 of the 1972 Constitution the subject of defence of Sri Lanka was vested in the Prime Minister and that the executive power was continued to be with the Majesty and Prime Minister was in charge of the executive power of defence. He further submitted that there has been a continuous constitutional tradition where the President held the portforlio of defence and that that executive power is inalianable and should be exercised by the President and that it was the essence of the Presidential system. He submitted that President shall deligate that executive power relating to defence of Sri Lanka to a minister in terms of the Section 158 of the Constitution and that President may revoke that deligation at any time. The Silva said that according to the Article 33 (p), the President shall have the power to declare either war or peace and that that is a power not even exercised by the President of the USA where that power is vested with Congress. By the 17th amendment to the 1978 constitution, Section 61 was introduced and according to which the President shall be vested with the power of appointing head of the Army, Navy and Air Force and that shall not be concurrent to the Constitutional Assembly. In terms of the Army, Navy and Air Force Act the President shall extend the service of a Major General on completion of stipulated period of three years in the rank, on the recommendation of the Commander of the Army and that the recommendation shall be endorsed by the Minister of Defence. And according to the 1972 Constitution, he said function was performed by the Governer General on the advice of the Prime Minister he stated. (by Indeewara Thilakarathne )

From http://www.dailynews.lk/ 11/01/2003

TOP↑

Sri Lanka's President Lifts 'Emergency' Order

Sri Lanka's President Chandrika Kumaratunga on Friday lifted a state of emergency as her political rival Ranil Wickremesinghe, the prime minister, returned from Washington to assert his mandate to govern. Earlier this week Ms Kumaratunga suspended parliament and dismissed three cabinet ministers in the name of national security, accusing the government of making too many concessions in peace talks with the separatist Liberation Tigers of Tamil Eelam (LTTE). But Mr Wickremesinghe said his government had the support of the US to advance the 20-month-old ceasefire with the Tamil Tigers, who have fought for 20 years for an independent state - a civil war that has claimed more than 64,000 lives. At the airport on Friday Mr Wickremesinghe told supporters: "We have to first ensure that parliament reassembles. Parliament is the only institution which has a mandate from the people to engage in dialogue with the LTTE." Mr Wickremesinghe, who belongs to a rival political party to Ms Kumaratunga, but shares power under Sri Lanka's constitution, said he wanted to get the peace process "back on track", including the immediate delivery of a national budget. But Ms Kumaratunga said in a speech to the nation late on Friday night that parliament would reconvene on November 19 to consider the budget. She also made an appeal for political parties to join her to form a "government of reconstruction and reconciliation". Western diplomats say Mr Wickremesinghe's government had planned to deliver a populist budget next week to highlight the "peace dividend" of the ceasefire, reflected by greater tourist numbers and year-on-year export growth in July of about 17 per cent. K.R. Choksy, the finance minister, said the government had to retain confidence among investors and warned the country could face a fiscal crisis unless parliament approved a budget soon. "A budget has to be delivered before the 31st of December or the finances available to the government will run out," Mr Choksy said in an interview with the Financial Times. "We planned to introduce a budget that would bring relief to people. We wanted to raise public officials' salaries and agricultural subsidies, encourage private sector employment of university graduates, and employment for rural youth," he added. Sri Lanka's stock market rose 7.8 per cent on Friday after Ms Kumaratunga lifted the emergency decree and Mr Wickremesinghe returned to Colombo. (by Ray Marcelo )

From http://news.ft.com/ 11/07/2003

TOP↑

MALDIVES: President Says the Country Is Committed to Create the Most Beneficial National Environment

President Maumoon Abdul Gayoom has said that the country was and should be committed to create the most beneficial national environment for the people and, in a world of rapid change, remain free of influences unsuitable for the Islamic faith and culture of the people. The President made his remarks in a message to the nation on the occasion of Victory Day which is November 3. The President said that the Maldives was a very fortunate country, for the people had been blessed by the Almighty Allah with the basic requirements to build a nation of peace and unity. He noted that everyone belonged to the same faith, and further that the country did not share a land border with any state. He also said that there were no groups in the country with a different religious, historical or cultural identity. Pointing out that in some countries attempts were made to breakaway from the state by different groups. The President said that there was no room for such desire in the Maldives as the Almighty Allah had blessed the people with a strong and unified national identity. Gayoom stressed that, given the favourable circumstances of the country, the people must always remain alert against any external influence or interference that could threaten the independence, the sovereignty and the identity of the nation. He also emphasised the importance of the firm resolve to safeguard national unity and identity. The President expressed praise and gratitude to the Almighty Allah for the important victory that was bestowed on the nation. He also conveyed his good wishes and greetings to the people on the occasion of Victory Day. Noting that on 3rd November 1988, the country faced the most dangerous threat of recent times, President Gayoom paid tribute to the memory of the brave heroes who were martyred while defending the Islamic faith and the independence of the people. He also prayed to the Almighty Allah to grant their souls the blessings of Paradise. The President said that the martyrs had made a very heroic and noble sacrifice, which left behind lasting memories of courage and honour.

From http://www.haveeru.com.mv/ 11/03/2003

TOP↑

NEPAL: Govt Launches Sustainable Development Agenda

KATHMANDU - The government today launched a Sustainable Development Agenda for Nepal (SDAN) with its aims to guide and influence national-level planning and policies up to 2017. The agenda was formulated in response to the UN's call to all the participating countries of Earth Summits to build National Strategies for Sustainable Development (NSSD) along the lines of Agenda 21, a blue print for sustainable development, adopted at the first summit held in Rio de Janeiro in 1992. It is formulated by the National Planning Commission (NPC) in conjunction with the Ministry of Population and Environment (MoPE) and participation of various stakeholders. It was approved by the government in July 2003. The agenda is in conformity with Nepal's long term goals envisaged in the Ninth Five-year plan, Tenth plan, the poverty reduction strategy paper, the millennium development goals and its commitments in various international forums. It has listed a set of broad goals that Nepal aspires to achieve by pursuing sustainable development by the end of 2017. Among them, the major goals are to provide atmosphere for every citizen to lead free and dignified life; education to every girl and boy child; easy access for everyone to clean drinking water, nutritious food, clean air and basic medical facilities; enhance transportation and communication system; to develop hydropower exports as a steady source of income. The document also contains topics related to opportunities and constraints, current status and future agenda, necessary government policies and methods to implement them to attain those goals. Speaking at the launch of the agenda, NPC vice-chairman Dr Shankar Sharma expressed belief that despite being ambitious in nature, it would be durable and viable if properly implemented through clear policy. He conceded that the present conflict would have some negative effects on the agenda but said that the country could still catch up with the lost time to achieve those goals once the problem is resolved. "However, concerted efforts from all sectors, government, donor agencies, and other stakeholders will be imperative to achieve the desired results," Dr Sharma added. On the occasion, Matthew Kahane, UNDP resident representative, stressed the need for the government to provide conducive, consistent policy and economic incentives to local bodies and communities to convert the promise into practice. Calling for more permanence and sustained support mechanism that would include all stakeholders, Kahane said, "How well SDAN stands the test of time, depends on how well and effectively it is implemented." Member of NPC Dr Hari Krishna Upadhyay, under secretary at NPC Gyan Prasad Sharma and joint secretary at MoPE Dr Jibgar Joshi also shed light on different aspects of the SDAN.

From http://www.nepalnews.com.np/ 11/06/2003

TOP↑

AFGHANISTAN: Afghanistan Unveils Draft Constitution

Afghanistan unveiled a post-Taliban draft constitution Monday, a historic milestone on what has been a bloody, bumpy and often tragic path to recovery after decades of war. The draft starts by declaring that "Afghanistan is an Islamic Republic," then later creates the posts of president and vice president, as well as envisioning two houses of congress. The draft reflects the government's desire to bring the country together under the banner of Islam, which is practiced by the vast majority of Afghans. However, the hardline Islamic law enforced by the former Taliban regime is not expected to be a part of Afghanistan's future. Under the Taliban, men were forced to grow beards and pray, women were banned from schools and almost all public life, and music was forbidden. Executions were carried out before large crowds at Kabul's sports stadium. "The religion of Afghanistan is the sacred religion of Islam. Followers of other religions are free to perform their religious ceremonies within the limits of the provisions of law," the draft states, according to an English translation provided by the government. While avoiding direct mention of Shariah, Islamic holy law, the draft states that "in Afghanistan, no law can be contrary to the sacred religion of Islam and the values of this Constitution." The position of prime minister _ included in previous versions _ was cut from the final draft. Many feared a strong prime minister could have emerged as a political and military rival to the president, a major concern in a country that has known little but war for a quarter-century. "The most important thing that a country like Afghanistan needs is stability," said Jawid Luddin, a spokesman for President Hamid Karzai. "This constitution is made for Afghanistan for the next 100, 200 years." The draft must still be debated at a grand council, or loya jirga, next month. Ratification of the document will set the stage for nationwide elections scheduled for June. A rash of violence by suspected Taliban insurgents and fighting among powerful warlords that control large swaths of the country has raised fears of the security of holding a vote in June, and officials say privately it is possible the election might be delayed. A red-bound copy of the long-awaited draft constitution was handed to former King Mohammad Zaher Shah, Karzai and Lakhdar Brahimi, special envoy of U.N. Secretary-General Kofi Annan, during a ceremony at Kabul's Presidential Palace. "I hope this will be acceptable for the people and will direct people toward peace, security and democracy," said the 88-year-old Shah. The constitution enshrines Shah as the ceremonial "father of the nation," but he has no official political role and the title will not be passed along to his son. Karzai made no comment during the unveiling ceremony. The draft constitution was handed out in Dari and Pashto, and the English-language version was later released by e-mail. The draft allows political parties to be established as long as their charters "do not contradict the principles of Islam" and sets other conditions such as not having any military aims or foreign affiliation. It sets Pashto and Dari as the official languages, but the national anthem will be sung in Pashto. While not specifying gender, the draft states "any kind of discrimination and privilege between the citizens of Afghanistan are prohibited. The citizens of Afghanistan have equal rights and duties before the law." Women suffered greatly under the former Taliban regime and in conservative Afghan society are usually given fewer rights than men. Many still wear the all-covering burka robe, and husbands don't allow wives to be seen by male guests. A variety of divisive issues sparked heavy backroom negotiating between various factions, and the release of the draft constitution has been delayed several times over the past month. The constitution, which has 12 chapters and 160 articles, was drafted by a 35-member Constitutional Review Commission that started work a year ago after two months of delays. The constitutional loya jirga has also already been pushed back two months. After criticism that the constitution was being written in secrecy, the commission sent 460,000 questionnaires to the public and held meetings in villages across the country seeking input. Karzai is widely expected to win next year's elections, and some of the disputes have focused on how much power will be concentrated in the presidency. Had a prime minister's post been established, it likely would have been filled by a member of the ethnic Tajik-dominated Northern Alliance _ who toppled the Taliban with the help of the U.S.-led anti-terror coalition. Karzai, an ethnic Pashtun, has increasingly distanced himself from the Northern Alliance and its military commanders as he seeks to expand the influence of his central government. Under the draft, the vice president will run on the same ticket as the president and succeed him should he die in office or become incapacitated. New elections would be mandated within three months. The constitution gives congress the power to impeach the president, but bars the president from dissolving congress. The country also commits to preventing terrorism as well as the production and smuggling of narcotics. Afghanistan is the world's leading producer of opium.

From http://www.aopnews.com/ 11/03/2003

TOP↑

AZERBAIJAN: Eighty Amendments to Be Made to Tax Code

The Azerbaijan Government plans to make 80 amendments to the Tax Code. The bill on those amendments has been forwarded to the Parliament in the budgetary package for 2004. The bill means that the profit tax rate will decrease from 25% to 24%. Despite the insistent recommendations of the International Monetary Fund, the bill keeps the regional and sector differentiation in this tax. The schedule of income tax imposed on individuals has been considerably changed. It is planned to raise the amount of monthly salary not imposed by the income tax from 100,000 to 150,000 AZM. Salary below 3 million AZM will be imposed by a tax of 14%, while salary above this limit will be imposed by a tax of 35%. A three-step system is used in collecting the income tax now. The rate is 12% for incomes from 100,000 to 1 million AZM, 25% for incomes from 1 to 5 million AZM and 35% for larger incomes. The facilitated tax system will change too. E.g., the change will concern Clause 218.1, where the words "less than the untaxed monthly income multiplied by 1,250" will be replaced by the words "less than the Conditional Financial Unit (5,500 AZM) multiplied by 22,500". It means that the facilitated taxation will concern a three-month turnover of 123,750,000 AZM (5,500 x 22,500) instead of the currently accepted 125 million AZM (100,000 AZM x 1,250). The facilitated tax rates keep as 4% of the three-month turnover of the enterprises of Baku and 2% of the three-month turnover of those in the regions of Azerbaijan.

From http://www.bakutoday.net/ 11/01/2003

TOP↑

KAZAKHSTAN: President Signs Law on Monitoring Property Ownership

Nursultan Nazarbaev signed a law on 4 November that provides for government monitoring of property ownership in strategic spheres of the country's economy, khabar.kz reported. The law defines as these strategic spheres the extraction and processing of coal, oil, gas, uranium, and other metal ores, as well as the machine-building, transport, telecommunications, power-engineering, chemical, and defense sectors. The objective of the law is to generate information for a database on Kazakhstan's major enterprises that will be used by state agencies to make economic forecasts. BB (by Timur Onica)

From http://www.eurasianet.org/ 11/05/2003

TOP↑

TURKEY: Public Management Basic Draft Law

SAHIN: ``DRAFT LAW ABOUT PUBLIC ADMINISTRATION REFORM HAS COME TO THE STAGE OF BEING SUBMITTED TO THE PARLIAMENT``ANKARA - State Minister and Deputy Prime Minister Mehmet Ali Sahin said on Monday that the draft law about public administration reform had come to the stage of being submitted to the parliament. Together with Prime Ministry Undersecretary Omer Dincer, Sahin held a press conference to give information about the draft. ``Under the draft, number of state ministries will be reduced from 20 to 8. When the draft envisaging rebuilding of public sector is put into practice, Turkey will have an annual saving of 500 trillion Turkish liras (TL),`` he said. Sahin told reporters, ``the draft will bring forth performance control in the public sector. As a result, bureaucrats cannot refrain from their responsibilities any longer.`` The draft law, which was prepared aiming to ``set up a public pluralist and transparent management basing on human rights and freedoms``, targets re-structuring of organizations, and distribution of assignment and authorities of central administrations, local administrations, and other state organizations and institutions. In case the draft becomes legalized, central administration will transfer some of its authorities and responsibilities to local administrations and provincial private administrations. According to this assignments, authorities and responsibilities will be transferred to the most appropriate or close unit in state institutions and organizations. State institutions and organizations will not be able to set up business enterprises, produce goods and services in areas where they were not authorized. Also, personnel, buildings, vehicles and equipment will not be allocated. -ASSIGNMENTS OF CENTRAL MANAGEMENT- The draft determines general principles and policies regarding public services, sets targets and goals in this respect, covers, evaluates and controls convenience of public services to law, determined policies and standards, provides fulfillment of services in coordination with local administrations. The draft sets up mechanisms that provides communication and cooperation among professional institutions and non-governmental organizations. Justice, defense, security, intelligence, foreign relations, foreign policy, finance, treasury, foreign trade, customs, services in markets, training and education, assignments and services about religious affairs, services about social security, population and citizenship procedures, emergency case administration, civilian defense, technical and financial services to local management are considered among the assignments of central administration. Central administration units will not be able to set up organizations in local level for the assignments and services that are in field of responsibility. Number of state ministries will be limited to 8 the most. Ministries and other public institutions and organizations will not be able to set up organizations abroad apart from foreign ministry and Turkish Cooperation and Development Administration Chairmanship (TIKA). -HIERARCHICAL POSITIONS AND TITLES- The draft law regulates hierarchical positions and titles of central and rural offices of ministries and concerned institutions. Under the bill, there will be undersecretary, general director, chairmen of departments and branches. The Foreign Ministry, Secretariat General of National Security Council, Undersecretariat of National Intelligence Organization and concerned institutions will not be subject to provisions regarding hierarchical positions and titles. Hierarchical positions and titles in these institutions will be regulated under the law on their foundation. -INSPECTION AND CONSULTANCY- Under the bill, inspection and control will be made according to basic principles of public management, annual aims and targets, performance indictors, service, standards of quality. The bill foresees that education and guidance will be given importance and that reports will be announced to public opinion. Internal and external inspection will be made in public institutions and organizations. Accordingly, external inspection of institutions and organizations under authority of central administration, special administrations, municipalities and concerned organizations and local administrative units will be made by the Accounting Bureau or under principles set by the Accounting Bureau. -HUMAN RESOURCES MANAGEMENT- Civil servants and other public officials will be recruited or promoted by a competence examination or under principles of merit. Other public officials or employees working full or half time will be employed by a contract without any cadre. The contract will write about duties, rights and liabilities and performance indicators of personnel. -TERM IN OFFICE OF UNDERSECRETARIES, GENERAL DIRECTORS TO END AS GOVERNMENTS TERM IN OFFICE ENDS- In accordance with the draft law, term in office of undersecretaries, general directors and chairmen of institutions bound to the government will automatically end as the term in office of the government ends. Such people will be appointed to ministry consultancy cadres preserving their rights. -LIFTED PROVISIONS AND INSTITUTIONS- Under the draft law, the law on formation of defense secretariats and the decree in the force of law on duties and foundation of Prime Ministry Supreme Inspection Board will be abolished. Also, the Directorates General of Rural Affairs will be abolished. Foreign representations of ministries except Foreign Ministry and Turkish Cooperation Agency (TIKA) and other public institutions will be lifted and their cadres will be cancelled.

From http://turkishpress.com/ 11/03/2003

TOP↑

TURKMENISTAN: New Law on Religion Goes into Effect

A new, more restrictive law on religious activities went into effect in Turkmenistan on 10 November, turkmenistan.ru, Russian news agencies, and the website of Forum 18 (http://www.forum18.org), a Norwegian-based NGO monitoring freedom of religion in the former USSR, reported on 10 and 11 November. The new law formally criminalizes religious activities by any confession that is not registered by the Justice Ministry -- in effect, any confession other than Sunni Islam and Russian Orthodoxy. Violators may be sentenced to one year of corrective labor. Previously, unregistered religious groups were subject to administrative sanctions. The new law also requires that any religious group seeking to register must prove that it has 500 members in Turkmenistan, and only clergymen with Turkmen citizenship and a higher education in theology may lead a congregation. Formation of political parties or movements on a religious basis is prohibited, along with private teaching of religion, which is also criminalized. BB

From http://www.rferl.org/ 11/12/2003

TOP↑

Federal cabinet has approved a $50billion blueprint for the next-generation Australian defence force that includes a contentious billion-dollar tank purchase as well as new destroyers and strike aircraft. The revised equipment plan marries the core doctrine of protecting Australia with the Government's desire to increase the defence force's ability to operate overseas and fight in the global struggle against terrorism. The Government has approved plans for three new multi-billion-dollar destroyers as well as three new amphibious support ships, which will allow more military force to be sent overseas on sustained operations. "The importance to the Government of the ability to safely deploy, lodge and sustain Australian forces offshore has been reaffirmed," Defence Minister Robert Hill said yesterday. But the Howard Government has also reaffirmed the existing defence-of-Australia doctrine as the "primary driver" of the future force structure. "Tasks such as the protection of Australia's borders remain as important as ever," Senator Hill said. "The Government has decided to provide the ADF with new assets, equipment and capabilities that will ensure it continues to be able to defend Australia and Australian interests in an uncertain and complex environment." He declined to give precise costings, claiming the revised capability plan would be accommodated within existing budget guidelines. The RAAF will phase out its F-111 strike force from 2010 -- five years earlier than planned -- as the Government confirmed plans to acquire up to 100 Joint Strike Fighters to replace both the F-111s and the F/A-18s from about 2013. The navy will get three new multi-purpose amphibious ships to carry troops and helicopters from 2010, and four of the existing FFG frigates will be upgraded with new missiles. Both the new air-warfare destroyers and the amphibious transports are expected to be built in Australia, giving a big boost to naval construction. But the savings offsets will include early retirement for two frigates and two Huon class minehunters. After a long debate, the Government accepted the army's case for new tanks, but has stopped short of a final decision on which one to buy. This means the Government is yet to agree to Defence chief Peter Cosgrove's preference for the US-built Abrams tank. General Cosgrove said anti-armour weapons were proliferating in the hands of otherwise lightly armed troops: "These weapons will knock out a lightly armed vehicle quite easily." Air Force chief Angus Houston said the upgrade of the frontline fighters, the F/A-18 Hornets, together with new airborne early warning aircraft, would maintain Australia's air defences, even if there was a gap between the phasing out of the F-111s and delivery of the $12billion Joint Strike Fighter from 2013. "It (the F-111) is a very old platform and the risk of capability failure will increase with age," he said. Opposition defence spokesman Chris Evans said the plan would see the scrapping of many important capabilities for the defence of Australia. "The Government has been unable to address the reported $12billion blowout in the Defence Capability Plan. "Its solution has been to make major cuts to Australia's long-term defence equipment priorities." (by Patrick Walters)

From http://theaustralian.news.com.au/ 11/08/2003

TOP↑

The Howard Government is set to appease China by softening proposed amendments to anti-dumping legislation that were expected to help Australian manufacturers win stiff penalties against Chinese imports. At the same time, the Government has denied, as some lawyers assert, that a bilateral trade agreement made with China during President Hu Jintao's visit to Australia would affect, in China's favour, the workings of the legislation. The Opposition this week accused Prime Minister John Howard of selling out manufacturers in his rush to get a free trade agreement with China. "The deal has been done, China has market economy status," said Opposition Customs spokesman Mark Bishop. In the Trade and Economic Framework Agreement signed with China during Mr Hu's visit, Australia agreed to suspend for two years the provisions of China's accession agreement to the World Trade Organisation that treat it as an "economy in transition" in return for China's agreement to consider a free trade deal. Under the terms of China's entry to the WTO two years ago, China was to have "economy in transition" status for up to 15 years. The penalties applied for dumping from "economies in transition" are typically much more severe than for those treated as market economies. China has been lobbying the US and European Union for a switch of status. With the TEFA, Australia has gone further than any other country to meet China's demand for recognition as a market economy. "A conclusion you can draw is that for the time being it is the intention to treat (China) as a market economy," said Melbourne lawyer Andrew Hudson, of Herbert, Geer and Rundle. The legislation could be applied with reference to the TEFA in a way that "may not provide the additional level of assurance which Australian industry had originally desired", said Mr Hudson, who contributed to the Law Council's submission to a Senate committee inquiry into the amendments. But in a Senate estimates committee hearing this week, a senior Department of Foreign Affairs and Trade official said that the TEFA would have no impact on the anti-dumping legislation, because Australia had never applied the WTO provisions it had now agreed to suspend. (by Catherine Armitage)

From http://www.theaustralian.news.com.au/ 11/08/2003

TOP↑

TEACHERS, families and students will be better equipped to deal with bullying under a new code to be prepared for all NSW schools by the state government. Under the anti-bullying code, teachers will be given information on how to identify the behaviour and clear procedures on how to deal with it. Students will also be shown a straightforward approach for reporting bullying. The code will ensure parents are given advice on a clear course of action if their child reports bullying. "Bullying and anti-social behaviour is not acceptable in our schools - it needs to be dealt with swiftly and effectively," NSW minister for education and training Dr Andrew Refshauge said. "The new code will educate teachers, families and students on how to deal with bullying." Dr Refshauge said a working party with representatives from various education bodies would help develop the code, which will consist of specific strategies for dealing with bullying.

From http://www.theaustralian.news.com.au/ 11/09/2003

TOP↑

Mark Latham has sought to grab back control of Labor's taxation policy, declaring his preference to cut tax rates of all working people as part of a package of economic reforms focusing on boosting competition and creating a culture of enterprise. After days of sniping from his colleagues, Labor's Treasury spokesman insisted he was the Opposition's spokesman on tax and his view was that the tax burden must be reduced. Labor frontbenchers are angry with Mr Latham for floating policy ideas without first getting the blessing of shadow cabinet. Wayne Swan, the ALP's family and community services spokesman, continued to push for tax relief to be focused on low-income workers, insisting he would not be silenced. "I'm not advising Mark Latham. I'm not impinging on anyone else's portfolio and I'm talking constructively about positive proposals for the future," Mr Swan said in Canberra. But Mr Latham, speaking at the Pursuing Opportunity and Prosperity Conference in Melbourne, suggested he would continue to push for across-the-board tax cuts. While not going into detail, Mr Latham indicated he did not favour incremental changes such as lifting the tax-free threshold. "As a general principle in public life I would rather be a rate cutter than a threshold fiddler," he said. Mr Latham said Labor was committed to removing the "cruelty" of the tax system for low and middle-income families where in some cases families lost more money through tax and the withdrawal of benefits than the extra dollar earned. He said a system where 1 million families faced effective marginal tax rates of 60 cents in the dollar harmed the whole economy. "You can't run an economy that way, you can't run a modern economy with that level of disincentive," he said. He also slammed arrangements where some workers were on the top marginal tax rates while others who had incorporated or engaged in other avoidance strategies paid a lot less. "The hard workers are being punished while the rorters are being rewarded. It is a real barrier to economic growth in this country, a real barrier to productivity - the current system looks sick and crook." Mr Latham also signalled he was prepared to use economic policy to counter the Coalition's political campaign on defence and terrorism, declaring that as important as national security was, it should not obscure economic reform. (by Sid Marris and Steve Lewis)

From http://www.theaustralian.news.com.au/ 11/15/2003

TOP↑

Prime Minister John Howard today released details of a four-year $2.4 billion shake-up of Medicare. Under the package, doctors will be offered more money to bulk-bill children and concession card holders, and a new safety net will help people cover out-of-pocket medical expenses. Mr Howard said the package would not change the right of Australians to have free medical treatment in public hospitals, or access to affordable medicine through the Pharmaceutical Benefits Scheme. Under the safety-net scheme, 80 per cent of out-of-pocket expenses will be covered for concession card holders and average families once they have spent $500 in a year. Those not entitled to the benefit would have 80 per cent of expenses covered once their family had spent $1000 a year on out-of-pocket costs. Doctors who bulk-billed children and concession card holders would receive an extra $5 from early next year. And patients who are no't bulk-billed would be able to lodge their Medicare claim electronically at doctors' surgeries, with the rebate paid directly into a bank account. Mr Howard said the package would increase the number of doctors and nurses for areas in need in rural and regional Australia and outer metropolitan areas. He said the package would support about 1500 more doctors and 1600 more practice nurses by 2006-07. "Today's announcement builds on the Government's significant investment in Australia's health system," Mr Howard said. "It is tangible proof of our commitment to protect Medicare as a universal public health insurance scheme." He said the Government would amend its Medicare package when Parliament resumed next week, and he urged opposition parties in the Senate to pass the package before Christmas.

From http://www.theaustralian.news.com.au/ 11/18/2003

TOP↑

Prime Minister Robert Woonton is expected to table the new look Electoral Bill when parliament resumes, but a political activist organisation, the Group for Political Change, says the bill will be inadequate if a provision to stop party hopping is not included. A special committee set up early this year to review the Electoral Act recommended that party hopping should be stopped, but the Cook Islands News say contrary to this advice, cabinet insisted that the anti-party hopping provisions in the new laws be deleted from the bill. A spokeswoman for the Group for Political Change, Liz Ponga, says the people of the Cook Islands want stability and not governments that can change overnight. Legislation to prevent the tabling of no-confidence motions during the first two years of a parliamentary term is expected to be introduced in the near future.

From http://www.pacificislands.cc/ 18/2003

TOP↑

Attorney-General and Minister for Justice Qoriniasi Bale yesterday confirmed the Government's proposal to table a Constitutional Amendments Bill next year. The Bill is expected to cover what are considered the non-controversial amendments to the Constitution. This, Bale said, could test out the extent of the difficulty we could expect on the task of amending the Constitution under the procedures set out in the document in the political climate we have. In closing the Attorney General's Conference at the Outrigger Reef Resort, Bale said he hoped that reference made to the Supreme Court by the President Ratu Josefa Ilioilo under section 123 of the Constitution, on the issue of seat entitlements in a multi-party Cabinet, would be the last issue to be resolved. It is linked to problems Fiji has encountered in the interpretation and application of the concept of multi-party Cabinet under section 99, indirectly also under section 64(2) of the Constitution. Bale said his chambers were compiling a list of the provisions of the Constitution which need non-controversial amendments for clarification or corrections: "The procedure required under the Constitution will necessarily involve wide consultations after the introduction of the Bill before debate," he said. On the issue of problems faced by the courts, Mr Bale said as minister responsible he wished he had All the money we need to perfect all the shortcomings in the support services for the Judiciary in Fiji". "The fact is we do not have all the money we can show we need. In fact, no government department or institution ever gets all it wants for its requirements in any budgetary year," Bale said. This, he said, meant we must all try to manage within our shares of the national cake each year. In a meeting with representatives of the High Court and Fiji Law Society, Mr Bale said he was informed that there were no serious complaints about the criminal jurisdiction, non-legal staffing, facilities and accommodation.

From http://www.pacificislands.cc/ 11/17/2003

TOP↑

Poultry farmers say new food safety and hygiene rules are creating uncertainty for some farms, and will cause at least one in Hawkes Bay to close. The Dooney Poultry Farm in Napier will close by January, after 50 years in operation, blaming the cost and effort of complying with the new rules. David Dooney said he could not afford to comply with requirements under the Animal Products Act 1999, so his family business, started in 1947, would have to close. "We are getting out of the industry by January at the very latest. The new legislation is too much for us." Under the act, poultry farmers will be required from next July 1 to produce a risk management plan to reduce the hazards involved in primary processing operations. That plan must include monitoring of water quality, concrete pads in sheds for washing down, and ensuring the person who collects eggs does not grade or sell them without a full change of clothing beforehand. Workers will not be allowed to keep birds at home, to lower the risk of disease spreading. Inspectors will ensure that all poultry farms have plans and are adhering to them. Dooney said the legislation required his 1970s-era chicken sheds to be upgraded to state-of-the-art standards, including climate-control equipment that would cost about $200,000. "We had a MAF inspector come through here and he said our sheds were not sufficient." Knowing the legislation was coming, the company laid off three staff last November. "If we still had staff they would not be able to have any avian species at home. The legislation is very dictatorial," Dooney said. "I have just got to the point that I can't be bothered with it - I don't want anything further to do with it." The legislation requires producers to keep intricate records detailing staff movements from when they arrive on the premises until they leave. Such records will bring the industry into line with other animal industries. Chris Friis, of Pakowhai Egg and Poultry in Napier, said the legislation would have a huge effect on businesses and it would be out of the question for smaller operators to comply with it. But Lorraine Whittle, who runs Keighleys Poultry Farm in Hastings with partner David Keighley, said their enterprise would have no problems complying with the law. Mike Brooks, chief executive of the Egg Producers' Federation, was surprised that the legislation would cause any business to close. He said similar legislation had been in place for other industries working with animal products, but it had not been applied to the egg industry before.

From http://www.nzherald.co.nz/ 11/03/2003

TOP↑

The Government says it would have preferred that some women instead of only men were appointed to review the Pacific's main regional political body. The 16-nation Pacific Forum, chaired by Prime Minister Helen Clark, this week unveiled an Eminent Persons Group (EPG) to review the organisation. Foreign Minister Phil Goff named the group of five men, all in their 60s. Yesterday his office conceded that New Zealand had wanted women in the group. A spokesman for Mr Goff said the composition of the EPG was the result of consultation with leaders of all forum countries. New Zealand wanted women in the group, he said, but a couple of people approached were unavailable. "We would also note that the terms of reference for the EPG require it to consult widely in the various [countries] they visit, and that is to include consulting with women from political, Government and civil society," the spokesman said. The Fiji-based Pacific Concerns Resource Centre said yesterday that the composition gave the impression that only men of the older generation were capable of becoming members of the EPG. "The Pacific is inhabited by men and women, old and young, and the children, who learn from each other as we paddle our canoe together in calm and rough waters of the Pacific," said the centre's director, Motarilavoa Hilda Lini of Vanuatu. The EPG is made up of Kiribati President Teburoro Tito, former Papua New Guinea Prime Minister Sir Julius Chan, Samoan Ombudsman Maiava Iulai Toma, University of the South Pacific pro-chancellor Langi Kavaliku of Tonga and retired Australian diplomat Bob Cotton. The review move followed the August Pacific Forum summit. Ms Lini said although she respected the wisdom and calibre of elders, "we also expect the truth and reality of 50 per cent voices of women and 75 per cent voices of youth". The review will make recommendations on the mandate for the forum in addressing key regional issues and international issues. The review report, paid for by Australia and New Zealand, would be presented early next year.

From http://www.nzherald.co.nz/ 11/05/2003

TOP↑

Child, Youth and Family is starting a major recruitment drive in a bid to employ about 90 more social workers early in the New Year. The need for the extra workers was identified in a review of the department made public a fortnight ago. The findings confirmed the pressure CYF had been under in recent years, acting chief executive Brenda Pilott said in a statement today. "Child, Youth and Family is investing heavily in the frontline. Our staff have been under pressure to respond to an increasing volume of incoming work, as well as dealing with their existing clients. "This has resulted in us focusing more on managing critical incidents than on ongoing case management. This has led to an inadvertent trade-off between quality and quantity," she said. "The appointment of additional social workers is fundamental to stabilising the organisation and improving our services." The review found CYF had serious systemic problems and was struggling to manage complex services with the money allocated to it. On the day it was released the Government announced the department would receive an extra $127 million funding over three years. The department said in a statement it was targeting qualified and experienced social workers, including those who had left the workforce completely, had been employed by CYF in the past or had been working overseas and planned to return to New Zealand in the New Year. High quality graduates would also be considered as would those with qualifications and expertise in related disciplines such as education, nursing and psychology. The number of children in CYF care had risen from 3265 in 1999 to 4480 in 2002, but the yearly rate of growth was beginning to slow and during 2002/03 reached a year-on-year low of 2 per cent growth, the department said. CYF received 31,781 notifications of child abuse, neglect or welfare issues in the year ending 30 June 2003, up 15 per cent on the previous year. Eighty-eight per cent of these required further action by the department.

From http://www.nzherald.co.nz/ 11/07/2003

TOP↑

The National Party will on Wednesday launch a candidates college to spot, prepare and train aspiring MPs as it gears up for the 2005 election. The idea was approved at the special April conference which extensively reshaped the party's constitution. A innovation for this country, the college has some similarities with schemes operated by the Conservatives in Britain and the Republicans in the US. The college will be an informal group chaired by president Judy Kirk and consisting of MPs Simon Power and Pansy Wong, the Auckland and Canterbury regional chairmen Scott Simpson and Roger Bridge, ex-MP Roger McClay and general manager Steven Joyce. It will develop a team of "talent scouts" to seek out potential candidates and will evaluate nominations of people to the college, and train and mentor those it accepts. Becoming a member of the candidate college will not guarantee a candidacy for either an electorate or the list. There will also still be five places on the list held back for people of high quality who cannot declare their hands far in advance of an election - like, for example, leader Don Brash, who left the Reserve Bank only three months before the 2002 election. It is expected some aspiring politicians will join the college young, sometimes several elections before being selected as candidates. The college will hold one or two training days a year for its members and mentors will be assigned to them to help prepare them for candidate selection. They will be "advised to have an active involvement in the party", attending conferences and carrying out mundane party activities. They will also be encouraged to become known for their community involvement. The first training day will be in February. Training will include party background and organisation, Parliament, campaigning, and media and policy matters.

From http://www.nzherald.co.nz/ 11/17/2003

TOP↑

A push to have the law changed to open up the Family Court to public scrutiny will be made by National after a couple used the protection of Parliament to talk about how they lost custody of their son. National MP Judith Collins said she would take proposed amendments to the Care of Children Bill, which updates guardianship laws, to her party to endorse so there can be more access and reporting of Family Court hearings. At the moment reports of hearings can only be made by news media with the approval of the court. This week, Jocelyn and Philip Keen used the protection of parliamentary privilege to outline how they lost custody of their fourth, and youngest, child. They had asked a relative to care for their son temporarily. The woman later sought custody of their child, through a legal process where Mr and Mrs Keen did not have to get told. They lost their three-and-a-half year battle to regain custody earlier this year. They told Parliament's justice and electoral committee that the Family Court judge agreed they were good parents who would provide a good family home. However the judge ruled the child had been with the relative for so long it would be too disruptive to move him. A Law Commission report on the Family Court, released in April, was heavily critical of the court's frequent approval of ex-parte orders in custody disputes, recommending that if a without notice application for custody or access was granted, the other party should be notified in most cases and a full hearing be held swiftly. The Keens told the committee they found out about the relative getting custody of their son through another family member, and had to wait three years and eight months for a hearing. National's Nelson MP Nick Smith has been charged with contempt of court for releasing details of their case, even though he had the couple's permission. The Care of Children Bill will allow for increased reporting of custody proceedings, and better access for family members to attend hearings, but Mrs Collins said it did not go far enough. She said the court should be open so most of its work could be scrutinised. "What we're hearing is that by keeping it closed it means the only people who benefit are the people in the court, and the court system, who are not doing their jobs. "By keeping it closed, it is not helping the thousands of parents who go to that court, and it is not helping the children." Mrs Collins said opening the court would also allow better oversight of the quality of the social workers, psychologists, judges and court appointed counsel for children, who appear in cases. The Government has not yet fully responded to the Law Commission's report on the Family Court, which listed 135 recommendations for improving its work, many resource-linked. Last month, Associate Courts Minister Rick Barker announced that a public education campaign on the court, new mediation processes and better training for staff would begin in the 2004-2005 financial year, subject to funding. The bill * The Care of Children Bill will allow the reporting of family court cases, provided no one involved or associated with the proceedings is identified, or can be identified through any material published. * Leave of the court to publish material can still be sought. * The bill increases the fines for anyone wrongly publishing material, from $500 to $2500 for individuals and from $2500 to $10,000 for a corporate or organisation.

From http://www.nzherald.co.nz/ 11/19/2003

TOP↑

The Government today unveiled proposed legislation allocating about $700 million of Maori fisheries assets. The Maori Fisheries Bill contains the legal foundations for allocating settlement assets as proposed by the Treaty of Waitangi Fisheries Commission earlier this year. It provides for about half the settlement assets to be allocated directly to iwi and for the remaining assets, mostly company shares, to be centrally managed on behalf of iwi. It also provides for the establishment of a series of new entities required by the model, including two specialist trusts, to promote education and training for Maori and to advance Maori freshwater fishing interests. Other features include: * basing the formula for inshore quota on an iwi's coastline; * basing the formula for deepwater quota on a 25/75 split between an iwi's coastline and population, except for the Chatham Islands, where it will be 50/50; * generally dividing cash on an iwi's population; and * giving Ngai Tahu, Ngati Kahungunu, Nga Puhi, Ngati Porou, Chatham Islands iwi and Waikato iwi the biggest parcel of assets. Fisheries Minister Pete Hodgson, announcing the bill, said it followed more than 10 years of discussion and debate among Maori. "Its passage will begin a new era of Maori participation in the fishing industry, enabling the beneficiaries of the 1992 Fisheries Settlement to receive the assets and use them for the economic and social benefit of all Maori," he said. "Perhaps inevitably, the allocation model does not command universal support among Maori. It is nevertheless a remarkable achievement, given the history of this issue." National MP Wayne Mapp said the bill raised serious questions about the Government's constitutional processes. "This week and last there have been three major cases heard in court on the issues at the very heart of the legislation," Dr Mapp said. "A better constitutional process would have been to wait until the High Court has handed down all the decisions on the allocation model." Mr Hodgson will ask Parliament to refer the bill to a special select committee, the membership of which would be determined by all parliamentary parties.

From http://www.nzherald.co.nz/ 11/20/2003

TOP↑

The government is distancing itself from a proposal by the deputy prime minister that local media outlets should be majority PNG-owned. Andrew Baing made the suggestion at a function to mark the 10th anniversary of the local newspaper, the National, which is owned by Malaysian interests. The other main daily newspaper is controlled by News Limited; the television station EM-TV is owned by the Packer family's Publishing and Broadcasting Limited; and the dominant commercial radio stations by Fijiian interests. Mr Baing, who has been in the role as deputy prime minister for less than one week, says he is thinking of proposing the new ownership requirement be imposed through legislation, however a spokeswoman for the prime minister, Sir Michael Somare, says Mr Baing's comments do not represent government policy.

From http://www.pacificislands.cc/ 11/18/2003

TOP↑

Parliament has passed changes to the banking law that opponents say create loopholes for money laundering and risk adverse action from abroad. The United States and Japan have already expressed concern about the bill, which Palau's Congress maintains is aimed at helping two home-grown banks to reopen their doors. The legislation is now before President Tommy Remengesau, who has opposed the changes but is facing a veto if he strikes it down outright. The president said Congress had "to understand that there were serious ramifications that come with re-licensing two banks. He said Palau could be blacklisted or penalized. Palau was one of three Pacific Island countries targeted by international banks in 1999 because of suspected money laundering by the Russian Mafia.

From http://www.pacificislands.cc/ 11/17/2003

TOP↑

The leader of Tonga Human Rights and Democracy Movement, Lopeti Senituli, says he hopes tough new drug laws will deter the rising number of high school students turning to drugs. The government has lifted the maximum penalty for drug smuggling to 30 years hard labour or half a million US dollars fine ?or both. The new law also means that anyone found guilty of cultivating or distributing illegal drugs will be fined 340 thousand US dollars or given 25 years hard labour or both. Senituli says stiffer penalties are appropriate because there has been a major increase in drug use and abuse in the past 18 months and marijuana has become readily available to the young. '"There has been certainly a marked increase in the incidence of drug use and to a great extent the increase in drug use has been amongst high school and young people," he said. Mr Senituli says he hopes the new law will also deter smugglers.

From http://www.pacificislands.cc/ 11/19/2003

TOP↑

Bo'ao Forum for Asia 2003 Concluded

The annual conference of the Bo'ao Forum for Asia has concluded. Asian leaders attending the forum express confidence in the continent's future growth. Leaders of China, Singapore and Pakistan outlined ambitions of creating an Asia catalyst for the global economy and call for greater cooperation and integration. Chinese Premier Wen Jiabao delivered a speech at the forum. He said mutual support is the key to Asia's rejuvenation. He also urges Asian countries to open their markets wider to each other and achieve development and common prosperity through cooperation. The premier says China will stick to its opening-up policy, honor its WTO commitments and make its market more accessible with an improved investment environment and better business conditions for Asian and other entrepreneurs. He also encourages Chinese enterprises to invest overseas. The next annual Forum for Asia will be held at the end of April in Bo'ao in China's Hainan Province.

From http://www.crienglish.com/ 11/04/2003

TOP↑

South Korea Ranks 2nd in E-Gov't Ranking in Asia

GENEVA - South Korea ranked second in Asia and 13th in the world in terms of its use of electronic technology in providing public services, the Yonhap News Agency reported quoting a United Nations report released here Tuesday. Singapore, in fourth place overall, was the only Asian nation ahead of South Korea in the electronic government ranking of the 2003 UN World Report on the Public Sector titled e-Government at the Crossroads. Japan came in 23rd out of the 191 countries listed. South Korea, which moved up two notches from 15th place last year, has carried out one of the most dramatic projects in instituting electronic transaction services and networking, while Japan didn't achieve its full capacity to help its citizens live more conveniently in terms of online public services, the report said. A South Korean official said that the government completed its "electronization project" last year. "In most cases, people don't need to bother to go to public offices to pay their bills or get their official documents. Almost every transaction between an individual and the government can be made online," said Lee Gui-hyun, deputy director of the information Support Bureau of the Ministry of Information and Communication. "Electronization has also made the government operate in a more transparent way when collecting taxes and issuing purchase orders to private businesses, since things are not done by hand but by computer system," he added. The e-government report evaluated each nation on how effectively its government uses electronic means to provide public services. The criteria included whether the government possesses a website, the quality of public services provided through the Internet and the penetration rates of electronic services and devices such as broadband Internet access, personal computers, telephones and mobile phones. The U.S. government topped the ranking, followed by Australia, New Zealand and Singapore. European nations, including Britain, the Netherlands and Denmark, filled out the top 10. A total of 173 nations out of the 191 U.N. member nations had a government website, an improvement from 143 in 2001. The remaining 18 countries without government homepages were mostly in Africa. The annual report, launched last year, is a co-project between the UN and the American Society for Public Administration, an organization that studies how to make governments and public services work better. Even though the development and the existence of e-government do not necessarily reflect the quality of life in a country, the facilitation of electronic tools by governments can make public services more convenient and transparent and "positively impact human development," the report concluded.

From http://search.korea.net:9000/ 11/06/2003

TOP↑

Asia-Pacific Nations to Set Up Space Cooperation Organisation

BEIJING: Asia-Pacific nations are planning to establish a space cooperation grouping to better coordinate environmental protection, disaster reduction and resources exploration, state media reported Tuesday. The Asia-Pacific Space Cooperation Organisation (APSCO) will be officially set up next year after final approval from participating governments, the China Daily said. Representatives from 14 countries and the United Nations are in Beijing to sign formal proceedings following a preliminary meeting last year in Bangkok, which designated the Chinese capital as APSCO's headquarters. Among those attending are officials from Bangladesh, Brazil, China, South Korea, Iran, Malaysia, Mongolia, Peru, the Philippines, Russia, Thailand, Pakistan, Ukraine and Chile -- some as observers. Luan Enjie, minister of China's National Space Administration, said the purpose of the new grouping was to promote the development of space technologies and their applications. "We are willing to join hands with people of all nations to make due contribution to the peaceful exploration and uses of space resources for the progress and common development of humankind," he said. China is the leading player in space exploration in the Asia-Pacific, becoming only the third country to send a man into space with its successful Shenzhou V mission last month. Luo Ge, secretary general of the Asia-Pacific Multilateral Cooperation in Space Technology and Applications, said countries joining APSCO could make use of space technology in environmental protection and disaster reduction, resources exploration, construction, telecommunications and distance education. He said China and other countries will develop and launch eight satellites within the next eight years to monitor the natural conditions of the planet and send back data and image-24 to be used specifically by Asia-Pacific nations.

From http://www.channelnewsasia.com/ 11/11/2003

TOP↑

The First Study on Digital Governance in Municipalities Worldwide Ranked Seoul, Hong Kong, Singapore, New York, and Shanghai as the Top Five Cities

NEWARK, N.J. (PRIMEZONE) -- This survey was conducted jointly by the E-governance Institute of Rutgers University-Newark and the Global e-Policy e-Government Institute of Sungkyunkwan University, Korea, and was co-sponsored by the UN Division for Public Administration and Development Management, and the American Society for Public Administration. This is the first research effort to evaluate digital governance in municipalities throughout the world. This survey examined the largest city in each of 98 countries with the highest percentage of Internet users, and Hong Kong SAR and Macao SAR were included. This research evaluated the official Web sites of each city in their native languages. Our instrument for evaluating municipal Web sites consists of 92 measures over five core areas: 1. Security and Privacy, 2. Usability, 3. Content, 4. Services, 5. Citizen Participation. Each measure was coded on a scale of four-points (0, 1, 2, 3) or a dichotomy of two points (0, 3 or 0, 1). Then, an overall score for each municipality (on a 100-point scale) was derived by giving equal weight to each of the five categories. Professor Marc Holzer, Chairman of the E-Governance Institute said, "This joint research was helpful for reducing cultural bias in our survey methodology. During the design of the 92 measures in our e-government index, we identified some terms which people in various cultures might not understand. So, we developed an index which was 'cultureneutral'." Each Web site was assessed by two independent evaluators between June and October 2003, and in cases where significant variation existed on the raw score between evaluators, websites were analyzed a third time. Based on the evaluation of 100 cities, the top 10 cities are as follows; Top 10 Cities in Digital Governance Worldwide (ranking/city/score): 1 Seoul 73.48; 2 Hong Kong 66.57; 3 Singapore 62.97; 4 New York 61.35; 5 Shanghai 58.00; 6 Rome 54.72; 7 Auckland 54.61; 8 Jerusalem 50.34; 9 Tokyo 46.52; 10 Toronto 46.35. New York City was ranked No. 1 worldwide in terms of content. Among the top 20 cities, three are from developing countries: Tallinn (Estonia) 14th, Dubai (United Arab Emirates) 18th, and Jakarta (Indonesia) 20th. This research identified a digital divide gap between developed and less developed countries. Although the average score for all cities is 28.10 out of 100, the average score in OECD countries is 36.34; however the average score in non-OECD countries is only 24.26. In addition, 67% of cities selected in Africa have not established official city websites, whereas only 3% in Europe have no city Web sites. Sungkyunkwan University is holding an international conference to present best practices cases based on this survey and is giving a "World Cities Best Practices E-Government Award" to the top five cites on November 21 in Seoul. Professor Seang-Tae Kim, President of the Global e-Policy e-Government Institute said, "Government services can be improved remarkably by E-government, but the digital divide is a problem to be solved. We can encourage e-government among cities in the world by measuring them and giving this kind of award." (Tel 82-2-760-0374, e-mail kimst@skku.edu) Scores and ranking of all 100 cities are online at http://www.andromeda.rutgers.edu/ egovinst/Website/ CONTACT: Professor Marc Holzer (973) 353-1351/5504, Ext, 23 mholzer@pipeline.com Mr. Chan-Gon Kim chankim@pegasus.rutgers.edu http://www.pressreleasenetwork.com/newsroom .

From http://www.unpan.org/ 11/17/2003

TOP↑

CHINA: Tian Fengshan Removed from Post of Minister of Land and Resources

China's top legislature has removed Tian Fengshan from the post of the Minister of Land and Resources for his serious problem of discipline violations. Tian Fengshan is currently under investigation. The Standing Committee of the National People's Congress has also appointed Vice Minister of Land and Resources Sun Wensheng to replace Tian Fengshan. The new minister is 61 years old and had served as governor of Shanxi Province.

From http://www.crienglish.com/ 10/28/2003

TOP↑

China to Improve System of GDP Accounting and Data Release

A State Council executive meeting has agreed to improve the system of GDP accounting and data release and authorized the State Statistics Bureau to implement changes. The meeting seeks to increase the transparency and credibility of GDP accounting and data and gradually integrate the methods into common practice. It also decided to conduct the first comprehensive survey of China's economy in 2004. The State Statistics Bureau says China began a new system of national economic accounting by adopting methods close to international standards this year. As a result, the World Bank and other international financial institutions now directly quote national economic data provided by the Chinese government.

From CRIENGLISH.com 11/12/2003

TOP↑

Comment: Who Is Going to Unmask Corruption?

China's minister of land and resources Tian Fengshan was lately dismissed from his post for his "serious violation of discipline". The exposure has drawn wide attention from home and abroad, showing the determination of the state's new leadership to root out the corruption. The breaches done by Tian mainly focus on two aspects according to the related reports of various newspapers. First, during his tenure of office in Heilongjiang, Tian was involved in many corruption cases found in the province of northeast China. Second, during his working period in the Ministry of Land and Resources, a series of problems were discovered in some places in land approval, transfer and use of state special funds. No matter whether these reports are convinced or not, one thing is, however, for certain---the Central Commission for Discipline Inspection of the CPC will never be so risky as to make decision for his dismissal without solid corruption facts of such an official, especially one belonging to the "cabinet", as termed by westerners. So, one is by no means difficult to find out many thought-provoking questions should he pit the clues and traces of dishonesty of Tian against the process of his being promoted. Deep-thought 1: is it the case on Tian while he was being promoted one following another he was engaged in corruption activities? When he acted as secretary of the CPC Harbin City Committee in Heilongjiang, for example, Tian was already involved in a local bribery case. But later he was promoted to the post of province governor, then minister of land and resources. According to the procedure for cadre-selection and appointment no decision for appointment and promotion should be made hastily before strict examination, yet Tian seemed to remain untouched. Doesn't it indicate that the system is still ripped open with some flaws in selecting and assigning important leaders? Deep-thought 2: what a role on earth can the masses of people play in the supervision over high-ranking officials? Theoretically speaking, the masses of people is the main body of state power, under which all powers exercised by state officials should be subject to its supervision. However, in reality ordinary people could hardly exercise any force of supervision. Lu Tianming, a famous writer, recently revealed that he was aware of Tian 's corruption when he made the dishonest official a principal character in a TV drama that was on show at least two years ago, but dared not to breathe a word about him at that time. Asking a writer to stand out and unmask corrupted officials would be too much for him, since their means of revenge are too cruel. A cadre in Shijiazhuang, who fought eight years with Cheng Weigao (the former chief leader of Hebei Province) and was thrown into the jail, serves a ready notation to the fact. Even if Lu really braced up and exposed the corruption, how far he could carry on remains still doubtful. Can these tails of the "state masters" still wag to exercise power of supervision in a place where the masses of people are silenced by the revenge-intimidation from their "servants"? Deep-thought 3: Is it necessary to establish a special supervisory framework for special posts in exercising public powers? From Cheng Weigao, Liu Fangren, to Tian Fengshan, one can find in them a common phenomenon that is they were in no way lack of personal struggle during their rising, and didn't intend to become a corruptible element from the very beginning. The tragedy in common is that, when they were given too much power and effective supervision was absent, their self-control, flaw in nature as human beings, collapsed under the pressure of temptations and desires fluxing in from all sides, and they betrayed all their beliefs they once advocated. Becoming dubious in personality in the long run, they were broken to pieces by their own words and deeds. While playing a "gentlemen" on the one hand in the face the others, they are on the other in tenterhooks all day long for fear of being exposed and disciplined. All these cases prove that, for those special posts (high posts with absolute authority) in the execution of public powers, only by establishing a special supervisory framework can the malpractice of powers be prevented so as to avoid the heavy losses entailed therefrom to the nation and the people.

From http://english.peopledaily.com.cn/ 11/14/2003

TOP↑

First UN Agency's Headquarters Established in China

The United Nations and the Chinese government declared the establishment of the first office from the UN Secretariat in China at a brief agreement signing ceremony held in Bangkok. The new headquarters for the Asian and Pacific Center for Agricultural Engineering and Machinery (APCAEM) under the UN Economic and Social Commission for Asia and the Pacific (UNESCAP) is set to open in China's capital Beijing following the signing of the Host Country Headquarters Agreement between the Chinese government and the UNESCAP. "The opening of the APCAEM office in Beijing will strengthen cooperation between the government of China and the UNESCAP, which has always been substantial," UNESCAP Executive Secretary Kim Hak- Su said at the signing ceremony. He added that the "UNESCAP has its roots in China, since the then Economic Commission for Asia and the Far East was established in Shanghai back in 1947." "The opening of APCAEM is significant for the improvement of international cooperation in the fields of agriculture technology, farm mechanization, food processing and biotechnology," said China 's Permanent Representative to the UNESCAP Zhang Wanhai, who signed the agreement on behalf of the Chinese government. He also said that the Chinese government welcomes more international organizations to set up their offices in China, which will benefit the development of related Chinese sectors and speed up China's process of opening up. The APCAEM headquarters is located at the China International Science and Technology Convention Center in Beijing, "fully mechanized, modernized and high-tech," according to Kim. He noted that, in addition to these office facilities, China also provided an additional 3.8 million US dollars in financial support. The APCAEM aims to improve research and development of agriculture engineering and machinery and strengthen related cooperation in the region. It currently has 13 members, with the Democratic People's Republic of Korea becoming the 13th member in July 2003.

From Xinhuanet 11/19/2003

TOP↑

China Publishes Guide to SARS Prevention in Hospitals

The Chinese Ministry of Health has issued a technical guide to medical institutions on prevention and control of severe acute respiratory syndrome (SARS) in hospitals, ministry sources said. The six-chapter guide offers hospital staff ways to disinfection, quarantine and human protection, and improving management of key departments and medical waste in order to prevent possible spread of SARS in hospitals. The guide was worked out according to the experience of China and other nations in the fight against the disease earlier this year, said the officials. The ministry issued emergency notifications to hospitals on ways to prevent hospital-based SARS infection to medical hospitals during the first half of this year, when the country was fighting the disease. There have been neither clinically confirmed nor suspected SARS cases on the Chinese mainland since Aug. 16 when the last SARS patient on the mainland was discharged from hospital, according to the ministry.

From Xinhuanet 11/20/2003

TOP↑

Chinese Government Reassesses Social Security Tasks

China's central government plans to extend pension insurance to all urban workers and is encouraging efforts to establish a pension system for the country's 900 million rural residents. A decision passed by the Third Plenary Session of the 16th Central Committee of the Communist Party of China (CPC) in October set new goals for China's social security system which would result in great benefits, said Liu Yongfu, vice minister of labor and social security. Liu made the remarks at a recent symposium on "the socialist market economic system and China's social security". Hu Xiaoyi, an official with the Ministry of Labor and Social Security said the decision accepted for first time all urban workers into the pension insurance scheme, whereas previously coverage had been confined to employees of publicly owned enterprises. "It's a new idea, and also a new task for us," Hu said. The decision also demanded the establishment of province-based planning for pension insurance funding and promoted the idea of establishing nationwide basic funding if conditions permitted. The new request for more advanced levels of general planning would impose new challenges on China's social security work, experts said. Jia Kang, head of the financial science research institute under the Ministry of Finance said China was encouraging a more flexible employment system as small and medium sized enterprises were employing more staff and the ranks of the self employed were also growing. As a result, increasing numbers of migrant rural laborers, employees of smaller companies and freelancers had surfaced to pose fresh new tasks for the social security system. "However, China's current planning for social security funding, either at county level or city level, discourages the diversion of the pension fund from one place to another as laborers migrate," he said. "A perfect social security system should enable laborers to flow freely in nationwide markets, without boundaries formed by a regionally planned social security fund." While the current social security system does not cover China's900 million rural population, the decision proposed that rural areas base the pension insurance system on households, with aid from the community or state. It also encouraged regions with stronger economic conditions to explore mechanisms pledging a minimum standard of living for rural residents. Other breakthroughs in the decision included requests for maintaining the insurance through pregnancy and while recuperating from injuries suffered on the job. The decision also explored the option of assigning part of state-owned assets to supporting social security funding.

From Xinhuanet 11/20/2003

TOP↑

JAPAN: British-Style Parliament May Not Suit Japan

For the time being, I think we ought to concentrate on how best to make an election an opportunity to choose our government, on the assumption that Japan will maintain a coalition government, and that any integration of the ruling coalition and the Cabinet is simply not possible. Reiko Oyama, professor of political institutions at Komazawa University, questions the tendency in Japan to want to model its political system after Britain's. She outlined her reasons in a recent interview with Junichi Saito of The Asahi Shimbun. Excerpts follow: It is a fact that Japanese politics is in its present sorry state because there has not been any change of government to speak of. In this sense, it is good that an attempt is finally being made to stop election pledges from remaining mere slogans. But I certainly do not think all our problems are behind us now. ``Manifesto'' has become a campaign buzzword, as if this will make it easier for voters to decide what kind of government they want. Most Japanese people think vaguely of the British-style parliamentary Cabinet system as the ideal model to follow. However, whether this is so is open to question. The British system features one-on-one contests between two major parties in single-seat constituencies. The ruling party equals the Cabinet, which means the government leader, or prime minister, is in a position to exert powerful leadership. This is unique even among nations that follow the parliamentary Cabinet system, and that is why the British system is sometimes dubbed an ``elected dictatorship.'' There are problems inherent in the single-seat constituency system itself, and not a few nations have dropped it in favor of something else. In fact, questions are being raised even in Britain. Anyone who accepts this system without question is being dangerously simple. The biggest flaw in the single-seat constituency system is that it helps to preserve and perpetuate the now-dysfunctional two-party system and keeps out new parties. One argument I hear often in Japan is that Japan should follow Britain's example and let the ruling party and the Cabinet be one and the same. But Britain's Cabinet members are none other than the leaders of the House of Commons majority party. This is entirely different from Japan's situation. If the ruling party and the Cabinet are to be one and the same, Japan will have to first satisfy a good number of conditions, such as making sure every election is fought on party policy and completely overhauling the present manner in which Diet deliberations are conducted. Without changes in these areas, any change in the system itself will not only be just superficial, but there will be even more clandestine wheeling and dealing and less transparency in the policy-making process. In Japan, where economic growth remained everybody's shared objective for decades, distributing profits was about the only thing politicians were expected to do, and the collective decision-making took precedence over the individual leadership. The prime minister was not required to take any firm stand on policy, and decisions were left to the ruling party to make. This has resulted in the common understanding that legislation proposed by Diet members is the fastest means for restoring political initiative to where it belongs. This, however, contradicts the very spirit of what a manifesto is all about. The Cabinet's job should be to define vital policies and implement them, not delegate that responsibility to the ruling party. It is definitely time for ruling party politicians to shed their old political custom of considering themselves primarily as the distributors of profits and delegating system reforms to the bureaucracy, and occasionally asserting their initiative by sponsoring bills. Probably because their own Cabinet hardly ever exerts leadership, many Japanese must think the British system, which is very different from theirs, is what the nation needs. But they must take a good, hard look at the reality. The worst-case scenario I envision is one in which the ``reformists'' rush into some extreme decision, only to realize belatedly that nothing is going to change. The recent argument in favor of publicly electing the prime minister is one perfect case in point. For the time being, I think we ought to concentrate on how best to make an election an opportunity to choose our government, on the assumption that Japan will maintain a coalition government, and that any integration of the ruling coalition and the Cabinet is simply not possible. In a coalition government, you just cannot expect any policy of one coalition partner to be implemented immediately. Under the Liberal Democratic Party's current partnership with New Komeito, the latter's intentions are reflected considerably in government policy. This means any policy promised by the LDP alone cannot be considered a legitimate election pledge. Rather than compete on policy detail, every political party ought to present its own framework as a party in power and spell out promises they intend never to break. The most irresponsible thing any party could do after being elected to power would be to break its election pledge and come up with an excuse like, ``We were forced by our coalition partner to amend our policy.'' So long as there is even the remotest possibility that something like this could happen, even the most detailed manifesto is nothing but a useless piece of paper.

From http://www.asahi.com/ 11/07/2003

TOP↑

Japan's Governing Party Keeps Power, but Loses Strength

Japanese Prime Min Junichiro Koizumi's governing coalition holds on to power in parliamentary elections, even as voters hand big gains to main opposition party; ballot could help lead country toward two-party system; Koizumi fails to get popular mandate that could help him decisively push through economic and political reforms against conservatives in his own Liberal Democratic Party; strong showing by main opposition party, which campaigned on reformist agenda, could put pressure on governing party to stick to Koizumi's plans to curb public spending and to reshape economy. (by Norimitsu Onishi)

From http://query.nytimes.com/ 11/10/2003

TOP↑

Japan's PM to Retain Present Cabinet Lineup

Japanese Prime Minister Junichiro Koizumi says he will retain his present cabinet lineup, after his three-party coalition was returned to power in a weekend general election. Sunday's election delievered the coalition government a reduced majority in the House of Representatives, prompting speculation of changes in cabinet. But Mr Koizumi, who reshuffled his cabinet in September to give it a more reformist profile, says the present system will continue.

From http://www.goasiapacific.com/ 11/10/2003

TOP↑

Koizumi Wins Japan Election

The coalition government of Japan's Prime Minister, Junichiro Koizumi, has won the election but also suffered a setback. The Liberal Democratic Party's parliamentary majority has been cut back. The AFP newsagency says the LDP now has 237 seats in the lower house, down from 247. If confirmed in official results, which will be released later today, the LDP will have lost the lower house majority it previously held in its own right. The Opposition, the Democratic Party of Japan, has won 177 seats, up from 137. The election was the first chance for 103 million voters to pass judgement on the two and a half year-old Koizumi government.

From http://www.goasiapacific.com/ 11/10/2003

TOP↑

Mr. Koizumi's Postelection Challenges

Continuity and unity underscored Monday's meeting of the heads of the three ruling coalition parties, which gained a solid majority in Sunday's Lower House election. Prime Minister Junichiro Koizumi, president of the Liberal Democratic Party, is certain to be re-elected at the outset of a special Diet session that opens next week. However, the going promises to be tough for the Koizumi administration. The coalition victory came with a price: The LDP failed to win a majority on its own, while the three parties combined lost 12 seats. The "Koizumi myth" -- his Teflon popularity -- appears to be diminishing. His critics in the party may be waiting for a chance to roll back his reform initiative. The challenge for Mr. Koizumi is, in his own words, to "make sure the buds of reform grow into trees." Basically, that means putting the economy on track for deflation-free, self-sustaining expansion. The election, though conducted amid increasing signs of economic recovery, did not give him the kind of reward that he seemed to think he deserved -- a majority for the LDP as well as the coalition. The election result has changed the coalition's power balance. While the LDP suffered a mild setback and the New Conservative Party a rout, New Komeito scored a clear win. The NCP, which managed to win just four seats, found itself teetering on the brink of collapse. Its leader, Hiroshi Kumagai, lost his seat. Following the coalition summit, the party chose what seemed to be an inevitable course: merging into the LDP. So the three-way coalition is about to disappear, making way for an LDP-Komeito alliance. In the consolidated coalition, New Komeito's role is expected to increase. The party, which gained 34 seats, enjoys the solid support of Soka Gakkai, a lay Buddhist organization. Its campaign cooperation, which is said to have played a decisive role in Sunday's election, is likely to become even more crucial in future elections. The NCP's merger, along with the admission of three independents to the LDP, brings the number of LDP seats in the Lower House to 244 -- three more than a simple majority of 241 but three less than the 247 it held before the election. Among the three entrants is former LDP Secretary General Koichi Kato, who had left the Diet and the party over a money scandal. As far as numbers go, all this makes up for Prime Minister Koizumi's failure to secure a single-party majority in the first place. In reality, though, this is not likely to help him much. For one thing, he appears to face renewed pressure from the LDP's old guard. Already, the head of an anti-Koizumi faction has criticized him for having called a snap election at the wrong time. Koizumi's biggest bulwark against his critics in the LDP has been -- and still is, albeit to a lesser extent -- his high popularity. It is believed that this personal factor enabled him to pull off a smashing LDP victory in the July 2001 Upper House election. If this factor is seen to be losing its "magic power," his opponents will likely mount a new offensive against him. His reform campaign is already under attack from interest groups that feel their future is threatened. It is also under fire from a dramatically strengthened opposition, the Democratic Party of Japan, which blames Mr. Koizumi for not moving rapidly and boldly enough. With the DPJ trumpeting its policy "manifesto," Mr. Koizumi can no longer claim "structural reform" as his exclusive slogan. The DPJ is calling for basically the same reforms as the Koizumi administration, such as streamlining the public sector and decentralizing central-government powers. The two sides differ mostly in method, not in principle. This appears to be putting Mr. Koizumi on the defensive. The popular perception is that his reform efforts have not been making much progress. His immediate challenge comes from abroad: Iraq to which the government plans shortly to send troops of the Self-Defense Forces to help rebuild the country. The Cabinet is expected to give the go-ahead for a dispatch plan, perhaps as early as this week. Troops are likely to be deployed, possibly by the end of the year, in southern Iraq, where security is said to be relatively good. At a news conference Monday, the prime minister said Sunday's election outcome is a vote of confidence in his plan to send SDF units to Iraq. The ruling coalition is not going to take up the plan in the brief postelection Diet session. The DPJ, however, is opposed to an SDF dispatch, citing security concerns and other problems, and so, too, is a large body of public opinion.

From The Japan Times 11/12/2003

TOP↑

Report by the Local Government System Research Council

Prime Minister Junichiro Koizumi received the "Report on the Modality of the Local Administration in the Future" from Mr. Ken Moroi, the Chair of the Local Government System Research Council at the Prime Minister's Official Residence. This report was decided at the general meeting of the Local Government System Research Council held on November 13, and includes measures for the promotion of mergers of municipals after the expiration of the Laws on Special Cases of Municipal Mergers at the end of March, 2005. The report centers on promoting municipal mergers, intensively small-scale municipals with population of "less than approximately 10,000 people," under the leadership of the prefectures. Furthermore, from the perspective of creating a highly independent area suitable for the decentralized-type society, the report also points out the necessity in considering the introduction of a "Do-Shu system" and suggests that further discussions will be made at the next research council.

From http://www.kantei.go.jp/ 11/13/2003

TOP↑

Voters Call 2-Party System a Good Idea

Nearly 70 percent of voters say the emerging two-party political system is a good idea, according to a survey by The Asahi Shimbun. The survey asked voters to consider the merits of a two-party system in relation to Sunday's Lower House election. Sixty-eight percent of respondents thought it was a good move; 18 percent did not. Findings were based on a telephone sampling of eligible voters conducted Monday and Tuesday that yielded 920 valid responses. Forty-two percent of those responding said they hoped the opposition Minshuto (Democratic Party of Japan) would come out on top in next summer's Upper House election, while 34 percent favored the Liberal Democratic Party. Fifty-four percent of respondents said they were glad the LDP failed to win an outright majority of 241 seats in the Lower House in Sunday's vote. Only 25 percent felt that was bad. But respondents were more evenly divided on the effect of the vote on the coalition's stable majority in the Lower House, with 40 percent saying it was good and 37 percent saying it was not. Asked why the LDP failed to obtain an outright majority, 60 percent of those responding said it was ``because the old structure of the party had not changed,'' a much higher percentage than those who said ``dissatisfaction with policy.'' Forty-seven percent of respondents said they supported the Cabinet of Prime Minister Junichiro Koizumi, a decline from the 59 percent in the September poll. Thirty-seven percent of respondents said they did not support the Koizumi Cabinet. Thirty-four percent of respondents identified themselves as LDP supporters, while 24 percent aligned themselves with Minshuto. Minshuto support was the highest ever in an Asahi survey. Since party support has often risen in earlier surveys conducted soon after a national election, however, analysts said it is too early to determine the durability of that support.

From http://www.asahi.com/ 11/13/2003

TOP↑

Japan's Margaret Thatcher Quits After Poll Fiasco

THE woman who arguably did more for women in the male-dominated world of Japanese politics resigned yesterday as head of the Social Democratic Party, which was all but eliminated as a political force in Sunday's election. Takako Doi, 74, said she resigned as leader of the left-wing party to take responsibility for the loss, which saw its 18 seats reduced to just six. "The responsibility for the defeat in the lower house election is mine, as head of the party," Ms Doi said in Tokyo. She had enjoyed an impressive rise to speaker of the House of Representatives, becoming the first woman to hold the post, and played a key role in the only non-Liberal Democratic Party-led government in more than half a decade. At the peak of her power, she was widely considered the Japanese equivalent of Margaret Thatcher. Her political career, however, was almost an accident. Before she was elected to the diet in 1969, her local newspaper wrongly reported that she planned to run for a seat in the lower house. She went to the mayor to explain the error, only for him to joke at how "stupid" it would be for her to run when she had no chance of winning. Outraged, she ran, and won. (by Julian Ryall)

From http://www.thescotsman.co.uk/ 11/14/2003

TOP↑

Koizumi Makes Choice on Japan Highway Chief

The government decided informally Thursday to appoint a House of Councilors member and former businessman as president of Japan Highway Public Corp. Takeshi Kondo will likely fill the key position in Prime Minister Junichiro Koizumi's plan to privatize the debt-ridden semigovernmental entity in 2005. Japan Highway's top post has been vacant since Oct. 24, when Land, Infrastructure and Transport Minister Nobuteru Ishihara removed Haruho Fujii, 67. Ishihara charged that Fujii was unfit for the job and an obstacle to privatization. After sacking Fujii, a former vice construction minister, the Koizumi administration hoped to recruit his successor from the private sector rather than appoint another ex-bureaucrat. But the government has faced difficulty finding an appropriate candidate. Kondo, 62, was picked for his background in the private sector. He will have to give up his Diet seat if he accepts the offer. Koizumi called Kondo and Ishihara to his official residence in the afternoon to make the request. Kondo did not give an immediate response but said he would positively consider the offer. "I feel honored if I'd be able to make a contribution in this way, since (Japan Highway's) privatization is a major policy pillar under the Koizumi administration," Kondo told reporters after his meeting with the prime minister. Kondo was elected to the Upper House in July 2001 after serving as managing director of Itochu Corp. through December 2000. He won on the Liberal Democratic Party's proportional representation ticket with the endorsement of then Japan Federation of Economic Organizations (Keidanren), which has since been reorganized into the Japan Business Federation (Nippon Keidanren). He is credited for his expertise in international trade and macroeconomic issues. Ishihara cited as reasons for Kondo's appointment his experience in the private sector and his efforts to support reform of government-affiliated corporations. "I would hold a great deal of respect for him if he decides to support the Koizumi administration's reforms even though he'd have to resign his Diet seat. I expect to hear good news sometime tomorrow," Ishihara told reporters, suggesting Kondo would give his reply Friday. Ishihara added he believes Kondo has the competence, vitality and decisiveness to act in accordance with the government's plan to privatize the heavily indebted Japan Highway. Koizumi said he chose Kondo for the job because, in addition to his long experience as a corporate executive, he has a network of associates that includes other Diet members and bureaucrats. While Koizumi had said he would leave Ishihara to select the new president, Kondo was Koizumi's choice. "It's an important matter," he said, "and since Mr. Ishihara had not decided on the personnel, I asked Mr. Kondo to take the post today." (by Tetsushi Kajimoto)

From The Japan Times 11/14/2003

TOP↑

Inauguration of the Second Koizumi Cabinet

Prime Minister Junichiro Koizumi was reappointed as the Prime Minister by both the House of Representatives and the House of Councilors at the 158th special session of the Diet. After his appointment, Prime Minister Koizumi held a press conference and again quoted the words of the Chinese philosopher Mencius, "when about to place a great responsibility on a person, heaven may test one with hardship and frustrated efforts in order to toughen one's nature and shore up deficiencies," which he had quoted earlier at the press conference when he was first inaugurated as Prime Minister in April 2001. He expressed his resolution that upon fulfilling the weighty responsibilities as Prime Minister of Japan, he should endure all manners of difficulties and work to nurture the buds of reform into a large tree. Prime Minister Koizumi then reappointed all the ministers under the Cabinet reshuffled in September and formed the Second Koizumi Cabinet. Prime Minister Koizumi was appointed the 88th Prime Minister of Japan (the 56th person) since Hirobumi Ito at the investiture of the Prime Minister in the Imperial Palace and then attended the attestation ceremony of the appointment of the Ministers of State of the Koizumi Cabinet. On the evening of the same day, Prime Minister Koizumi held the first meeting of the Second Koizumi Cabinet and announced the Statement by the Prime Minister.

From http://www.kantei.go.jp/ 11/19/2003

TOP↑

NPSC Chief Admits More Donations from Rightist

The head of the agency that oversees the nation's police forces has admitted to receiving 1 million yen from a construction company whose chairman is a senior rightist. Kiyoko Ono of the National Public Safety Commission said Tuesday she received 960,000 yen in donations between 1995 and 1998 from the firm, which has not been identified. Last week, Ono acknowledged that the same construction company had paid 20,000 yen to take part in a breakfast meeting she organized in September 2002. And during a regular news conference Tuesday, Ono said an employee from the firm had paid 20,000 yen to attend a study session in June. Ono said that "in order to avoid a misunderstanding," she returned the money to the company earlier in the day. She added that she has no intention of stepping down over the matter. Ono, a member of the Liberal Democratic Party, was appointed head of the commission at a Cabinet reshuffle in September. "These (donations and party fees) were paid before I became head of the National Public Safety Commission," she said, "and I had no idea that the company's chairman was linked to a rightwing organization." According to Ono, her political fund management group had received 240,000 yen annually from the construction company starting in 1995. The contributions were included in her political donation records and submitted to election management officials, she said, adding that she did not believe donations were made by the firm before that time.

From The Japan Times 11/19/2003

TOP↑

Tanaka Gets a Stage in Diet as DPJ Ally

The Democratic Party of Japan may have obtained a powerful weapon Tuesday to wield against Prime Minister Junichiro Koizumi: former Foreign Minister Makiko Tanaka. Tanaka, an extremely popular political figure among female voters and one of Koizumi's most vocal critics, joined a 179-member Diet group comprising 177 DPJ members and two independent lawmakers just one day before a special Diet session is set to convene. While Tanaka will not be a DPJ member, she will now have opportunities to speak at Diet sessions within the question time allocated to the largest opposition party -- and possibly to grill Prime Minister Koizumi. DPJ chief Naoto Kan said that he himself proposed that Tanaka join the DPJ's Diet group, with Tanaka having been a vocal critic of the Koizumi administration. As a member of the DPJ-led Diet group, Tanaka is obliged to follow party decisions in terms of prime ministerial votes and budget deliberations, though she will be given room to make her own decisions on other matters, Kan said. "I hope we can work with her as a team, if she can make the most of her good characteristics," Kan told reporters. Tanaka's sharp tongue, however, could be a double-edged sword for the DPJ, given that her political career has been characterized by brushes with colleagues and subordinates. Tanaka was once a strong ally of Koizumi, helping his rise to the positions of LDP chief and prime minister in April 2001. Koizumi accordingly named Tanaka as Japan's first female foreign minister when he launched his first Cabinet. But Tanaka has become hostile toward the Koizumi administration since her sacking in January 2002, following a protracted standoff with Foreign Ministry bureaucrats, fellow Cabinet ministers and LDP colleagues. Tanaka resigned her Diet seat in August last year over unfounded allegations that she had misappropriated the state-paid salaries of her secretaries. Earlier, the LDP had suspended her party membership for two years. In September, Tokyo prosecutors concluded that she had no case to answer. She successfully ran as an independent in the Nov. 9 House of Representatives election, thereby securing her comeback to the national political arena. Before the official campaign for the general election began, Tanaka tendered her resignation from the LDP. (by Reiji Yoshida)

From The Japan Times 11/19/2003

TOP↑

Koizumi Brings in 3 New Senior Vice Ministers

TOKYO - Prime Minister Junichiro Koizumi on Wednesday named 22 lawmakers as senior vice ministers, reappointing 19 and bringing in three new ones to replace those who failed to get reelected in the Nov 9 general election. The new senior vice ministers are Yukio Jitsukawa at the Justice Ministry, Yamato Inaba at the Ministry of Education, Sports, Culture, Science and Technology and Eiko Kaneta at the Ministry of Agriculture, Forestry and Fisheries. All the three belong to Koizumi's Liberal Democratic Party.

From Kyodo News 11/20/2003

TOP↑

SOUTH KOREA: Anti-Corruption Probe Targets Local Governments

The government will begin a nationwide anti-corruption investigation covering local administrative offices starting at the end of November. Targets of the inquiry will be local governments' civil affairs administrations, with the objective of rooting out corruption related to government projects. The Korean Independent Commission Against Corruption on Monday sent President Roh Moo-hyun a report on its pending questions and measures against corruption. The commission said that the government investigation was intended to fundamentally prevent corruption and that a joint inspection team would be formed in collaboration with the Board of Audit and Inspection, the Public Prosecutors Office, the National Police Agency and the National Tax Service. The investigation team will be operating from the end of this month to next April. The commission has proposed that the investigation be concentrated on corruption in local administrative bodies, the misuse of government funding by tourism-related organizations and private schools, and abuses of power by government institutions. The commission has also decided to form a council of institutions opposing corruption in order to design preventive measures from the government level. The council would hold biannual meetings with the president. The council members would be selected from 12 government agencies, including the commission, the Board of Audit and Inspection, the Ministry of Justice, the Ministry of Government and Home Affairs, the Financial Supervisory Commission, the Public Prosecutors Office, the National Police Agency, the National Tax Service. "The results of the joint inspections team's investigation that begins this month will be reported to the commission during the first half of next year," said an official at the anti-corruption agency. "Matters that need improvement will be brought to the policymakers, and the police and related inspection departments will be notified about cases of corruption." (by Han Jae-hyun)

From http://english.chosun.com/ 11/03/2003

TOP↑

S Korean Parliament Approves Special Prosecutor for Corruption Probe

SEOUL: South Korea's parliament endorsed a bill Monday to appoint special prosecutors to probe corruption allegations surrounding President Roh Moo-Hyun's aides. Of 192 lawmakers who voted, 183 endorsed the bill, proposed by the main opposition Grand National Party. Two voted against it and seven abstained. The allegations which surfaced last month triggered a political crisis in South Korea with Roh calling for a referendum on his rule and saying he would step down if he lost. Roh, who has said he opposes an investigation by independent prosecutors, has 15 days to decide whether to accept or veto the bill. State prosecutors have promised to enlarge an investigation they launched last month into illegal cash donations to political parties during last year's presidential election campaign. But opposition legislators say they cannot trust state prosecutors to carry out a thorough probe. Roh's approval ratings have crashed to under 30 percent since prosecutors questioned his aides in October for allegedly taking money from SK Group, South Korea's third largest conglomerate. The SK scandal highlighted deep-rooted corrupt connections between businessmen and top politicians in all the main parties. Roh, a former human rights lawyer who won the December elections on a pledge of honest government, has said he would step down if he loses a referendum which he has tentatively scheduled for next month although he needs approval from a hostile parliament to carry it through. The anti-Roh Grand National Party has 149 seats in the 272-member National Assembly. The former ruling Millennium Democratic Party (MDP) has 63 seats while a new party of Roh loyalists claims just 43 seats.

From http://www.channelnewsasia.com/ 11/10/2003

TOP↑

Ministry Urged to Adapt to Media Convergence

The Ministry of Information and Communication is being urged to come up with new policies that can handle a fresh wave of technology convergence and service bundling, telecommunication sources said. The Korean government is currently pushing for the so-called "ubiquitous" network environment, which inevitably involves the combination of telecommunications, broadcasting and the Internet. The problem is that the ministry's major policies are not friendly to such convergence of new technologies. In fact, the ministry bans telecom operators from bundling similar services, citing concerns about monopoly and unfair competition. As a result, KT Corp., the country's largest fixed-line carrier, cannot bundle services with its mobile subsidiary, KTF Co. In fact, in the process it is consumers that lose a chance to enjoy better and cheaper services. If KT and KTF combined their fixed-line and mobile services as a single package, the subscription rate could go down significantly, saving customers' money. But the Information Ministry blocks such bundling, arguing that combinations of services would just help telecom heavyweights further solidify their market dominance. KT has been planning to offer a new package service that combines Skylife satellite broadcasting and Megapass high-speed Internet access in early December. The new package will be 20 percent cheaper than the separate fees for the two services. However, the ministry remains adamant about its policy, making it uncertain whether KT will be able to launch the new offering and prompting industry pressure for the ministry to change the regulations. Bundling, meanwhile, is already available in many countries, including the United States, Canada, Australia, Britain and Japan. (by Yang Sung-jin)

From http://www.koreaherald.co.kr/ 11/11/2003

TOP↑

Female Employment Low in Public Sector

Women account for only 26 percent of employees in state-affiliated enterprises, with many of them hired on contract and most of them holding nonmanagement positions, a government survey showed yesterday. Female workers hold a mere 17.7 percent of nearly 178,000 regular jobs in the public sector, the Ministry of Labor said based on its recent survey of 211 government-related corporations. According to the survey, men fill 95.3 percent of management-level positions. Some 80 companies had no female managers. "At private companies, 36 percent of the employees are women, 10 percentage points higher than the corresponding figure at public enterprises," said Kong Seok-won, a Labor Ministry official with the Women Employment Division. "Even considering that more manufacturing and service jobs are offered in the private sector, public companies should be criticized for their low rates of female employment," he said.

From http://www.koreaherald.co.kr/ 11/14/2003

TOP↑

GNP Eyes Watchdog on President's Staff

The majority Grand National Party is preparing a bill to establish an organization specializing in investigating any corruption on the part of the president's family and staff. GNP chief policymaker Lee Kang-too said yesterday that his party planned to submit the bill for a new investigative body during parliament's regular session, which will close Dec. 9. "We need to take a radical step to eradicate any corruption by the president's family and staff," Lee said. The main opposition party proposed a similar bill in November last year, which is still pending in the National Assembly. The then-ruling Millennium Democratic Party strongly opposed the bill at the time. "We will revise the previously suggested bill and submit it before the Assembly's regular session ends," Lee said. According to the bill, the investigative organization, under the control of the Korea Independent Commission Against Corruption, can ask the Assembly to appoint a special counsel to look into any irregularities committed by the president's close family and aides. If parliament approves the bill, it will be possible to appoint a special counsel virtually at any time to investigate such cases of corruption. The move comes after President Roh Moo-hyun suggested Wednesday that he might veto a bill on a special probe into allegations of corruption on the part of his aides, which the National Assembly authorized Monday. Roh said he may ask parliament to reconsider the bill in order to give the prosecution more time to complete its ongoing probe into the bribery scandal surrounding Choi Do-sul, Roh's former secretary on general affairs. Roh said it would be inappropriate to appoint a special counsel on cases that the prosecution is still investigating. (by Sim Sung-tae)

From http://www.koreaherald.co.kr/ 11/14/2003

TOP↑

Chough Enters Leadership Race in MDP

Rep. Chough Soon-hyung of the Millennium Democratic Party declared yesterday that he would run for election later this month to select the party's new chairman. "I have reached a decision that it would be wrong for a responsible politician to ignore the fellow party members' loyalty and turn away from the crisis the party is in," Chough said in a news conference. Five-term lawmaker Chough is renowned for his quiet manner and sharp tongue. "If the party decides to honor me with the chairman's post, I will put all my efforts toward regaining the public's trust and raising the MDP up to become the largest parliamentary bloc in the 17th general elections next April," he said. The former ruling party is holding a national convention Nov. 28, at which time it will pick a new leadership ahead of the parliamentary elections April 15 next year. Chough will be competing against Rep. Choo Mi-ae, a two-term lawmaker and one of the most popular female politicians. Chough currently heads the party's crisis management committee, which also includes Reps. Kang Un-tae, Kim Kyung-jae and Cho Han-chun. (by Lee Joo-hee)

From http://www.koreaherald.co.kr/ 11/17/2003

TOP↑

Seoul Ranked as Best 'E-Gov'

The Seoul Metropolitan City Government announced on Sunday that it has been selected as the best "e-government" out of 100 cities worldwide, in a recent survey on assessing websites and measuring the e-government indexes of global cities. The survey was conducted on 100 cities worldwide, from last March until October, jointly by the Global e-Policy and e-Government Institute of Korea's Sungkyunkwan University and the e-Governance Institute of Rutgers University, in the United States, under the sponsorship of the United Nations' Division for Public Administration and Development Management, Department of Economic and Social Affairs. Appraisals were made in five areas: security, usability, content, service and citizen participation. The survey listed Hong Kong, Singapore, New York, Shanghai, Rome, Auckland, Jerusalem, Tokyo and Toronto, ranking second to 10th. "It was the first research comparing e-government indexes of international cities. Seoul City was awarded top place as a result of its work since last year to remake its Internet homepage," a city official said. The award ceremony is to take place at the 600th Anniversary Hall of Sungkyunkwan University on Nov. 21. (by Shin Hyung-joon)

From http://english.chosun.com/ 11/17/2003

TOP↑

Korea's Nts to Tighten Tax Control over Foreign-Owned Real Estate

SEOUL - The National Tax Service (NTS) said Tuesday it will tighten its tax control regime for domestic real estate owned by foreigners. The measures follow reports that foreign companies have reaped huge profits from offices they bought following the 1997-98 Asian financial crisis, but have failed to pay the requisite taxes. Some outside investors and companies have also been accused of leaving the country after selling the property at a profit without settling their dues. The state authority said it will keep closer tabs on the sale of large office buildings owned by foreigners and request detailed sales information that can be used to levy taxes.

From http://www.asiapulse.com/ 11/18/2003

TOP↑

Campaign Fund Probe Reaches Critical Stage

The prosecution's investigation into illicit presidential campaign funds and corruption cases involving aides to President Roh Moo-hyun is expected to reach a critical stage this week, prosecution sources said yesterday. A string of business tycoons and associates of the president will be summoned for questioning in the coming week. A senior prosecutor said last week the prosecution would begin taking legal steps against those being investigated in the illegal fund-raising and graft cases next month. The outcome of pending interrogations is expected to be crucial in determining whether and what legal measures to apply to the suspects, according to the sources. In tandem with summoning key suspects, the prosecution has been tracing bank accounts held by corporations and major political parties in a bid to find out details of improper donations made during last year's presidential campaign. Prosecutors will call in LG Chairman Koo Bon-moo, Hanjin Chairman Cho Yang-ho and other heads of conglomerates who are alleged to have donated illegal funds to the camps of Roh and his rival contender, Lee Hoi-chang, during the campaign. Kumho Chairman Park Sam-koo, who underwent questioning last week, may also be summoned again, prosecution sources said. Ahn Dae-hee, a senior prosecutor directing the campaign fund probe, told reporters last week the prosecution would look into the cases in which conglomerate bosses raised slush funds by doctoring books and used part of them to boost their level of corporate control. The prosecution will also summon senior party officials, including Rep. Chyung Dai-chul, former chairman of the Millennium Democratic Party, and Rep. Lah Oh-yeon of the opposition Grand National Party, for questioning over campaign financing. Chyung served as chairman of Roh's campaign team and Lah led a GNP financial supporters' group. Prosecutors are also accelerating their probe into corruption allegations involving Roh's aides, as the president and the opposition are locking horns over a bill authorizing a special counsel to investigate the allegations. Kang Keum-won, a textile company owner close to Roh, and Seon Bong-sul, Roh's childhood friend who received 950 million won from Kang late last year, will be summoned soon for additional questioning. The prosecution is considering seeking an arrest warrant for Kim Sung-chul, a business leader in Busan, on charges of giving bribes to Choi Do-sul, a close aide to Roh, shortly after Roh was elected president last December. Moon Byung-uk, chairman of Sun & Moon Group, and two other executives of the group were put under exit bans yesterday. Prosecutors are tracing their bank accounts and planning to summon them for questioning over dubious financial transactions, which the opposition alleged were related to improper donations to Roh's campaign team. (by Kim Kyung-ho)

From http://www.koreaherald.co.kr/ 11/24/2003

TOP↑

INDONESIA: Army Announces Reshuffle

The Army unveiled a major reshuffle on Friday, replacing Jakarta Military Commander Maj. Gen. Djoko Santoso with Pattimura Military Commander Maj. Gen. Agus Tadi.Djoko, who graduated from the Military Academy (Akabri) in 1975, will reportedly be promoted to a three-star general and replace Army deputy chief Lt. Gen. Sudarsono, who is about to reach the mandatory retirement age of 55. "The Army completed a reshuffle of high-ranking and middle-ranking officers last week. Some 30 officers have been transferred to new posts, including five regional military commanders," Army chief Gen. Ryamizard Ryacudu said after breaking the fast at the Jakarta Military Headquarters in East Jakarta. "Maj. Gen. Agus Tadi will soon be assigned to Jakarta to replace Pak Djoko (Santoso). Djoko will replace another military officer who will soon retire," Ryamizard said without elaborating. Agus Tadi was Ryamizard's classmate at Akabri. They both graduated from the academy in 1974. Agus Tadi's position in Pattimura will be assumed by his chief of staff, Brig. Gen. Syarifuddin Suma, a 1973 Akabri graduate. Ryamizard declined to comment on why the Jakarta Military commander was being replaced ahead of the 2004 general election. The general also appointed Maj. Gen. Soenarso, a 1973 academy graduate, to fill the post of Diponegoro Military commander, which has been vacant since the death of Maj. Gen. Amirul Isnaini, a 1975 Akabri graduate, due to cancer in June. Soenarso is the current Sriwijaya Military commander overseeing South Sumatra, Jambi, Bengkulu and Lampung provinces. His chief of staff, Brig. Gen. Syahrial, will take over as the head of the Sriwijaya Military Command. Maj. Gen. Agus Yitno, the head of the Udayana Military Command overseeing Bali, East and West Nusa Tenggara, will be replaced by Brig. Gen. Supiadin Yusus, a 1975 Akabri graduate. Supiadin is currently the chief of staff of the Tanjungpura Military Command. Agus, according to Ryamizard, take over as the Army's territorial commander, replacing Maj. Gen. Mahidin Simbolon. There were rumors last week that the reshuffle would also affect top-level military officers at the Indonesian Military (TNI) Headquarters in Cilangkap, with some suggesting that TNI chief Gen. Endriartono Sutarto would be replaced by Marshall Chappy Hakim, the Air Force commander. According to the rumors, Endriartono would move into the post of defense minister, replacing Matori Abdul Djalil, who is suffering from a serious illness and is being treated at the Mount Elizabeth General Hospital in Singapore. (by Tiarma Siboro)

From http://www.thejakartapost.com/ 11/01/2003

TOP↑

Elections Commission Presents Draft Decree on Electoral Campaign

The General Elections Commission (KPU) presented on Friday a draft decree on election campaign mechanism that will require electoral candidates to consult the commission on the types and the number of advertisements they will place in the mass media. The draft is an elaboration of the Election Law, which stipulates that electronic and print media provide equal chance for all electoral candidates to place their advertisements. It states that an advertisement slot allotted to a candidate cannot be given to another candidate for whatever reason, as is stated in the explanatory appendix of the Election Law. Besides advertisements, each electoral candidate is given a chance of airing recorded speeches through radio and television stations. The draft decree is expected to be passed in December after public scrutiny. According to the draft decree, electoral candidates are defined as either political parties or candidates of Regional Representative Councils (DPD) that are seeking votes in the general elections on April 5 next year. While the Election Law defines an election campaign as an activity carried out by electoral candidates to woo voters with their platforms, the draft decree says that an election campaign is intended to influence outsiders and can be held in both open and closed venues or through the mass media. Electoral candidates are obliged to submit an event report to local police on their campaign, including details of the location, estimated number of participants, designated routes to and from the campaign, and the persons responsible for the campaign. According to the draft decree, a party activity involving party members or supporters is not regarded as a campaign, although it often attracts outsiders in practice. KPU deputy chairman Ramlan Surbakti told a press briefing on Friday that the decree would include the definition of an election campaign to avoid misinterpretations and violations. He said the definition was open to debate. Rallies involving party supporters before the election campaign decree comes into effect are not subject to the decree. The campaign period is scheduled to last three weeks between March and April 2004, and must end three days before the April 5 legislative election. The draft decree also stipulates that a campaign featuring electoral candidate symbols can be held at select locations as determined by local administrations, and/or at a private venue. Rallies held during a campaign are not allowed outside the predetermined route, cannot spread to other electoral districts and must not violate traffic regulations. In the event of a security problem, the police can take any necessary measures to stop or halt the campaign in accordance with the decree. Meanwhile, judges and Supreme Court justices, State Audit Agency (BPK) officials and chief, Bank Indonesia governor and deputies, officials of state/provincial firms, civil servants and village heads are prohibited from taking part in electoral campaigns, says the draft. State officials representing political parties must take leave if they wish to participate in campaigns, and they are not permitted to use state facilities. The KPU will stop a campaign if any violations of the article regarding the participation of state officials occur. Between the campaign period and the ballot, legislative candidates are not allowed to promise to give money, nor to give money and/or other materials to voters. Those who violate the article will be sent to court and may be disqualified from the election. (by Moch. N. Kurniawan)

From http://www.thejakartapost.com/ 11/01/2003

TOP↑

Govt to Set Up Special Unit to Take Over Role of IBRA

A special unit under the Ministry of Finance will be established to take over the role of the Indonesian Bank Restructuring Agency (IBRA) in implementing the government blanket guarantee program on bank deposits, when the agency's mandate expires by Feb. 27 next year, a senior official at the ministry said. The government has said that it would not extend the five-year mandate of IBRA, meaning that the powerful agency -- the executor of the guarantee program -- will be closed down on Feb. 27 as scheduled. Ministry financial institutions director general Darmin Nasution, speaking Tuesday, did not say when the special unit would be set up but said details were still being worked out and would be announced in the near future. The unit, to be called the banking guarantee implementation unit (UP3), would operate on a temporary basis -- pending the planned establishment of a deposit guarantee agency (LPS), which needs more time to be set up as the government has yet to finish drafting the law as the legal basis for the agency. Darmin also said the LPS would need around one year of preparation after enactment of the law to be effective, possibly in 2004. The UP3 only needed a ministerial decree as its legal basis. The government has said that due to its temporary nature, the UP3 would take over part of the current roles of IBRA in executing the guarantee program, especially those related to administrative tasks. Its most important job will be managing and collecting premium fees from national banks participating in the blanket guarantee program, which amounts to 0.25 percent of third party liabilities. With the country's total third party funds standing at more than Rp 900 trillion currently, UP3 could collect annual premium fees amounting close to Rp 2 trillion. The setting up of the new agencies, both UP3 and LPS, is part of the government's plan to gradually terminate the blanket guarantee for bank deposits and other liabilities. As reported earlier, the government plans to phase out the scheme especially for big depositors, while for the small depositors, it will continue to protect them via a new deposit insurance scheme to be managed by the LPS. The blanket guarantee scheme was first introduced in 1998 to help revive confidence in the ailing banking sector, badly hurt by the devastating financial crisis in 1997-98. It was also meant to avoid widespread panic when the government had to close down banks. Under the scheme, if a bank is closed down, the government would cover all of the banks' obligations, including their third party liabilities. It was the absence of such a scheme that was believed to have helped cause massive capital flight during the early period of the crisis, when the government closed down a number of local banks. However, to minimize the cost of any bank failures to the state -- as well as removing the moral hazards among bankers, the government came up with the idea of gradually terminating the program. Elsewhere, asked whether the establishment of UP3 in such a short time would cause difficulties, Darmin suggested to recruit some of IBRA's professionals who have been in charge of the program during their tenure at the agency. "Workers from IBRA could be placed in the unit. They could be assigned through probably a presidential decree to control the program," he said.

From http://www.thejakartapost.com 11/19/2003

TOP↑

INDONESIA: House Forms 24 More Regencies

The House of Representatives (DPR) on Thursday endorsed 13 bills on the establishment of 24 new regencies in 13 provinces throughout the country. The formation of the new regencies has increased their number nationwide from 324 to 348. The number of municipalities is now 86 spread out among the country's 33 provinces. At a plenary meeting also attended by officials from the newly established regencies, all nine factions in the House backed the creation of the new administrative divisions, arguing that their establishment would help boost the prosperity of the people in those areas. In his speech, Minister of Home Affairs Hari Sabarno remarked that political reasons were the main factor in the past as well as the recent establishment of the new regencies. The minister warned the House of the fact that some new regencies set up earlier had not performed effectively. "The future creation of new regencies must be based on serious assessments," he said. He added that the government would re-merge regencies if they failed to perform effectively as evidenced by their financial dependence on the province and its former regency after three years. The establishment of new regencies or provinces is made possible with the enactment of Law No. 22/1999 on regional administrations and Government Regulation No. 129/2000 on the requirements for the establishment of new regencies and provinces. Any group of people that wishes to propose the creation of new regencies or provinces can do so by formally requesting it from the House, which will then assess the validity and send it onward to the Cabinet for further consideration. The Council of Regional Autonomy Advisory (DPOD) consisting of the home ministry, the finance ministry, the state secretary and regional representatives will study if the proposal meets all the criteria or not. The home minister emphasized that the establishment of regencies, in the past and in the present, is based more on sentiment of historical, geographical or ethnic identity rather than on economic potential of the respective areas. "Proposals to create new regencies are because of public pressure. This must be avoided in the future," the minister said. He ensured that the creation of the new regencies would not change the allocation of seats in the House of Representatives (DPR) for next year's elections. Hari, however, said that the General Elections Commission (KPU) would soon allocate seats and map the new regencies to create regency legislatures (DPRD). No. New Regency Province 1. North Kolaka, Bombana, Wakatobi Southeast Sulawesi 2. West Sumbawa West Nusa Tenggara 3. Lingga Riau 4. Tojo Una-Una Central Sulawesi 5. North Minahasa North Sulawesi 6. Sekadau, Melawi West Kalimantan 7. Supiori Papua 8. Serdang Bedagai, Samosir North Sumatra 9. Ogan Ilir, East OKU, South OKU South Sumatra 10. South Solok, West Pasaman, Dharmasraya West Sumatra 11. Lebong, Kepahiang Bengkulu 12. West Seram, East Seram, Aru Islands Maluku 13. Bener Meriah Aceh

From http://www.thejakartapost.com/ 11/21/2003

TOP↑

Mahathir Quits, Abdullah Sworn-In as Malaysian PM

The end of an era has been marked in Southeast Asia as the region's longest-serving elected leader, Mahathir Mohamad, stepped down and Abdullah Ahmad Badawi was sworn-in as Malaysia's prime minister. In contrast to Mahathir's often controversial 22 years in office, the formal hand-over of power was performed with quiet dignity in a nationally-broadcast ceremony before King Tuanku Syed Sirajuddin at the royal palace in Kuala Lumpur. Abdullah, 63, took the oath of office as Malaysia's fifth prime minister since independence from Britain in 1957 as Mahathir, 77, followed through on a pledge to retire first made 16 months ago. After the ceremony the two men were due to travel separately to the prime minister's office in the new administrative capital of Putrajaya south of Kuala Lumpur. At 4:45 pm, Mahathir was due to clock out, using the punch card system he introduced for civil servants a month after becoming prime minister in July 1981. On Monday, Abdullah will clock in at 8.15 am after spending the weekend in his home state of Penang. Mahathir's last day as premier was marked both by bouquets and brickbats, as were his two decades in power. Local newspapers published massive supplements of lavish praise for the outgoing premier, but he was snubbed by Australian Prime Minister John Howard and criticised by the United States congress. Howard said in a radio interview he had no farewell message for Mahathir, who has regularly dismissed Australia's bid to be accepted as part of Asia, describing it recently as "some sort of transplant from another region". In Washington, the House of Representatives joined the Senate in condemning Mahathir for his remarks at an Islamic summit in mid-October that Jews rule the world by proxy. Mahathir acknowledged in one of his final news conferences that his legacy was a controversial one. Asked how he would like to be remembered, he said he did not mind if he was forgotten, but added: "They will not forget all -- as Shakespeare has said, 'the evil that men do lives after them, the good is oft interred with their bones'." The "good", though, was the focus of Friday's media tributes, one of which described Mahathir as "the greatest Malaysian alive". Echoing the grudging acknowledgement of even his critics, the New Straits Times said: "No one can dispute his central accomplishment of transforming Malaysia from an agricultural backwater into a rapidly industrialising economy and manufacturing powerhouse." Mahathir has been accused by some in the West of being a dictatorial Muslim bigot, but he has run a moderate multi-religious country and stepped down voluntarily with a democratic system, though criticised as flawed, still in place. Abdullah will face general elections within a year, with the hardline Islamic Party (PAS) presenting the biggest challenge to his United Malays National Organisation (UMNO), which has been in power since independence. Mahathir's departure is part of a sweeping political makeover across East Asia, where a new generation of leaders is taking charge and several countries will hold elections within 18 months. Mahathir, who came to power when Ronald Reagan and Margaret Thatcher led the United States and Britain, outlasted contemporaries like the late Philippine dictator Ferdinand Marcos, Indonesia's ousted strongman Suharto, 82, and Singapore's Lee Kuan Yew, 80. Abdullah will join a different breed of younger leaders exemplified by Thai Prime Minister Thaksin Shinawatra, 54, Philippine President Gloria Arroyo, 56, and Indonesian President Megawati Sukarnoputri, 56. The most obvious change in Malaysia, however, will be one of style rather than substance. Abdullah is not expected to make any radical changes to Mahathir's economic and social policies, at least in the short term, but he is quieter and less confrontational than his predecessor.

From http://www.channelnewsasia.com/ 10/31/2003

TOP↑

No Cabinet Shake-Up Yet

Prime Minister Datuk Seri Abdullah Ahmad Badawi said Wednesday there will not be any Cabinet appointments or a reshuffle at the moment. Emerging after chairing his first Cabinet meeting as Prime Minister, he said he had told the Ministers that he was not yet making any Cabinet appointments neither was he going to make any reshuffle for the time being. "I have already informed His Majesty (the Yang di-Pertuan Agong Tuanku Syed Sirajuddin Syed Putra Jamalullail) on the day that I was sworn in that all Ministers will stay put with the same portfolio," he told a media conference after the Cabinet meeting here. He said when changes were made later, he would inform the King. Abdullah was sworn in as Malaysia's fifth Prime Minister last Friday, succeeding Tun Dr Mahathir Mohamad who stepped down after leading the country for 22 years. Abdullah, who called on Tuanku Syed Sirajuddin at Istana Negara before the Cabinet meeting Wednesday, as done regularly by the Prime Minister, also said he had assumed the post of Finance Minister held by Dr Mahathir. He said he would attend a briefing at the Treasury next Tuesday to have a better knowledge and understanding of related issues. On speculation over the appointment of the Deputy Prime Minister, he said there was no need for it. "Why speculate because I will definitely appoint the Deputy Prime Minister, an appointment will be made. "I need a deputy and I will choose the person I feel will be able to assist me and, at the same time, provide good leadership," he said. Abdullah said he would have more responsibilities, including as Chairman of the Non Aligned Movement (NAM) and the Organisation of Islamic Conference (OIC) which require him to attend various meetings. "Since the last several years the heads of government, even heads of state are also managing foreign relations like never before...we attend meetings, we get into discussion on what needs to be done," he said. Asked if he would be stretching himself too thin by holding several portfolios, apart from being the Prime Minister, Abdullah said: "In the Ministry of Finance, I have the second Minister and we have a Deputy Minister and also a Parliamentary Secretary. "In the Ministry of Home Affairs, there are two Deputy Ministers and one Parliamentary Secretary. I think they are people who can be made to work harder," he said. Abdullah was asked repeatedly on the appointment of the Deputy Prime Minister during the media conference and he maintained that he was not ready to make an announcement yet. "When I'm ready and when I've decided, of course I will announce," he said. To this, a foreign reporter asked if he had decided (on the DPM) and the Prime Minister replied: "When I announce it means I have decided." Being the first Cabinet meeting that he chaired as the Prime Minister, Abdullah took the opportunity to explain the measures to be pursued and projects that needed to be introduced. "I mentioned to them that it is important that we in the administration continue with the hands-on approach in dealing and managing the various programmes under our respective ministries," he said. "We must know what is happening in our Ministry and know exactly what to expect, what to anticipate and must provide leadership," he said. "Leadership by example to me is important. I remember I was responsible for the initiation and implementation of the 'Leadership By Example' programme when I was first appointed as Minister in Dr Mahathir's Cabinet. "I still believe in the efficacy of such a programme and I believe that this is something that we must do. "If we talk about hard work, honesty and integrity, then we in the administration must be the first to show, to demonstrate that we are people of integrity, that we work hard, that we are dedicated, we know the stuff that we provide, we are ready to provide the leadership," he said. Abdullah also told them about his speech in Penang on Saturday in which he had asked the people to "work with me, not work for me" so that together they could help to achieve more for the nation and people. "I want all the Ministers to adopt the same approach, nobody should be made to work for us, they will be working with us," he said. "And talking about honesty, integrity, we must not be displaying wealth and showing how much we have," he said, recalling a point he made at the four-hour meeting. He said the important thing was to have the right attitude. "I told them that we must continue to work hard. "I said as much as I want the rakyat to be working with me, more importantly I would like my colleagues in the administration to be working with me. "I told them that of course I play the role of the leader but all of us are working towards the same objective," he said.

From http://www.dailyexpress.com.my 11/06/2003

TOP↑

PM Wants Government Depts to Be More Efficient

Datuk Seri Abdullah Ahmad Badawi has directed government departments to cut red tape and strengthen the civil service to fight corruption and deliver quality service to the rakyat. The Prime Minister proposed that each ministry set up a task force to look at ways to reduce bureaucracy in all departments under them because inefficiency could breed corruption. He also directed the re-engineering of all district offices and local councils to rid them of "unwieldy bureaucratic procedures" that could tempt people to commit bribery. Abdullah said a special task force, to be headed by Chief Secretary to the Government Tan Sri Samsudin Osman, would be formed. He said no timeframe had been set for the task force to carry out its job, but hoped that it would be completed as soon as possible. "The improvement of the public service delivery system is very important. Certain measures must be introduced to cut red tape so that the people can get fast and quality service. "I have informed the Cabinet that I would be paying keen attention to frontline government departments that deal with people through counter services. I want them to be improved to ensure that the rakyat will get fast and reliable service," he told reporters after chairing his first Cabinet meeting as Prime Minister at Perdana Putra Complex here yesterday. He said the task forces in the ministries must look at ways to cut red tape in departments so that the waiting period for all applications for government approvals like licences and permits could be reduced. "The long waiting periods can breed corruption as people who are impatient could very easily be tempted to offer bribes to speed things up," he said. On the re-engineering of district offices and local councils, Abdullah said apart from weeding out corruption, a review was necessary because of their increasing workload and responsibilities. "We have identified district offices as being bogged down with too much work compared to what they were expected to do 20 or 30 years ago. Today, they are expected to play a major role in the development of the districts. The land offices are also much burdened compared to before, having to issue licences for all kinds of activities. "The same is also true of local councils, which are now involved in all kinds of urban and semi-urban development within their jurisdiction. "Although we need regulations, let us not be too preoccupied with enforcement, as equally important is that the Government, besides being a regulator, must also be able to help people get what they need," he added. Abdullah said the re-engineering of district offices and local councils would help raise the effectiveness of other measures to combat corruption. When pointed out that the highest number of graft cases was recorded among civil servants in the Home Ministry, Abdullah, who is also Home Minister, said: "Yes, we have been fighting this very hard. If we hadn't, the number would have been much higher than what we see today. "There are a lot of things that we have to do. I won't hide facts and will not sweep things under the carpet. We just need to work harder to tackle this problem." Abdullah also announced the proposal to set up the Institute for Public Ethics to promote good governance in both the public and private sectors and the formulation of a National Integrity Plan that would go hand in hand with the setting up of the institute. The institute, he said, would provide a platform for greater interaction and discussion between the public and private sectors to promote accountability, transparency and efficiency in both sectors.

From http://thestar.com.my/ 11/06/2003

TOP↑

Ministry Warns NUBE to Hold Fresh Election

The Human Resources Ministry has once again threatened to deregister the National Union of Bank Employees (NUBE) if its two feuding factions refuse to hold a fresh election. Its Minister Datuk Dr Fong Chan Onn, however, could not say how much time they would be given before taking such an action. Trust give us a little bit more time before we consider that alternative, he said when asked how much longer the ministry would allow the crisis to drag on before invoking the powers of the Director-General of Trade Unions (DGTU) to de-register a trade union. Dr Fong said the ministry had a healthy respect for the autonomy of trade unions and the international laws on unionism. As such, he said, the ministry would prefer a more democratic solution. But if the feuding factions are only interested in protecting their own interests instead of that of the members, what choice do we have? If it drags on and on, obviously the situation will turn chaotic. Then de-registering NUBE will be our only choice as our responsibility is to restore order and to ensure that order in trade unions is maintained, he told reporters at his office yesterday. However, Dr Fong said this would be the last resort as such an act could result in the government being branded as anti-union. In the interest of its 28,000 members, a fresh election needed to be called so that new leadership could start its works of tackling many issues affecting members,'' he said Commenting on a statement by the former deputy DGTU Chen Voon Shian that the DGTU actually has, under Section 4A of the Trade Union Act, the power to order a trade union to hold a fresh election, Dr Fong said that was not so. Dr Fong said his understanding of the provision of the Act was based on the advice of the Attorney-General's chambers which opined that taking actions not specified by the Act would only result in it being disputed in court. He also said that the AG's chambers was currently looking into the repercussion arising from the High Court decision last Thursday, which nullified the decision of the DGTU to recognise the faction led by Muhammad Fauzi Shamsuddin as NUBE's legitimate office-bearers. The High Court decision, he said, effectively meant that none of the factions could claim to be the legitimate office bearer of the union.

From http://thestar.com.my/ 11/08/2003

TOP↑

Retiring Civil Servants Will Be Paid Up to 120 Days in Lieu of Leave

The "golden handshake" for retiring civil servants has been increased by a further 30 days, according to the Public Services Department. "Civil servants will be allowed to accumulate not more than 120 days for cash in lieu of leave throughout their service," PSD Director-General Tan Sri Jamaluddin Ahmad Damanhuri said in a circular issued yesterday. Previously, they could only be paid for a maximum of only 90 days. The change took effect from Aug 1. The PSD said that while the Government's policy was to encourage civil servants to take their leave each year, it was accepted that some were unable to do so due to the call of duty. "In such situations, they are allowed to accumulate leave, subject to certain conditions, to be replaced with cash," the circular stated. The circular said for the implementation of the new formula for cash in lieu of leave, the number of leave days accumulated up till Dec 31, 2002, would be taken up to 90 days only. During the last year of service, civil servants would be allowed to accumulate up to a maximum of their leave entitlement, added the circular. With the enforcement of the circular, payment for leave not taken would be calculated based on the formula: 1/30 x last pay received x accumulated annual leave days (subject to a maximum of 120). (Jane Ritikos)

From http://thestar.com.my/ 11/15/2003

TOP↑

PHILIPPINES: John O. Bill Shows the Way to 'Stronger' Judicial System

The independence of the judiciary, especially on the fiscal side, would be strengthened if judges and court employees are prohibited from receiving compensation and allowances from local government units (LGUs), Sen. John Osme?a said Tuesday. Osme?a, former chair of the Senate committee on finance, has been batting for greater fiscal autonomy of the judiciary and for a clearer definition on the use of the Judiciary Development Fund. He stressed his point: "These are precisely the main objectives of Senate Bill 2675 which I authored and which the Senate recently passed on third reading." Osmena lamented that while the judiciary is upset over issues affecting its independence, it saw nothing wrong in allowing judges and their court personnel to receive compensation and allowances from LGUs. "Allowances and compensation from LGUs could erode the much-needed independence of the judiciary. Some vengeful LGU executives could suddenly cancel the grant of these perks to judges and their court personnel if they could not get what they want," Osme?a explained. There had been instances when an LGU even asked the courts housed in a municipal hall to move elsewhere as the space would be used for another purpose. Osme?a, however, stressed that his bill has a mechanism to make sure judges and their personnel would still get their due allowances despite the ban on their acceptance of perks from LGUs. Osme?a said his measure seeks to realize this by creating a Local Government Judicial Development Fund, to be administered by the executive judge of the judicial region or district. "Each sala in said judicial region or district shall receive a uniform rate of allotment as determined by the Supreme Court, intermediate appellate justices, regional trial judges, metropolitan trial judges, municipal trial judges and municipal circuit trial judges, as the case may be," Osmena said. He stressed that nothing in the bill could be construed to affect or diminish the duty of local government units to provide office spaces, equipment and facilities to the courts within their respective territories. The Senate, acting on orders of Senate President Franklin Drilon, unanimously passed the measure on third and final reading last October 27 not only to strengthen the fiscal autonomy of the judiciary but also to clarify the use of the Fund. Osme?a said there is urgent need to clarify this in the face of the controversy spawned by different interpretations of the law creating the Fund, resulting in the impeachment by the House of Chief Justice Hilario Davide Jr. The Cebuano lawmaker said a key amendment in the section on the use of the Fund deletes the word " facilities" and substitutes it with "maintenance and other operating expenses". "Chief Justice Hilario Davide got into trouble with the congressmen because Davide believed that the term 'facilities' included repair and purchase of luxury and service vehicles, purchase of curtains and the construction or repair of courthouses or judicial rest houses," Osme?a pointed out. (by Efren L. Danao)

From http://www.manilatimes.net/national 11/05/2003

TOP↑

Cabinet Revamp Planned by Arroyo

There will be a revamp in the Cabinet due to plans of some officials to stand for elections next year, President Arroyo announced yesterday. "There will be changes in the Cabinet for two reasons. First, some of the members plan to run in the next elections. Second, to prepare for programs for reforms," she said in her regular radio address. The President, however, did not identify the Cabinet officials planning to join the May 2004, national and local elections. Mrs. Arroyo is expected to appoint new members of her cabinet before deadline for the filing of certificates of candidacy at the Commission on Elections (Comelec) next month. Among the Cabinet members reportedly seeking higher office are Tourism Secretary Richard Gordon, Trade and Industry Secretary Manuel Roxas III, Interior and Local Government Secretary Jose Lina Jr., Agriculture Secretary Cito Lorenzo, Health Secretary Manuel Dayrit, and National Security Adviser Roilo Golez. Former defense secretary Angelo Reyes, now anti-kidnapping czar, and Metro Manila Development Authority (MMDA) Chairman Bayani Fernando are also planning to run for office next year.Roxas, who has appeared in public information reports on consumer rights as Mr. Palengke, is reportedly eyeing a seat in the Senate. Fernando and Gordon, on the other hand, reportedly plan to run for vice president. Mrs. Arroyo herself has announced plans to seek a full six-year term in the presidential elections next year. She has rejected media questions related to her political ambitions, saying it was not yet campaign time. (by Genalyn D. Kabiling)

From http://www.mb.com.ph/ 11/08/2003

TOP↑

PHILIPPINES: Finance Chief Resigns

Finance Secretary Jose Isidro Camacho resigned on Friday, the end of the government's push for fiscal reform measures and the start of the political season. "It is very clear that politics has taken center stage," he told reporters who gathered at his office on the sixth floor of the Department of Finance Building on Roxas Boulevard. "Between now and [the May presidential] election, politics will be the main preoccupation of Filipinos," he said at a press conference held on his return from a meeting with President Arroyo. The Manila Times learned, however, that Camacho's resignation was prompted by Malaca?ang's "lack of support" for his efforts to reform the financial sector, an agenda that was put on hold when President Arroyo reneged on her word not to run in 2004. "I'm financially, physically and emotionally exhausted," Camacho said. In particular he was upset about President Arroyo's decision to back Winston F. Garcia, the Government Service Insurance System (GSIS) president and general manager, over Camacho's recommendation that he be fired for alleged anomalies at the state pension fund. When pressed about the GSIS, Camacho explained that the pension fund is a "difficult issue." "We made recommendations there, and we stuck to them," he said. On two occasions Camacho asked for Garcia's replacement on grounds that Garcia allegedly mismanaged the pension fund, as cited by a Commission on Audit report. President Arroyo, however, denied Camacho's request on both occasions, fanning suspicions that Malaca?ang had cut a deal with the Cebu-based Garcia clan to deliver votes during the May election. Citing the reports made by the COA and the Insurance Commission, Camacho said the GSIS requires "competent people running it." Asked about the competence of those managing the pension fund, he merely said, "No comment." Finance industry sources said Camacho's departure was hastened by the President's decision to focus on campaigning for next year's election. "Camacho's reform program was being sidetracked," said an official who works with the finance secretary in an interagency government task force. He added that Camacho fears that he will be blamed for the country's economic problems while "his hands are tied" for "lack of support" from the Palace. "Several bills need to be pushed through Congress," the official said. "Although the President has certified them as urgent, they still need to shepherded through Congress, but that's not happening right now." Already, opposition senators are blaming Camacho for going on a "borrowing binge" to support the government's expenses in the face of a large budget deficit. Camacho delivered his resignation letter to the President earlier that day. She accepted his resignation, which takes effect on November 30. He recommended Finance Undersecretary Juanita Amatong, who is on an official trip abroad, as officer in charge, but the President has yet to act on his replacement. Although confident that the economy would continue to grow despite his departure, Camacho expects the economic reform momentum to slow down as the election season draws near. "After the December [congressional] break, [practically] all legislative measures will come to a halt," he said. He admitted frustration at Congress's failure to pass two administration-sponsored measures-the bills on the indexation of sin taxes and the creation of a new tax agency replacing the Bureau of Internal Revenue. Despite Congress's failure to expedite passage of the bills, Camacho cited the progress made regarding other priority measures. These include the bills rationalizing the documentary stamp tax, exempting professionals and banks from the value-added tax, and the revisions to the Antimoney Laundering Act. Camacho's departure leaves the President without her standard-bearer in the campaign to speed up the economy and rein in a budget deficit that has driven foreign debt to a record. Foreign investment has withered amid concern about corruption, terrorism by Muslim extremists and kidnappings. Camacho, 48, was a 22-year veteran of Bankers Trust Co. and Deutsche Bank AG when Mrs. Arroyo named him energy secretary in March 2001. He was appointed finance secretary three months later. He presided over the worst budget deficit in history last year, speed up tax collections to put the 2003 budget on track to show its first deficit decline in five years. Camacho had been denying reports that he would resign as long ago as November 2002, and as recently as Wednesday, when he announced that the monthly deficit had narrowed in October from September. At the Philippine Dealing System, the peso closed at P55.58 to the dollar-its lowest close since the Central Bank of the Philippines was created in 1949. The previous low was P55.53, which happened after the Court of Appeals suspended the central bank governor, Rafael B. Buenaventura, and other senior monetary officials. Informed Camacho's resignation, Buenaventura said the government has a lot of explaining to do. "The government must show and convince the financial markets that there is no change in its reform program, and in its resolve [to pursue this program]," he said.

From http://www.manilatimes.net 11/22/2003

TOP↑

SINGAPORE: Civil Servants to Get Lower Bonuses; Cut in Starting Pay for New Employees

Civil servants will get lower bonuses this year after the Government announced a reduction in year-end Annual Variable Component (AVC), from 1/2-month to 1/4-month.Together with the 1/4-month AVC paid in July 2003, the bonus reduction leaves civil servants with a total AVC payment of 1/2-month for 2003. The reductions in the AVC payment will result in savings of up to $53 million. Civil servants will continue to receive the one-month Non-Pensionable Annual Allowance (NPAA) in Dec 2003.A statement from the Prime Minister's Office said this was in line with private sector salaries, which have fallen over the last two years. The Government also announced a cut in the starting pay of the Civil Service by up to 20 percent from January next year. The cut in starting salaries will affect nearly 100 percent of graduate new recruits, and about 50 percent of non-graduate new recruits into the Civil Service. The statement added that the average reduction in the starting salaries is 11 percent. The reductions in starting salaries will result in net savings of the Government's wage bill by an estimated $10 million per year. The statement said the Government would continue to monitor the private sector closely and make prompt adjustments whenever necessary. According to the Civil Service website, the starting pay for university degree holders currently ranges from $1,930 to $2,713, while that of polytechnic diploma holders falls between $1,527 and $1,737. (by Dennis Lim)

From http://www.channelnewsasia.com/ 11/07/2003

TOP↑

Bangkok Government: Plan Calls for 13 'Cities' with Appointed Mayors

The Interior Ministry yesterday forwarded a proposal to the Cabinet to divide Bangkok into 13 administrative units, with the aim of boosting administrative efficiency and encouraging the decentralisation of power. Interior Minister Wan Muhamad Noor Matha said |the proposed legislation would allow an elected Bangkok governor to appoint mayors to run various "cities" within Greater Bangkok. The appointment of mayors for the 13 cities would require approval from the City Council. "Initially it was agreed that [the mayors] must not be permanent officials or national politicians, but local politicians might be eligible," Wan Noor said. He said the ministry was |consulting the Council of |State, the government's legal advisory agency, on the issue. The mayors would take care of matters in the areas under their responsibility in order to lessen the workload of the Bangkok governor, the interior minister added. A draft of the proposed legislation will be submitted to the Cabinet on November 20 for endorsement so that it can be forwarded to Parliament within the current session, he said. If approved, the law is expected to take effect next year, in time for Bangkok's gubernatorial election in August. The Interior Ministry's proposal is based upon a previous proposal by the governing Thai Rak Thai Party. The main difference is that Thai Rak Thai suggested gubernatorial candidates submit the names of their mayors when registering to contest the election. A rival proposal by the opposition Democrat Party calls for separate elections for the Bangkok governor and mayors.

From http://www.nationmultimedia.com/ 11/12/2003

TOP↑

Legal Reform: Wheels of Justice to Spin Faster

The glacial pace of justice may turn into a flood when new trialdate scheduling rules are adopted nationwide. Under the old rules, some trials last up to 15 years. The new system is expected to ensure that even serious proceedings are completed in less than a year. Prompted by the judicial reform provisions of the 1997 Constitution, courts are getting ready to speed up the trial process by doing away with the timeconsuming way of trial scheduling. Kririrk Kasemsant, chief justice of the Appeals Court Region 6, has been assessing the new scheduling methods. In his report released yesterday, Kririrk said he found that in the courts where new scheduling rules have been introduced, there has been a reduction in the backlog of cases - despite initial fears that the system would further burden trial judges. "The scheduling of consecutive trial dates in six provincial courts has reduced the trial period to much less than one year, freeing up judges to handle more cases on the docket," he said. Of 174 courts of justice nationwide, six have completed the implementation of new scheduling rules and another 24 will have done so by the end of the year. A further 110 will complete the implementation next year and the remaining 34 are expected to follow in 2005. Courts that have already introduced the new rules include Nakhon Pathom provincial court, Northern Bangkok court and Nonthaburi provincial court. The new scheduling rules will apply to criminal cases involving a jail term of more than three years and civil cases involving a dispute exceeding Bt300,000. Justice Minister Pongthep Thepkanchana said courts would introduce the new rules in stages, depending on their readiness. "I expect the courts to gradually speed up the trial period rather than waiting for complete readiness before introducing the new rules," he said. Law Society of Thailand president Sak Korsaengreung said the new rules should be introduced with caution. "The courts are very much understaffed and any drastic attempts to shorten the trial period might result in the compromise of justice," he warned.

From http://www.nationmultimedia.com/ 11/13/2003

TOP↑

VIETNAM: Changes Clarify Roles for Local Authorities

Viet Nam's legislators adopted changes to the laws governing the organisation of People's Councils and People's Committees and the People's Council Election Law on Wednesday. They did so after agreeing that loopholes had been closed by revised versions of the laws. The amended People's Council and People's Committee Organisation Law was passed with the approval of 406 of the 428 deputies at the fourth session of National Assembly's 11 legislature. The revised People's Council Election Law was also approved with 87.75 per cent "yes" vote. Many redundant functions of People's Councils and Committees had been eliminated by the new law, said National Assembly Deputy Chairman Nguyen Van Yeu. Vagueness about their responsibilities had also been clarified. But it was inevitable that the People's Committee and People's Council would continue to share some identical functions and responsibilities. Some deputies argued that there should be a difference between the functions of urban and rural local authorities when they debated the proposed changes to the laws two week ago. "But most of Viet Nam's urban jurisdictions include a rural population," said Yeu. "In some cases, the rural population in some cities is even bigger than their non-farming peers," he said. The revised People's Committee and People's Council Organisation Law includes a new chapter detailing People's Council supervising power. The chapter enables the People's Council to organise yearly supervisory operations. All councillors have the right to require a council's standing committee, specialist boards, People's Court, and People's Procuracy with the same status to report about any issue the councillor thinks needs clarifying. The People's Council is empowered to dismiss its chairperson, deputy chairperson and member of a People's Committee with the same status. Commune People's Council standing committee will have two members; districts and province will have three. Each council will have two to three specialist boards dealing with economic and budgetary matters; social and cultural issues and legalities. For the first time, the law includes an article that shows councillors how to fill their council's decision making positions by vote of trust. Any councillor failing to win half of the vote will be dismissed in accordance with Article 64 of the changed law. The amended law had made major and specific changes to the functions and responsibilities of the People's Committee at different levels, said National Assembly chairman Nguyen Van An. Provincial People's Committee was entitled to formulate comprehensive socio-economic development plans for its jurisdiction and submit them to the Government for approval. Provincial Peoples Committees could also organise and inspect development projects in the province in co-ordination with ministries and central offices. The powers and responsibilities of individual members of the People's Committee had been distinguished from those of the organisations as a whole, An told the deputies. A report by the assembly's Legal Commission says that many committees and councils in smaller communities have failed to operate actively because of ambiguity in the original laws. The new law is expected to enable the full and efficient use of the local administrative system by clarifying the functions and responsibilities of People's Council and People's Committee members at three levels. Provincial People's Council members can now make a range of decisions from macro-economic management to law enforcement and social development. The amendments also mean that all issues relating to the planning, investment, and the building of key projects will be decided by a majority vote of People's Committee members. Pressing issues of finance and human resources will also be determined by a People's Committee vote before being submitted to the People's Council for approval. Article 126 of the new law empowers a People's Committee chairperson to dismiss any member of a lower-ranked organisation. A People's Committee chairperson will also advise about and implement measures to deal with as natural disaster, social disorder or epidemics within their jurisdiction. The chairperson will then report to the People's Council. The amended law for the organisation of the People's Council and People's Committee Organisation has six chapters and 140 articles. On Wednesday the National Assembly deputies heard that the amended People's Council Election Law enlarged the councils. Commune People's Councils will now have 25-35 councillors against the previous 19-25; districts 30-40, instead of 25-35; and provincial, 50-85, instead of 45-75, said Chairman of NA's Law Committee Nguyen Duc Khien. Ha Noi and any other cities with a population of more than three million could have a maximum 90 councillors, he said. Article 14 of the new law ensures that a People's Council must have minority and female councillors. The law also details criteria for candidates seeking election as well as election schedules and voting procedures. The revised law has 9 new articles and 44 amended articles. Both the People's Council and People's Committee Organisation Law and the People's Council Election Law were passed in 1994 but shortcomings made the changes imperative. The new laws will become effective early next year.

From http://vietnamnews.vnagency.com.vn/ 11/06/2003

TOP↑

BANGLADESH: Independent Anti-Corruption Commission: Js Body for Exclusion of Ministers from Selection Panel

Two Members of Parliament, one each from the treasury and the opposition benches, are likely to replace the finance and law ministers on the selection committee for appointments to the proposed anti-corruption commission. The parliamentary standing committee on the law, justice and parliamentary affairs is expected to make amendment to some provisions in the Anti-corruption Commission Bill for exclusion of the ministers from the commission, sources said. An inter-ministerial meeting will be held at the finance ministry Saturday to take a decision to this effect. According to the sources, the schedule of the bill will also be amended for expansion of the commission's jurisdiction. The amendment may include the Foreign Exchange Act, 1947, the Passport Act and the Customs Act in the schedule to empower the commission to deal with corruption and violation of the acts. "The commission will have jurisdiction wherever there is a scope for corruption by government officials," said a minister asking anonymity. Earlier on October 23, a roundtable, organised by the law ministry, reached a consensus on those issues. The Anti-Corruption Commission Bill, now pending before the parliamentary standing committee, proposes that the president shall appoint the chairman and the members of the three-member commission from a panel recommended by a selection committee. According to the bill, the six-member selection committee will include the finance and law ministers, two Supreme Court judges - one from the Appellate Division and another from the High Court Division, comptroller and auditor general, and the chairman of the Public Service Commission. According to the sources, the parliamentary standing committee may submit its report on the bill with amendments to the Jatiya Sangsad in its next session, starting on November 16. The bill may also be passed in the session, said a minister.

From http://www.bangladesh-web.com/ 11/05/2003

TOP↑

Jalil Predicts Change of Power by March-April Next Year

Awami League general secretary Abdul Jalil MP yesterday predicted change of power by March-April next year for what he said installation of a democratic government in the country. "The prevailing situation is known to all. It would be good for the people if the regime quit as early as possible. We're trying to clean up the present garbage by March-April and establish a people's government through democratic movement," he told reporters at Hotel Purbani. Elaborating his point, Jalil said they would complete party councils in different tiers by December-January, injecting momentum into the current anti-government movement. He pointed his finger to law-and-order situation, unabated price rises and unrest in society, and said Awami League would come up at an appropriate time to discharge its responsibility with the support of the people. The AL general secretary's remarks came at a press briefing where his party presidium member and former Foreign Minister Abdus Samad Azad gave Awami League's observations on the foreign policy being pursued by the coalition government that he said turned Bangladesh into a "friendless nation".

From http://www.bangladesh-web.com/ 11/05/2003

TOP↑

BHUTAN: Appointment of Senior Officials in the Ministries/Agencies

The Royal Civil Service Commission during its 192nd Meeting (first meeting after its reconstitution) held on October 30, 2003 appointed the following officials to the post of Director of Departments and Managing Director/Head of Agencies:

The above appointments have been made after reviewing the existing vacancies and suitability of each official against the respective posts. The order shall come into force with immediate effect.

From http://www.kuenselonline.com/ 11/13/2003

TOP↑

Chimi Elections See Joys and Sorrows

Deciding that the Dzongkhag Yargye Tshogdu (DYT) members would cast votes on behalf of the people, Sarpang's DYT re-elected Thakur Prasad Humagai of Dovan geog as chimi for the third time, on November 19. Of the 27 votes cast by the DYT members, Humagai secured 18 votes while Singye Dorji, Mangmi of Dekiling geog, won five votes, and Jatu Tshewang of Hilley geog and Pema Dolma of Darjeythang geog secured two votes each. Although there were some unofficial criticism of the election the Sarpang dzongda, Sonam Dawa, said that the DYT decided on this because some villages and geogs like Dovan and Gong were a three-day walk from the voting centre. "If these people are called to vote it will be troublesome for them," he said. "The Speaker of the National Assembly also endorsed the proposal of the DYT." The amended chathrim for election of National Assembly members of 1995 is currently being followed, according to officials of the National Assembly. The chathrim requires one member from each gung (household) to be represented for the election of chimi. Meanwhile, the chimi election for the geogs of Gelephu, Bhur, Jigmecholing, Serzhong, Chuzegang and Umling, to be held on the same day, was postponed after the serving chimi, San Maya Gurung, lodged a complaint to the DYT alleging that she was not informed or aware of the election. But the gup of Jigmecholing, who had nominated another candidate, maintained that he had informed her about the election. Five candidates were nominated for the constituency. The candidate from Serzhong geog was disqualified at the geog level because he could not meet the election criteria. In Lhamoyzingkha dungkhag the people unanimously re-elected Dilip Kumar Mukhia as their chimi. In Lhuentse the serving chimi of Menbi geog, Deki Pelzom, was re-elected in a close contest. She secured 107 votes while former dzongrab, Jigme, secured 105 votes. Five candidates contested in the elections which was monitored by the dzongkhag officials. (by Rinzin Wangchuk)

From http://www.kuenselonline.com/ 11/22/2003

TOP↑

INDIA: Election Commission Spoils Jogi's Party

NEW DELHI - Chhattisgarh chief minister Ajit Jogi's joy of drawing political mileage over his rival Union minister Dilip Singh Judeo's resignation was shortlived. The Election Commission on Monday took the unprecedented step of seeking the state governor's help in the transfer of the collectors of Bastar and Jashpur for violating the model code of conduct. The EC also asked the chief secretary to immediately transfer S K Raju, collector of Surguja, and S R P Kalluri, SP Bilaspur. "This is important for conducting free and fair elections," a senior EC official said. On Monday, the EC wrote a "serious" letter to the governor and requested him that under Article 324(6) of the Constitution, he should ensure the implementation of its October 29 order transferring B S Ananth, collector of Jashpur, and I N Suryavanshi, collector of Bastar, to the state secretariat. The governor was also requested to provide a panel of names of IAS officers for being posted as collectors in these two districts. Article 324(6) says: The President or the governor of a state shall at the EC's request would make available to the EC or to a regional commissioner such staff as may be necessary for the discharge of the functions

From http://timesofindia.indiatimes.com/ 11/17/2003

TOP↑

PM Accepts Judeo's Resignation, Orders CBI Probe

PTI New Delhi Nov 17: Caught in a political storm over video tapes purportedly showing him receiving bribes, the Union Minister of State for Environment, Mr Dilip Singh Judeo resigned today with the Prime Minister, Mr Atal Behari Vajpayee ordering a Central Bureau of Investigation (CBI) probe into the matter. Acting swiftly within hours of his return to India from a foreign tour last night, Mr Vajpayee consulted his senior colleagues about the damaging scandal involving Bharatiya Janata Party's potential chief ministerial candidate for Chhattisgarh which goes to polls in a fortnight. Mr Judeo persisted with his protestations of innocence and claimed to have resigned moral grounds. As television channels continued to air embarassing footage purporting to show Mr Judeo in a hotel room allegedly accepting money for fixing a mining lease in Orissa, Mr Vajpayee moved fast to limit the damage to the party and announced a probe by CBI which said it was taking immediate follow up steps. Asked whether he had seen the controversial footage, the Prime Minister replied, "saaf nahi hai (it is not clear)". He chose not to hazard a guess about the likely impact of the episode on BJP's prospects in the upcoming assembly elections, saying that it would be known only after the votes are counted. "Judeo has sent his resignation to the Prime Minister," the BJP president, Mr M Venkaiah Naidu told reporters, a day after the party spokesman and some other leaders described the video tape purportedly showing Judeo receiving money as "fake" and part of a Congress conspiracy to malign the party ahead of the assembly elections. The meeting at Mr Vajpayee's residence was attended among others by the Deputy Prime Minister, Mr L K Advani, the Finance Minister, Mr Jaswant Singh and the general secretary, Mr Pramod Mahajan. Mr Naidu said leaders requested Mr vajpayee to order an inquiry by CBI or by an "appropriate" agency "so that truth comes out". On his return from a six-day foreign tour, Mr Vajpayee told reporters last night that an enquiry into the allegation against Mr Judeo was on and "he has to go if found guilty". Mr Judeo told reporters in Raipur that he had resigned on "moral grounds" and the Union Agriculture Minister, Mr Rajnath Singh said it has been accepted. Mr Singh said Mr Judeo, in fact, wanted to resign yesterday but was asked to hold on till the Prime Minister's return from abroad.

From http://www.navhindtimes.com/ 11/17/2003

TOP↑

SRI LANKA: Law and Order Commission Begins Hearings

President Chandrika Bandaranike Kumaratunga in a message to the inaugural sessions of the Presidential Commission of Inquiry on Matters Relating to Maintenance of Law and Order, stated it was necessary to establish a Commission of Inquiry for the purpose of inquiring into the matters in respect of which an inquiry will, "in my opinion, be in the public interest." The President appointed retired Supreme Court Judge, Justice S.W.B. Wadugodapitiya PC as the Commission Chairman. The other two members of the Commission are retired Additional Secretary to the President and a former Ambassador to France C.G. Wickremasinghe and former Inspector General of Police Dr. T.P. Frank de Silva. Supreme Court Registrar Bandula Atapattu, Secretary to the Commission M. A. Cyril, Additional Secretary D.G. Dissanayake, Senior State Counsel Dappula de Livera and State Counsel Menaka Wijesundera assisting the Commission. The President's message said the Commission will inquire whether there has been a significant increase in crime in Sri Lanka over the last two decades affecting the maintenance of law and order. The message said "if so, is it due to any deficiencies on the part of State Agencies charged with maintenance of law and order. If so, the reasons for such deficiencies. What remedial measures are recommended for the proper maintenance of law and order in Sri Lanka. I authorise and empower you, the three Commissioners, to hold such inquiries and make all other investigations into the matters as may appear necessary, and require you to transmit to me within three months from the date hereof a report or interim reports thereon, under your hand, setting out the findings of your inquiries and your recommendations relating thereto. I do hereby require and direct that such part of any inquiry relating to the matters as you may in your discretion determine, shall not be held in public. All public officers and other persons to whom you may apply for assistance or information for the purpose of your inquiry, to render all such assistance and furnish all such information as may be properly rendered and furnished, in that behalf. That the Provisions of Section 14 of the Commissions of Inquiry Act (Chapter 393), shall apply to the Commission." The first witness to give evidence before the Commission was Deshamanya Dr. P.R. Anthonis, Sir Arthur C. Clarke and Deshabandu A.T. Ariyaratne also gave evidence before the Commission. (by Sarath Malalasekera)

From http://www.dailynews.lk/ 11/21/2003

TOP↑

MALDIVES: The President Appoints Ministers for the New Presidential Term

President Gayoom yesterday made appointments to the posts of the Chief Justice and the Speaker of the People's Majlis following the inauguration of the new presidential term. He also appointed Ministers for the new term. The Chief Justice, the Speaker, members of the Cabinet, and State Ministers were sworn-in at mid-day yesterday at the President's Office. The highest ranking posts of the government have been constituted as follows: President, Commander-in-Chief of the Armed Forces and of the Police, Minister of Defence and National Security, and Minister of Finance and Treasury-- His Excellency Mr. Maumoon Abdul Gayoom Chief Justice-- Mr. Mohamed Rasheed Ibrahim Speaker of the People's Majlis and Minister of Atolls Development-- Mr. Abdulla Hameed Minister of Foreign Affairs-- Mr. Fathulla Jameel Minister of Youth Development and Sports-- Dr. Mohamed Zahir Hussain Minister of Construction and Public Works-- Mr. Umar Zahir Minister of Justice-- Mr. Ahmed Zahir Minister of Home Affairs and Environment-- Mr. Ismail Shafeeu Minster of Employment and Labour-- Mr. Abdul Rasheed Hussain Minister of Health-- Mr. Ahmed Abdulla Minister of Tourism-- Mr. Hassan Sobir Minister of Information, Arts and Culture-- Mr. Ibrahim Hussain Maniku Minister of Trade and Industries-- Mr. Abdulla Yameen Minister of State for Defence and National Security-- Mr. Abdul Sattar Adam Minister of Transport and Civil Aviation-- Mr. Ilyas Ibrahim Minister of Fisheries, Agriculture and Marine Resources-- Mr. Abdulla Kamaaludeen Minister of Gender, Family Development and Social Security-- Ms. Aneesa Ahmed Minister of Communication, Science and Technology-- Mr. Midhath Hilmy Minister of Planning and National Development-- Mr. Hamdoon Hameed Minister of Education-- Dr. Mahmood Shaugee Attorney General-- Dr. Hassan Saeed Minister of State for Presidential Affairs-- Mr. Mohamed Hussain Minister of State for Finance and Treasury-- Mr. Mohamed Jaleel Auditor General and Minister of State-- Mr. Ismail Fathy

From http://www.haveeru.com.mv/ 11/12/2003

TOP↑

Department of Higher Education and Training Established

MALE -- President Maumoon Abdul Gayoom has established the Department of Higher Education and Training. The new Department was established following approval by the Cabinet. The new Department will function under the Ministry of Education. The President had revealed plans to establish the new department, which has the mandate to strengthen higher education and training in the Maldives, in his inaugural address to the nation, following his swearing-in for a sixth five-year term in office, earlier this month. Among the principle tasks of the Department of Higher Education and Training are the drawing-up of the national policy on higher education, under the guidance of the Council for Higher Education, the alignment of matters related to higher education in the country to the national policy, and the planning and implementation of vocational training in the country. Following the establishment of the Department of Higher Education, the President has reassigned the Maldives College of Higher Education to function under the new Department. The Maldives College of Higher Education previously functioned under the President's Office. Dr. Abdul Muhsin Mohamed has been appointed as the Assistant Executive Director at the Department of Higher Education and Training.

From http://www.haveeru.com.mv/ 11/20/2003

TOP↑

Director-general Appointed to EDC

MALE -- Zahiya Zareer of Galolhu Moonimaage has been appointed as the Director General at the Educational Development Centre, the President's Office announced.

From http://www.haveeru.com.mv/ 11/20/2003

TOP↑

Government Directors for Board of Directors of Bank of Maldives Announced

MALE - The seven government directors for the 2003-2004 Board of Directors of Bank of Maldives have been announced. Ibrahim Zuhair was named as the new Chairman of the Board of Directors. The other six members who were appointed for the Board by the government were Dr. Ahmed Shaheed, Abdul Razzaq Idris, Mohamed Manik, Mohamed Ahmed Didi, Nadiya Hassan and Aminath Ali Manik.

From http://www.haveeru.com.mv/ 11/23/2003

TOP↑

NEPAL: Govt. Directives on Anti-Corruption Drive

Prime Minister Surya Bahadur Thapa Thursday directed all government secretaries to effectively implement the action plans on anti-corruption policy and strategy passed by the Council of Ministers, RSS said. "PM Thapa told the secretaries to immediately pass the information, if someone is trying to influence them unnecessarily," the news agency said. The PM further told the high-level bureaucrats to be cautious on sensitive matters, such as, transfer of employees and issuance of tenders and contracts for development works of departments and agencies under the ministries. On the occasion, a memo of the directives, signed by the government's acting chief secretary Lava Kumar Devkota was distributed to the secretaries, the agency said.

From http://www.nepalnews.com.np/ 11/07/2003

TOP↑

AI Flays Govt. Plan to Set Up Rural Peace Committees

KATHMANDU - Amnesty International (AI) has raised strong objection to the government's plans to set up "Rural Volunteer Security Groups and Peace Committees". In a letter sent to Prime Minister Surya Bahadur Thapa, the international human rights organisation expressed fears that such a step can place the civilian population in grave danger by seriously compromising their neutrality, the organisation said in a statement released in Kathmandu Tuesday. "Without appropriate supervision, training and clearly defined mechanisms for accountability, there is a clear risk that the creation of these groups could lead to an increase in human rights violations carried out with impunity," AI said. "Those refusing to join are likely to be seen as tacitly supporting the armed opposition." The Government announced its plans to introduce "Rural Volunteer Security Groups and Peace Committees" on November 4. The Committees are being set up as a way "to promote the role of the general citizens in maintaining peace and security" in the context of the ongoing conflict between the security forces and the Maoists. "The introduction of such groups affects the sense or interpretation of the Geneva Conventions of 1949, in relation to the state's responsibility at all times to clearly separate civilians from combatants," the organisation said in the statement, citing cases of atrocious human rights abuses in Guatemala. Furthermore, the organisation noted the growth in the number of human rights violations with impunity as the country slides towards militarisation.

From http://www.kantipuronline.com/ 11/12/2003

TOP↑

Appointment of Lawyers in Govt Depts Suggested

KATHMANDU - In a bid to bolster government's cases in the court, the Office of the Attorney General (OAG) has suggested the government to appoint lawyers in all government departments. In its recent report submitted to the government, the OAG, arguing the need of appointing lawyers in all government departments said, "It is difficult to understand the context and the complexity of the cases in which the government is the plaintiff as there are no separate lawyers in government departments." The report has mentioned that the attorney general always has to face practical problems while replying to the show cause notices issued by the Supreme Court in the name of the different government departments like revenue, customs, land reform and land revenue. Thus the attorney general has to respond to the show cause notices relying on general knowledge about the departments, said the report. The report was recently handed over to the Prime Minister by Attorney General Susil Kumar Panta. It has been learnt that the Prime Minister has already ordered the Ministry of Law and Parliamentary Affairs to implement the report.

From http://www.kantipuronline.com/ 11/17/2003

TOP↑

Govt. Sets Up HR Promotion Center

KATHMANDU- The government has formed Human Rights Promotion Center (HRPC) under the office of the Prime Minister and Ministerial Secretariat. According to the office of the Prime Minster and Ministerial Secretariat Wednesday, a nine-member directorate was also constituted under the Chief secretary of the government to issue necessary directives to the center. Provision of special class officer of the government as the national director was also made to look after the administrative tasks of the center. The center will look after cases of human rights violation in country in accord with the constitution and other document on the rights. However, the government's decision to set up HRPC parallel with National Human Rights Commission, the constitutional human rights watchdog has been strongly opposed by the political parties. The parties say the government move is to bypass the already existing NHRC.

From http://www.kantipuronline.com/ 11/19/2003

TOP↑

PAKISTAN: Federal Communications Minister Forced to Resign

ISLAMABAD - Prime Minister Zafarullah Jamali has accepted the resignation of Federal Minister for Communications Ahmed Ali who was asked to relinquish charge over alleged involvement in corruption, sources told Daily Times on Tuesday. Senator Ahmed Ali was given the cabinet portfolio to accommodate the Muttahida Qaumi Movement (MQM), a coalition partner in the Jamali government. "Mr Ahmed Ali was asked to resign after the prime minister received reports about the his involvement in corruption," sources said, adding that Mr Ali's successor was also expected to be from the MQM. "This matter is also in the knowledge of President Musharraf who asked for the minister's resignation in a meeting with Sindh Governor Dr Ishratul Ibad during his last visit to Karachi," sources added. "The president took serious notice of reports of the minister's alleged corruption," they said. NNI adds: "Mr Ali was forced to resign on evidence of his corruption worth billions of rupees," NNI quoted unnamed sources as saying. The news agency said President Musharraf handed over a detailed intelligence report of the communication minister's corruption to the Sindh governor. The minister is said to have made billions of rupees in two contracts of the National Highway Authority and the Sindh governor is said to have informed MQM chief Altaf Hussain about the issue, who approved the resignation.

From http://www.dailytimes.com.pk/ 11/05/2003

TOP↑

PAKISTAN: SHC Seeks Govt Update on Urdu

KARACHI - The Sindh High Court (SHC) on Tuesday asked the Sindh and federal governments to give an update on enforcing article 251 (I) of the 1973 constitution, which provides for making Urdu the official language of the country. A division bench, comprising of Chief Justice Saiyed Saeed Ashhad and Justice Ghulam Rabbani, hearing a constitutional petition seeking enforcement of article 251 (I) of the 1973 constitution, asked Additional Advocate General (AAG) Sindh Dr Qazi Khalid and standing counsel for the federal government, Syed Tariq Ali, to submit comments on behalf of their respective governments as to what steps they had taken. The petition had been filed by a citizen, Tahseen Ahmed, in 1997 and had already been admitted for a regular hearing. Two petitions similar petitions are pending adjudication before the Sindh High Court: one by Mr Ahmed and the other by Dr Mubeen Akhtar. Article 251(I) of the 1973 constitution says: " The national language of Pakistan is Urdu, and arrangements shall be made for its official use and other purposes within fifteen years from the commencement day."

From http://www.dailytimes.com.pk/ 11/19/2003

TOP↑

Thirteen More Ministers Likely in Balochistan Cabinet

QUETTA - The Balochistan cabinet is likely to have 13 more ministers and Chief Minister Jam Muhammad Yousaf has asked allied parties to give him a list of their candidates, sources said on Tuesday. They said six new ministers would be from the Muttahida Majlis-e-Amal and seven from the ruling alliance at the centre consisting of the Pakistan Muslim League (Quaid-e-Azam) and the National Alliance. The PML-QA and the MMA share an equal number of ministers under a mutually agreed formula. The total number of cabinet members after new inductions will reach 28. Sources said Mr Yousaf would have difficulty distributing ministries within the alliance because the National Alliance has demanded three more ministries and threatened to part ways if the demand is not met. Sources said some PML-QA members of the provincial assembly (MPAs) were annoyed that important ministries were given to the MMA, while the PML-QA MPAs were only given "B and C grade ministries." PML-QA MPA Jan Muhammad Jamali said the existing structure should be changed in order to fix the imbalance between MMA and PML-QA ministries. Planning and Development Minister Maulana Abdul Wasey said the MMA would concede important ministries to the PML-QA if an MMA member was made chief minister. (by Azizullah Khan )

From http://www.dailytimes.com.pk/ 11/19/2003

TOP↑

AFGHANISTAN: Afghanistan to Raise Salaries by Seven Times

The Afghan government, under criticism for paying too less to its employees, has decided to increase salaries up to seven times for government workers, Xinhua reports. Finance Minister Ashraf Ghani announced here Saturday that increments would be implemented from the Afghan month Aqrab, which ended Friday. This follows a finance ministry proposal approved by President Hamid Karzai. However, this scheme would not cover army personnel and teachers in the country as their salaries had already been increased earlier, he added. "This increment totalling 379 million Afghanis (over $7 million) has been allocated from the government's general expenditure for the current fiscal year," the minister said. The government's budget of general expenditure for the current fiscal year, starting from March 21, is at $550 million, finance ministry officials said. Prices for basic living needs have been shooting up in Afghanistan, especially Kabul, since the fall of the extremist Taliban regime two years ago, people have complained. The unchecked price hikes, which added to the miseries of the salaried class and common people, stirred criticism from various social segments, even government employees, against President Karzai's government, which was installed with U.S. backing in late 2001.Afghans working in government offices in the past months held several peaceful demonstrations, urging the increment of their salaries and timely payment. Under the new salary increment package, salaries for government employees would be increased by up to 700 percent, Finance Minister Ghani said. According to him, salaries for most senior employees in government offices would increase from the current 455 Afghanis (less then $10) to 3,185 Afghanis. Plus other allowances including those for transportation and lunch, provided by the government, their monthly income would reach nearly $100, he added. Out of all the 450,000 government employees, about 40 percent would benefit from the new programme, an official said, adding that salaries for military personnel and teachers increased respectively late last year and early this year. The Afghan government is depending largely on foreign aid to reconstruct a country that had been almost destroyed by over two decades of war and civil conflicts. According to Afghan officials, the country received $1.7 billion in aid, much of them through the United Nations and other agencies working on reconstruction efforts. Donors pledged about $4.5 billion for Afghanistan's post-war reconstruction over five years at an aid conference in Tokyo in January 2002, but Afghanistan said the amount was far from its rebuilding needs. The U.S., which overthrew the former ruling Taliban through a military campaign, last week announced an increase of its Afghanistan assistance from $1.2 billion to $1.7 billion for the current fiscal year.

From http://www.aopnews.com/ 11/23/2003

TOP↑

President of Azerbaijan Re-Appointed 17 Senior Officials

Ilham Aliyev, the President of Azerbaijan, re-appointed 17 senior officials in the Government of Azerbaijan. Agency "Trend" reports I.Aliyev re-appointed Namik Abbasov as Minister of National Security, Ramil Usubov as Minister of Internal Affairs, Safar Abiev - Minister of Defense, Kemaleddin Нeydarov - Chairman of State Customs Committee, Avez Alekрerov - Minister of Finance, Farhad Aliyev - Minister of Economic Development, Fazil Mamedov - Minister of Taxes, Ziya Mamedov - Minister of Transport, Ali Insanov - Minister of Health, Ali Nagiev - Minister of Labor and Social Protection, Abulfaz Garaev - Minister of Youth, Sport and Tourism. Moreover, I.Aliyev affirmed Vilayat Guliev as Minister of Foreign Affairs, Guseingulu Bagirov - Minister of Ecology, Misir Mardanov - Minister of Education, Fikret Mamedov - Minister of Justice, Polad Bul-bul oglu - Minister of Culture, Nazim Ibragimov - Chairman of State Committee for Azerbaijanis Living Abroad. Agency "Trend" reports I.Aliyev earlier stated that he isn't in a move to change the Cabinet of Ministers and re-appointed Artur Rasizade as Prime-Minister.

From http://www.bakutoday.net/ 11/11/2003

TOP↑

IRAQ: 36-member Assembly to Replace Council

Baghdad - A 36-member National Assembly is to replace the current interim Governing Council before the United States officially hands power over to a transitional government, it has emerged. The assembly will be an elected body of two representatives from each of the country's 18 provinces. Each province will hold elections to choose its two representatives to the Assembly which will form the government and prepare for the writing of a constitution and elections before the end of 2005. But the US-led Coalition Provisional Authority will hand over power officially to the new government in June 2004. The move is part of the US-backed plans unveiled on Saturday to give Iraqis almost full say in running their affairs by June next year. The 25-member Governing Council has welcomed the latest US timetable for the transfer of power. But others see the handover as too slow. The present US-handpicked council has failed to move quickly to fill the power vacuum created after the collapse of the former regime. Many say the council's "impotence" is mainly due to its ethnic and sectarian makeup where the 25 members spend most of their time quarrelling over quotas and power sharing than how to move ahead. Even the current cabinet, announced on September 1, mirrors the council's ethnic structure and as a result has been target of scathing attacks in newspaper articles. If the forthcoming transitional assembly and the transitional government are formed on the same principles, they are probably bound to end up in the same vicious circle the present council finds itself in. There is no end in sight to the current violent unrest which is spreading rather than receding. And in the meantime various power groups are jostling for influence in whatever shape the next government is going to take. The supporters of the controversial Shiite cleric Muqtada Sadr have already called for a conference in Baghdad to advance their notion of how Iraq should be governed in the future. The young cleric, seen by his supporters as wise and as inexperienced and radical by opponents is said to have established a shadow government of his own. "Our conference is to discuss his (Sadr's) proposals for the establishment of a new Iraqi government," said Abdulkarim al-Ali al-Rubai, head of Progressive National Party. Rubai said he would invite other political groups for what he called "a national Iraqi front" to back "the formation of an Iraqi government as suggested by cleric Muqtada Sadr." Rubai said his group will form a transitional national assembly and a transitional government, to rival the US-led steps for the handover of power to a sovereign transitional Iraqi government in June.

From http://www.iraqpress.org/ 11/19/2003

TOP↑

KYRGYZSTAN: Women's Party Changes Name and Orientation

The Democratic Party of the Women of Kyrgyzstan, one of the older and more active political groups in the country, has changed its name and charter and reregistered with the Justice Ministry, KyrgyzInfo reported on 4 November, quoting party Chairwoman Tokon Shailieva. The party is now called the New Force and accepts for membership any citizen regardless of sex who has reached the age of 18. According to Shailieva, the party presently has 5,000 members. BB

From http://www.rferl.org/ 11/14/2003

TOP↑

TURKMENISTAN: President Reshuffles Cabinet

Turkmen President Saparmurat Niyazov appointed two new deputy prime ministers at a cabinet meeting on 15 November, RIA-Novosti and centrasia.ru reported the following day. Agriculture Minister Begench Atamuradov was appointed deputy prime minister for agriculture while retaining his ministerial post; poet Gozel Nuralieva, chief editor of the daily "Neitralnyi Turkmenistan," was appointed deputy prime minister and will head the newly created Culture and Information Ministry. Former Culture Minister Orazgeldy Aidogdyev, who had held the post since 1995, was fired for failing to discover new cultural stars, while Muhammednazar Khudaikuliev, the long-serving minister of construction and building-materials production, was reportedly fired for incompetence. Deputy Prime Minister Rejepdurdy Ataev was given Khudaikuliev's post. Water Resources Minister Kurbangeldy Volmuradov, who was accused of abuse of office, was replaced by Byashimklych Kalandarov, head of the cabinet's agriculture department. BB

From http://www.rferl.org/ 11/18/2003

TOP↑

AUSTRALIA: Union Block on Big State Projects

Ambitious plans by state governments to build social infrastructure using private investment are at risk from a concerted campaign by left-wing unions trying to stop large industry superannuation funds investing in such projects. Australian Manufacturing Workers Union secretary Doug Cameron is understood to have objected strongly at a recent board meeting of the massive Superannuation Trust of Australia when a $210 million package of three "public private partnerships" was presented for the board's consideration as an investment. And Rob Durbridge, the federal secretary of the Australian Education Union, has written to all big industry super funds, large unions and the ACTU asking that they "not support this form of investment in its current form". Unions have a blocking stake on the boards of Australia's biggest industry super funds which control $56 billion in assets, 11 per cent of Australia's total super pie. A concerted boycott by industry super funds would make it difficult to finance many new projects. Mr Cameron would not comment on board meetings but told a recent meeting of the ALP Left in Canberra that PPPs ripped money away from the public to pay top dollar to the private sector for substandard assets. He said governments were attracted to PPPs because they could build infrastructure without reporting the liability as debt on the balance sheet. The recent ACTU Congress passed an anti-PPP resolution, and ACTU secretary Greg Combet is also on the board of Superannuation Trust of Australia. At issue is a package of three pieces of public infrastructure being presented to super funds by broker Industry Funds Services. The package has nine public schools in NSW, which are yet to be built; Wyuna Water, which owns two plants providing drinking water to 500,000 Sydneysiders; and Melbourne's Spencer Street train station. IFS executive chairman Garry Weaven confirmed yesterday that he was trying to raise $210 million from super funds to buy the package from investment bank ABN Amro and set up a new social infrastructure investment fund. The fund would pay investors a safe 9 per cent annual return over 30 years. "It would be a ridiculous death knell of the super industry if they were excluded from social infrastructure," Mr Weaven said. (by Michael Bachelard)

From http://www.theaustralian.news.com.au/ 11/18/2003

TOP↑

$100m Spend to Attract Tourists

THE Federal Government would invest hundreds of millions of dollars in promoting some of Australia's lesser-known tourism attractions, Prime Minister John Howard said today. Mr Howard and Tourism Minister Joe Hockey will launch the Government's tourism white paper in south western Sydney today, aimed at promoting Australian tourism in international and domestic markets. "This is a very attractive country for tourists," Mr Howard told Sydney radio C91.3FM. "We're seen as a friendly and open and stable and safe (country) and there's a lot more we could do to promote Australia. "And not just the well known parts of Australia such as Sydney Harbour and the Opera House and the Barrier Reef and the beaches, and Ayers Rock and all of those things. "But there are also a lot of other regions that don't get the same exposure overseas that offer a great deal and the purpose of this investment will be largely be to promote Australia and all of its assets to the rest of the world."

From http://www.theaustralian.news.com.au/ 11/20/2003

TOP↑

FIJI: Police to Get Armed Units

The police force will set up an Armed Offenders Units to counter violent crimes where firearms are used. Police Commissioner Andrew Hughes says that the new units will replace the current police mobile force and that officers wishing to join the Armed Offenders Unit would be trained to handle arms if the need arises. He says the Armed Offenders Units will be based in all major police stations with their own armory, "The officers that will be deployed in the unit have been trained and they know how to handle the weapons and they know when and how they can use these weapon," said Hughes. "Its never a pleasant thing to get involved in an exchange of gunfire for police officers or anyone else but this is our job," said Hughes who added he hopes the cops don't have to use their weapons. "Now I'm hoping that we don't end up in a confrontation where such exchange and people get hurt, but that's our job and we have to do it." The establishment of the unit follows a recent armed robbery where robbers fired gunshots inside the bank.

From http://www.pacificislands.cc/ 11/13/2003

TOP↑

NEW ZEALAND: Police Get Help to Slow Drivers on Auckland Speed Strip

Tamaki Drive motorists have been given a stick and a small carrot. As well as their instant fines, speedsters have received a key-ring with the words: "Slow down on Tamaki Drive." Auckland police district communications manager Noreen Hegarty said the Auckland City Council and ACC had been helping police target one of Auckland's notorious speeding zones. "Tamaki Drive is a recognised hot-spot for speeding and obviously we police it as such," Ms Hegarty said. "Any initiative that impacts on people's speeding in a positive way is worthwhile in our books." One speeding motorist, who did not want to be named, said she would not speed again after being caught at the weekend. "The fine and demerit points will now make me slow down all over Auckland." The driver received a $120 fine after being clocked at 67km/h in the 50km/h area. Auckland City Council traffic safety manager Karen Hay said there had been 138 speed-related crashes along Tamaki Drive in the past five years, two of them fatal. Before the campaign the council found that 56 per cent of drivers were exceeding 50km/h along Tamaki Drive. Afterwards the figure had dropped to 49 per cent. "It is a really good result in that short space of time." Ms Hay said the Land Transport Safety Authority helped pay for road safety initiatives in high-risk areas. The Tamaki Drive project ran from June to mid-July. "The community really got behind the project and most of the cafes along Tamaki Drive were handing out 'slow down' balloons, chocolates and key-rings. "The key-rings were also handed out by the police to raise awareness." Ms Hay said more campaigns were planned for other high-risk areas of Auckland. (by Matthew Torbit)

From http://www.nzherald.co.nz/ 11/05/2003

TOP↑

Government Imposes $20m Levy on Trade

A new security fee will be charged on businesses by the Government to cover the cost of meeting higher security standards being imposed on trade by the United States. About $20 million is expected to be collected from the new "security compliance fee", Customs Minister Rick Barker said yesterday. The fee is planned to be introduced from July next year, but it is sure to raise the hackles of the business sector, which is already sensitive to more compliance costs being imposed. The proposed amount to be collected is more than double the controversial flatulence tax, which the Government backed down on last month after extensive protests from farmers. Barker said that in the wake of the September 11, 2001, terrorist attacks the US was insisting traders have security systems to prove that goods crossing its borders have not been interfered with. European Union nations and other countries that New Zealand traded with would also implement the tougher standards. New Zealand Customs would need about 130 extra staff and new x-ray Machines and other gear to ensure high-risk cargo was checked and cleared without delay. The extra staff and gear were announced in the Budget, and since then the Government has outlined plans to inspect all shipping containers coming into New Zealand under tough new biosecurity measures. But Barker said the cost of establishing and maintaining the new security measures demanded by the US would exceed Customs' budget, and its "core responsibility of protecting New Zealanders". "So the Government has decided that those who benefit from New Zealand's reputation as a safe and secure trading partner should contribute toward the cost of meeting these new requirements." The security fee would recover about $8 million from the export sector, $4 million from importers and $8 million for security screening of goods trans-shipped through New Zealand. "The new standards would mean that trading partners could be confident that cargo sealed with a New Zealand Customs-approved seal is secure and therefore did not need to be checked on arrival at their wharves." Barker said if New Zealand did not comply with the tough new rules vital exports could sit on foreign wharves for days awaiting Customs clearance while competitors with better security agreements got their cargo across the border without delay. He said he was inviting business representatives to work with Customs concerning the fee. The Government is developing a proposal to charge a flat fee of between $450 and $650 for the processing of the outward cargo report that must be lodged for every departing ship or aircraft. It will be up to the transport or shipping company how the charge is passed on. In the year to June 2003, the total value of New Zealand's trade was about $62.1 billion. Background papers released by Barker's office said the $20 million traders were being asked to contribute amounted to less than 0.03 per cent of the country's total trade. (by Kevin Taylor)

From http://www.nzherald.co.nz/ 11/06/2003

TOP↑

Brownlee Elected National Party Deputy Leader

National Party MPs this morning elected Gerry Brownlee their deputy leader. He replaced Nick Smith, who resigned yesterday after learning leader Don Brash now supported Mr Brownlee. Dr Smith had been in the job just three weeks, most of which was spent on sick leave said to have been brought on by stress and exhaustion. Dr Brash announced the decision after a caucus meeting in Parliament Buildings. Dr Brash told reporters he had "in recent days" reached the view it was in the best interests of Dr Smith and the party for Dr Smith to step down. "A clear majority of the caucus also reached that view," he said. "This morning the caucus accepted my advice to elect Gerry Brownlee as deputy leader and I am very delighted with that outcome." Mr Brownlee had put his name forward, unopposed. Dr Brash said the new deputy had considerable experience as a Member of Parliament, and was an aggressive debater. Mr Brownlee, a former woodwork teacher and an MP since 1996, was held in high regard by his colleagues and the wider party, Dr Brash said. "I am delighted that he has accepted this role," he said. Mr Brownlee said he was delighted the caucus had shown confidence in him. "It's a rather sombre occasion for us, given the circumstances, but I am confident that I will be good support to Don as he leads us to an election victory in 2005." Dr Smith's short tenure as deputy leader ended bitterly yesterday, when he was told Mr Brownlee would challenge him. He resigned when Dr Brash told him he supported the challenge. "It is with regret that I resign but I have been forced into this position," Dr Smith said. He alleged there had been a campaign to undermine him while he was on sick leave, effectively gagged from speaking to the news media. Mr Brownlee dismissed that. "I'm a little disappointed by that, and we'll leave it simply at that," he said.

From http://www.nzherald.co.nz/ 11/18/2003

TOP↑

Organised Crime Targeting Public Servants

Organised crime is targeting those public servants who stand in the way of their profits, State Services Commissioner Michael Wintringham told MPs today. Mr Wintringham told the government administration select committee this week's case of a corrupt Customs officer showed how the environment had changed. Tori Rocky Kotahi Puata gave drug smugglers details of security secrets. He has pleaded guilty to a charge of importing crystal methamphetamine and is awaiting sentence. "In the case of criminal activity the customs case in particular shows the environment has changed," Mr Wintringham said. "Now organised crime specifically targets some areas of the public service where a financial advantage can be seen, or where the public servant stands in the way of profits from criminal activity." "I expect public service chief executives to understand the environment that they are operating in, to understand the risks and take steps to mitigate them," he said. "That is an important part of the performance management environment in which they operate." While there have been several high profile recent cases of public servants breaking the law, Mr Wintringham said he oversaw an "incorrupt" administration. "The New Zealand public service has and continues to have a fine record of honesty and integrity. "I personally feel betrayed when public servants act corruptly or otherwise betray the expectations that the Government and New Zealanders should have of their behaviour." In addition to criminal action, there were also cases when senior public servants exercised poor judgement in areas such as hospitality expenditure, or dealing with offers of corporate gifts. Both types of case risked public confidence in the administration, he said. He had reissued the code of conduct, with supporting material for enforcing. That had attracted international interest from countries who saw New Zealand as a model. "We still have a record, rightly so, for having an incorrupt public service with high standards of integrity," he said. "There is international concern that that should be an important part of any public administration." Inquiries had taxed commission resources, he said. There had been about seven in four years. Te Puni Kokiri, the Civil Aviation Authority and Fisheries Ministry administration of the scampi industry have come under the commission spotlight this year. Such inquiries required careful definition , an adherence to due process and careful judgment in responding to public and political demands while maintaining principles of natural justice, Mr Wintringham said. "That is not the kind of situation or environment in which one puts relatively junior or untried people, it requires very often the best and most seasoned of our staff."

From http://www.nzherald.co.nz/ 11/20/2003

TOP↑

PAPUA NEW GUINEA: Deputy PM Dumped in Cabinet Reshuffle

Deputy Prime Minister Allan Marat is one of two ministers dropped from Papua New Guinea's cabinet in a cabinet reshuffle here. Prime Minister Michael Somare said the changes were aimed at strengthening the ruling coalition ahead of an important parliamentary vote. Marat was dropped after he was dismissed as the head of a party in the coalition. Parliament is considering ambitious constitutional changes, which would better protect the government from frequent no-confidence votes. Labour Minister Peter Yama, who had opposed the changes, was also fired. Former fisheries minister Andrew Baing has been appointed deputy prime minister, Paul Tiensten took over the trade ministry, formerly held by the deputy prime minister, and Tom Tomiape was appointed as minister for labour.

From http://www.channelnewsasia.com/ 11/12/2003

TOP↑

SOLOMON ISLANDS: Minister Wants Police Force Reformed

Minister for Police and National Security Michael Maina has called on the government, donor partners and those who make decisions to address the reform of the Royal Solomon Islands Police. Speaking to the Solomon Islands Government and donor and development partners meeting in Honiara, Maina stressed that if the reform of the country does not start with the police, it's not going to happen. He said that if funds are not directed towards the retirement of people in the police force, the partnership between the government and the donor community wouldn't work and called on the government and the donor community to address the police force, by down-sizing it, retiring those who have been earmarked and then start recruiting new young people. He said without a strong, dedicated police force there will be no investment, adding that investment in Solomon Islands borders very well with law and order. He said if there is time to engage donor partners, it is now.

From http://www.pacificislands.cc/ 11/21/2003

TOP↑

VANUATU: Government Says Talk of Changes in NPF Nonsense

Minister of Finance Sela Molisa has dismissed union claims that the government is trying to exert greater control over the board of the National Provident Fund. Next week the Government is expected to make amendments to the legislation governing the NPF, including cutting employer contributions from six to four percent to boost the economy. Ephraim Kalsakau of the National Union of Workers Board, says the Government also wants its union nominee on the NPF, so it can get direct access to the Funds money. But Molisa says this claim is total nonsense. He says currently only the National Union of Workers represents non government workers and the Government simply wants all unions to have a say. What I am doing with this is to say it is up to the unions to choose who they want as their representative, at least it is not limited to one union. The amendment is to allow unions, whether big or small, equal opportunity to be on the board Molisa said. Molisa also says he has no intention of changing the restrictions governing access to NPF funds.

From http://www.pacificislands.cc/ 11/17/2003

TOP↑

Cutting-edge Agriculture Research to Boost Food Security in 14 Asian Countries

MANILA, PHILIPPINES - The Asian Development Bank (ADB) approved a US$3 million regional technical assistance (RETA) grant yesterday to fund four cutting-edge agriculture research projects to fight poverty, improve the livelihoods of farmers, and boost food security in 14 Asian countries. The RETA is the eighth annual grant for research at international agricultural research centers (IARCs) focusing on helping the poorest regions and most unfavorable environments of Asia. These include semiarid and marginal lands, rain-fed areas without irrigation, and areas where water resources are inadequate and high-yielding varieties of fish are unavailable. The projects chosen for this year's grant will be implemented through three CGIAR (Consultative group on International Agriculture Research) centers, in partnership with national agriculture research and extension systems, and ADB. The International Center for Agriculture Research in the Dry Areas (ICARDA) will demonstrate efficient water and soil fertility management in small farms of six Central Asian countries - Azerbaijan, Kazakhstan, Kyrgyz Republic, Tajikistan, Turkmenistan, and Uzbekistan. The International Rice Research Institute in the Philippines will develop cropping systems and technologies to stabilize and increase rice productivity in a range of unfavorable monsoon-dependent rice environments in Bangladesh, India, Indonesia, Lao People's Democratic Republic, Philippines, Thailand, and Viet Nam. The World Fish Center, headquartered in Malaysia, will test and demonstrate genetically improved carp species - the most important fish in aquaculture - to fish farmers, hatchery managers, and national researchers. It will also establish national carp breeding programs in Bangladesh, People's Republic of China, India, Indonesia, Thailand, and Viet Nam. ADB will hold regional workshops in Central and South Asia to promote information-sharing and collaboration between the IARCs, national governments and donors, so that regional and country level priorities and programs for the agriculture sector can be better focused and coordinated. "Projects have been chosen for their sound design, innovation, and relevance to emerging priorities in agriculture in Asia," says Pratima Dayal, an ADB Senior Agriculture Specialist. "The development and dissemination of technologies in these projects are expected to make an important contribution to improving Asia's agriculture and natural resources, and alleviating poverty." Years of misuse have left millions of hectares of arable lands degraded in Asia, making them prone to drought, desertification, soil erosion, and loss of fertility, and depleting forest cover. In many of these areas, agricultural technologies cannot support further increases in production or even sustain existing levels. New technologies are needed. "There is a need to support and catalyze innovations in technology, disseminate successes, build capacity among farmers and national research and extension systems, and support public policies to boost growth in agriculture," says Ms. Dayal. ADB has been supporting a package of high-priority research proposals annually since 1996, and has provided a total of $35.5 million, mostly to member centers of CGIAR. Established in 1971, CGIAR is an association of 16 IARCs working in more than 100 developing countries to mobilize cutting-edge science to achieve sustainable food security, protect the environment, and reduce poverty. The total cost of the project is $8.4 million, of which the research institutions will finance $3.4 million from their budgets, and the 14 participating national agriculture research systems will contribute $2 million equivalent. Each project is expected to begin in January 2004 and be carried out over three years to January 2007.

From http://www.adb.org/ 11/12/2003

TOP↑

Public Hearings to Be Practiced on Establishment of Large Commercial Outlets

When talking about the planning and construction of urban commercial outlets, Assistant Minister of Commerce Huang Hai disclosed that the country will follow international practice to set up public hearing system for establishment of large commercial outlets through legislation so as to curb the blind siting of Chinese and foreign-funded commercial enterprises. "Urban commercial outlets planning can reduce and avoid blindness in investment and over competitiveness." It's learned that the Ministry of Commerce has resolved to finish the planning of commercial outlets in municipalities, provincial capitals and cities on the list of the State plan. Research findings of relevant departments under the Ministry of Commerce reveal that current investment in the country's circulation field mainly comes from non-public sectors, and most investors come from sectors other than commerce. Driven by interests, quite some investments are featured by spontaneity and blindness, with outstanding structural contradiction in outlay of commercial outlets. 1. The irrational layout - the commercial outlets in the east and old cities far outnumber those in the west and new cities, and that in old cities more than those in new cities; 2. Irrational structure of business - the surplus of large-scale department stores and the stagnant development of new type of businesses; 3. There leaves much to be desired in terms of siting and business positioning, resulting in a waste of social resources.

From FDI 11/12/2003

TOP↑

Research and Development High on APEC Ministers' Agenda

Research and development leaders will have an unprecedented opportunity to influence decision makers' thinking at next year's meeting of APEC Science and Technology Ministers in Christchurch, New Zealand. The 4th APEC Ministers's Meeting on Regional Science & Technology Co-operation is the first APEC ministerial level event for 2004 and is part of a series of high level meetings convening under the theme of 'Connecting Science, Policy and Business' from 8 - 12 March. A number of countries have already indicated they will send a strong delegation, and in some cases more than one Minister, to the event. This includes the United States, Australia, Japan, Korea, Thailand, China, Chinese Taipei and Brunei Darussalam. The R & D Leaders Forum will be held at the same time, bringing together leaders from the private and public research sectors in the APEC region and further afield. For the first time R & D leaders will be able to sit down with APEC Science Ministers and have direct input into their thinking says Forum Convenor Anthony Scott, who is the Executive Director of New Zealand's Association of Crown Research Institutes. "This is a unique opportunity for R & D leaders to influence the way in which the knowledge gained through scientific research is used to benefit the health, wealth and welfare of societies in the APEC region. These two influential groups will be able to discuss face-to-face how science and technology can create value and how we can do it better across the APEC region." Capturing value from science is the overall theme of the R & D Leaders Forum, which will feature presentations from international leaders in their field. "The Forum will feature a unique mix of leaders in R & D policy making, operational research and business," Mr Scott says. "We need to have these people talking to each other so they understand each others issues and the drivers. At times there seem to be walls between these groups - the R & D Leaders Forum programme removes these barriers to bring people together to identify and discuss the issues." Among the leaders confirmed to speak at the Forum are: Dr Masayuki Kondo, Professor of Technology Management, Graduate School of Environment and Information Sciences at Yokohama National University of Japan. Dr Kondo is a distinguished scholar who will examine management, science and contemporary issues in developing nations. Dr Gregory Yurek, President, CEO and Chairman of the Board of American Superconductor Corporation. Dr Yurek is a world class business leader who will focus on commercialising science: lessons from the high-technology coalface. Dr Paul Callaghan and Dr Peter Hunter. Professor Callaghan is the Director of the MacDiarmid Institute for Advanced Materials and Nanotechnology and a Professor of Physical Sciences at Victoria University in Wellington, New Zealand. Professor Hunter is the Director of the Bioengineering Institute at the University of Auckland, New Zealand. These two world class science leaders will discuss new policy and strategy challenges shaped by converging sciences Meanwhile, to connect international researchers, business and investment partners with world class New Zealand companies an Innovation Showcase is being organised by New Zealand Trade and Enterprise, the New Zealand Government's trade and economic development agency. It will run alongside the R & D Leaders Forum and ministerial meeting. The Innovation Showcase has been developed to provide commercial opportunities for attending APEC Business Delegations and will involve some of New Zealand's leading biotechnology, information and communication technology, creative and niche manufacturing businesses. The programme includes an exhibition, business meetings and site visits for pre-qualified international business delegates, a symposia and some informal sector-based site visits in and around Christchurch. Through the pre-arranged business meetings and site visits international business delegates including potential investors and business partners will be able to make connections with leading New Zealand businesses. The exhibition will showcase some of New Zealand's most innovative companies and their world leading products and services while the symposia will focus on market opportunities and key New Zealand industry sectors. The half-day visits to selected science, technology or research organisations will provide an opportunity to share best practice examples. Other APEC economies are also being invited to exhibit examples of their science and technology strengths at the Innovation Showcase exhibition. There is already keen interest in the high level events being held next year in New Zealand, with New Zealand's track record for innovation in science and technology believed to be a strong drawcard. New Zealanders are well known for their flair for ingenuity and for thriving on solutions for innovative problem solving, evidenced by three New Zealanders having been named Nobel laureates in the science sector. This includes Maurice Wilkins who received a Nobel Prize in 1962 for elucidation of the structure of DNA, alongside Watson and Crick.

From http://www.apecsec.org.sg/ 11/17/2003

TOP↑

Asia-Pacific Tourism Risk Management Report to Provide Guidance in Preparing for Tourism Crises

The "Tourism Risk Management for the Asia Pacific Region" report has been completed and will be presented to officials from APEC's 21 Member Economies at the 23rd meeting of the Tourism Working Group (TWG) in Bali, Indonesia, on November 29-30. Developed in response to the damaging effect on the tourism industry of terrorist attacks and the SARS epidemic, the report details key issues and provides recommendations for both government and business to effectively deal with future crises. This is the first time that Risk Management principles have been applied to the Tourism Industry in such a detailed report. The report has been prepared by the APEC International Centre for Sustainable Tourism (AICST) in collaboration with universities, governments and tourism operators in the APEC Region. AICST Chair, Sir Frank Moore, said the report covers a number of potential future crises and uses case studies to draw on the experience of past crises. "This AICST report offers a broad coverage of risks related to tourism in the Asia Pacific region and strategic approaches to managing these risks," Sir Frank said. "Adequate planning for what has in the past been seen as the 'unexpected' can be the difference between a well-managed problem and a human and economic disaster. "The report outlines a series of key tourism themes and recommends actions that should be taken before, during and after a crisis. "There have already been a number of unfortunate incidents that have occurred in the region and it is important to learn from these experiences. "These include events such as the Bali bombing and other events such as the SARS Epidemic. "Crises covered in the report range from terrorist attacks to natural disasters such as earth quakes, to disease epidemics." Sir Frank said the report also focuses on governments and tourism operators providing timely and accurate information in times of crisis. "The public is not well served by incorrect information and rumors being reported in the media," Sir Frank said. "It is essential that the governments and tourist businesses have effective communications strategies in place to actively engage with the media in times of crisis." After the report has been presented to APEC Member Economy Officials, a press conference will be held in Bali (at a time to be advised). AICST was established in 2002 by the APEC Tourism Working Group and the Tourism Ministers of the 21 economies of APEC. Its role is to identify and research the major issues that are likely to impact on tourism in the Asia Pacific region in the next 10-15 years. AICST is a cooperative organization of APEC Economies, Universities, and the Tourism Industry.

From http://www.apecsec.org.sg/ 11/21/2003

TOP↑

CHINA: Wen Jiabao: Government Policy-makers Must Listen to Experts' Suggestions

Premier Wen Jiabao says that government policy-makers must listen to suggestions from experts to make new policies more scientific and practical, especially on important economic and social issues. The Premier said this when listening to a report from the Chinese Academy of Engineering on the development strategy of China's oil and natural gas resources. With the strategic importance of oil and gas resources, the project was launched this May, involving 86 experts. Wen Jiabao adds the State Council attaches great importance to the group's efforts and believes it is a good demonstration of collective research.

From CRI 10/30/2003

TOP↑

Appraisal for Sci-Tech Projects Gets National Standards

China has issued an administrative regulation on standardizing appraisals for government-sponsored scientific and technological projects. Shi Dinghuan, a senior official with the Ministry of Science and Technology, said the regulation was the first of its kind in China, and was expected to encourage innovation and commercialization of research achievements. The ministry stipulated that appraisal teams should consist of specialists from research bodies, universities and even companies.In some frontier areas in which consensus has yet to be reached among home scientists, the regulation says overseas scientists are also qualified to be enlisted into the talent pool. As for key national and local scientific and technological programs, Shi said, strict appraisals must be required before, during and after implementation. The regulation also stresses the integrity of appraisers. Any inappropriate behavior, if verified, will be recorded. "Effective appraisal for projects using public money will help create transparency of budget planning and governmental administration," Shi said.

From Xinhuanet 11/05/2003

TOP↑

Innovation in Law Urged

A senior Party official yesterday called on legal professionals to be more creative in pushing for innovation in legal theory, and in the system and culture of law in China. "Innovation is the source of a nation's prosperity, and the strong impetus for the development of legal theory and practice," said Luo Gan, secretary of the Political and Judiciary Commission under the Central Committee of the Communist Party of China. Luo was addressing the opening ceremony of the Fifth Congress of the China Law Society. President Hu Jintao and Vice President Zeng Qinghong attended the opening ceremony. The congress, which is being attended by over 400 legal professionals in China, will fix major goals for the society for the coming five years and elect new leadership officials in its three-day meeting. Luo asked legal professionals to pay more attention to legal issues that have a stake in improving the country's market economy system as well as coordinated and sustainable development. She Mengxiao, deputy vice president of the society, added priority should be given to studying how to build an open, competitive and ordered modern market system. Luo also highlighted the importance of integrating studies on domestic and international legal issues.

From China Daily 11/06/2003

TOP↑

Common Recruitment Exam Applications Open

People who are interested in joining civil-service posts at degree or professional levels may apply before November 25 to sit for the common recruitment examination. The exam is scheduled for January 10 in Hong Kong and will also be held on February 7 in several overseas cities. Degree holders, those with professional qualifications or undergraduates who will attain their degree in the next year are eligible to apply. The Civil Service Bureau said several grades had won approval for exemption from the recruitment freeze. Some disciplined services grades, such as Police Inspector and Immigration Officer, offer different entry pay points to candidates according to their academic qualifications. Degree holders without valid common recruitment examination results may still apply for these posts, but they will not be eligible for the degree pay point. Application forms (CSB31 (10/2003)) can be downloaded from the Civil Service Bureau website or collected from District Offices' Public Enquiry Service Centres and the Labour Department's Job Centres from November 15 onwards.

From http://www.news.gov.hk/ 11/14/2003

TOP↑

Beijing Calls in Foreign Banking Advisers

Some of the biggest names in international finance are due on Friday for a new assignment in Beijing - advising China's banking regulator on how the country should reform a financial system bogged down in bad debts and sealed off from international capital flows. The establishment of a "council of international advisers" to the China Banking Regulatory Commission, which holds its first meeting on Friday, represents a new level of openness and transparency for the government. It has never before assembled a group of foreigners to help a ministry-level agency, Chinese officials and industry executives said. Members of the council include Sir Edward George, former governor of the Bank of England; Gerry Corrigan, former president of the New York Federal Reserve; Andrew Crockett, former general manager of the Bank of International Settlements; David Carse, former deputy chief executive of the Hong Kong Monetary Authority; and Sir Howard Davies, former head of the UK's Financial Services Authority. The council is thought to be the initiative of Liu Mingkang, who took over the CBRC earlier this year after jobs as president of the Bank of China, one of the "big four" state banks, and vice-governor of the People's Bank of China, the central bank. Mr Liu was keen to recruit overseas talent both to advise the CBRC and to take positions on Chinese banks' boards to improve corporate governance, officials said. Analysts said the council's agenda was likely to focus on the big issues facing the state- dominated banking system, including how to whittle down a mountain of non-performing loans, wield effective regulatory power, and manage risks inherent in a move toward greater openness in the capital account. (by James Kynge)

From http://news.ft.com/ 11/20/2003

TOP↑

China Issues Quality Satisfaction Rate of Domestic Brands

China's Quality Inspection Bureau has released its 2003 quality satisfaction rate of famous, domestic brands, with domestically manufactured Electro-thermal blankets ranked number one. The report indicates that inspectors are satisfied with the quality of selected products 73 percent of the time. But mobile phones found a place at the bottom of their list, and their quality needs improving. Inspections were made by a company research center at Tsinghua University over a three month period during which they tested 20 different kinds of commodities including at least 120 famous national brands.

From CRIENGLISH.com 11/20/2003

TOP↑

China to Launch National Economic Census

China's official statisticians will launch a national economic census next year to improve the data collection used as the basis for its often-criticised figures measuring the Chinese economic growth. Li Deshui, head of the National Bureau of Statistics, said the new samplings of economic data for calculating growth could see gross domestic product figures for China revised as far back as the 1950s. "We will continue to carry out reform to make [the statistics] more reliable, more transparent, more standardised and integrated into international practice," said Mr Li. Such censuses are expensive and labour-intensive, involving the dispatch of large teams to different parts of the country to collect sets of data for use in calculating GDP. The bureau had been expected this year to do a census of just the service economy, which has been consistently understated in the country's GDP because of the difficulty of measuring its many informal, cash transactions. But funds have apparently been provided for a comprehensive census next year, with a particular focus on tracking the construction sector and the black economy. "Clearly, there has been a decision at the top that China needs new and more reliable numbers and they have given the bureau more money," said Arthur Kroeber of the China Economic Quarterly. The census will also give the statistics bureau in Beijing more tools to circumvent one of its biggest problems in delivering accurate numbers - the provincial officials who constantly tailor their reporting to the central government to local political imperatives. Mr Li said the bureau had worked hard to make its numbers meet international standards, including taking lessons from Italy in measuring the black economy. "They have great experience in dealing with the underground economy," he said. The bureau, which came under fire in the late 1990s for overstating China's growth, has more recently faced criticism that it is understating economic activity. The bureau says China's GDP grew at 8.5 per cent in the first three quarters of this year, a figure 1 or 2 percentage points below the estimates of numerous local and foreign economists. Mr Li said that despite some problems, the bureau's data "basically" reflected economic growth in China. "I can confidently tell everyone that China's statistical work and method of collecting data is basically integrated with internationally accepted standards," he said. (by Richard McGregor)

From http://news.ft.com/ 11/20/2003

TOP↑

Japan: Companies Urged to Engage in Good Citizenship

In the wake of huge corporate scandals in Japan and the United States, companies are under pressure to be more socially responsible. The trend has fed demand for universal guidelines for firms to use in filing reports on how they are performing in terms of society, the environment and ethics, according to Ernst Ligteringen, head of the Amsterdam-based nonprofit organization Global Reporting Initiative, known as GRI. "It is important to have a global standard (for comparability) because the economy is (becoming) increasingly integrated at a global level," Ligteringen said in a recent interview in Tokyo. GRI released its first guidelines in 2000. They were revised last year. GRI is collaborating with the United Nations Environment Program to promote the guidelines, which are for use by any company or organization, regardless of industry sector, size or location. More than 328 firms in 26 countries have published reports using the Sustainability Reporting Guidelines. Most of their reports are available on the companies' Web sites. In Japan, 62 companies -- including Ajinomoto Co., Nissan Motor Co., Hitachi Ltd., Sony Corp. and Shiseido Co. -- have referred to GRI guidelines. The number of users in Japan doubled from last year, Ligteringen said. "It is not surprising that sustainability in Japan is such a pressing issue," because Japan lacks natural resources, he said. The guidelines cover three categories: economic, social and environmental performance. Each category has dozens of detailed indicators, including what policy a firm adopts to prevent child labor, what measures have been taken for energy-saving and waste management, and how a firm maintains compliance mechanisms to prevent corruption. The economic category overlaps financial statements. Companies can use any of the indicators, if not the whole package. Most of the reports published by Japanese firms focus on environmental activities. Ligteringen noted that this is because environmental issues have traditionally been an emphasis of Japanese firms. The Japanese government also pays attention. The Environment Ministry's guidelines for corporate environmental reports, first issued in February 2001, was modeled after the GRI standards, a ministry official said. Although there are some codes of conduct set out by international organizations, including the U.N., the GRI guidelines are the first for filing reports, according to Ligteringen. (by Kaho Shimizu)

From The Japan Times 10/29/2003

TOP↑

Gov't Kicks Off Crisis Management Seminar on Terrorism

TOKYO - The Foreign Ministry on Friday kicked off a series of crisis management seminars for Japanese firms with operations in foreign countries to boost their awareness of the risks of terrorism and abduction. About 300 company officials participated in the first seminar, which was held in Tokyo.

From Kyodo News 11/01/2003

TOP↑

Ministry Eyes Specialists to Teach Public About Science

To stimulate the public's declining interest in science, an institute of the Education, Science and Technology Ministry is urging training programs for "science communicators" who would explain science to the public in easily understood ways. The institute, the National Institute of Science and Technology Policy (NISTEP), made the recommendation in a report it submitted to the ministry Tuesday. The report recommends setting up postgraduate courses to train science communicators. One cannot get by in modern society without understanding the basics of science and technology. But compared with Westerners, the Japanese have a dismally low level of such comprehension. Particularly worrying is that interest in science among those in their 20s and 30s is declining every year, while primary and middle school students are showing less and less interest in science. Results of various polls have suggested that the majority of the public recognizes the importance of science and technology, which they believe they may understand if somebody gives them comprehensive explanations. But such opportunities are few, they feel, according to the polls. NISTEP has concluded there is a need for specialists who can talk to the public about science and technology in a simple way. There are science communication programs for postgraduate students at Western universities, such as the University of London and Massachusetts Institute of Technology.

From http://www.yomiuri.co.jp/ 11/13/2003

TOP↑

Troubled Sony Unveils Restructuring Plans

Sony Corp. on Tuesday unveiled sweeping restructuring measures, including plans to shed 20,000 jobs and close domestic TV plants, with the consumer electronics giant struggling to reclaim a competitive edge over its rivals. Sony Corp. Chairman Nobuyuki Idei looks pensive after unveiling the firm's new strategy. The company also announced a tieup with Samsung Electronics Co. of South Korea to produce large liquid crystal display panels used for flat-screen TVs. The restructuring announcement by Sony, which reported a 25 percent drop in its second-quarter profit last week, had been anxiously awaited by investors, even though many details were reported by some media beforehand. "It is an undeniable fact that we are seeing a profit shrinking trend," Sony Chief Executive Nobuyuki Idei told the media in Tokyo. "As a global player, we have to achieve at least 10 percent (in operating margin)." He referred to the company's goal of lifting the ratio of group operating profit against sales from the current 4 percent to 10 percent by the end of fiscal 2006. To this end, the company said it will slash 20,000 jobs, or 13 percent of Sony's global workforce, by March 2006. Some 7,000 will be cut in Japan. Of the total, about 11,000 will come from the administrative tier. It will close 30 percent of 200 production, distribution, and customer service locations worldwide by March 2006. The company will spend 335 billion yen from fiscal 2003 to 2005 to carry out the restructuring measures. As the result of these and other cost-cutting measures, the company said it will be able to cut fixed costs by 330 billion yen annually, beginning in fiscal 2006. Meanwhile, the company said it signed a basic agreement with Samsung to set up a joint venture to manufacture large LCD panels in South Korea. The initial investment for the project is about $2 billion, with the production line scheduled to operate at the initially targeted capacity by summer 2005. By launching the joint venture to produce so-called seventh-generation LCD panels and the development of powerful image processors, Sony said it will be able to compete well with its rivals in the TV market. The move, coupled with its decision to close domestic cathode-ray tube production lines by March, marks a belated attempt to cash in on a rapidly growing consumer shift from bulky CRT to flat-screen TVs. The firm, which has dominated the conventional TV market with its Trinitron technology, introduced in 1968, has been lagging behind rivals. Sony also said it will set up a financial holding company, consisting of Sony Life Insurance Co., Sony Assurance Inc. and Sony Bank around April, pending regulatory approval. The holding company eventually aims to float its shares. Sony's Idei defended the company's restructuring moves, saying they were not a reaction to the company's recent poor performance. He bristled when asked whether he would resign to take responsibility for the current situation. "Sony is not even in the red," he said. (by Taiga Uranaka)

From The Japan Times 11/19/2003

TOP↑

SOUTH KOREA: City to Use Korean, English in Official Documents

The Seoul Metropolitan Government is reviewing legal matters to clear the way for using English and Korean together in official documents and some high-level meetings, Mayor Lee Myung-bak has said. In yet another effort to bring change to the traditionally-stubborn city bureaucracy, the business-minded mayor pledged he would lead the charge to expand the use of English, saying that it will help South Korea improve its chances to become a financial hub in Asia. "English is becoming a second mother tongue," the 61-year-old said during an interview with The Korea Times on Friday. "I will encourage Seoul officials to use English in official documents and the policy-making process." It is not clear when the government will actually begin to use English in its documents, but the policy will be put place within next year at the earliest, he said. The bold initiative is Seoul's first concrete step to follow Hong Kong and Singapore by making English an official language. Many _ including a recent McKinsey &  Company report _ see it as a prerequisite for the city to be an economic center in Asia. Comparing Seoul to those two cities, the consultant cited Seoul's relatively weak base of English-speakers as a key hurdle in the effort to develop into a regional hub. Seoul officials said a task force has been set up to review related legal documents to ensure there are no legal problems. Lee, who admires former General Electric chairman Jack Welch for his strenuous efforts to guide a struggling company to the summit of international business success, said the idea needs assistance from the government to be effectively carried out. His plan is not entirely compatible with some elements of the city government who prefer to emphasize political traditions. But he said he is ready to be actively involved in the process. Lee has not been deterred by criticism from nationalistic Korean scholars of the city's "Hi Seoul" slogan. The world is changing, he said, and South Korea is in the middle of the change. English competency is a vital weapon for survival. "More importance should be given to English education," he said. "I want to make a society where at least people can explain simple directions in English when they encounter foreigners on the street."

From http://search.korea.net:9000/ 10/27/2003

TOP↑

Shadow Voting System Discouraged

The government will promote the rights and views of minor shareholders by limiting the use of the so-called shadow voting and pursuing a more formal written ballot system. The Ministry of Finance and Economy (MOFE) said on Tuesday (Nov. 11) the measures are in line with the move to check arbitrary decision-making by chaebol owners and to promote corporate transparency. It said these measures would take affect when regulations are revised next year. Currently, a written ballot system, which entitles shareholders unable to attend shareholders meetings to cast absentee votes, is allowed. But only 15 percent of companies listed on the Korea Stock Exchange adopted the system. Most listed companies prefer the shadow voting method to get the required number of shares in the voting process that will make the board members' decision legally binding, according to an MOFE official. He said the focus of the revision of the current securities transaction law would be on giving minority shareholders methods to express their views in a direct way on critical corporate issues, instead of resorting to the indirect approach through the shadow voting system. Under the shadow voting system, those holding too few stakes to cast votes on corporate decisions made by board of directors, entrust the Korea Securities Depository (KSD) to cast ballots on their behalf. But the KSD is barred from casting voting beyond the voting percentage of large shareholders. This gives major shareholders advantage over minor shareholders.

From http://search.korea.net:9000/ 11/12/2003

TOP↑

FTC to Revamp Competition Bureau

The Fair Trade Commission (FTC) plans to revamp its organizational structure through a reshuffle in the first half of next year to strengthen its expertise in competition issues specific to various industries. The FTC said on Friday (Nov. 14) that it is drawing up a detailed plan to restructure its Competition Bureau to be industry-specific to enable it to better handle cartels and infringements of fair competition rules. "The FTC has been considering the reorganization for years as the present division of labor within the Competition Bureau has been considered ineffective in grasping an accurate market situation and industrial developments," FTC official Park Ui-jin said. "We think the restructuring of the Competition Bureau would improve the commission's ability to accurately analyze market competition situations in specific industries, which will contribute to drawing up more effective competition policies." The FTC's Competition Bureau, responsible for investigations involving abuse of market dominance, resale price maintenance, unfair trade practices and prohibited acts by trade associations, presently consists of four divisions _ trade practice, competition promotion, cartel and trade association. "In addition, with the reorganization of the Competition Bureau, companies are expected to find it easier to work with regulators because they will deal with just one FTC bureau," Park said. Bureaus under the FTC are presently divided by function or by the type of infringement of the Fair Trade Law. Thus companies investigated for possible infractions have to deal with several bureaus every time they are called upon for inquiries. The regulatory agency has been operating six bureaus _ anti-trust, consumer protection, competition, competition policy, subcontract and investigation. The remaining five bureaus are not subject to the future restructuring, FTC spokesman Shin Young-ho said. After the restructuring, for instance, a new division for automobile manufacturing will handle all market competition related matters in that industrial field, while the same will be true for other industries. "The reorganization will help the FTC develop expertise in a number of industries important to consumers, such as merchandise, telecom service, health care, food, energy as well as other professional services," Shin said. He said industry-specific organization structure is common in anti-trust agencies in developed economies. However, there are also negative views within the FTC that a reshuffle will require an increase in staff, and there will be a greater risk of businesses increasing their influence on the commission's policies. The FTC plans to submit its reorganization plan to the Ministry of Government Administration and Home Affairs late this year and, if approved, the reshuffle will be implemented in the first half of next year.

From http://search.korea.net:9000/ 11/15/2003

TOP↑

Downsizing Boosts Public Firms' Net Profits

The country's major public firms have successfully overhauled their bloated cost structure since the 1997-98 economic crisis, but they still have a long way to go to for competitive profit models. The Ministry of Finance and Economy (MOFE) announced on Monday (Nov. 17) that 13 major state-owned enterprises, in which the government holds more than 50 percent stake, chalked up the largest combined net profit of 3.9 trillion won last year since the 1997-98 economic crisis. It marks a 124.9-percent increase from a year ago. Korea Electric Power Corp. (KEPCO) and Korean Land Corp. (KLC) led the jump by doubling their net profits to 3.6 trillion won and 3.7 trillion won, respectively. On the other hand, the sales of KEPCO and KLC increased only 7 percent to 21.4 trillion won, and 30 percent to 4.9 trillion won, respectively. In case of Korea Minting and Security Printing Corp., net profit surged from 18.3 billion won to 28 billion won, while its sales decreased from 236 billion to 231 billion won. As a result, total sales of the public firms grew 9.9 percent in 2002 from 2001,far below growth in their net profits. MOFE officials stressed that growth in both sales and net profits reflect advanced management and good business conditions last year. Critics, however, downplay such remarkable growth in net profits, saying it was mainly attributable to a reduction of manpower and asset sales, not resulting from improvement business operations. "The country's 31 state-funded firms recorded a combined net loss of 5.4 trillion won between 1998-2002," Rep. Lee Hahn-koo from the opposition Grand National Party, said, "And the government poured taxpayers' money to cover the loss." While state-funded financial services firms showed poor performances, non-financial ones managed to increase their financial status with the help of the government, he added.