Mauritius ranks the sixth with 80.6 score in the 2010 Environmental Performance Index (EPI).
Iceland leads the world with a score of 93.5 in addressing pollution control and natural resource management challenges, according to EPI produced by a team of environmental experts at Yale University and Columbia University. This is the third edition of the EPI, which has been revisited biannually since 2006.
Released on Thursday at the World Economic Forum annual meeting, the EPI ranks 163 countries on their performance across 25 metrics aggregated into ten categories including: environmental health, air quality, water resource management, biodiversity and habitat, forestry, fisheries, agriculture, and climate change..
Iceland’s top-notch performance derives from its high scores on environmental public health, controlling greenhouse gas emissions, and reforestation. Other top performers include Switzerland, Costa Rica, Sweden, Norway and Mauritius – all of which have made substantial investments in environmental infrastructure, pollution control, and policies designed to move toward long-term sustainability, said the report.
Occupying the bottom five positions are Togo, Angola, Mauritania, the Central African Republic, and Sierra Leone –impoverished countries that lack basic environmental amenities and policy capacity.
The US places 61st in the 2010 EPI, with results on some issues, such as provision of safe drinking water and forest sustainability, and weak performance on other issues including greenhouse gas emissions and several aspects of local air pollution. This ranking puts the United States significantly behind other industrialized nations like the UK (14th), Germany (17th), and Japan (20th). Over 20 members of the EU outrank the US.
Of the newly industrialised nations, China and India rank 121st and 123rd respectively – reflecting the strain rapid economic growth imposes on the environment. However, Brazil and Russia rank 62nd and 69th, suggesting that the level of development is just one of many factors affecting placement in the rankings. Similarly, France ranked seventh, Australia eighth, South Africa at 115th and Madagaskar at the 120th.
The 2010 EPI report provides a detailed analysis for each country, showing its performance on each of the 25 basic indicators, the ten core policy categories, and the two over-arching objectives of environmental public health and ecosystem vitality. In addition, each nation is benchmarked against others that are similarly situated with groupings based on geographic regions, level of development, trading blocs, and demographic characteristics. These peer group rankings make it easy to highlight leaders and laggards on an issue-by-issue basis and to identify “best practices.”
Analysis of the policy drivers underlying the 2010 rankings suggests that income is a major determinant of environmental success. At every level of development, however, some countries achieve results that exceed what would be anticipated, demonstrating that policy choices also affect performance. For example, Chile, where substantial investments in environmental protection have been made, ranks 16th, while its neighbor, Argentina, which has done much less to improve its pollution control and natural resource management, lags in 70th place. Regulatory rigor, the rule of law and good governance, and the absence of corruption also show strong correlations with high EPI scores.
The Environmental Performance Index builds on the best data available with indicators drawn from international organizations, such as the World Bank, the UNDP, the UN Food and Agriculture Organisation (FAO), and the UN Framework Convention on Climate Change, as well as research groups such as the World Resources Institute and the University of British Columbia. But many of these data sets are based on reporting by national governments that is not subject to any external review or verification.
Serious data gaps, moreover, limit the ability to measure performance on a number of important issues. And incomplete data resulted in the exclusion of dozens of countries from the 2010 EPI, the report observes.
Ranking
1 Iceland 93.5
2 Switzerland 89.1
3 Costa Rica 86.4
4 Sweden 86.0
5 Norway 81.1
6 Mauritius 80.6
7 France 78.2
14 United Kingdom 74.2
17 Germany 73.2
20 Japan 72.5
28 Singapore 69.6
38 Nepal 68.2
61 United States of America 63.5
115 South Africa 50.8
120 Madagascar 49.2
121 China 49.0
123 India 48.3
Friday, January 29, 2010
Wednesday, January 27, 2010
Airlines suffered record drop in traffic
Geneva: International airlines suffered their biggest decline in traffic since 1945 last year as passenger demand fell by 3.5 per cent, the International Air Transport Association (IATA) said.
Freight also fell, by 10.1 per cent, as "full-year 2009 demand statistics for international scheduled air traffic showed the industry ending 2009 with the largest ever post-war decline," IATA said. "In terms of demand, 2009 goes into the history books as the worst year the industry has ever seen," said Giovanni Bisignani, director general of the world's biggest airlines' association.
"We have permanently lost 2.5 years of growth in passenger markets and 3.5 years of growth in the freight business," he added. Passenger traffic had improved in the final months of 2009, after a slump triggered by the financial and economic crisis. In December, passenger traffic increased by 4.5 per cent in December compared to the same month the previous year, and by 1.6 per cent over November, latest IATA data showed.
While airlines had continued to cut capacity and flights, yields were still five to 10 per cent below 2008 levels by the end of last year. IATA predicted a slow recovery for cash-strapped carriers. "Revenue improvements will be at a much slower pace than the demand growth that we are starting to see," said Bisignani. "Profitability will be even slower to recover and airlines will lose an expected $5.6 billion in 2010," she added.
The industry association warned last month that airlines faced another turbulent year after they racked up an estimated $11 billion in losses in 2009 despite a recovery in passenger traffic. "We are ending an Annus Horribilis that rings to a close the 10 challenging years of an aviation Decennus Horribilis," Bisignani told journalists last month. IATA represents some 230 carriers that account for more than 90 per cent of scheduled air traffic. AFP
Tuesday, January 26, 2010
Global unemployment soars, to remain high in 2010
The number of jobless worldwide reached nearly 212 million in 2009 following an unprecedented increase of 34 million compared to 2007, on the eve of the global crisis, the International Labour Office (ILO) said in its annual Global Employment Trends report.
Based on IMF economic forecasts, the ILO estimates that global unemployment is likely to remain high in 2010. In the Developed Economies and EU, unemployment is projected to increase by an additional three million people in 2010 to 8.9 per cent (up from 8.4 per cent in 2009 and 6.0 per cent in 2008), according to the report. Overall, despite comprising less than 16 per cent of the global workforce, Developed Economies and EU region accounted for more than 40 per cent of the increase in global unemployment since 2007.
Asia and the Pacific will fare slightly better than elsewhere in the world, the report predicts. Still, the region as a whole can expect an average unemployment rate in 2010 ranging from 4.3 per cent to 5.6 per cent (Southeast Asia and Pacific at 5.6 per cent while East Asia and South Asia predicting slight declines to rates of 4.3 per cent and 4.9 per cent respectively).
A rapid improvement in the Chinese domestic market, as well as the positive spill-over effects to neighbouring countries, led to an improvement in the economic and labour market figures for the region.
However, the ILO also said the number of unemployed youth worldwide increased by 10.2 million in 2009 (to 13.4 per cent) compared to 2007, the largest hike since 1991, with East Asia and Southeast Asia and Pacific showing some of the steepest increases. In East Asia, from 1999 - 2009, youth participation in the labour force declined by 9.3 per cent in East Asia and 5.3 per cent in Southeast Asia and the Pacific, compared with a global average decline of 3.4 per cent for the same period.
The report says that coordinated stimulus measures have averted a far greater social and economic catastrophe; yet millions of women and men around the world are still without a job, unemployment benefits or any viable form of social protection. “As the World Economic Forum gathers at Davos, it is clear that avoiding a jobless recovery is the political priority of today” said ILO Director-General Juan Somavia. “We need the same policy decisiveness that saved banks now applied to save and create jobs and livelihoods of people. This can be done through strong convergence of public policies and private investment.”
Somavia added, “With 45 million young women and men entering the global labour market every year, recovery measures must target job creation for our young people.”
According to the ILO, the share of workers in vulnerable employment worldwide is estimated to reach over 1.5 billion, equivalent to over half (50.6 per cent) of the world’s working population. The number of women and men in vulnerable employment is estimated to have increased in 2009, by as much as 110 million compared to 2008. The report also says that, worldwide, 633 million workers and their families were living on less than $1.25 per day in 2008, with as many as 215 million additional workers living on the margin and at risk of falling into poverty in 2009.
The ILO report says that it is urgent to establish wide coverage of basic social protection schemes to cushion the poor against the devastating effects of sharp fluctuations in economic activity.
To address these issues, the ILO constituents which represent the ‘real economy’ have agreed a Global Jobs Pact that contain a balanced set of tried and tested measures to promote a robust response to the employment challenge by
focusing on accelerated employment generation, sustainable social protection systems, respect for labour standards, and strengthening social dialogue. The Pact has received strong backing from the G20 heads of state and from the UN.
Key Findings
• The global unemployment rate rose to 6.6 per cent in 2009, an increase of 0.9 percentage points over 2007. However it varied widely by region, ranging from 4.4 per cent in East Asia to more than 10 per cent in Central and South-Eastern Europe (non-EU) and Commonwealth of Independent States (CSEE & CIS) as well as in North Africa.
• The global youth unemployment rate rose by 1.6 percentage points to reach 13.4 per cent in 2009 relative to 2007. This represents the largest increase since at least 1991, the earliest year for which global estimates are available.
• The overall impact of the economic crisis on women and men is far more important than the differences in impact between these groups.
• Preliminary estimates of growth in labour productivity, measured as output per worker, indicate that productivity levels fell in all regions except East Asia, South Asia and North Africa. The largest decline in output per worker occurred in Central and South-Eastern Europe (non- EU) & CIS, — 4.7 per cent, thus reversing part of the gains that were made in the first half of the decade.
• As a result of declining output per worker, working conditions are deteriorating especially in regions where labour productivity was already low preceding the economic crisis.
Based on IMF economic forecasts, the ILO estimates that global unemployment is likely to remain high in 2010. In the Developed Economies and EU, unemployment is projected to increase by an additional three million people in 2010 to 8.9 per cent (up from 8.4 per cent in 2009 and 6.0 per cent in 2008), according to the report. Overall, despite comprising less than 16 per cent of the global workforce, Developed Economies and EU region accounted for more than 40 per cent of the increase in global unemployment since 2007.
Asia and the Pacific will fare slightly better than elsewhere in the world, the report predicts. Still, the region as a whole can expect an average unemployment rate in 2010 ranging from 4.3 per cent to 5.6 per cent (Southeast Asia and Pacific at 5.6 per cent while East Asia and South Asia predicting slight declines to rates of 4.3 per cent and 4.9 per cent respectively).
A rapid improvement in the Chinese domestic market, as well as the positive spill-over effects to neighbouring countries, led to an improvement in the economic and labour market figures for the region.
However, the ILO also said the number of unemployed youth worldwide increased by 10.2 million in 2009 (to 13.4 per cent) compared to 2007, the largest hike since 1991, with East Asia and Southeast Asia and Pacific showing some of the steepest increases. In East Asia, from 1999 - 2009, youth participation in the labour force declined by 9.3 per cent in East Asia and 5.3 per cent in Southeast Asia and the Pacific, compared with a global average decline of 3.4 per cent for the same period.
The report says that coordinated stimulus measures have averted a far greater social and economic catastrophe; yet millions of women and men around the world are still without a job, unemployment benefits or any viable form of social protection. “As the World Economic Forum gathers at Davos, it is clear that avoiding a jobless recovery is the political priority of today” said ILO Director-General Juan Somavia. “We need the same policy decisiveness that saved banks now applied to save and create jobs and livelihoods of people. This can be done through strong convergence of public policies and private investment.”
Somavia added, “With 45 million young women and men entering the global labour market every year, recovery measures must target job creation for our young people.”
According to the ILO, the share of workers in vulnerable employment worldwide is estimated to reach over 1.5 billion, equivalent to over half (50.6 per cent) of the world’s working population. The number of women and men in vulnerable employment is estimated to have increased in 2009, by as much as 110 million compared to 2008. The report also says that, worldwide, 633 million workers and their families were living on less than $1.25 per day in 2008, with as many as 215 million additional workers living on the margin and at risk of falling into poverty in 2009.
The ILO report says that it is urgent to establish wide coverage of basic social protection schemes to cushion the poor against the devastating effects of sharp fluctuations in economic activity.
To address these issues, the ILO constituents which represent the ‘real economy’ have agreed a Global Jobs Pact that contain a balanced set of tried and tested measures to promote a robust response to the employment challenge by
focusing on accelerated employment generation, sustainable social protection systems, respect for labour standards, and strengthening social dialogue. The Pact has received strong backing from the G20 heads of state and from the UN.
Key Findings
• The global unemployment rate rose to 6.6 per cent in 2009, an increase of 0.9 percentage points over 2007. However it varied widely by region, ranging from 4.4 per cent in East Asia to more than 10 per cent in Central and South-Eastern Europe (non-EU) and Commonwealth of Independent States (CSEE & CIS) as well as in North Africa.
• The global youth unemployment rate rose by 1.6 percentage points to reach 13.4 per cent in 2009 relative to 2007. This represents the largest increase since at least 1991, the earliest year for which global estimates are available.
• The overall impact of the economic crisis on women and men is far more important than the differences in impact between these groups.
• Preliminary estimates of growth in labour productivity, measured as output per worker, indicate that productivity levels fell in all regions except East Asia, South Asia and North Africa. The largest decline in output per worker occurred in Central and South-Eastern Europe (non- EU) & CIS, — 4.7 per cent, thus reversing part of the gains that were made in the first half of the decade.
• As a result of declining output per worker, working conditions are deteriorating especially in regions where labour productivity was already low preceding the economic crisis.
Friday, January 22, 2010
Commodities prices continue to rise
Food prices have seen a significant rise in the recent years.Poor summer harvests domestically and across much of India are a significant factor keeping prices in Nepal high
However, losses in India are not as bad as initially expected and it is likely that the country produced a surplus summer crop, said a report jointly produced by World Food Programme (WFP) – Food Security Monitoring and Analysis Unit, MoAC – Department of Agriculture, Agribusiness Promotion and Marketing Development Directorate (ABPMDD) FNCCI/ AEC – Federation of Nepalese Chamber of Commerce and Industries/ Agricultural Enterprise Centre CIPF – Consumer Interest Protection Forum.
The price of rice continued to be at the same or higher level even after the recent crop harvest; the prices in most Terai markets are higher by 10 per cent to 40 per cent compared with the same period last year. The most recent year-on-year food price inflation figure provided by the Nepal Rastra Bank in November was over 16 per cent. The report said national food price inflation remains of significant concern. Compared to the same period last year, the price of black-gram is up by 37 per cent, wheat flour by 19 per cent, musuro (broken lentil) by 17 per cent and coarse rice by 11 per cent.
However, cooking oils are the only commodity which has not significantly increased during the past 12 months. “Similarly, a seasonal increase in the supply of fruit and vegetables has significantly reduced prices across much of the country,” the January report said. “For instance, the Kalamati wholesale fruit and vegetable market has experienced a decrease in the price of tomatoes, onion, carrot and cauliflower of around 25 per cent during the past one month period. During December the government lifted the pulse export ban which had been in place since the end of July 2009. Traders are now allowed to export a maximum of 15,000 tonnes of pulses. The price of lentils appeared to be stable during the period of the export ban
However it is not known whether this was a direct result of the ban. “The price of diesel and kerosene has been increased by three rupees per litre. It now costs fifty-eight rupees per litre, pushing the commodity prices high. The report said that 90 per cent of markets surveyed across Nepal reported that the supply situation had remained stable or improved during December. This was a result of both improved road access following the reopening of monsoon damaged transportation routes (particularly in the mid and far-western hills and mountains) and also the ongoing summer crop harvest which re-stocked markets with paddy (and to some extent maize and millet
However, a number of hill and mountain markets reported ongoing supply constraints, including Bajura, Dailekh, Dolpa, Mugu and Humla. The Kolti region of Bajura is facing a particularly severe shortage of food supply and NFC supply is virtually the only grain stock available in local markets. “This is mostly due to the monsoon which caused a severe damage to transportation routes and blocked food transportation for much of the period, and an outbreak of diseases which has affected a large proportion of the mules and donkeys used for food transportation in the region,” the joint report said. “The Karnali highway was still not fully operational in the reporting period.” The report also attributes the price rise to bandhs that have caused disruption to almost every market surveyed by WFP during December
“Almost 70 per cent of markets were forced to close at least once during December. Markets in Kailali and Kanchanpur were closed for five days during the month, the main market in Udayapur was closed for four days, and markets in Saptari, Siraha, Dailekh, Mugu and Doti were each closed for three days. Significant supply disruptions were also noted in the Eastern hill and mountain districts of Mechi.” It noted
The report also forecast that further price hike of key commodities in the coming months. “Price of wheat is likely to rise further until the next harvest in April, May. Although the price of rice has been stable in the past month due to recent harvest, it is likely to rise in the coming months and such increases are likely to continue until the next main harvest in November-December 2010,” the report concludes.
However, losses in India are not as bad as initially expected and it is likely that the country produced a surplus summer crop, said a report jointly produced by World Food Programme (WFP) – Food Security Monitoring and Analysis Unit, MoAC – Department of Agriculture, Agribusiness Promotion and Marketing Development Directorate (ABPMDD) FNCCI/ AEC – Federation of Nepalese Chamber of Commerce and Industries/ Agricultural Enterprise Centre CIPF – Consumer Interest Protection Forum.
The price of rice continued to be at the same or higher level even after the recent crop harvest; the prices in most Terai markets are higher by 10 per cent to 40 per cent compared with the same period last year. The most recent year-on-year food price inflation figure provided by the Nepal Rastra Bank in November was over 16 per cent. The report said national food price inflation remains of significant concern. Compared to the same period last year, the price of black-gram is up by 37 per cent, wheat flour by 19 per cent, musuro (broken lentil) by 17 per cent and coarse rice by 11 per cent.
However, cooking oils are the only commodity which has not significantly increased during the past 12 months. “Similarly, a seasonal increase in the supply of fruit and vegetables has significantly reduced prices across much of the country,” the January report said. “For instance, the Kalamati wholesale fruit and vegetable market has experienced a decrease in the price of tomatoes, onion, carrot and cauliflower of around 25 per cent during the past one month period. During December the government lifted the pulse export ban which had been in place since the end of July 2009. Traders are now allowed to export a maximum of 15,000 tonnes of pulses. The price of lentils appeared to be stable during the period of the export ban
However it is not known whether this was a direct result of the ban. “The price of diesel and kerosene has been increased by three rupees per litre. It now costs fifty-eight rupees per litre, pushing the commodity prices high. The report said that 90 per cent of markets surveyed across Nepal reported that the supply situation had remained stable or improved during December. This was a result of both improved road access following the reopening of monsoon damaged transportation routes (particularly in the mid and far-western hills and mountains) and also the ongoing summer crop harvest which re-stocked markets with paddy (and to some extent maize and millet
However, a number of hill and mountain markets reported ongoing supply constraints, including Bajura, Dailekh, Dolpa, Mugu and Humla. The Kolti region of Bajura is facing a particularly severe shortage of food supply and NFC supply is virtually the only grain stock available in local markets. “This is mostly due to the monsoon which caused a severe damage to transportation routes and blocked food transportation for much of the period, and an outbreak of diseases which has affected a large proportion of the mules and donkeys used for food transportation in the region,” the joint report said. “The Karnali highway was still not fully operational in the reporting period.” The report also attributes the price rise to bandhs that have caused disruption to almost every market surveyed by WFP during December
“Almost 70 per cent of markets were forced to close at least once during December. Markets in Kailali and Kanchanpur were closed for five days during the month, the main market in Udayapur was closed for four days, and markets in Saptari, Siraha, Dailekh, Mugu and Doti were each closed for three days. Significant supply disruptions were also noted in the Eastern hill and mountain districts of Mechi.” It noted
The report also forecast that further price hike of key commodities in the coming months. “Price of wheat is likely to rise further until the next harvest in April, May. Although the price of rice has been stable in the past month due to recent harvest, it is likely to rise in the coming months and such increases are likely to continue until the next main harvest in November-December 2010,” the report concludes.
Thursday, January 21, 2010
Global FDI flows down by 39 per cent
There was a decrease of 39 per cent in global foreign direct investment (FDI) flows in 2009, which impacted on all countries and FDI components, according to the UNCTAD report. Global inflows of FDI fell by 39 per cent from $1.7 trillion in 2008 to a little over $1 trillion in 2009, said the report.
The decline in FDI was widespread across all major groups of economies. After experiencing a severe fall in 2008, FDI flows to developed countries continued their dramatic drop in 2009 - by a further 41 per cent. FDI flows to developing and transition economies, which had risen in 2008, declined in 2009 - by 39 per cent - as the impact of the global financial and economic crisis continued to unfold, it said. All components of FDI - equity capital, reinvested earnings, and other capital flows (mainly intra-company loans) - were affected by the downturn. "However, the decrease was especially marked for equity capital flows, which are most directly related to transnational corporations' longer-term investments strategies," the report said.
"Regarding the mode of entry of the FDI, cross-border mergers and acquisitions were the most affected, with a 66 per cent decrease in 2009 as compared to 2008. The number of international greenfield projects also declined markedly, though to a much lesser degree (-23 per cent). Nevertheless, a number of macroeconomic indicators signal that the overall environment for international investment is slowly improving.
For instance, the IMF's latest World Economic Outlook, released last October, forecasts a 3.1 per cent growth in world GDP for 2010, as against -1.1 per cent in 2009. At the company level, profits of TNCs world-wide have been rising since the second quarter of 2009, thus reversing the sharp drop observed at the end of 2008.
According to Standard and Poors, profits made by the firms that make up the S&P 500 bounced back as early as the second quarter of 2009, to levels equivalent to those of the same period of the previous year. Improving conditions will ultimately encourage companies to revise upward their international investment plans for 2010 onward, which in turn should give rise to growing FDI flows in 2010.
However, as the recovery in economic growth and profits remains fragile, especially because it has been boosted by the potentially transitory impact of special packages, the recovery in FDI is expected to be modest.
The decline in FDI was widespread across all major groups of economies. After experiencing a severe fall in 2008, FDI flows to developed countries continued their dramatic drop in 2009 - by a further 41 per cent. FDI flows to developing and transition economies, which had risen in 2008, declined in 2009 - by 39 per cent - as the impact of the global financial and economic crisis continued to unfold, it said. All components of FDI - equity capital, reinvested earnings, and other capital flows (mainly intra-company loans) - were affected by the downturn. "However, the decrease was especially marked for equity capital flows, which are most directly related to transnational corporations' longer-term investments strategies," the report said.
"Regarding the mode of entry of the FDI, cross-border mergers and acquisitions were the most affected, with a 66 per cent decrease in 2009 as compared to 2008. The number of international greenfield projects also declined markedly, though to a much lesser degree (-23 per cent). Nevertheless, a number of macroeconomic indicators signal that the overall environment for international investment is slowly improving.
For instance, the IMF's latest World Economic Outlook, released last October, forecasts a 3.1 per cent growth in world GDP for 2010, as against -1.1 per cent in 2009. At the company level, profits of TNCs world-wide have been rising since the second quarter of 2009, thus reversing the sharp drop observed at the end of 2008.
According to Standard and Poors, profits made by the firms that make up the S&P 500 bounced back as early as the second quarter of 2009, to levels equivalent to those of the same period of the previous year. Improving conditions will ultimately encourage companies to revise upward their international investment plans for 2010 onward, which in turn should give rise to growing FDI flows in 2010.
However, as the recovery in economic growth and profits remains fragile, especially because it has been boosted by the potentially transitory impact of special packages, the recovery in FDI is expected to be modest.
Wednesday, January 20, 2010
Price hike cools dowm marginally
The price hike seems to cool down, though the government is unable to boost the trade and forex reserve has been continuously depleting.
Despite the rise in the prices of food prices – mainly sugar and sugar related products, vegetables and pulses – the year on year (y-o-y) inflation as measured by the consumer price index (CPI) moderated to 11.3 per cent in Mid-December 2009 against the 14.1 per cent increase in the same period last year, said central bank.
According to the Nepal Rastra Bank’s (NRB) first five month’s price analysis, the price index of food and beverages group has increased by 17.8 per cent whereas the index of non-food and services group rose only by 3.7 per cent. The index of food and beverages has gone slightly up from last year’s same period’s 17.2 per cent but the non-food and services group has dropped from last year’s same period’s 10.8 per cent respectively.
The sugar and sugar related products prices have increased by almost double as their price indices has recorded the highest increased rate of 56.9 per cent in comparison with an increase of 35.9 per cent in the same period last year.
Similarly, the price indices of vegetables and fruits, pulses, spices as well as meat, fish and eggs sub-groups increased by 39.3 per cent, 34.6 per cent, 28.4 per cent and 21.9 per cent respectively in comparison with an increase of only 3.4 per cent, 25.7 per cent, 10.1 per cent and 21.5 per cent in the same period last year. The index of grains and cereal products subgroup also witnessed an increment of 9.9 per cent compared with 18 per cent increase in the same period last year.
Similarly, within the group of non-food and services, the index of tobacco and related products has the highest increased rate of by 11.6 per cent compared to a rise of 15.1 per cent during the same period last year. “The price index of transport and communication has however, declined by 7.8 per cent. It had increased by 21.7 per cent during the same period last year,” the report said.
Region-wise, the prices have come down as the index of Terai rose by 12.3 per cent followed by 11.8 per cent in Hills and 9.3 per cent in Kathmandu Valley. The respective rates were 13.1 per cent, 13.6 per cent and 16.2 per cent in the same period last year.
In the review period, the y-o-y core inflation rose to 11.8 per cent, a moderation from 13.1 per cent a year ago, the central bank said.
However, the y-o-y wholesale price inflation has doubled as it has increased by 18.9 per cent compared with 10.1 per cent a year ago. The agricultural commodities prices have gone up by over six times to 38.7 per cent from to 6.1 per cent and domestic manufactured commodities prices have come down as it registered only 8.6 per cent growth against and 12.3 per cent a year ago. Similarly, the price indices of imported commodities declined by 3.1 per cent whereas it had increased by 14.9 per cent during the same period of last year, said the report.
Despite the rise in the prices of food prices – mainly sugar and sugar related products, vegetables and pulses – the year on year (y-o-y) inflation as measured by the consumer price index (CPI) moderated to 11.3 per cent in Mid-December 2009 against the 14.1 per cent increase in the same period last year, said central bank.
According to the Nepal Rastra Bank’s (NRB) first five month’s price analysis, the price index of food and beverages group has increased by 17.8 per cent whereas the index of non-food and services group rose only by 3.7 per cent. The index of food and beverages has gone slightly up from last year’s same period’s 17.2 per cent but the non-food and services group has dropped from last year’s same period’s 10.8 per cent respectively.
The sugar and sugar related products prices have increased by almost double as their price indices has recorded the highest increased rate of 56.9 per cent in comparison with an increase of 35.9 per cent in the same period last year.
Similarly, the price indices of vegetables and fruits, pulses, spices as well as meat, fish and eggs sub-groups increased by 39.3 per cent, 34.6 per cent, 28.4 per cent and 21.9 per cent respectively in comparison with an increase of only 3.4 per cent, 25.7 per cent, 10.1 per cent and 21.5 per cent in the same period last year. The index of grains and cereal products subgroup also witnessed an increment of 9.9 per cent compared with 18 per cent increase in the same period last year.
Similarly, within the group of non-food and services, the index of tobacco and related products has the highest increased rate of by 11.6 per cent compared to a rise of 15.1 per cent during the same period last year. “The price index of transport and communication has however, declined by 7.8 per cent. It had increased by 21.7 per cent during the same period last year,” the report said.
Region-wise, the prices have come down as the index of Terai rose by 12.3 per cent followed by 11.8 per cent in Hills and 9.3 per cent in Kathmandu Valley. The respective rates were 13.1 per cent, 13.6 per cent and 16.2 per cent in the same period last year.
In the review period, the y-o-y core inflation rose to 11.8 per cent, a moderation from 13.1 per cent a year ago, the central bank said.
However, the y-o-y wholesale price inflation has doubled as it has increased by 18.9 per cent compared with 10.1 per cent a year ago. The agricultural commodities prices have gone up by over six times to 38.7 per cent from to 6.1 per cent and domestic manufactured commodities prices have come down as it registered only 8.6 per cent growth against and 12.3 per cent a year ago. Similarly, the price indices of imported commodities declined by 3.1 per cent whereas it had increased by 14.9 per cent during the same period of last year, said the report.
Tuesday, January 19, 2010
Nepal mostly unfree economy: Survey
Nepal has scored 52.7 making its economy the 130th in economic freedom, according to the 2010 Index published by Heritage Foundation and Wall Street Journal.
“Its score is 0.5 point lower than last year, reflecting declines in five of the 10 economic freedoms due to political instability,” said report. Nepal is ranked 28th out of 41 countries in the Asia–Pacific region, and its score is below the world and regional averages.
The county falls in the mostly unfree country as according to its score. If a country scores from 50 to 59.9 it is in the mostly unfree category, whereas those scoring 60 to 69.9 are moderately free, 70 to 79.9 mostly free and 80 to 100 are the freest economy. The countries scoring 0 to 49.9 are repressed. Seven countries fall in the freest category, 23 countries fall in mostly free, 43 countries fall in moderately free category, 55 countries fall in mostly unfree category and 36 countries fall in repressed economies and four countries are not ranked in the total of 188 economies ranked in the list.
“Nepal’s economy is characterised by a combination of rapid population growth and inadequate economic growth that has led to widespread, chronic poverty,” the report said. “The weak reform efforts have failed to stimulate broad-based economic growth,” it added.
The report hails the state’s continuation to hamper private-sector development but it says political instability weakens the country’s ability to implement economic reform or create a stable environment for development.
Although reforms in Nepal’s trade regime are slowly having an effect, the average tariff rate remains high, according to the report. “Foreign investments must be approved or face licensing requirements. A lack of transparency, corruption, and a burdensome approval process impede much-needed private investment growth. Property rights are undermined by the inefficient judicial system, which is subject to substantial corruption and political influence.”
Economic freedom is the fundamental right of every human to control his or her own labour and property. In an economically free society, individuals are free to work, produce, consume, and invest in any way they please, with that freedom both protected by the state and unconstrained by the state. In economically free societies, governments allow labour, capital and goods to move freely, and refrain from coercion or constraint of liberty beyond the extent necessary to protect and maintain liberty itself.
The report measure ten components of economic freedom and their scores are then averaged to give an overall economic freedom score for each country.
In this year’s report, UK, US and China have fallen down the rank and Poland, Turkey and Mexico have improved significantly.
According to the report, Hong Kong remains the world's freest economy, followed by Singapore, Australia, New Zealand and Ireland.
Regionally, in Asia-Pacific region, Nepal ranks 28 out of 41 economies. But in South Asia, Nepal is behind all the country except Bangladesh. Bhutan is the freest economy in the report.
South Asian ranking
103 -- Bhutan: 57
117 -- Pakistan: 55.2
120 -- Sri Lanka: 54.6
124 -- India: 53.8
130 -- Nepal: 52.7
137 -- Bangladesh: 51.1
Maldives: -- N/A
Afghanistan: N/A
Nepal in figures
Population: 28.6 million
GDP: $31.8 billion ($1,112 per capita)
Unemployment rate: 20 per cent
FDI flow: $1 million
---
Overall score: 52.7
Business Freedom: 59.4 (down as average is 64.6)
The overall freedom to start, operate, and close a business is limited under Nepal’s regulatory environment. Starting a business takes an average of 31 days, compared to the world average of 35 days. Obtaining a business license takes almost twice the world average of 218 days. Bankruptcy proceedings are lengthy and complex.
Trade Freedom: 58.8 (down as average is 74.2)
Nepal’s weighted average tariff rate was 13.1 percent in 2007. The government continues to implement reforms, but import bans, services market access barriers, import taxes, import and export licensing, non-transparent regulations, weak enforcement of intellectual property rights, inadequate infrastructure and trade capacity, and customs corruption add to the cost of trade. Fifteen points were deducted from Nepal’s trade freedom score to account for non-tariff barriers.
Fiscal Freedom: 86.6 (up as average 75.4)
Nepal has moderate tax rates. Both the top income tax rate and the top corporate tax rate are 25 percent. Other taxes include a value-added tax (VAT) and a property tax. In the most recent year, overall tax revenue as a percentage of GDP was 9.6 per cent.
Government spending: 92.3 (up as average 65)
Total government expenditures, including consumption and transfer payments, are low. In the most recent year, government spending equaled 16.0 percent of GDP. The state oil company is a drain on the economy.
Monetary Freedom: 77.8 (down as average is 70.6)
Inflation has been moderately high, averaging 7.4 percent between 2006 and 2008. Although most price controls have been eliminated, the government regulates the prices of petroleum products and telecommunications services and subsidizes companies in strategic sectors. Five points were deducted from Nepal’s monetary freedom score to account for policies that distort domestic prices.
Investment Freedom: 15 (down as average is 49)
Nepal is generally open to investment in many sectors, but investments must be approved, and many face licensing requirements. Bureaucracy and regulatory administration are burdensome, non-transparent, inconsistently implemented, and inefficient. Political instability, pervasive corruption, and inadequate infrastructure and administrative capacity also inhibit investment. Residents may hold foreign exchange accounts in specific instances; most non-residents also may hold such accounts. Convertibility is difficult and not guaranteed. Most payments and transfers are subject to prior approval by the government. There are restrictions on most capital transactions, and all real estate transactions are subject to controls. Foreign investors may acquire real estate only for business use.
Financial Freedom: 30 (down as average is 48.5)
Nepal’s fragmented financial system is heavily influenced by the government. Financial supervision is insufficient, and anti-fraud efforts are lacking. Regulations are not transparent and fall short of international standards. The banking sector dominates the financial sector, and there are approximately 20 commercial banks operating in the country. The number of other financial intermediaries has increased in recent years, but the high cost of credit and limited access to financing still deter entrepreneurial activity. Nepal’s government-owned banks represent more than 30 percent of total banking assets and account for more than half of total bank branches. The central bank has gradually phased out “priority sector” financing activities whereby banks must lend a certain amount to government-designated projects.
Property Rights: 35 (
Nepal’s judicial system suffers from corruption and inefficiency. Lower-level courts are vulnerable to political pressure, and bribery of judges and court staff is endemic. Weak protection of intellectual property rights has led to substantial levels of optical media copyright piracy.
Freedom from Corruption: 27
Corruption is perceived as widespread. Nepal ranks 121st out of 179 countries in Transparency International’s Corruption Perceptions Index for 2008. Foreign investors have identified corruption as an obstacle to maintaining and expanding direct investment, and there are frequent allegations of official corruption in the distribution of permits and approvals, the procurement of goods and services, and the awarding of contracts. The governmental Commission for the Investigation of the Abuse of Authority, mandated to investigate official acts of corruption, claimed a 75 per cent success rate concerning corruption cases it filed, but some cases involving politicians were not filed or were defeated in court.
Labour freedom: 44.7 (down as average is 62.1)
Nepal’s labor regulations are restrictive. The non-salary cost of employing a worker is low, but laying off an employee is difficult.
“Its score is 0.5 point lower than last year, reflecting declines in five of the 10 economic freedoms due to political instability,” said report. Nepal is ranked 28th out of 41 countries in the Asia–Pacific region, and its score is below the world and regional averages.
The county falls in the mostly unfree country as according to its score. If a country scores from 50 to 59.9 it is in the mostly unfree category, whereas those scoring 60 to 69.9 are moderately free, 70 to 79.9 mostly free and 80 to 100 are the freest economy. The countries scoring 0 to 49.9 are repressed. Seven countries fall in the freest category, 23 countries fall in mostly free, 43 countries fall in moderately free category, 55 countries fall in mostly unfree category and 36 countries fall in repressed economies and four countries are not ranked in the total of 188 economies ranked in the list.
“Nepal’s economy is characterised by a combination of rapid population growth and inadequate economic growth that has led to widespread, chronic poverty,” the report said. “The weak reform efforts have failed to stimulate broad-based economic growth,” it added.
The report hails the state’s continuation to hamper private-sector development but it says political instability weakens the country’s ability to implement economic reform or create a stable environment for development.
Although reforms in Nepal’s trade regime are slowly having an effect, the average tariff rate remains high, according to the report. “Foreign investments must be approved or face licensing requirements. A lack of transparency, corruption, and a burdensome approval process impede much-needed private investment growth. Property rights are undermined by the inefficient judicial system, which is subject to substantial corruption and political influence.”
Economic freedom is the fundamental right of every human to control his or her own labour and property. In an economically free society, individuals are free to work, produce, consume, and invest in any way they please, with that freedom both protected by the state and unconstrained by the state. In economically free societies, governments allow labour, capital and goods to move freely, and refrain from coercion or constraint of liberty beyond the extent necessary to protect and maintain liberty itself.
The report measure ten components of economic freedom and their scores are then averaged to give an overall economic freedom score for each country.
In this year’s report, UK, US and China have fallen down the rank and Poland, Turkey and Mexico have improved significantly.
According to the report, Hong Kong remains the world's freest economy, followed by Singapore, Australia, New Zealand and Ireland.
Regionally, in Asia-Pacific region, Nepal ranks 28 out of 41 economies. But in South Asia, Nepal is behind all the country except Bangladesh. Bhutan is the freest economy in the report.
South Asian ranking
103 -- Bhutan: 57
117 -- Pakistan: 55.2
120 -- Sri Lanka: 54.6
124 -- India: 53.8
130 -- Nepal: 52.7
137 -- Bangladesh: 51.1
Maldives: -- N/A
Afghanistan: N/A
Nepal in figures
Population: 28.6 million
GDP: $31.8 billion ($1,112 per capita)
Unemployment rate: 20 per cent
FDI flow: $1 million
---
Overall score: 52.7
Business Freedom: 59.4 (down as average is 64.6)
The overall freedom to start, operate, and close a business is limited under Nepal’s regulatory environment. Starting a business takes an average of 31 days, compared to the world average of 35 days. Obtaining a business license takes almost twice the world average of 218 days. Bankruptcy proceedings are lengthy and complex.
Trade Freedom: 58.8 (down as average is 74.2)
Nepal’s weighted average tariff rate was 13.1 percent in 2007. The government continues to implement reforms, but import bans, services market access barriers, import taxes, import and export licensing, non-transparent regulations, weak enforcement of intellectual property rights, inadequate infrastructure and trade capacity, and customs corruption add to the cost of trade. Fifteen points were deducted from Nepal’s trade freedom score to account for non-tariff barriers.
Fiscal Freedom: 86.6 (up as average 75.4)
Nepal has moderate tax rates. Both the top income tax rate and the top corporate tax rate are 25 percent. Other taxes include a value-added tax (VAT) and a property tax. In the most recent year, overall tax revenue as a percentage of GDP was 9.6 per cent.
Government spending: 92.3 (up as average 65)
Total government expenditures, including consumption and transfer payments, are low. In the most recent year, government spending equaled 16.0 percent of GDP. The state oil company is a drain on the economy.
Monetary Freedom: 77.8 (down as average is 70.6)
Inflation has been moderately high, averaging 7.4 percent between 2006 and 2008. Although most price controls have been eliminated, the government regulates the prices of petroleum products and telecommunications services and subsidizes companies in strategic sectors. Five points were deducted from Nepal’s monetary freedom score to account for policies that distort domestic prices.
Investment Freedom: 15 (down as average is 49)
Nepal is generally open to investment in many sectors, but investments must be approved, and many face licensing requirements. Bureaucracy and regulatory administration are burdensome, non-transparent, inconsistently implemented, and inefficient. Political instability, pervasive corruption, and inadequate infrastructure and administrative capacity also inhibit investment. Residents may hold foreign exchange accounts in specific instances; most non-residents also may hold such accounts. Convertibility is difficult and not guaranteed. Most payments and transfers are subject to prior approval by the government. There are restrictions on most capital transactions, and all real estate transactions are subject to controls. Foreign investors may acquire real estate only for business use.
Financial Freedom: 30 (down as average is 48.5)
Nepal’s fragmented financial system is heavily influenced by the government. Financial supervision is insufficient, and anti-fraud efforts are lacking. Regulations are not transparent and fall short of international standards. The banking sector dominates the financial sector, and there are approximately 20 commercial banks operating in the country. The number of other financial intermediaries has increased in recent years, but the high cost of credit and limited access to financing still deter entrepreneurial activity. Nepal’s government-owned banks represent more than 30 percent of total banking assets and account for more than half of total bank branches. The central bank has gradually phased out “priority sector” financing activities whereby banks must lend a certain amount to government-designated projects.
Property Rights: 35 (
Nepal’s judicial system suffers from corruption and inefficiency. Lower-level courts are vulnerable to political pressure, and bribery of judges and court staff is endemic. Weak protection of intellectual property rights has led to substantial levels of optical media copyright piracy.
Freedom from Corruption: 27
Corruption is perceived as widespread. Nepal ranks 121st out of 179 countries in Transparency International’s Corruption Perceptions Index for 2008. Foreign investors have identified corruption as an obstacle to maintaining and expanding direct investment, and there are frequent allegations of official corruption in the distribution of permits and approvals, the procurement of goods and services, and the awarding of contracts. The governmental Commission for the Investigation of the Abuse of Authority, mandated to investigate official acts of corruption, claimed a 75 per cent success rate concerning corruption cases it filed, but some cases involving politicians were not filed or were defeated in court.
Labour freedom: 44.7 (down as average is 62.1)
Nepal’s labor regulations are restrictive. The non-salary cost of employing a worker is low, but laying off an employee is difficult.
Monday, January 18, 2010
Nepal slips 17 places down in efficiency in trade, thanks to government apathy
Nepal ranks nearly at the bottom in proving efficiency of trading goods around the world, according to the World Bank survey.
It has slipped 17 places down over the past four years. Among the 155 countries, Nepal ranked 147th in the global Logistics Performance Indicators (LPI) -- included in the report ‘Connecting to Compete 2010: Trade Logistics in the Global Economy -- whereas it was at 130th position in 2007.
The government apathy towards the business community has not only resulted in the fall in exports but has also started taking toll on forex reserve that according to the central bank's report for the first four months of this fiscal year has come down. The gross foreign exchange reserves stood at Rs 248.89 billion in mid November 2009 – a drop by 11.1 per cent compared to the level as at mid July 2009, said the Nepal Rastra Bank (NRB) report that has also painted the gloomy picture of the economy.
The LPI is an ‘interactive benchmarking tool’ created to help countries identify the challenges and opportunities in their performance in trade logistics, the WB report said adding that the LPI 2010 allows for comparisons across 155 countries.
The report is based on a worldwide survey of operators on the ground (global freight forwarders and express carriers), providing feedback on the logistics 'friendliness' of the countries in which they operate and those with which they trade.
In the South Asian region India tops as it is ranked 47 followed by Bangaldesh at 79. Similarly, Pakistan is ranked 110, Bhutan 128 and Sri lanka 137.
In the developing countries category per region, South Africa (28) is the top performer from Africa; China (27) from East Asia; Poland (30) from Central and Eastern Europe; Brazil (41) from Latin America; Lebanon (33) from the Middle East; and India (47) from South Asia.
According to the LPI, high income economies dominate the top logistics rankings, with most of them occupying important places in global and regional supply chains. By contrast, the ten lowest performing countries are almost all from the low and lower income groups.
By contrast, the 10 lowest performing countries are almost all from the low and lower income groups.
Although the study shows a substantial 'logistics gap' between rich countries and most developing countries, it finds positive trends in some areas essential to logistics performance and trade. Some of them include the modernisation of customs, use of information technology, and development of private logistics services.
Nine other most significant overperformers for this year are: China, Democratic Republic of Congo, India, Madagascar, the Philippines, South Africa, Thailand, Uganda, and Vietnam.
Germany is the top performer among the 155 economies followed by Singapore, Sweden and the Netherlands.
Although the study shows a substantial ‘logistics gap’ between rich countries and most developing countries, it finds positive trends in some areas essential to logistics performance and trade. Some are the modernisation of customs, use of information technology and development of private logistics services.
The LPI is the weighted average of the country scores on the six key dimensions: efficiency of the clearance process by border control agencies, including customs; quality of trade and transport related infrastructure; ease of arranging competitively priced shipments; competence and quality of logistics services; ability to track and trace consignments, and timeliness of shipments in reaching destinations within the scheduled or expected delivery time.
In the LPI index 2010, Nepal scored 2.2 where top country Germany bagged 4.11 points.
An overperformer is a country with a higher LPI score than expected -- based solely on its income level. An underperformer is a country with a lower than expected LPI scores.
It has slipped 17 places down over the past four years. Among the 155 countries, Nepal ranked 147th in the global Logistics Performance Indicators (LPI) -- included in the report ‘Connecting to Compete 2010: Trade Logistics in the Global Economy -- whereas it was at 130th position in 2007.
The government apathy towards the business community has not only resulted in the fall in exports but has also started taking toll on forex reserve that according to the central bank's report for the first four months of this fiscal year has come down. The gross foreign exchange reserves stood at Rs 248.89 billion in mid November 2009 – a drop by 11.1 per cent compared to the level as at mid July 2009, said the Nepal Rastra Bank (NRB) report that has also painted the gloomy picture of the economy.
The LPI is an ‘interactive benchmarking tool’ created to help countries identify the challenges and opportunities in their performance in trade logistics, the WB report said adding that the LPI 2010 allows for comparisons across 155 countries.
The report is based on a worldwide survey of operators on the ground (global freight forwarders and express carriers), providing feedback on the logistics 'friendliness' of the countries in which they operate and those with which they trade.
In the South Asian region India tops as it is ranked 47 followed by Bangaldesh at 79. Similarly, Pakistan is ranked 110, Bhutan 128 and Sri lanka 137.
In the developing countries category per region, South Africa (28) is the top performer from Africa; China (27) from East Asia; Poland (30) from Central and Eastern Europe; Brazil (41) from Latin America; Lebanon (33) from the Middle East; and India (47) from South Asia.
According to the LPI, high income economies dominate the top logistics rankings, with most of them occupying important places in global and regional supply chains. By contrast, the ten lowest performing countries are almost all from the low and lower income groups.
By contrast, the 10 lowest performing countries are almost all from the low and lower income groups.
Although the study shows a substantial 'logistics gap' between rich countries and most developing countries, it finds positive trends in some areas essential to logistics performance and trade. Some of them include the modernisation of customs, use of information technology, and development of private logistics services.
Nine other most significant overperformers for this year are: China, Democratic Republic of Congo, India, Madagascar, the Philippines, South Africa, Thailand, Uganda, and Vietnam.
Germany is the top performer among the 155 economies followed by Singapore, Sweden and the Netherlands.
Although the study shows a substantial ‘logistics gap’ between rich countries and most developing countries, it finds positive trends in some areas essential to logistics performance and trade. Some are the modernisation of customs, use of information technology and development of private logistics services.
The LPI is the weighted average of the country scores on the six key dimensions: efficiency of the clearance process by border control agencies, including customs; quality of trade and transport related infrastructure; ease of arranging competitively priced shipments; competence and quality of logistics services; ability to track and trace consignments, and timeliness of shipments in reaching destinations within the scheduled or expected delivery time.
In the LPI index 2010, Nepal scored 2.2 where top country Germany bagged 4.11 points.
An overperformer is a country with a higher LPI score than expected -- based solely on its income level. An underperformer is a country with a lower than expected LPI scores.
Sunday, January 17, 2010
Giant leap by Mauritius in proving efficiency of trading goods around the world
Mauritius improved significantly by 50 positions over the last four years in proving efficiency of trading goods around the world, according to the World Bank (WB) survey.
It is ranked 82 among the 155 countries in the global Logistics Performance Indicators (LPI), included in the report ‘Connecting to Compete 2010: Trade Logistics in the Global Economy'. The counrty was at 132th position in 2007. Madagaskar and Uganda are two other countries in the region that have improved significantly. Madagasklar is ranked 88 and Uganda at 66, whereas South Africa is at the 28 position in the list.
The LPI is an ‘interactive benchmarking tool’ created to help countries identify the challenges and opportunities in their performance in trade logistics, the WB report said adding that the LPI 2010 allows for comparisons across 155 countries.
The report is based on a worldwide survey of operators on the ground (global freight forwarders and express carriers), providing feedback on the logistics 'friendliness' of the countries in which they operate and those with which they trade.
In the developing countries category per region, South Africa (28) is the top performer from Africa; China (27) from East Asia; Poland (30) from Central and Eastern Europe; Brazil (41) from Latin America; Lebanon (33) from the Middle East; and India (47) from South Asia.
Germany is the top performer among the 155 economies followed by Singapore, Sweden and the Netherlands.
According to the LPI, high income economies dominate the top logistics rankings, with most of them occupying important places in global and regional supply chains. By contrast, the ten lowest performing countries are almost all from the low and lower income groups. Nine other most significant overperformers for this year are: China (27), Democratic Republic of Congo (85) , India (47), Madagascar (88), the Philippines (44), South Africa (28), Thailand (35), Uganda (66), and Vietnam (53).
By contrast, the 10 lowest performing countries are almost all from the low and lower income groups.
Although the study shows a substantial “logistics gap” between rich countries and most developing countries, it finds positive trends in some areas essential to logistics performance and trade. Some of them include the modernisation of customs, use of information technology, and development of private logistics services.
Although the study shows a substantial ‘logistics gap’ between rich countries and most developing countries, it finds positive trends in some areas essential to logistics performance and trade. Some are the modernisation of customs, use of information technology and development of private logistics services.
What is LPI
The LPI is the weighted average of the country scores on the six key dimensions: efficiency of the clearance process by border control agencies, including customs; quality of trade and transport related infrastructure; ease of arranging competitively priced shipments; competence and quality of logistics services; ability to track and trace consignments, and timeliness of shipments in reaching destinations within the scheduled or expected delivery time.
In the LPI index 2010, Mauritius scored 2.72 where top country Germany bagged 4.11 points.
An overperformer is a country with a higher LPI score than expected -- based solely on its income level. An underperformer is a country with a lower than expected LPI scores.
It is ranked 82 among the 155 countries in the global Logistics Performance Indicators (LPI), included in the report ‘Connecting to Compete 2010: Trade Logistics in the Global Economy'. The counrty was at 132th position in 2007. Madagaskar and Uganda are two other countries in the region that have improved significantly. Madagasklar is ranked 88 and Uganda at 66, whereas South Africa is at the 28 position in the list.
The LPI is an ‘interactive benchmarking tool’ created to help countries identify the challenges and opportunities in their performance in trade logistics, the WB report said adding that the LPI 2010 allows for comparisons across 155 countries.
The report is based on a worldwide survey of operators on the ground (global freight forwarders and express carriers), providing feedback on the logistics 'friendliness' of the countries in which they operate and those with which they trade.
In the developing countries category per region, South Africa (28) is the top performer from Africa; China (27) from East Asia; Poland (30) from Central and Eastern Europe; Brazil (41) from Latin America; Lebanon (33) from the Middle East; and India (47) from South Asia.
Germany is the top performer among the 155 economies followed by Singapore, Sweden and the Netherlands.
According to the LPI, high income economies dominate the top logistics rankings, with most of them occupying important places in global and regional supply chains. By contrast, the ten lowest performing countries are almost all from the low and lower income groups. Nine other most significant overperformers for this year are: China (27), Democratic Republic of Congo (85) , India (47), Madagascar (88), the Philippines (44), South Africa (28), Thailand (35), Uganda (66), and Vietnam (53).
By contrast, the 10 lowest performing countries are almost all from the low and lower income groups.
Although the study shows a substantial “logistics gap” between rich countries and most developing countries, it finds positive trends in some areas essential to logistics performance and trade. Some of them include the modernisation of customs, use of information technology, and development of private logistics services.
Although the study shows a substantial ‘logistics gap’ between rich countries and most developing countries, it finds positive trends in some areas essential to logistics performance and trade. Some are the modernisation of customs, use of information technology and development of private logistics services.
What is LPI
The LPI is the weighted average of the country scores on the six key dimensions: efficiency of the clearance process by border control agencies, including customs; quality of trade and transport related infrastructure; ease of arranging competitively priced shipments; competence and quality of logistics services; ability to track and trace consignments, and timeliness of shipments in reaching destinations within the scheduled or expected delivery time.
In the LPI index 2010, Mauritius scored 2.72 where top country Germany bagged 4.11 points.
An overperformer is a country with a higher LPI score than expected -- based solely on its income level. An underperformer is a country with a lower than expected LPI scores.
Friday, January 8, 2010
ADB to discuss financial crisis, policy reform
Top officials from around Asia will gather at the Asian Development Bank (ADB) headquarters in Manila to discuss the lessons of the global economic and financial crisis, and the policy adjustments needed to cushion the region against future shocks.
Over 80 participants, including finance ministers, heads of central banks, leaders from think tanks and the private sector, and development experts, from nearly 20 countries in the region will take part in a two-day regional forum organised by ADB on January 14-15 on the Impact of the Global Economic and Financial Crisis. ADB President Haruhiko Kuroda will open and close the forum and chair a panel discussion.
The forum will examine the broad causes of the crisis and its impacts in Asia, as well as the lessons learned, with senior officials from East Asia, South Asia, Southeast Asia and Central and West Asia, detailing the broad array of government policy actions taken in response.
Most Asian countries were not deeply exposed to the housing mortgage problems that affected US and European financial institutions, but the subsequent sharp slowdown in trade with the West did cause a major contraction in regional growth.
The crisis highlights the region’s heavy reliance on exports to the US and Europe, and participants will be discussing how Asia should adjust its economic focus, including the potential for boosting intraregional trade and domestic markets.
“The substantial changes in the post-crisis global economy present new opportunities as well as challenges that require Asian policy makers to rethink or at least refine the economic development strategies that they have traditionally followed,” said ADB Managing Director General Rajat Nag.
Participants will also examine the social impacts of the crisis ― which left tens of millions of Asians mired in extreme poverty they might otherwise have escaped ― and what policy actions should be taken to protect poor and vulnerable communities. Measures to boost regional cooperation and integration are also expected to be discussed as Asia looks at collective measures to cushion itself against future risks. The forum will conclude by examining priority actions that individual countries need to take as their economies emerge from the aftermath of the global slowdown.
Over 80 participants, including finance ministers, heads of central banks, leaders from think tanks and the private sector, and development experts, from nearly 20 countries in the region will take part in a two-day regional forum organised by ADB on January 14-15 on the Impact of the Global Economic and Financial Crisis. ADB President Haruhiko Kuroda will open and close the forum and chair a panel discussion.
The forum will examine the broad causes of the crisis and its impacts in Asia, as well as the lessons learned, with senior officials from East Asia, South Asia, Southeast Asia and Central and West Asia, detailing the broad array of government policy actions taken in response.
Most Asian countries were not deeply exposed to the housing mortgage problems that affected US and European financial institutions, but the subsequent sharp slowdown in trade with the West did cause a major contraction in regional growth.
The crisis highlights the region’s heavy reliance on exports to the US and Europe, and participants will be discussing how Asia should adjust its economic focus, including the potential for boosting intraregional trade and domestic markets.
“The substantial changes in the post-crisis global economy present new opportunities as well as challenges that require Asian policy makers to rethink or at least refine the economic development strategies that they have traditionally followed,” said ADB Managing Director General Rajat Nag.
Participants will also examine the social impacts of the crisis ― which left tens of millions of Asians mired in extreme poverty they might otherwise have escaped ― and what policy actions should be taken to protect poor and vulnerable communities. Measures to boost regional cooperation and integration are also expected to be discussed as Asia looks at collective measures to cushion itself against future risks. The forum will conclude by examining priority actions that individual countries need to take as their economies emerge from the aftermath of the global slowdown.
Thursday, January 7, 2010
NRB paints gloomy economic picture, govt fails to boost exports, forex reserves fall
The budget deficit in the first four months of this fiscal year hasdoubled compared with the same period last fiscal year, according to the central bank.
“In the first four months of 2009-10, government budget deficit stood at Rs 3.40 billion compared to a deficit of Rs 1.26 billion in the corresponding period of the previous year,” said the current macroeconomic situation, based on the first four months'’ data of this fiscal year published by the Nepal Rastra Bank (NRB) here today. The deficit is attributed to the total government spending that has increased by 36.5 per cent to Rs 50.61 billion compared to an increase of only 7.3 per cent in the same period last year. “The high growth of recurrent as well as capital expenditure accounted for such an increase in the government expenditure,” it added.
Both the administrative expenses and development expenses have gone up in comparison to the same period. “Recurrent expenditure increased by 50.6 per cent to Rs 35.85 billion against a decrease of 2.5 per cent in the same period last fiscal year, whereas capital expenditure increased by 46.5 per cent to Rs 4.07 billion in contrast to a decline of 17.5 per cent in the corresponding period last fiscal year,” said the central bank’s report.
However, principal repayment expenditure declined by 52.6 per cent to Rs 2.64 billion against an increase of 26.7 per cent in the same period last fiscal year.
The government has been successful in revenue mobilisation as it grew by 41.6 per cent to Rs.46.70 billion compared to an increase of 35.4 per cent in the corresponding period of the previous year. Government's firm commitment to control the revenue leakage and tax administration reforms contributed to such an increase in the revenue mobilization, said the central bank.
But the external sector exhibited a dismal picture in the first four months as exports plummeted by 23.7 per cent in contrast to an upsurge of 38.1 per cent in the same period in the last fiscal year.
“Of the total exports, export to India fell by 19.1 per cent in contrast to a rise of 16.2 per cent in the same period of 2008-09,” it said adding that exports to other countries also went down by 30 per cent as against a rise by 85.4 per cent in the same period of the previous year.
According to the central banks’ report, exports to India fell considerably arising from the decline in the exports of readymade garments, zinc sheet, shoes and sandals, thread and marble slab, among others. Likewise, exports to other countries decreased because of the decline in the export of pulses, woolen carpets, readymade garments, tanned skin and herbs.
However, total imports rose by 27.8 per cent compared to a growth of 41.1 per cent in the corresponding period of the previous fiscal year. “While imports from India went up by 28.9 per cent compared with a growth of 23.7 per cent in the same period of last fiscal year, imports from other countries grew only by 26.6 per cent compared with a sharp growth of 68.8 per cent in the same period of 2008-09,” the report said.
Similarly, the overall Balance of Payment (BoP) recorded a deficit of Rs 20.49 billion in contrast to a surplus of Rs 11.86 billion in the same period of the previous year
The current account also registered a deficit of Rs 13.94 billion in the first four months as against a surplus of Rs 8.38 billion in the same period last fiscal year. The report has highlighted a number of factors like expansion in trade deficit by 48.9 per cent, under transfers, decline of grants by 10.2 per cent, and decline of remittances inflow – that has gone up by just 6.6 per cent compared with its significant growth of 65.9 per cent in the same period last fiscal year – for the current account deficit.
The central bank is also worried over the BoP deficit and current account deficit. Recently governor Bijaya Nath Bhattarai has said that the Nepal Rastra bank is worried over the BoP and current account deficit.
The gross foreign exchange reserves stood at Rs 248.89 billion in mid November 2009 – a drop by 11.1 per cent compared to the level as at mid July 2009. “However, such reserves had gone up by 8.8 per cent in the same period of last fiscal year,” according to the central bank.
In US dollar terms, gross foreign exchange reserves fell by 6.2 per cent to $3.36 billion in mid November 2009. In the same period last fiscal year, such reserves had dropped by only 5.3 per cent.
“The current level of reserves is sufficient for financing merchandise imports of 8.5 months and merchandise and service imports of 7.3 months only,” it said.
“In the first four months of 2009-10, government budget deficit stood at Rs 3.40 billion compared to a deficit of Rs 1.26 billion in the corresponding period of the previous year,” said the current macroeconomic situation, based on the first four months'’ data of this fiscal year published by the Nepal Rastra Bank (NRB) here today. The deficit is attributed to the total government spending that has increased by 36.5 per cent to Rs 50.61 billion compared to an increase of only 7.3 per cent in the same period last year. “The high growth of recurrent as well as capital expenditure accounted for such an increase in the government expenditure,” it added.
Both the administrative expenses and development expenses have gone up in comparison to the same period. “Recurrent expenditure increased by 50.6 per cent to Rs 35.85 billion against a decrease of 2.5 per cent in the same period last fiscal year, whereas capital expenditure increased by 46.5 per cent to Rs 4.07 billion in contrast to a decline of 17.5 per cent in the corresponding period last fiscal year,” said the central bank’s report.
However, principal repayment expenditure declined by 52.6 per cent to Rs 2.64 billion against an increase of 26.7 per cent in the same period last fiscal year.
The government has been successful in revenue mobilisation as it grew by 41.6 per cent to Rs.46.70 billion compared to an increase of 35.4 per cent in the corresponding period of the previous year. Government's firm commitment to control the revenue leakage and tax administration reforms contributed to such an increase in the revenue mobilization, said the central bank.
But the external sector exhibited a dismal picture in the first four months as exports plummeted by 23.7 per cent in contrast to an upsurge of 38.1 per cent in the same period in the last fiscal year.
“Of the total exports, export to India fell by 19.1 per cent in contrast to a rise of 16.2 per cent in the same period of 2008-09,” it said adding that exports to other countries also went down by 30 per cent as against a rise by 85.4 per cent in the same period of the previous year.
According to the central banks’ report, exports to India fell considerably arising from the decline in the exports of readymade garments, zinc sheet, shoes and sandals, thread and marble slab, among others. Likewise, exports to other countries decreased because of the decline in the export of pulses, woolen carpets, readymade garments, tanned skin and herbs.
However, total imports rose by 27.8 per cent compared to a growth of 41.1 per cent in the corresponding period of the previous fiscal year. “While imports from India went up by 28.9 per cent compared with a growth of 23.7 per cent in the same period of last fiscal year, imports from other countries grew only by 26.6 per cent compared with a sharp growth of 68.8 per cent in the same period of 2008-09,” the report said.
Similarly, the overall Balance of Payment (BoP) recorded a deficit of Rs 20.49 billion in contrast to a surplus of Rs 11.86 billion in the same period of the previous year
The current account also registered a deficit of Rs 13.94 billion in the first four months as against a surplus of Rs 8.38 billion in the same period last fiscal year. The report has highlighted a number of factors like expansion in trade deficit by 48.9 per cent, under transfers, decline of grants by 10.2 per cent, and decline of remittances inflow – that has gone up by just 6.6 per cent compared with its significant growth of 65.9 per cent in the same period last fiscal year – for the current account deficit.
The central bank is also worried over the BoP deficit and current account deficit. Recently governor Bijaya Nath Bhattarai has said that the Nepal Rastra bank is worried over the BoP and current account deficit.
The gross foreign exchange reserves stood at Rs 248.89 billion in mid November 2009 – a drop by 11.1 per cent compared to the level as at mid July 2009. “However, such reserves had gone up by 8.8 per cent in the same period of last fiscal year,” according to the central bank.
In US dollar terms, gross foreign exchange reserves fell by 6.2 per cent to $3.36 billion in mid November 2009. In the same period last fiscal year, such reserves had dropped by only 5.3 per cent.
“The current level of reserves is sufficient for financing merchandise imports of 8.5 months and merchandise and service imports of 7.3 months only,” it said.
Friday, January 1, 2010
Tourist arrivals records sustained growth
The year 2009 ended with a positive note; both in terms of total visitor arrivals for the month of December and also for the whole year.
According to the figures released by Immigration Office, Tribhuvan International Airport (TIA), visitor arrivals in the month of December, compared with the same month last year, have increased by 4.4 per cent to 31,396.
Also, the total number of visitor arrivals in aggregate (from January to December for the year 2009), compared with the year 2008, have also increased albeit by a mere 1.1 per cent to 378,712.
A total of 374,661 visitors had travelled Nepal by air in 2008. In The month of December of 2009, observe a robust growth of 51.4 per cent in visitor arrivals from China. Arrivals from Asia (other than South Asia) have also recorded positive growth. Visitor arrivals from South Korea, Malaysia, Singapore, and Thailand have registered a positive growth of 25.1 per cent, 7.8 per cent , 22 per cent, and 26.5 per cent, respectively. However Japan has suffered a decline by one per cent .
In aggregate the Asian segment (other than South Asia) has registered a positive growth of 19.4 per cent in December and 10.1 per cent in the the whole year, 2009.In the SAARC region, arrivals from Pakistan have grown by 8.2 per cent but arrivals from India and Sri Lanka have declined by five per cent and 31.5 per cent, respectively in December.
But in aggregate the South Asian segment has registered a negative growth of 4.3 per cent in the month of December and 2.5 per cent in the whole year of 2009.However, an overall positive growth of 10.1 per cent has been observed from the European markets for the month of December and 4.5 per cent in the year 2009.
Arrivals from the UK, France, Germany, Italy, the Netherlands and Austria up by 2.2 per cent, 4.3 per cent, 1.9 per cent, 30.6 per cent, 14.2 per cent and 37.1 per cent, respectively. The arrivals from Belgium, the Netherlands and Switzerland have registered only a marginal growth. But Spain, Denmark and Norway have posted a nominal negative growth.Tourist arrivals from Australia, Canada and USA have also registered remarkable growth of 13.8 per cent, five per cent and 10.9 per cent respectively. However the 'Others' category has witnessed a negative growth of 18.4 per cent in the month of December and 21.1 per cent in the whole year 2009.More than 75,058 trekkers visited Annapurna region in 2009, according to the number of permits issued by Annapurna Conservation Area Project offices in Kathmandu and Pokhara. Similarly 1,769 trekkers visited Manaslu region in the year 2009.According to UNWTO Tourism Barometer published in October 2009, till August, international tourism demand declined by seven per cent compared with the same period last year. If this general trend is continued through remaining of the year, full year results are expected to show a decline in arrivals of between four per cent and six per cent .
However Nepal has enjoyed a sustained positive growth in the international tourist arrivals since June, although the year started with a negative growth of 15.8 per cent in January.
The trend indicates that the decline in international tourism continues to bottom out. Similarly, a total of 34,991 foreign tourists departed from TIA in December. The number of Nepali arrivals stood at 49,845 while 58,611 Nepalis departed from TIA in December.
Similarly a total of 417,679 foreigners and 583,139 Nepalis departed from TIA in the whole year of 2009.
According to the figures released by Immigration Office, Tribhuvan International Airport (TIA), visitor arrivals in the month of December, compared with the same month last year, have increased by 4.4 per cent to 31,396.
Also, the total number of visitor arrivals in aggregate (from January to December for the year 2009), compared with the year 2008, have also increased albeit by a mere 1.1 per cent to 378,712.
A total of 374,661 visitors had travelled Nepal by air in 2008. In The month of December of 2009, observe a robust growth of 51.4 per cent in visitor arrivals from China. Arrivals from Asia (other than South Asia) have also recorded positive growth. Visitor arrivals from South Korea, Malaysia, Singapore, and Thailand have registered a positive growth of 25.1 per cent, 7.8 per cent , 22 per cent, and 26.5 per cent, respectively. However Japan has suffered a decline by one per cent .
In aggregate the Asian segment (other than South Asia) has registered a positive growth of 19.4 per cent in December and 10.1 per cent in the the whole year, 2009.In the SAARC region, arrivals from Pakistan have grown by 8.2 per cent but arrivals from India and Sri Lanka have declined by five per cent and 31.5 per cent, respectively in December.
But in aggregate the South Asian segment has registered a negative growth of 4.3 per cent in the month of December and 2.5 per cent in the whole year of 2009.However, an overall positive growth of 10.1 per cent has been observed from the European markets for the month of December and 4.5 per cent in the year 2009.
Arrivals from the UK, France, Germany, Italy, the Netherlands and Austria up by 2.2 per cent, 4.3 per cent, 1.9 per cent, 30.6 per cent, 14.2 per cent and 37.1 per cent, respectively. The arrivals from Belgium, the Netherlands and Switzerland have registered only a marginal growth. But Spain, Denmark and Norway have posted a nominal negative growth.Tourist arrivals from Australia, Canada and USA have also registered remarkable growth of 13.8 per cent, five per cent and 10.9 per cent respectively. However the 'Others' category has witnessed a negative growth of 18.4 per cent in the month of December and 21.1 per cent in the whole year 2009.More than 75,058 trekkers visited Annapurna region in 2009, according to the number of permits issued by Annapurna Conservation Area Project offices in Kathmandu and Pokhara. Similarly 1,769 trekkers visited Manaslu region in the year 2009.According to UNWTO Tourism Barometer published in October 2009, till August, international tourism demand declined by seven per cent compared with the same period last year. If this general trend is continued through remaining of the year, full year results are expected to show a decline in arrivals of between four per cent and six per cent .
However Nepal has enjoyed a sustained positive growth in the international tourist arrivals since June, although the year started with a negative growth of 15.8 per cent in January.
The trend indicates that the decline in international tourism continues to bottom out. Similarly, a total of 34,991 foreign tourists departed from TIA in December. The number of Nepali arrivals stood at 49,845 while 58,611 Nepalis departed from TIA in December.
Similarly a total of 417,679 foreigners and 583,139 Nepalis departed from TIA in the whole year of 2009.
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