FDI Down to USD 75.7mln in Q1

Georgia’s foreign direct investment (FDI) in first quarter of 2010 was down to USD 75.7 million, 41.5% decline over the same period of last year, USD 130 million, according to preliminary report by state statistics agency, Geostat.

Turkey was the largest investor in January-March, 2010 with USD 20.3 million or 26.8% of total FDI, followed by the Czech Republic - USD 19.8 million (26.1%); Egypt - USD 18 million (23.8) and Japan USD 15.7 million (20.7).

Industrial sector drew USD 24.2 million or 31.9% of total FDI in the first quarter and energy sector – USD 19.4 million or 25.6%.

FDI fell to USD 759.1 million in 2009, down from USD 1.56 billion in 2008. United Arab Emirates and Egypt made almost half of the country’s FDI last year with USD 169.8 million and USD 167.5 million, respectively.

Jordan discusses cooperation with ILO to reduce child labor

Geneva - Minister of Labor Ibrahim Omoush on Wednesday met at the headquarters of the International Labour Organization (ILO) in Geneva with Director of the International Program on the Elimination of Child Labour Constance Thomas and Director of Partnerships and Development Cooperation Department Alette van Leur.

Talks during the meeting, which was attended by the Jordanian delegation participating in the International Labour Conference, dealt with bilateral cooperation between the ministry and the ILO.

Omoush said that Jordan is giving special attention to reduce child labor, pointing that the social support centre is providing educational and training services to rehabilitate 750 children.

Thomas expressed the ILO's admiration of Jordan's achievements in reducing child labor, saying that the Kingdom is among the 10 countries that top priority of the organization to implement child labor reduction programs.

Leur highlighted the role of Her Majesty Queen Rania in supporting the organization's approach to reduce child labor across the world, lauding Jordan's commitment and distinction in many cooperation programs with ILO.

The minister also met with labour minister of Kosovo and discussed scopes of cooperation between the two countries in the fields of vocational training and labour.

Hungary wants new IMF loan

 HUNGARY wants to negotiate a new loan from the International Monetary Fund, a top advisor to Prime Minister Viktor Orban said on public television on Thursday.
Hungary narrowly escaped bankruptcy in late 2008 when it was thrown a 20-billion-euro (S$34.3 billion) financial lifeline by the IMF, the World Bank and the European Union. That agreement is scheduled to expire in October.
Speaking on M1 television, PM Orban's chief aide Gyorgy Szapary said Budapest was hoping to see that agreement extended until the end of the year and a new loan starting in January.
'The government would like to extend the loan, which is set to expire in October, until December, so there is no break in the programme. And then we'd like to negotiate a new agreement for 2011,' Mr Szapary said.
Hungary has not drawn on the complete amount of the original 20-billion-euro loan, with the previous Socialist administration saying the improved economic situation allowed the government to drum up financing on the markets itself.
Mr Szapary said Budapest only expected to tap the remaining amount of the current agreement 'in case something extraordinary happens in the markets.' The government hoped to start negotiations in July when a delegation from the IMF and the EU visits Hungary, the aide added. -- AFP

IMF visit fuels speculation on Spain bailout

 The head of the International Monetary Fund is to visit Spain amid reports Madrid is seeking a bailout while the government bit the bullet and approved crucial reforms of its rigid job market.

The cabinet agreed the sweeping labour reforms, deemed essential for reviving the economy and fending off a Greek-style debt crisis, despite a union call for a general strike against them.

The reforms -- which make it easier and cheaper for firms to fire workers -- must still be voted on by parliament, where the government is seven seats short of a majority.

The assembly last month passed a 15-billion-euro (18.4-billion-dollar) government austerity package, which includes cuts in public sector wages -- but by just one vote.

Spain plunged into its worst recession in decades at the end of 2008 following the collapse of a decade-long property boom and only returned to tepid growth this year.

The crisis has sent the unemployment rate soaring to more than 20 percent, the highest in the European Union after Latvia.

The high unemployment has in turn caused government spending on jobless benefits to skyrocket. That has pushed Spain's public deficit to 11.2 percent of gross domestic product last year, the third highest in the eurozone after Greece and Ireland.

Spanish business daily El Economista said Wednesday the IMF, the European Union and the US Treasuryhad drawn up a rescue plan for Spain including a credit line of between 200 and 250 billion euros.

The plan would use money from a special-purpose fund worth up to 500 billion euros put in place last month to help eurozone nations that run into Greek-style debt problems, it added.

But the IMF, the European Commission and the Spanish government have denied any bailout is in the works.

Jean-Claude Juncker, head of the eurogroup of finance ministers, also said Wednesday he had seen no indication "that Spain will be in a position where it has to ask" for the emergency funds.

But the speculation was fueled when IMF chief Dominique Strauss-Kahn announced he would hold talks with Spanish Prime Minister Jose Luis Rodriguez Zapatero in Madrid on Friday.

Strauss-Kahn, stressing it would be a "working visit," again dismissed the talk of a bailout for Spain.

"I go to all the European countries. I am in France (today) -- are there such rumours about France?" he told AFP.

The IMF warned last month that Spain's economy needed "far-reaching and comprehensive reforms" of its rigid labour market and banking sector if it was to solve its huge debt and deficit problems.

Bank of Spain governor Miguel Fernandez Ordonez meanwhile also called for rapid implementation of restructuring measures, including those to "improve the competitiveness of the Spanish economy".

The government pushed ahead with its own version of the labour market reforms after talks with the unions and employers collapsed last week.

Spain's two largest unions, the CCOO and the UGT, which represent over two million workers, on Tuesday called for a general strike on September 29 to protest the plan.

Workers on full contracts are currently entitled to severance pay of as much as 45 days per year worked, one of the highest levels in Europe. Under the government reform, this would be reduced to 33 days for some contracts.

Many economists blame the high jobless rate on the high cost of firing workers in Spain, which makes employers reluctant to hire staff and encourages the use of temporary contracts that have few benefits and rights.

But some analysts said the latest plan did not go far enough.

"We remain unconvinced that the reform is decisive enough, in particular regarding flexibility at the company level," said Javier Perez de Azpillaga of Goldman Sachs ECS Global ECS European Research.

The government has also encouraged the rapid consolidation of the country's 45 regional savings banks to weather the uncertain economic outlook sparked by the collapse of the property sector.

But public finances could be further strained after the Bank of Spain revealed Wednesday that these regional banks have requested around 11 billion euros from a state restructuring fund to carry out merger plans.

Finnish deputy finance minister Jyrki Katainen meanwhile expressed concern that a minority of poorly performing banks might effect the credibility of better run European banks -- and that this might be a problem in Spain.

"There are some rumors that the banks are in bad shape."

But he added: "The government says it is willing to have more transparent stress test and publish the results.

US$100mln World Bank microfinance scheme approved by Indian govt

The Indian government on Tuesday approved a a proposal to draw a loan of US$100 million (about Rs 450 crore) from the World Bank to promote microfinance in the country. The Cabinet Committee on Economic Affairs (CCEA) cleared the proposal for on-lending to the Small Industries Development Bank of India (SIDBI), which in turn would disburse the funds to the microfinance sector.
* "The fund will be used to promote responsible and balanced growth of microfinance outreach, particularly in under-served areas where micro finance penetration is low, thereby serving the larger objective of promoting financial inclusion," Home Minister P Chidambaram told reporters after the CCEA meeting.
* The decision is expected to help broad-base credit disbursals.

World Bank present report on quality of education in Azerbaijan

 A presentation of a report of a member of the World Bank Kire Ersado on the subject of “Azerbaijan: access to education and quality of education” was held in the Azerbaijani Ministry of Education.
The ministry informed, L. Ersado noted large work, carried out in the country for improvement of the population’s  level of living.
“In addition, the reporter noted the role of education in improvement of living standard, achievements in this sphere inn Azerbaijan and carried out work.
L. Ersado also told about problems, existing in the sphere of  preschool and higher education, and noted significance of larger increase of attention to  development of human resources,” it was informed.
For his part, Minister of Education Misir Mardanov marked  necessity of development of  primary professional education in the country.

World Bank provides 2 projects worth $372 Million for India

The World Bank has approved $372 million worth projects to India, including the integrated coastal zone management project. It has approved a $222 million International Development Assistance credit for the integrated coastal zone management project, while another $150 million IDA credit has been approved for additional financing for the ongoing Karnataka rural water supply and sanitation project.

The project will also help pilot this approach in three coastal states Gujarat, Orissa and West Bengal through a range of complementary local pilot investments in select coastal stretches to support state-level capacity building.

“Among others, the project will support the mapping and delineation of hazard lines and ecologically sensitive areas, setting up a world-class national centre for sustainable coastal zone management, preparation of integrated coastal zone management plans, each of which will be crucial to serve the long-term interests of the country,” says Tapas Paul, World Bank Senior Environment Specialist and Project team leader.

The Karnataka rural water supply and sanitation project is part of a long-term programme of World Bank support to the Karnataka’s efforts to increase rural communities’ access to improved and sustainable drinking water and sanitation services. The project has already brought clean drinking water to about five million people, taking the number of households having private water supply connections from 12 percent to 47 per cent in the project villages.

How revised DTC will impact the common man.

The government has released the keenly-awaited revised discussion paper on the Direct Taxes Code (DTC). 

The first draft code released in August 2009 was open for public comments, on which the government received valuable inputs from a large number of organisations and individuals. 

Responding to the voice raised by the common man and various trade bodies, the finance ministry has axed many proposals of the DTC which would have pinched a common man’s pocket. 

China's Vice President visits New Zealand

China sheltered New Zealand from the worst impacts of the recession, its Vice President Xi Jinping was told today.

Xi is in New Zealand for a three-day visit, along with more than 100 senior business leaders.

Arriving in Auckland this morning Xi was given a Maori welcome before a lunch where Trade Minister Tim Groser talked about the importance of China to New Zealand, and how it had buffered New Zealand during recent difficult financial times.

He focussed on the value of free trade agreement (FTA) between the countries. China is now New Zealand's second-largest trading partner, behind Australia, and it was taking more non-dairy New Zealand exports than before.

"An FTA (free trade agreement) is not a 'silver bullet' for all trading problems. Issues will still arise, but what it does provide us is access to the Chinese bureaucracy and an understanding of each other that we did not have before," Groser said.

"Most importantly, the FTA is a platform not only for our trade and economic relationship but for our broader bilateral relationship.  It's a relationship that has been described by you yourself, Mr vice president, as a model relationship."

Xi was also to visit Fisher and Paykel, part-owned by Chinese company Haier, before meeting Prime Minister John Key for dinner.

Meanwhile, Green Party co-leader Russel Norman urged the Overseas Investment Office not to buckle to any pressure which may arise from the visit over the sale of Crafar Farms to Hong Kong-based company Natural Dairy (NZ).

"The visit of vice president Xi Jinping, along with 100 senior Chinese business leaders should not have any impact on decisions relating to foreign investment from China and Hong Kong," Dr Norman said in a statement.

"New Zealand risks losing control of its economic sovereignty if we lose ownership of large chunks of our primary producing capacity to foreign investors."

Canada-Colombia FTA Almost Finalised, Putting Pressure on US

Canada and Colombia came one step closer to finalising a free trade agreement (FTA)this week, with the Canadian House of Commons voting in favour of the deal. The FTA will next be viewed by the Canadian Senate for final approval.

The FTA passed with an amendment that requires both the Canadian and Colombian governments to assess the accord’s effects on human rights on an annual basis. However, whether this clause will actually be effective has been the source of heated debate.

Colombia is Canada’s fourth-largest trading partner in South America, with trade between the two countries amounting to US$1,260 million in 2008, according to BusinessWeek. Liberal MP Scott Brison was quoted in Canadian newspaper The Globe & Mail as praising the FTA, saying that its ratification would “give us a head start, and Canadian interests an advantage.” Brison had proposed the human rights amendment that was added to the FTA in March.

Canada’s passage of this deal is likely to put additional pressure on the US to pass its own FTA with Colombia. The US signed an agreement with Colombia in 2006, but the FTA has been stalled in the US Congress ever since.

Recent concern over the Canada-Colombia FTA prompted a bipartisan group of 39 members from the US House of Representatives to send a letter to US President Barack Obama on 2 June, emphasising the importance of setting a date for passing a US deal with Colombia. They asserted that delaying the agreement much longer would cause the US to lose some of its share in the Colombian market, especially given Canada and Europe’s progress in setting up their own FTAs with the South American country.

The members of Congress called on Obama to support the deal’s approval, asserting that “virtually every economic study has come to the conclusion that the United States will benefit economically from the agreement.” They added that the FTA would also have an impact on US national security, and recommended that the deal be passed before Colombian President Álvaro Uribe leaves office in August.

This request came on the heels of a similar letter sent from 16 Republican members of the US Senate, which also urged Obama to outline a timeline for pushing through the Colombia trade pact, among other deals.

Former US President Bill Clinton spoke last week to W Radio in Colombia about his optimism regarding the US-Colombia FTA. However, he anticipated that the deal would likely pass only after November’s US congressional midterm elections. He added that much of the delay seems to be resulting from lawmakers’ fears over FTA-related job losses, given the unemployment caused by the recent economic crisis.

Clinton also noted that, for the first time in 20 years, Colombia has not been listed by the International Labour Organisation as a country that violates workers’ rights - another good sign for the US-Colombia FTA’s fate.

ICTSD reporting; “Canadian Lawmakers Approve Free Trade Agreement With Colombia;” BUSINESSWEEK, 14 June 2010; “Commons seals Colombia free-trade deal,” GLOBE & MAIL, 14 June 2010; “Bipartisan group of lawmakers urge Obama to back Colombia free trade pact,” THE HILL, 5 June 2010; “Republicans urge Obama outline plans for trade deals,” REUTERS, 1 June 2010; “Bill Clinton cree que el TLC de EE.UU. con Colombia sera ratificado por el Congreso de su país,” EL TIEMPO, 10 June 2010.

Slumdog's Boyle to direct 2012 Olympic ceremony

 Oscar-winning filmmaker Danny Boyle will direct the London 2012 Olympic opening ceremony, organizers said on Thursday, and he immediately promised a "thrilling welcome" for both athletes and the world.

Boyle, whose work includes "Shallow Grave," "Trainspotting" and the hugely successful "Slumdog Millionaire," acknowledged it may not be on the same scale as the last Games in Beijing, but he promised a "genuine and personal welcome."
British director and producer Stephen Daldry, who has been involved with "Billy Elliot," "The Hours" and "The Reader," will be part of a four-man team which will oversee the opening and closing ceremonies for both the Olympic and Paralympics.
They will work within a total budget of 40 million pounds, which will come out of the overall 2 billion pound budget of Locog, the organization responsible for staging the Games.
A global TV audience of 1 billion people watched Beijing's spectacular opening ceremony in 2008, which set the benchmark against previous ceremonies often deemed woeful and cheesy.

"You have got to acknowledge that it is not going to be like Beijing in terms of this overwhelming, intimidating scale," Boyle told reporters.
"It will be more modest than that. But our job is to make sure that within those means it is spectacular and delivers a thrilling welcoming to the opening of the Games."
There were few hints about what would be included, except that the lighting of the Olympic torch was central to their thinking, and "zombies would not be running around on stage."
"I want to provide something fitting for this world event," he added.
There were hints that part of the ceremony could be "bounced out" of the stadium.
Locog chairman Seb Coe said it was important not to just ape previous ceremonies, but to portray the different cities and their backgrounds.
Boyle, who has lived in east London where the Games will be held, said he jumped at the chance of being artistic director, and would take inspiration from sporting excellence and the city which had given him so many opportunities.
He will work on the project full-time from early next year after he has completed two projects he is already committed to including a stage production of "Frankenstein."
Boyle, who said he was a better sports fan than competitor, praised the intimacy of the 80,000-seat main stadium where the ceremonies will be held, describing it as a "little wonder."
Daldry said he did not view the project as a poisoned chalice.
They would not be tied to the 8-minute show put on by London during the hand-over ceremony in Beijing, organizers said.
The slot, which featured a red London bus and bowler-hatted dancers, cost 1.5 million pounds, but was widely criticized.
"It is a different show, and a different team," Martin Green, Locog's head of ceremonies, told Reuters.

Amfi seeks extension of KYC norms deadline by a year

Association of Mutual Funds in India (Amfi) has asked market regulator Sebi for further extension of deadline to comply with know your client (KYC) norms. In December 2009, Sebi had made it compulsory for fund houses to maintain all investor-related documents including power of attorney and KYC documents. They were told to collect these information from their distributors and April 1, 2010, was fixed as the deadline. However, as mutual funds were unable to meet the deadline, Amfi asked for an extension of one more month. Yet, mutual funds couldn't meet the target.

“We need more time as it requires lot of documentation. We have asked Sebi to extend deadline by one more year” Amfi CEO HN Sinor said. He added that since these details have to be culled for investors dating back years, it takes time. SBI Mutual Fund MD Achal Kumar Gupta said, “We are still in process to get all the details of investors from the distributors.” He denied commenting further on the issue.

Sebi in its December 2009 circular had stated that, if distributors fail to provide the investor information, then trustees of mutual funds were advised to not pay commission or fees to distributors. A CEO from the leading fund house on condition of anonymity said, “It is very difficult to get all the detail from the distributors. There are also instances that despite sending multiple reminders, distributors have failed to give us the details. This has led to delay in payments of trail brokerages to the distributors selling mutual funds.”

There are close to 4.6 crore retail folios of the mutual fund industry, as per AMFI data. Ballpark estimates put the number of unique mutual fund investors at 1 crore, assuming that on an average, there are four folios maintained by a single investor. The challenge is that distributor would have to cull data for such investors dating back anywhere from '93, when private mutual funds started operations in the country.

Danny Boyle to direct 2012 Olympics opening ceremony

Oscar-winning film-maker Danny Boyle will be artistic director for the London 2012 Olympic Games opening ceremony, organisers have announced.

The Slumdog Millionaire director said he was "honoured" by his appointment.

Boyle said it was a "unique opportunity to contribute to what I'm sure are going to be a fantastic Games."

Director Stephen Daldry is one of four other "creatives" who will oversee the Olympic and Paralympic Games' opening and closing ceremonies.

Beijing 2008 Games designer Mark Fisher, TV director Hamish Hamilton and producer Catherine Ugwu will also be part of the team.

Speaking on BBC Radio 4's Today programme, Boyle, who was born and bred in Radcliffe, Greater Manchester, said his job was "to provide a thrilling, enthralling, captivating evening."

"Hopefully it'll take its place in the list of openings, but it'll be a new beginning as well."

Myself and my co-executive producers will ensure there is creative continuity across all four ceremonies, that the public have real engagement and that we continue to attract into key roles the best talent in the world," said Daldry.

"I'm delighted to be part of the team."

"These Games are bringing together world-class British talent," said Lord Coe, chair of the London Organising Committee of the Olympic Games and Paralympic Games (LOCOG).

"Each one of these individuals would hold their own on the worldwide stage.

"They are joining names like children's author Michael Morpurgo who has created the story behind our highly successful mascots.

"We are delighted with the team we have brought together to deliver our ceremonies in 2012."

'International calibre'

Jeremy Hunt, Secretary of State for Culture, Olympics, Media and Sport, said: "The opening and closing ceremonies are the jewels in the crown of any Olympics and Paralympics and are one of the benchmarks against which all games are judged.

"I am very pleased that British directors and producers of such outstanding international calibre and acclaim have given their backing to London 2012.

"With their creativity and expertises on board, I'm sure that London's showpiece events will make Britain proud."

His sentiments were echoed by the Mayor of London Boris Johnson, who said the "brilliant" team had brought together "some of the most imaginative people in the world".

"The work they have produced over the years has been quite extraordinary, with an impact not just in the UK, but also on the international stage," he said.

"They exemplify some of the greatest attributes we have - creativity, vision, and intelligence - which will be critical to ensuring shows that are as stunning as they are uniquely British."

3 Mills Studios in East London will be the production centre for the London 2012 Ceremonies.

Boyle began his career in theatre before moving into television and movies like Shallow Grave, The Beach and 28 Days Later.

This winter the 53-year-old will make his National Theatre debut directing a new production of Frankenstein.

Zhang Yimou, China's most famous filmmaker, directed the opening ceremony for the Beijing Games in 2008.