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February 4th, 2012 - 2:01 pm § in News Of Economy

ADB shows concern over rising rich-poor divide in Asia

Many are speculating that after west, it is time for Asia to lead the world. 21st century is allying with Asia and expecting it to be the next power region. Development in major Asian regions has proved it correct. Countries like China, India, Japan and Southeast are perfect examples of it, where prosperity, overall development and increasing living standard authenticate the facts. Despite crossing major initial impediments, the Asian Development Bank’s report deterred its entire claim as it pictured the murky side of the development. Report asserted that wealth gap is widening in the region and lives of poor are becoming deplorable, meanwhile rich are successfully accumulating more money. China and India are holding the reign of Asia’s development; both are listed on the top ten in the ADB’s annual report. China is holding 2nd position after civil war wrecked Nepal, while India is holding 7th position. Asian region experienced major boom recently and China and India, both got bigger pie out of it, but ironically, failed to distribute the profit fairly among all. China and India’s economy is expanding with the healthy pace of 11.9% and 8 to 9 % respectively, but instead of sharing growth among all, influential people were able to pocket in 20% out of it. In the report, bank also featured minor countries like Cambodia, Sri Lanka and Bangladesh, where disparity of wealth is growing rapidly. However, poorer countries like Pakistan and Philippines have done better then the big Asian players in terms of inequality. Thailand has the most impressive record in Asia. It has reduced inequality by over 5%, while Indonesia and Malaysia have also managed to reduce inequality to some extent. The report seems shocking, but the situation isn’t as worse as it appears. The growing wealth gap is a byproduct of globalization, which has brought higher incomes to urban, skilled, English-speaking workers in all countries and gap can be stretch forward if the government doesn’t intervene here effectively as poorer have less access to quality education, health care, bank loans and other things needed to benefit from economic growth. The government needs to come up with new policies to provide the decisive shares to poor people. Implementation of hardcore economic reform along with social protection mechanisms and skills and training programs could be enough steps to narrow the gap. Apart from this, Asian governments need to increase the partnership between the public and private sectors to develop new economic activities and industries that generate new employment opportunities for the poor. Image Source


February 4th, 2012 - 2:00 pm § in News Of Economy

European Bank monitors US subprime fallout on money market

To curve the volatility, the European Central Bank has decided to monitor the conditions on the euro market as U.S. subprime mortgage losses continued to shake credit markets. Earlier, ECB has pumped 94.8 billion euros ($130.2 billion) in cash into the eurozone banking market to allay fears about a [...]


February 4th, 2012 - 6:43 am § in News Of Economy

House prices in UK to drop by 10% next year

The sub-prime rate crisis in the US has plunged its housing sector to an unprecedented crisis. The mortgage market difficulties is set to trigger a global effect with David Miles, the chief UK economist of Morgan Stanley warning the UK government that the housing prices in the country will plummet b[...]


February 3rd, 2012 - 2:00 pm § in News Of Economy

China’s inflation soaring, fueling another bank rate hike

China’s monthly inflation has accelerated to the highest level in more than 10 years as increasing food prices are continuously hurting the economy and fueling the speculation of another interest rates hike. In a monthly report, the National Bureau of Statistics disclose that consumer prices s[...]


February 3rd, 2012 - 1:59 pm § in News Of Economy

Asia-Central banks eye to save markets from subprime crises

Asian banks are taking initial step to avoid the market precariousness as the US subprime woes are continuously affecting major markets. Being a highly developing region, Asia assumes to be less affected from the existing crises, but Asian nations aren’t taking any chances and are ready to fac[...]


February 3rd, 2012 - 6:42 am § in News Of Economy

US sub-prime losses to pull down Bond Insurers’ Ratings

The sub-prime loss is all set to plunge the US economy to its worst ever crisis. In a latest review conducted by the ratings agency, Moody, the Wall Street banks have suffered a combined loss of about $110 billion on bonds backed by high-risk sub-prime mortgages. Moody reviewed the fall out of the s[...]


February 2nd, 2012 - 1:58 pm § in News Of Economy

In Reversal, Bank of Japan retrieves injected money

The Bank of Japan is withdrawing $5bn funds it poured into the money market in the past two working days amid signs that the liquidity crunch may not be as bad as it was initially conceived, with the calm slowly returning to global financial markets. The Bank of Japan has injected money over the con[...]