World Economic News
Indian PM Calls for 'Arc of Advantage' Integrated Market
Speaking at the third ASEAN-India business summit at New Delhi, Indian Prime Minister Manmohan Singh on Oct. 19 proposed the formation of an "arc of advantage" that would group ASEAN, China, Japan, Korea, and India to form an Asian Economic Community. "Such a community would release enormous energies. One is captivated by the vision of an integrated market spanning the distance from the Himalayas to the Pacific Ocean, linked by efficient roads, railroads, air and shipping services. It would account for half the world's population, and it would hold foreign exchange reserves exceeding those of the EU and North American Free Trade Agreement (NAFTA) put together."
He went on to say that India had adopted a "Look East" policy because it believed the vision of an "Asian century."
Meanwhile, in Hanoi, Indian External Affairs Minister K. Natwar Singh told the Indian news daily The Hindu, that the upcoming Oct. 21 meeting of the Foreign Ministers of India, China, and Russia could help fashion a "common vision" on the whole gamut of issues concerning Asia. The foreign ministers will meet at Alma Ata in Kazakhstan.
Blair's New Labour Turns to U.S.-Style Mega-Casinos
A new bill, introduced to the British Parliament Oct. 18, is the first "reform" of gambling in Britain since the 1960s. The government wants the new regulations to be implemented by next spring, but there is a lot of opposition to the bill, so it is by no means sure that it will be passed in time for the national elections now likely to take place by May 2005.
The bill would allow casinos to be open 24 hours a day; they would no longer have to be built in restricted areas; current restrictions requiring a 24-hour "joining period" in a casino would be dropped; the biggest casinos would be allowed to give unlimited jackpots; and the casinos would be allowed to advertise. New Labour is offering the sop that there will be stronger policing of gambling under the new law.
The gambling "industry" thinks its revenue could rise by 3 billion pounds a year under the new legislation, reported the Independent Oct. 19. The government said in the legislation that it expects expenditure on gambling to rise by 40-45% by the end of the decade, to 12.5 billion pounds. Britain already has 131 casinos, second only to France in Europe.
The crucial issue is that some of the new "regional casinos" will be built in run-down inner cities. The predicted rise in expenditure to 12.5 billion pounds a year would of course be taxable.
The Times reported that a Labour Party memo told MPs that many of the new casinos would be opened in such cities as Birmingham, Northampton, Sunderland, Nottingham, and Margate, and would bring "jobs, investment, and regeneration opportunities" to these places, to the "benefit" of Labour MPs.
The memo stated that "Parliamentary Labour Party members should bear in mind that some of the towns and cities that want to use a casino as part of a broader leisure, tourism, and regeneration strategy are key Labour seats."
Chinese Automaker Plans Assembly Line in Malaysia
The Hong-Kong-based Chery Automobile Company announced on Oct. 18 that it plans to assemble cars in Malaysia for the expanding Chinese auto industry, the New York Times reported Oct. 19. Chery is based in Wuhu, Anhui Province, in eastern China, and is owned by the provincial government.
The move is likely to generate fresh controversy about Chinese protection of intellectual property. Chery has been at the center of disputes with General Motors and Volkswagen over whether it has copied their vehicle designs, which accusations Chery has repeatedly denied.
GM responded within hours to news of Chery's Malaysian plans by saying that it would fight to prevent violations of its intellectual property rights wherever they might occur.
The Alado Corporation, a closely held company with links to BSA International, a Malaysian manufacturer of alloy wheels, announced in a statement on Oct. 18 that it would first import and later assemble the Chery QQ subcompact car and the Chery B14 minivan in partnership with Chery. The vehicles are to be sold in Malaysia and distributed across Southeast Asia.
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