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Posts Tagged ‘global economic crisis’

IMF grants Sri Lanka $2.6bn loan

Sri Lanka displaced camp

The International Monetary Fund has approved a $2.6bn (£1.6bn) loan to help Sri Lanka weather the global economic crisis and rebuild war-torn regions.

The first $322m tranche of the 20-month loan is available immediately, with the rest subject to quarterly reviews.

Britain and the US abstained from the vote, citing humanitarian concerns during the government’s recent fighting against Tamil Tiger rebels.

Colombo says the money will be used to start the country’s "healing process".

Sri Lanka’s Enterprise Minister, Anura Priyadarshana Yapa, said the money would pay for post-war reconstruction work in the north and east of the island – areas previously controlled by the rebels.

"We have completely destroyed one of the worst terrorist outfits in the world and it is time to start the reconciling and healing process in our country," Mr Yapa told Reuters news agency on Friday.

Humanitarian concerns

The loan comes two months after the government crushed the Tamil Tiger rebels, ending Sri Lanka’s bitter 37-year civil war.

The conflict has claimed up to 100,000 lives and left some 300,000 civilians displaced in the north of the country.

British Financial Secretary Stephen Timms said it was "not the right time for the programme".

In a letter to a special parliamentary group, Mr Timms said the UK wanted to "secure long-term peace and prosperity" for Sri Lanka through reconciliation between its communities.

Now that the loan has passed, Mr Timms said the UK would turn its attention to monitoring developments on the ground.

"We expect the government of Sri Lanka’s commitment to reduce defence spending whilst safeguarding spending on humanitarian assistance and [the resettlement of displaced people] to be implemented in full," he told the PA news agency.

Sri Lanka approached the IMF regarding a loan in March, when its balance of payments fell into deficit for the first time in four years.</p


This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

Siemens Festival Nights 2009: Live worldwide webcasts from Bayreuth and Salzburg

The Bayreuth and Salzburg Festivals will begin on July 25. At both festivals, the Siemens Festival Nights will present operas live on large outdoor screens in perfect HD video quality and 3-D sound. At the same time, a worldwide audience will be able to watch Tristan und Isolde (Bayreuth, August 9) and Cosi fan tutte [...]

Sheldon Filger: Bernanke to Congress: I Don’t Know to Whom We Gave Half a Trillion Dollars

The Fed and its chairman have made many errors in judgment, not the least their overly-optimistic pronouncements when the first tremors from the sub-prime meltdown arose.

ADB chief arrives in Dhaka to review socio-economic programmes

Asian Development Bank (ADB) President Haruhiko Kuroda has arrived here on a two-day visit.
Kuroda’’s visit is expected to reaffirm the ADB’’s strong support for the Bangladesh government’’s economic and social development programmes, which have come under pressure from the global economic crisis, The Independent reports.
Kuroda will hold meetings with top government leaders and civil society [...]

Monsoon blues

Drought threatens India’s farms and its economy

Monsoon flooding has hit several Indian states in recent days, but for much of the country the problem is still too little, not too much, rain. Low rainfall so far during the main June-September wet season—June was the driest in over 80 years—has raised fears that poor harvests will weaken GDP growth in India’s agriculture-dependent economy. Food shortages do not appear to be a risk, but a weak monsoon would hit farm output and rural consumption at a time when the global economic crisis is already expected to slow India’s recent strong growth.

India’s flagship IT companies and the increasingly global ambitions of its largest industrial companies tend to make more business headlines, but in fact the health of the macroeconomy is heavily tied to agriculture, and to seasonal rains. Agriculture accounts directly for about 18% of GDP—a significantly lower proportion than in more underdeveloped economies, but still very high compared to rich countries, where the ratio is usually in the low single digits. More importantly, the farm sector is disproportionately important for employment—and thus for private consumption—as some 60% of all jobs are in agriculture. …

Clinton meets Advani, Sonia Gandhi

Visiting U.S. Secretary of State Hillary Clinton called on Leader of Opposition L.K. Advani at his Prithviraj Road official residence and is currently in a meeting with UPA Chairperson Sonia Gandhi at her 10, Janpath Road residence.
During her meeting with Advani, Clinton is said to have reviewed issues of importance to both India and United [...]

Sri Lanka agrees $2.5bn IMF loan

Sri Lanka displaced camp

Sri Lanka has agreed a $2.5bn (£1.5bn) loan accord from the International Monetary Fund (IMF) to the help it weather the global economic crisis.

The agreement will now go the IMF board for final approval.

Reports suggest that an initial $313m will be made available immediately once the loan is approved.

The Sri Lankan government has said that the money will also be used to pay for post-war reconstruction work in the north and east of the island. </p


This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

Corruption drive

former head ofthe Kazakh nuclear agency Mukhtar Dzhakishev

A number of senior government officials have fallen to an anti-corruption drive in Kazakhstan, but some are questioning the motives behind the latest campaign, says the BBC’s Central Asia correspondent Rayhan Demytrie.

The government has introduced a series of anti-corruption measures, some more gimmicky than others.

The latest is for civil servants to wear badges stating: "I am against corruption."

"We thoroughly studied anti-corruption methods used in other countries before coming up with these suggestions," says Mirbulat Kunbayev, a member of the anti-corruption council of the ruling Nur Otan party.

"I understand that it will not eliminate corruption, but I think anyone wearing the badge will think twice before asking for a bribe. This method has been successfully used in Malaysia."

Other suggestions have been to hold a competition for the best anti-corruption song and introduce life sentences for government employees found guilty of stealing "particularly large sums" from state funds.

‘Ten slashing punches’

Other measures are much more serious.

"The media misinterpreted us," says Mr Kunbayev, who is unhappy that only these novelties were singled out from the anti-corruption drive.

"The country has been hit badly by the global economic crisis, and this big scale anti-corruption war could be one of the means to take the public’s attention away from real problems"

Andrei Chebotaryov, political analyst

"We suggested a whole list of measures aimed at creating a powerful anti-corruption system."

In April, President Nursultan Nazarbayev suggested paying cash rewards to ordinary citizens for turning in any corrupt state officials they encounter.

Last year the president said corruption in the country had to be fought with "10 slashing punches". He ordered the creation of a special programme aimed at eliminating fraud and dismissing top government officials implicated in corruption.

Some have not had to wait too long.

According to official figures, close to 1,000 corruption investigations have been opened this year, many of them against government employees.

Transparency plea

In a recent survey conducted by the International Republican Institute – a US-funded organisation that promotes good governance – Kazakhs consider traffic police, the customs service and the general prosecutors office as the country’s most corrupt institutions.

But the current wave of sackings and arrests over allegations of corruption mainly involves high-ranking officials.

In early June, President Nazarbayev fired his ex-Defence Minister Danial Akhmetov, a long time loyalist and former prime minister.

No official reason was giving for his dismissal.

Just weeks before, Mr Akhmetov’s deputy Kazhimurat Mayermanov was arrested on corruption charges.

Traffic police in Almaty, Kazakhstan

A statement from the National Security Committee (KNB) said that Mr Mayermanov and several other defence ministry officials were accused of purchasing defective military equipment from Israel and misappropriating $82m from the defence budget.

"Ahmetov’s dismissal was somehow expected ever since the whole corruption scandal at the defence ministry began. It was just a matter of time," says Daulet Zhumabekov, an ex-soldier who has battled corruption at the defence ministry.

In May Mukhtar Dzhakishev, the head of the state-owned nuclear firm "Kazatomprom", was arrested along with a number of his deputies.

The authorities say Mr Dzhakishev appropriated 60% of Kazakhstan’s uranium deposits, worth billions of dollars, and sold them to foreign firms.

His arrest caused a stir in Kazakh business circles, prompting a group of businessmen to write an open letter to President Nazarbayev urging transparency in Mr Dzhakishev’s criminal case.

The businessmen said a secret investigation would tarnish Kazakhstan’s international image and deter potential investors.

But the authorities are releasing little information about the case. Mr Dzhakishev’s wife and family are not allowed to visit him and lawyers have been denied access.

"Dzhakishev was known as an honest and talented manager," says Sergey Smirnov, an energy expert from the journal Expert-Kazakhstan.

"Any Kazatomprom contract has to be approved by the government and the ministry of energy and natural resources. Technically it is impossible that Dzhakishev could have appropriated 60% of uranium deposits," says Mr Smirnov.

During his 10-year tenure Mr Dzhakishev led Kazatomptom to become one of the world’s top uranium producers.

There is also an ongoing case against former Environment Minister Nurlan Iskakov and two of his deputies, who are charged with financial manipulation and embezzling more than $6m from the state budget.

Power struggle

In a recent interview with Interfax-Kazakhstan news agency, the head of Kazakh national security Amangeldi Shabdarbayev said that there was no political implication in the cases against top government officials.

"Every case is a result of a thorough investigation by the general prosecutor’s office and other institutions," Interfax-Kazakhstan quoted Mr Shabdarbiyev as saying.

But some are questioning the timing of the latest anti-corruption drive.

"The country has been hit badly by the global economic crisis, and this big scale anti-corruption war could be one of the means to take the public’s attention away from real problems," says political analyst Andrei Chebotaryov.

Others suggest the anti-corruption drive is part of a bigger power struggle and an excuse to purge unfavourable figures from Kazakhstan’s ruling elite.</p


This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

Christopher Herbert and Victoria Kataoka Rebuffet: Weekly Foreign Affairs Roundup

The Week’s Top Stories in Foreign Affairs : Non-Aligned Movement Meeting in Sharm el-Sheik SI Analysis: Leaders of 50 nations convene in Egypt to discuss…

UK sees first fall in tourists for seven years

Number of visits from overseas drops 2.7% to 31.9m, as Britain’s tourism spending deficit widens to a record £20.5bn

The number of overseas visitors travelling to the UK on holiday or on business has fallen for the first time in seven years – although in a boost for the tourism industry, they are spending at record levels.

British tourists also made fewer visits abroad last year, confirming the trend of “staycationing”, or holidaying at home, as a result of the credit crunch. Britons venturing overseas in the recession are choosing to visit the perennial favourites Spain and France, followed by the US, the Irish Republic and Italy.

The figures for 2008, published today in the annual Travel Trends report from the Office for National Statistics, showed there were 31.9m foreign visits to Britain last year, a 2.7% fall on the previous year.

This was the first drop since 2001, when a combination of the outbreak of foot and mouth disease and the September 11 attacks in the US led to a dramatic slump.

The figures are compiled from the ongoing international passenger survey, involving interviews with more than 250,000 people a year travelling to and from the UK via major airports, ports and tunnel routes.

Tourism chiefs blamed the global economic crisis, which started to bite in earnest in the autumn, as a factor for the fall. The decline was most severe in the last quarter of 2008, when visits fell by 13%.

Overseas visitors spent a record £16.3bn in Britain in 2008. UK residents made 69m visits abroad, down 0.6% on 2007, with the downturn most marked in the last quarter, when the figure fell by 9%. At the same time, UK visitors spent a record £36bn overseas, leading to a record tourism deficit of £20.5bn.

David Savage, a co-author of the report, said: “Spending in the UK is holding up very well. The increase in spending is due to the exchange rate. People will come here with a budget and the difference works in our favour.”

London remained by far the top destination for overseas visitors, with 14.8m trips to the capital last year. Edinburgh had 1.2m visits, Manchester 900,000, Birmingham 800,000 and Glasgow 600,000. Visits to the UK were divided evenly between those on holiday, those visiting friends and family, and people on business trips.

After a sharp drop in visits from the US (3m, down from 3.6m in 2007), France took first place in the table of countries whose residents made the most visits to the UK. The Irish Republic rose to second. But the big spenders were the Americans – who splashed out a total of £2.2bn, representing 14% of all spending by visitors.

Sandie Dawe, the chief executive of Visit Britain, the national tourism agency, said: “The decline in visitor numbers in 2008 was certainly not unexpected. The figures illustrate the continuing challenges of maintaining Britain’s popularity as a destination as the global economic downturn began to bite and in the face of increasing competition from rival destinations.”

She said there were positive signs for the start of 2009, with a weak pound bringing “value for money that other countries cannot match”.

She added: “However, we still expect 2009 to be equally challenging and will be doing all we can to remind international visitors of the many quality experiences they can enjoy here.”

guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds



Sheldon Filger: Will China’s Economic Crisis Worsen Due to Stimulus Spending?

How ironic that the savior of global capitalism is determined to be the largest Communist state still in existence.

Moscow migrants

Millions of migrant workers live in Russia, with many of them coming from Central Asia, especially Uzbekistan, Tajikistan and Kyrgyzstan.

train arriving in Dushanbe station

But since the onset of the global economic crisis many of them have lost their jobs.

This has led to a big reduction in the amount of money sent back to Central Asia. Tajikistan relies on such remittances for around one-third of its income, but the International Organisation for Migration says Tajik remittances could fall by up to 30% this year.

Martin Vennard has been speaking to Central Asians in Moscow about their situation.

Bakhtiyor, 22, Dushanbe, Tajikistan

"I’ve been working in Moscow for 18 months now. I do maintenance and building work in one of the city’s main parks, Kolomenskoye.

Bakhtiyor, 22, Dushanbe, Tajikistan

I share a two-roomed flat with up to five other migrant workers.

I earn about 18,000 roubles ($600) a month and send my parents about 15,000 roubles.

I do this job all year round, but it’s not too hard. The crisis hasn’t affected us yet, but there’s not a lot of work in Moscow at the moment. I’m glad I still have this job.

There are a lot of Central Asian people in Moscow and a lot of my friends have lost their jobs. Some of them have found other work, but some of them are still looking for jobs, while others have gone home to Tajikistan.

"

Tolik, 23, Kashkadarya region, southern Uzbekistan

"I’ve been in Moscow for three years, but have been unemployed for more than three months.

I lost my job at a car wash because of the economic crisis. I have lots of friends who have lost their jobs and gone home to Uzbekistan.

I used to earn the equivalent of about 25,000 roubles ($800) a month, two-thirds of which I sent home to my family.

Now I rely on my flatmate, who works as a street cleaner, for support.

I was a sportsman back in Uzbekistan. I was a regional karate champion and didn’t smoke or drink. But since I lost my job I’ve been drinking a lot of beer and vodka and smoking.

I want to go back home and resume my sports career. I sometimes watch my friends playing sport here in Moscow.

The separation from my fiancee, who is in Uzbekistan, has affected her health.

She calls me everyday and is missing me a lot.

"

Rasul, 23, Vakhsh, Tajikistan

"I’m out of work now after spending almost a month in hospital with appendicitis and an ulcer.

Rasul, 23, Vakhsh, Tajikistan

I used to work here in the park with Bakhtiyor and the others, but I now plan to go back to Tajikistan.

My wife and six-month-old daughter are living there.

Before coming to Moscow I played football a lot in Tajikistan because there aren’t many jobs available and what there are pay very badly.

It’s difficult to get a good job there.

I like Moscow a lot. There are many things to do here and I’ll miss it.

"

Bekzod, 22, Karshi, southern Uzbekistan

"I work here in Moscow as a street cleaner. I’ve been working for a local council for the last two years.

I live in a hostel with other migrant workers in southwest Moscow.

I earn up to 18,000 roubles ($600) a month in winter and was paid around 12,000 roubles a month in summer. I send home around 900 roubles to my family.

I don’t know how much we’ll be paid this summer because of the economic crisis. Normally I get paid less in the summer, because the job is much harder in the snow and ice.

"</p


This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.