Archive for ‘Economics’

13/12/2013

Could a Shanghai Exodus Be in the Air? – China Real Time Report – WSJ

China’s effort to turn Shanghai into a global financial center came under a cloud this month—or, rather, under a choking blanket of smog that has affluent residents talking about bolting.

English: Shanghai Smog

English: Shanghai Smog (Photo credit: Wikipedia)

As Wei Gu writes in this week’s The People’s Money column:

China’s pollution problem is spreading and growing worse, a fact on stark display last week in Shanghai, the country’s financial center. A stretch of filthy-air days in that coastal city so thoroughly shocked residents—who had largely escaped the smog that has long plagued the likes of Beijing and Harbin—that it inspired fresh talk about getting away from China.

Over the past century, migration has almost always been driven by a desire to get ahead. But today more affluent Chinese are talking about accepting a climb-down on the career ladder and a less-exciting lifestyle in exchange for cleaner air, safer food and a different education system.

via Could a Shanghai Exodus Be in the Air? – China Real Time Report – WSJ.

13/12/2013

China Says Pilot Should Be Able to Land in Low Visibility, Battling High Traffic and Pollution – China Real Time Report – WSJ

If you want to fly in China, you need to be able to land in the smog.

China’s civil aviation regulator has set new rules mandating senior airline pilots operating on major routes into Beijing’s airport be certified to land aircraft under very low visibility, a move to help ease the nation’s worsening air traffic bottlenecks amid often heavy pollution.

China’s major airlines say they have been giving pilots additional training to comply with the new rules, which take effect Jan. 1, according to the carriers and state media.

The decision comes amid worsening pollution across China cities that at times is affecting commercial airline traffic. Last week, thick smog enveloped Shanghai and parts of eastern China,  cutting visibility in the city of Nanjing to less than 50 meters and resulting in many flight delays and cancellations.

Thick smog impacting visibility has also caused cancellations and delays at Beijing Capital International Airport, the nation’s busiest and worst in terms of on-time performance, with only 45% of flights departing on time in November, according to travel industry monitor FlightStats.

Depending on weather conditions and runway infrastructure, modern jetliners have sophisticated instruments to help them land in little or no visibility, such as foggy conditions. Pilots, though, need additional certification to perform such approaches, which usually don’t compromise safety. Airlines have varying rules on minimum visibility levels acceptable for landing, though low-visibility landings are frequently done by major airlines in the West.

The special certification for pilots to make low-visibility landings, a common international requirement, applies to situations where visibility drops to 350 meters or less.

via China Says Pilot Should Be Able to Land in Low Visibility, Battling High Traffic and Pollution – China Real Time Report – WSJ.

11/12/2013

Anti-Cong wave sweeping the country, Mamata Banerjee says – The Times of India

Trinamool Congress chief Mamata Banerjee on Wednesday claimed an anti-Congress wave is sweeping the country but declined to comment on whether her party would be part of a Narendra Modi government if it comes to power after Lok Sabha poll.

English: Trinamool Congress chief Mamata Baner...

English: Trinamool Congress chief Mamata Banerjee attends a news conference in the eastern Indian city of Kolkata September 7, 2008. (Photo credit: Wikipedia)

Asked whether there was a Modi wave, she said \”there is an anti-Congress wave.\”

\”There is an anti-Congress wave in the country. Price rise has affected the common man. Prices of potato, onion and even salt have increased along with rise in prices of fertiliser and petroleum products,\” she told reporters here.

Asked repeatedly whether she will support Narendra Modi in the post-poll scenario, she said \”no comment\”.

However, TMC sources said the party could be open to aligning with regional parties after Lok Sabha polls but wants a common minimum programme to be worked out for that, party sources said here.

Sources close to Banerjee said \”there should be a common minimum programme for such formation. All parties would sit together and decide on it.\”

via Anti-Cong wave sweeping the country, Mamata Banerjee says – The Times of India.

11/12/2013

India and China Move Ahead in the Asian Space Race – Businessweek

It’s been a rough year for the government of Indian Prime Minister Manmohan Singh. Economic growth has cratered and the currency has wobbled. The Hindu nationalist party just clobbered Singh’s Congress Party in state-level elections and opposition leader Narendra Modi is the favorite to replace Singh in nationwide elections in the first half of 2014.

Engineers working on the Mars orbiter at the Indian Space Research Organization in Bangalore

Amid all the gloom, Singh and the rest of India just received some much-needed good news. The country has an ambitious program to explore space, and today the government-run mission control announced that India’s first mission to Mars had cleared a major obstacle on its way to the Red Planet. The Mars Orbiter, informally dubbed the Mangalyaan, successfully carried out its first Trajectory Correction Manoeuvre (TCM), the Indian Space Research Organization said on its official website. That keeps the Mangalyaan on track to reach Mars by September next year.

India’s Mars probe (PDF) is the country’s entry in an Asian space race; for those of you keeping score, the Indians win points for aiming farthest. Japan in September launched the Epsilon rocket, designed to be an inexpensive way to put satellites into earth orbit. China is shooting for the moon, having launched its first lunar rover mission on Dec. 2. South Korea in January launched its first space rocket and last month unveiled plans for a lunar mission (albeit one that won’t launch until 2020).

via India and China Move Ahead in the Asian Space Race – Businessweek.

11/12/2013

China Explores Smoking Ban in Effort to Reduce Tobacco-Related Deaths – China Real Time Report – WSJ

Chinese officials are exploring ways to curb smoking as deaths mount and medical costs rise, an effort that has generated one proposal to take apart the nation’s vast and politically connected government-run tobacco monopoly.

Within the next year, China’s legislators will accelerate efforts to enact a national regulation banning smoking in public places in China, said Yang Jie, deputy director of Tobacco Control Office for the Chinese Center for Disease Control and Prevention, at a news briefing on tobacco-related health problems in China. Mr. Yang said China’s State Council, the country’s cabinet, is currently planning the regulation and it is expected to be enacted next year.

“We can see what is happening in the rest of the world,” said Mr. Yang, suggesting that China is due to follow the smoking cessation trends of other countries.

The statement follows the release of a book by China’s Central Party School, an elite Chinese Communist Party think tank, in recent months urging officials to shake up China’s tobacco monopoly, which is responsible for tobacco production and sales and has the freedom to donate to schools and sell cigarette cartons without pictures of black lungs for warnings. Its authors call for higher tobacco taxes, halting government financing to tobacco companies and encouraging them to find alternative business models.

China’s State Tobacco Monopoly Administration wasn’t immediately available for comment. The tobacco industry pulled in 865 billion yuan ($142.5 billion) from taxes and profit in 2012, up 16% from a year earlier, according to the State Tobacco administration.

A farmer smokes in a cabbage field in Huaiyuan county, eastern Anhui province. Associated Press

China is the world’s largest consumer and producer of tobacco, home to more than 300 million smokers and 43% of the world’s cigarette production, according to the American Cancer Society and the World Lung Foundation. Tobacco is also a leading cause of death in China, causing 1.2 million deaths annually and expected to cause 3.5 million deaths annually by 2030, the groups said.

Nearly nine out of 10 Chinese children aged 5 and 6 are able to identify at least one cigarette brand, according to a recent study by Johns Hopkins University on the effects of tobacco marketing on children in low- and middle-income countries. “Rather than thinking ‘I’m going to be Superman,’ young boys are aspiring to smoke,” said Bernhard Schwartländer, the World Health Organization’s representative in China.

via China Explores Smoking Ban in Effort to Reduce Tobacco-Related Deaths – China Real Time Report – WSJ.

11/12/2013

Santander ups bet on China with Bank of Shanghai stake | Reuters

Santander (SAN.MC), Spain\’s largest bank, is to buy HSBC\’s (HSBA.L) 8 percent stake in Bank of Shanghai, just as many international rivals are beginning to sell out of China.

A man uses an ATM machine at a Santander bank branch in Madrid September 16, 2013. REUTERS/Juan Medina

Santander, which already has a consumer finance venture in China as well as a car financing business, said on Tuesday the Bank of Shanghai deal also included a cooperation agreement, taking the value of its investment to 470 million euros ($647.3 million).

Several major U.S. and European banks including Bank of America (BAC.N) and Switzerland\’s UBS (UBSN.VX) have started shedding their Chinese holdings for a variety of regulatory and business reasons.

via Santander ups bet on China with Bank of Shanghai stake | Reuters.

11/12/2013

China cuts more red tape, paves way for NDRC slim-down | Reuters

China has stripped dozens of powers away from central government ministries as it bids to cut red tape and prevent Beijing\’s army of bureaucrats from micromanaging the world\’s second-largest economy.

Paramilitary policemen stand in formation as they pay tribute to the Monument to the People's Heroes on Tiananmen Square in Beijing, November 17, 2013. REUTERS/Stringer

China\’s cabinet, the State Council, announced on Tuesday that it was removing 82 powers from a number of central government ministries, including the powerful National Development and Reform Commission (NDRC) and the Ministry of Environmental Protection.

In a series of sweeping reforms published in November, China\’s ruling Communist Party promised to free up the market by simplifying administration and \”restrict central government management of microeconomic issues to the greatest possible extent\”.

via China cuts more red tape, paves way for NDRC slim-down | Reuters.

10/12/2013

White-collar jobs for rural women needed to enhance gender equality – new book | India Insight

Family planning, health and education programmes have done a lot to improve the lives of women in rural India, but getting more young rural women to work in jobs that don’t involve wage labour is the next step for gender equality and the country’s economic health, according to Dr. Carol Vlassoff, author of a new book, “Gender Equality and Inequality in Rural India: Blessed with a Son.”

Vlassoff, 69, has been studying the village of Gove in Satara District of Maharashtra state since 1975. She determined through her work there that bringing rural women into the modern economy in India means making more job opportunities available to them, particularly professional, white-collar jobs.

Doing this also could lead to slowing population growth in India, one of the world’s most populous countries with an estimated 1.2 billion people. She found, according to a press statement accompanying the book, “that self-employed and professional rural women were more likely to use contraceptives and delay having their first child than unemployed women with the same amount of schooling.”

This, she said, also helps promote gender equality at a time when parents, although fond of their daughters, consider a son essential. Daughters can be a financial burden on parents because, despite the abolition of dowry, grooms’ parents often expect substantial gifts. As a result, in Gove and elsewhere, parents sometimes choose to abort a female fetus. Half of the women Vlassoff interviewed in the village said they knew of women who have done this, she said.

Vlassoff, who worked at the World Health Organization on women’s empowerment, has been conducting studies in the village, which now has a population of 3,600, since 1975. The nearly 500 women in her latest study are 15 to 49 years old.

via White-collar jobs for rural women needed to enhance gender equality – new book | India Insight.

10/12/2013

Business of new and worn banknotes thriving in Delhi: India Insight

Rakesh Kumar is not like most of the street vendors in Old Delhi. The hand-painted sign on his wooden counter, “exchange damaged, old notes,” reveals a different story. He sells money.

For the past 40 years, Kumar has offered customers new banknotes for soiled or damaged ones for a fee that earns him about 100,000 rupees ($1,600) a year. It has also helped him pay for the marriages of his three children.

“We charge commission depending on the condition of the note,” the 58-year-old Kumar said while examining some 1,000-rupee notes nibbled by rats. “Around 30-40 people come to us daily.”

Getting fresh banknotes or using soiled ones can be difficult in India. Shopkeepers and other merchants routinely refuse to accept such notes, while people require loose change and fresh notes for regular use.

This business of notes is livelihood for hundreds in Old Delhi, with vendors offering convenience to customers by charging a fee of up to 20 percent to replace damaged banknotes. A mildly damaged 500 rupee note, for instance, can be exchanged for 480 rupees, while a bundle of crisp, new 10 rupee notes valued at 1,000 rupees is priced at 1,050 rupees.

via India Insight.

10/12/2013

China to judge local governments by their debt: Xinhua | Reuters

China will soon rate the performance of local governments partly by how much debt they incur, as Beijing tries to wean the country off heavy government investment, state media said.

A farmer carries a shovel over his shoulder as he walks to tend his crops in a field that includes an abandoned building, that was to be part of an amusement park called 'Wonderland', on the outskirts of Beijing December 5, 2011. REUTERS/David Gray

The central organization department, which oversees the appointment of senior party, government, military and state firm officials, said debt will be key when evaluating performances, according to the state news agency Xinhua.

Large-scale government investment has helped China\’s gross domestic product expand at double-digit rates for the past three decades. But analysts say China\’s economy has now hit a turning point, and domestic consumption must grow and investment fall to ensure a healthy expansion.

via China to judge local governments by their debt: Xinhua | Reuters.

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