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Tabbaa highlights Jordan's links to world markets

By - Apr 05,2016 - Last updated at Apr 05,2016

AMMAN — Jordanian Businessmen Association (JBA) President Hamdi Tabbaa on Tuesday briefed an economic delegation from Turkey and Northern Cyprus on the association's role in enhancing Jordan's economic relations with Arab and foreign countries.

Tabbaa said the Kingdom enjoys economic ties that enable Jordanian products to enter international big markets under free trade agreements Jordan signed with the US, European Union, Canada, Singapore and the Grand Arab Free Trade Zone Agreement, according to a JBA statement.

In this regard, he added that these agreements encourage foreign companies to invest in the Kingdom's promising sectors. Mustafa Gordag, head of the visiting delegation and vice chairman of the Cyprus Turkish Chamber of Industry, welcomed investment opportunities in Jordan, highlighting the importance of exchanging information between businesspeople, the statement added.

Renewables use can save $750b in Mideast, Africa — official

By - Apr 04,2016 - Last updated at Apr 04,2016

Adnan Amin, director general of the International Renewable Energy Agency, talks to the press in Kuwait City on Monday (AFP photo)

KUWAIT CITY — Middle Eastern and North African (MENA) nations can make a "net benefit" of $750 billion if they achieve their set targets on the use of renewable energy, a senior official said on Monday.

"Almost every country in the [MENA] region has a target for renewable energy from 5-15 per cent," by 2030, Adnan Amin, director general of the International Renewable Energy Agency told reporters.

"If we are able to meet these targets, we will have a net benefit of about $750 billion for the power sector in the MENA region," Amin said on the sidelines of the sixth MENA renewable energy conference.

Amin added that the world is looking to double the current share of renewable energy of 16-17 per cent in the global mix to 36 per cent by 2030. 

He continued that doubling the renewable energy share will help achieve the reduction by half of carbon emissions which would a pre-requisite for limiting global warming to 2°C as decided by the Paris climate change summit.  

Amin told the conference that global investments in renewable energy rose by 22 per cent last year to a record $330 billion.

The cost of production of renewable energy has dropped significantly in the past few years, he said.

In the past five years, the cost of solar photovoltaic power generation dropped by 80 per cent, Amin indicated.

"It is already competitive with natural gas. There can be further reduction in cost," he added.

But Bassam Fattouh, director of Oxford Energy Institute Studies, said the targets set by MENA countries are "very ambitious”.

He said several challenges hamper renewable energy production in the region, like state monopoly of the power system, a lack of institutional capacity and conventional energy subsidies.

Nearly half of all new installed power generation capacity in 2014 was in renewables — 37 per cent wind, a third solar and a quarter hydro, according to the International Energy Agency.

Renewables only account for about 20 per cent of global electricity generation, and three-quarters of that is hydro. 

Separately, trillions of dollars of non-bank financial assets around the world are vulnerable to the effects of global warming, according to a study on Monday that says tougher action to curb greenhouse gas emissions makes sense for investors.

Rising temperatures and the dislocation caused by related droughts, floods and heatwaves will slow global economic growth and damage the performance of stocks and bonds, according to the report, led by the London School of Economics.

"It makes financial sense to a risk-neutral investor to cut emissions, and even more so to the risk-averse," lead author Professor Simon Dietz, an environmental economist, told Reuters.

A global climate summit in Paris last December set a goal of limiting global warming to "well below" 2°C above pre-industrial times, while leaving open precisely how this would be achieved.

If the rise were limited to 2°C by 2100, the study's central scenario put the total of current financial assets that could be damaged at $1.7 trillion. But if the temperature rose a further 0.5°C by the end of the century, $2.5 trillion would be at risk under the most likely scenario.

Global regulators in the Financial Stability Board (FSB) say all the world's current non-bank financial assets are worth $143 trillion.

At the extremes of the study's thousands of scenarios based on a 2.5°C rise, the value at risk ranges from 0.5 per cent of total financial assets up to a worst case of 17 per cent, or $24 trillion.

The study did not try to identify which sectors were most at risk from the damage that climate change can wreak, ranging from the destruction of buildings, bridges or roads by storms or floods to losses of agricultural productivity and enforced movement of populations.

Many previous studies about the financial impact of climate change have focused on fossil fuel companies, together worth around $5 trillion on stock markets, whose shares may lose value if investors shift to cleaner energies.

Stephanie Pfeifer, head of the Institutional Investors Group on Climate Change (IIGC), told Reuters the report was "yet more evidence that unabated climate change would negatively impact economic growth and investment returns over the long term".

She urged investors to put pressure on company boards to disclose risks from climate change and to ensure that their businesses were on track to limit rising temperatures. The IIGC represents 120 investors controlling more than $13 trillion in funds.

 

Last Friday, a task force of the FSB unveiled plans for all listed companies to disclose in financial reports how climate-related risks could hit their bottom line. 

Israel to hire 500 Jordanians for Red Sea hotels

By - Apr 04,2016 - Last updated at Apr 04,2016

TEL AVIV — Israel has authorised another 500 Jordanians to work in hotels in its  Red Sea resort of Eilat to make up for a domestic labour shortage, the tourism ministry said on Monday.

"The need for workers in the hotel industry is growing as the summer season approaches," Tourism Minister Yariv Levin said in a statement.

"These are day workers who leave Israel at the end of the working day.

"The statement added that the Jordanian staff would be employed in cleaning, dishwashing and room service.

"Past endeavours launched by government ministries and the hotel industry to encourage Israelis to work in these positions were not successful," it said, adding that incentives including bonuses, housing benefits and day care had been offered.

"However, these did not result in recruiting Israeli workers into the Eilat tourism industry.

"It said the new recruits would join 400 Jordanians  already employed in Eilat hotels.

The Israeli city, which has  about 12,000 hotel rooms, is close to the Jordanian border and the kingdom's own Red Sea resort of Aqaba.

 

Jordan signed a peace treaty with Israel in 1994, becoming the second Arab state to do so after Egypt in 1979.

Euromoney Jordan Conferences to return to Amman

By - Apr 04,2016 - Last updated at Apr 04,2016

AMMAN — Euromoney Conferences,  the world’s leading organiser of conferences for cross-border investment and capital markets, announced this week in a press statement that it is returning to Amman on April 25, 2016.

Euromoney will relaunch its annual financial conference, which was last held in 2012. This year’s conference, titled “Finance for an Invigorated Economy”, will be held under the Royal patronage of His Majesty King Abdullah and co-hosted by the Ministry of Finance.

The conference, supported by senior lead sponsor Arab Bank and co-sponsor, Jordan Kuwait Bank, will bring together 300 financiers, investors, business leaders, entrepreneurs and government officials to address the development of Jordan’s innovation economy, the statement said.

This one-day conference will examine Jordan's economic outlook, exploring macroeconomic and geopolitical challenges the country faces, as well as assessing the role of the financial sector in the country's wider economic development.

The conference will also address Jordan’s growing role as a hub for entrepreneurship and innovation in the region. Topics will include micro- and SME-financing and the development of the innovation and digital ecosystem in Jordan.

Keynote addresses will be delivered by Finance Minister Omar Malhas, and Planning and International Cooperation Minister Imad Fakhoury.

Aerospace, defence industry backs Britain's EU membership — survey

By - Apr 03,2016 - Last updated at Apr 03,2016

ADS Group, the industry body for aerospace, defence, security and space companies in Britain, said that 70 per cent of its members believe it would be better for their business if the country stayed in the EU (Photo courtesy of Rolls-Royce)

LONDON — The majority of British aerospace, defence, security and space companies believe that the country should stay in the European Union (EU), the latest business group to come out in favour of staying in the bloc.

The economic impact of a 'Brexit' is one of the key issues for voters ahead of a referendum on Britain's EU membership on June 23.

ADS Group, the industry body for aerospace, defence, security and space companies in Britain, said that 70 per cent of its members believe it would be better for their business if the country stayed in the EU.

"Our members recognise the benefits of the UK remaining part of the EU; access to integrated European supply chain; research and development funding which enables the UK to compete globally, and the ability to influence and shape EU regulation," ADS Chief Executive Paul Everitt said.

Members of the ADS group employ 310,000 people in Britain and generate £31 billion in exports for the country. The  survey was carried out in February and March, ADS noted.

Planemaker Airbus, which employs 16,000 people in Britain building wings for its aeroplanes amongst other activities, said in February that its British operations would be less competitive if the country voted to leave the EU.  

The industry's view echoed the bosses at more than a third of Britain's biggest companies including oil giants Shell and BP and its largest telecoms group, who said leaving the EU would put the economy at risk, backing Prime Minister David Cameron's call to stay in the bloc.

Nearly 200 companies, among them 36 FTSE 100 firms, including telecoms group BT, retailers Marks & Spencer  and Asda, and oil firms Shell and BP, signed the letter which put forward the economic merits of EU membership.

"Business needs unrestricted access to the European market of 500 million people in order to continue to grow, invest and create jobs," said the letter, published in the Times newspaper. "We believe that leaving the EU would deter investment, threaten jobs and put the economy at risk."

London Mayor Boris Johnson, who as mayor presides over one of the world's pre-eminent financial centres, dismissed the significance of the letter from the business leaders.

Spreading alarm

"There will be people who try to spread alarm, anxiety," he told reporters, saying the same people had been wrong over Britain's decision not to join the euro and to exit the European Exchange Rate Mechanism 20 years earlier.

Other commentators said the potential boost for Cameron was limited given that two-thirds of top bosses had not signed up, including those from its two biggest retailers.

Tesco, Britain's biggest private employer with 310,000 staff, said the referendum was a decision for the people of Britain and that its focus remained on serving its customers, while Sainsbury's, the country's second biggest supermarket, said it was an apolitical organisation.

"I suspect that the numbers [of FTSE 100 bosses] giving support to remain publicly have been a disappointment," said Andrew Hawkins, founder of polling firm ComRes.

In another survey published by the Institute of Directors, six in 10 of nearly 700 of its members polled said they planned to vote to stay in the EU.

Scottish experience

"I can tell you this, if the leave campaign could produce 35 business leaders of this sort of stature, they'd be over the moon," Cameron said of the business leaders' letter during a visit to Slough, west of London.

"This is simply people running some of the largest businesses in our country that employ over a million people between them, saying this has real consequences for our country," he added.

Economic concerns played a role in the Scottish independence referendum in 2014, when in the weeks ahead of the vote, big companies warned about the impact of leaving the UK on investment and jobs, adding to a climate of fear, and possibly swaying some votes to help keep that union in tact.

As a result, some voters pledged to boycott firms wading into politics and perhaps wariness from that experience deterred some of Britain's biggest employers from signing the letter.

Cameron's move to call on the voice of big business, the letter was arranged by his Downing Street office alongside the “Britain Stronger in Europe” campaign, was not without risk as "Out" campaigners cast the EU as the instrument of a global elite which is out of touch with ordinary Britons.

Jim Mellon, a fund manager who is helping fund the "Out" campaign, told the BBC the signatories were mostly people who had "crawled their way up the corporate ladder" rather than "true entrepreneurs" who had started new businesses.

The stakes are high in the June referendum. A vote to leave would not only transform Britain's future in world affairs, but also shake the EU, which has struggled to maintain unity over migration and financial crises, by ripping away its second-largest economy.

Some companies do, however, favour an exit from the EU. 

The campaign for Britain to leave the EU has been backed by 250 business leaders including the former chief executive of HSBC, the Vote Leave group said last week, hoping to counter the view that UK businesses back staying in the bloc.

Vote Leave, one of the groups supporting a British exit, unveiled its own list of backers including Michael Geoghegan, former chief executive of HSBC Group, John Caudwell, founder of Phones4U and Tim Martin, the boss of pubs group JD Wetherspoon.

"With our growing list of business supporters, Vote Leave will make that case that whilst the EU might be good for big multinationals, for smaller businesses it acts as a job destruction regulatory machine," Matthew Elliott, chief executive of Vote Leave, said.

Vote Leave also said it was forming a Business Council to argue that EU membership was holding back business.

That group will be headed by John Longworth who quit as director general of the British Chambers of Commerce (BCC) lobbying group after he spoke out in favour of leaving the EU, accusing Cameron of trying to scare voters into backing his case to stay in the bloc.

The Bank of England (BoE) warned last week that uncertainty surrounding Britain's looming referendum on EU membership could send the pound slumping further and boost financing costs.

The central bank's Financial Policy Committee (FPC) declared that the risks surrounding the vote represented "the most significant near-term domestic risks to financial stability", echoing recent comments from BoE Governor Mark Carney.

Uncertainty over the outcome could spark a "further depreciation" in sterling, the FPC warned in minutes from its March meeting, adding it could also adversely affect "the cost and availability of financing for a broad range of UK borrowers".

In late February, the pound had tumbled to a near seven-year low against the dollar on mounting fears that Britain could leave the 28-member EU bloc.

The FPC cautioned on Tuesday that the nation's potential EU withdrawal could "spill over" into the eurozone and weigh on the currency bloc's growth prospects.

It added that the outlook for Britain's financial stability had "deteriorated" since its previous meeting in November, citing increasing global economic risks and the threat of Brexit.

However, the FPC noted Britain's major banks had passed stress tests designed to show their ability to survive a severe economic shock, such as a sharp drop in sterling or a prolonged recession.

Last month, the BoE announced it would make extra cash available to banks around the time of the referendum, in order to help overcome market turbulence and the risk of another credit crunch.

Carney had already warned on March 8 that Britain's departure from the EU would create the "biggest domestic risk" to the nation's financial stability.

US Treasury Secretary Jacob Lew also warned that If Britain exits the EU it will have a negative impact on the British, European and world economies.

The consequences of a Brexit, in terms of the flow of trade and economic relationships, would have far-reaching repercussions, Lew told Charlie Rose on public television PBS.

"I don't think it's good for the European, or the British economy, or the global economy," Lew said, adding: "And in a world where one of the things that drives the economy is the uncertainty of geopolitical risks... 

 

"It is clear that when you increase the level of unease, it has an economic consequence."

Death by overwork on rise among Japan's vulnerable workers

By - Apr 03,2016 - Last updated at Apr 03,2016

TOKYO — Japan is witnessing a record number of compensation claims related to death from overwork, or "karoshi", a phenomenon previously associated with the long-suffering "salary man" that is increasingly afflicting young and female employees.

Labour demand, with 1.28 jobs per applicant, is the highest since 1991, which should help Prime Minister Shinzo Abe draw more people into the workforce to counter the effect of a shrinking population, but lax enforcement of labour laws means some businesses are simply squeezing more out of employees, sometimes with tragic consequences.

Claims for compensation for karoshi rose to a record high of 1,456 in the year to end-March 2015, according to labour ministry data, with cases concentrated in healthcare, social services, shipping and construction, which are all facing chronic worker shortages.

Hiroshi Kawahito, secretary general of the National Defence Counsel for Victims of karoshi, said the real number was probably 10 times higher, as the government is reluctant to recognise such incidents.

"The government hosts a lot of symposiums and makes posters about the problem, but this is propaganda," he said. "The real problem is reducing working hours, and the government is not doing enough."

The labour ministry did not respond to requests for comment.

Kawahito, a lawyer who has been dealing with karoshi since the 1980s, said 95 per cent of his cases used to be middle-aged men in white-collar jobs, but now about 20 per cent are women.

Japan has no legal limits on working hours, but the labour ministry recognises two types of karoshi: death from cardiovascular illness linked to overwork, and suicide following work-related mental stress.

A cardiovascular death is likely to be considered karoshi if an employee worked 100 hours of overtime in the month beforehand, or 80 hours of overtime in two or more consecutive months in the previous six.

A suicide could qualify if it follows an individual's working 160 hours or more of overtime in one month or more than 100 hours of overtime for three consecutive months.

Work-related suicides are up 45 per cent in the past four years among those 29 and younger, and up 39 per cent among women, labour ministry data show.

Two-tier workforce

The problem has become more acute as Japan's workforce has divided into two distinct categories — regular employees, and those on temporary or non-standard contracts, frequently women and younger people.

In 2015, non-regular employees made up 38 per cent of the workforce, up from 20 per cent in 1990, and 68 per cent of them were women.

Lawyers and academic say unscrupulous employers operate a "bait-and-switch" policy, advertising a full-time position with reasonable working hours, but later offering the successful applicant a non-regular contract with longer hours, sometimes overnight or weekends, with no overtime pay.

Refusing overtime pay and break time are illegal, and the applicant could refuse the job, but activists say companies tell them they will be given regular contracts after six months or so.

They say young applicants often accept due to lack of experience, while women trying to re-enter the workforce after childbirth often feel it would be difficult to get a foothold elsewhere.

Emiko Teranishi, head of the Families Dealing with Karoshi support group, said she hears lots of complaints about hiring tactics, with some companies telling new hires that their salary includes 80 hours of overtime, and they must reimburse the company if they work less.

"Some people don't even make minimum wage under this system," said Teranishi, whose own husband committed suicide after working long hours.

Such abuses have become so common in the past 10 years that such companies have been dubbed "black" companies in the media.

HirokazuOuchi, a professor at Chukyo University, wrote a book last year about such companies when he realised some of his students were being treated illegally at their part-time jobs.

According to Ouchi, their hiring practices typically follow a similar pattern.

"Companies will hire someone for two to three years, but they have no intention of investing the time or the money to nurture that employee," said Ouchi.

He added that the labour ministry lacked the manpower to follow up on complaints.

A ministry official working in corporate surveillance acknowledged that his department was somewhat short-staffed but the government was taking steps to recruit more every year. He declined to give his name as he is not authorised to speak to the media.

Japan's working-age population has been falling since the mid-1990s, which would normally lead companies to improve working conditions to attract workers, but Ouchi said it was not happening because they can get away with bending the rules.

 

"This is a way for companies to keep labour costs down, but it is also a path that leads to death by overwork," he added.

Factories at Al Hussein Industrial Estate in Karak need workers

By - Apr 03,2016 - Last updated at Apr 03,2016

AMMAN — Jordan Industrial Estate Company (JIEC) announced Sunday in a press statement that there are 250 job opportunities available for men and women at companies operating in Al Hussein Industrial Estate in Karak.

JIEC Chief Executive Jalal Al Debei said in the press statement that employment was available for production workers, technicians and administrators, and added that this coordination with the companies will bring  mutual benefit as some of the Karak residents will  be employed to fulfil labour requirements as at those companies. 

Arab Potash Company pays around JD56m to Kingdom's Treasury

By - Apr 03,2016 - Last updated at Apr 03,2016

AMMAN — The Arab Potash Company last week contributed around JD56 million to the Kingdom's Treasury. The amount covered JD32 million income tax and around JD24 million as mining fees.

Thailand eyes luxury tourists, operators stress safety reassurance

By - Apr 03,2016 - Last updated at Apr 03,2016

Two truck drivers wait to deliver the sugarcane harvest at a sugar mill in Pakchong district in Ratchaburi province, Thailand, March 22, 2016 (Reuters photo)

BANGKOK — Thailand needs to do more to keep its tourists safe if it wants to achieve its objective of attracting more high-end travellers, operators say, or it risks losing out to its up-and-coming neighbours.

With its palm-fringed beaches, Buddhist culture and racy nightlife, Thailand has been the poster child for Asian tourism for decades, attracting a range of visitors from backpackers and adventure-seekers, to families and culture vultures.

In recent years, increasing numbers of Chinese tourists have joined the mix. But dark clouds could be forming even as a record 32 million tourists are expected this year.

The industry, which accounts for 10 per cent of the gross domestic product (GDP), has been resilient to political upheaval over, the last decade that has included violent street protests and military coups.

Even a deadly 2015 bomb attack on a Bangkok shrine popular with tourists failed to dent arrivals to any discernable degree.

But crime and accidents, and the perception Thailand is becoming a mass market, could pose a bigger threat to the government plan.

The murder of two British tourists in 2014 hit world headlines. Last month, two French women filed complaints of rape.

Woeful road safety, accidents at sea, scams and even angry elephants have added to what seems like a never-ending litany of bad news.

"Visitor volume is high but with that the probability of crime also increases," Surapong Techaruwichit, chairman of the Hotel Association of Thailand, told Reuters. "We need to reassure tourists that Thailand is safe."

The government's Tourism Authority now wants to focus on "quality tourism", and has launched a campaign to attract visitors who spend more, and hopefully stay out of trouble.

"Many people say tourists come here because it is a cheap destination. This needs to change," Tourism and Sports Minister Kobkarn Wattanavrangkul told a tourist safety workshop.

But luring more discerning travellers might not be so easy.

"If we want to attract the high end we need to reassure them. Meeting our target luxury-traveller target will be harder after the recent negative publicity," said Surapong.

The figures can be frightening.

Fourteen US citizens died of unnatural causes in Thailand from January to June 2015, higher than the 11 who died in France, a top destination for US tourists, according to US State Department figures.

Thailand had the second-highest number of deaths of British nationals in 2014 after Spain, which is the top holiday spot for Britons, British Foreign Office figures show.

Major General Surachet Hakphan, commander of the Tourist Police, says things will change. The men and women in his division will focus on safety, he said.

"Elephants trampling on tourists and tourists having their legs cut off by speed boats, this won't happen any more," Surachet added, referring to two recent fatal accidents.

According to Jason Friedman, managing director at J.M. Friedman & Co. - Bespoke Hospitality Services, Thailand had managed to preserve its image as a holiday paradise despite the bad news

"People want to believe Thailand is a great place and nothing goes wrong here — this is a perception that works in our favour," Friedman said.

For Friedman, who focuses on the high end, the bigger risk is the volume of arrivals creates the impression that Thailand has become a mass market. Or as Friedman puts it: industrial tourism.

Tourists wanting off-the-beaten-track travel need not look far, he remarked.

"The industrial-strength tourism will push people away. They have started looking for remote beaches in Cambodia or Myanmar," he added.

Separately, chronic water shortages are pushing the country to move away from a grain that dominates its fields and has defined a way of life for generations. Thailand has long served as one of the globe's main rice bowls and is one of the world's top rice exporters.

Laddawan Kamsong has spent the past 40 years coaxing rice from her plot in central Thailand, but she is tired of watching her farmland squeezed dry by increasingly severe droughts. 

"I plan to replace some rice paddies with limes," she said after attending a government-run workshop urging farmers to diversify their crops.

But four consecutive years of below-average rainfall have drained water reserves and strangled production, pushing many farmers into debt. 

The current drought, the worst the country has seen in decades, has hit nearly a third of Thailand's 76 provinces, particularly in the rice-heavy central and northeast. 

Reservoirs are also dropping to historically low levels. 

The kingdom's military government is now organising training sessions to encourage millions of rice farmers to diversify into crops that require less irrigation. 

Unlike nearly all other crops, rice grows best in a flooded field, with the stalk's base completely submerged for most of the growing season. 

At an army-run workshop held in patch of shade in a field in Nonthaburi province near Bangkok, Laddawan was sold the merits of cultivating fruit trees. 

In other regions, they are suggesting sugarcane or peas. 

These alternatives will drastically reduce water consumption but also break the monoculture that has deteriorated Thai soil for decades. 

"We have no choice, we need to adapt," Laddawan said, explaining that she used to plant three rice crops annually, but next year will only have enough water for one. 

Rivers run dry        

As the drought bites, some 2,000 Thai villages are surviving off water delivered by the government, while “rainmaking” airplanes are flying over parched plains, sending an iodine solution into the air in an effort to seed clouds.

After last year's especially weak rainy season, which falls between June and October, the ruling military junta asked farmers to abandon their winter rice crop, which is normally cultivated through irrigation and not rainfall. 

"The amount of water in storage is low and now we expect that this year's rainy season will be delayed because of El Nino," said Suphot Tovichakchaikul, who leads the country's water management department.

The El Nino weather phenomenon tends to weaken the annual monsoon, which is a lifeline to farmers across the region.  

According to a study from the University of the Chamber of Commerce, the drought could shave between 0.5 and 0.8 per cent off Thailand's GDP growth, with its annual rice production predicted to drop almost 30 per cent to 25 million tonnes. 

Thailand is also facing increasing competition from Vietnam and India, who have been jockeying for the top exporter spot and at times surpassed Thailand's output in recent years. 

The junta says Thai rice is no longer sustainable on its current scale.

"We must find a way to motivate rice producers to switch to other crops," junta chief Prayut Chan-o-Cha said in a recent speech. 

His military government, which grabbed power in a 2014 coup, has struggled to revive Thailand's flat economy, which is beset by falling exports, high household debt and low consumer confidence. 

Rice politics

Yet convincing the country's rice growers to change their crops is no easy task. 

"It is difficult because it is their career, it is their way of life for decades conceded Somnuk Srithiengtrong, head of the ministry of agriculture for Nonthaburi.

In recent years rice farming has become entwined with a strong political identity too. 

Many rice farmers support the family of Thaksin Shinawatra, a controversial ex-premier who injected money into villages in the kingdom's long-neglected rural north and northeast. 

The former telecom tycoon was ousted in a 2006 coup.

But parties linked to him have won all Thai elections since. 

His sister Yingluck, who became prime minister in 2011, also poured subsidy into the rice sector, winning the devotion of the so-called grassroots "Red Shirt" pro-democracy movement.

She was also ousted in a 2014 coup, and faces up to a decade in jail over  negligence charges linked to her rice subsidy scheme.

That policy saw the government purchase paddies from farmers at nearly twice the market rate, pumping cash into the Shinawatra heartlands.

But it led to massive rice stockpiles after global traders turned away from the Thai grain, whose price had been inflated by government hoarding.

The ruling junta has shot down the Shinawatra's policies as "populist".

But it too recently resorted to massive rural subsidies to prop up the country's floundering rice and rubber industries. 

And while a reliance on rice looks increasingly perilous, farmers like Prateep Jinpracha, 46, say that cannot be swayed to change crops.

 

"Growing rice, that's what my parents and grandparents did before me," she said. "This is my life."

Germany cuts public debt to 2.15 trillion euros

By - Apr 02,2016 - Last updated at Apr 02,2016

Two building cleaners clean the 27-metres-high glass ceiling of a building in Dresden, Germany, on Wednesday (AP photo)

FRANKFURT — Germany, Europe's biggest economy, shaved 24 billion euros ($27 billion) off its overall public debt burden to 2.153 trillion euros in 2015, the country's central bank, or Bundesbank, said last week.

Measured against the gross domestic product (GDP), that meant Germany's total public debt ratio fell to 71.2 per cent last year from 74.7 per cent in 2014, the Bundesbank calculated.

Under European Union (EU) rules, a member state's overall debt must not exceed 60 per cent of GDP.

Nevertheless, the EU average stands at 86 per cent and Germany has pledged to bring its own debt back below the 60 per cent limit by 2020.

Germany's public finances have been in surplus since 2014, thanks to the robustness of its domestic economy, and low interest rates and the government is using the budget surplus to bring down its overall debt. 

The Bundesbank calculated that GDP growth of 1.6 per cent last year accounted for 2.7 percentage points of the reduction in the overall debt ratio.

German economy to slow down in second quarter: Bundesbank

Also last week, the Bundesbank said the German economy will likely slow down in the second quarter after showing steady growth in the year's first three months.

"The German economy started 2016 with a lot of momentum," it added in its latest monthly report. However "a decline in the pace of economic growth looks to be on the horizon for the second quarter".

The Bundesbank recalled that the German economy had seen "a solid rate of expansion" in the second half of 2015 with growth in the third and fourth quarters of about 0.3 per cent, which it said "largely matched its potential".

The bank forecast first-quarter growth would match or slightly surpass that rate.

However it said stagnating industrial orders and a further worsening of the closely watched Ifo business climate index, including a sharp decline in its previously stable production and export expectations indices, did not bode well for the second quarter.

International demand for German goods had long kept the country largely insulated from external shocks including the slowdown in Chinese growth and other emerging markets as well as geopolitical tensions.

But the combined effect of negative factors is starting to be seen in certain indicators.

For the moment "the mood of consumers remains very optimistic", the Bundesbank said, after domestic consumption replaced exports last year as the primary engine of economic growth.

Speaking at the Bundesbank's annual news conference, President Jens Weidmann said the German economy was "in good shape overall" and hailed a "distinct rise" in real disposable income, due in part to low inflation.

For 2016 as a whole, the Bundesbank is pencilling in growth of 1.8 per cent, slightly more than the government's forecast of 1.7 per cent.

Separately, German companies are trying not to let themselves be spooked by the economic slowdown in China, even if they concede they are currently seeing a drop in demand for their products there.

"Of course we're experiencing a fall-off in demand in China at the moment," said Franz Hampel, head of Garant-Moebel, a furniture wholesaler.

"Our Chinese partners have become jumpy. Business has been good for them the past few years. But they're now asking themselves what the future will bring," Hampel added.

Employing a workforce of around 230 and active in around 20 countries, Garant-Moebel opened an office in Hong Kong two years ago where it employs a dozen people.

However, the strong fluctuations in the Chinese currency, the yuan, resulting from the country's recent financial woes, are leading Chinese furniture retailers to roll back business, Hampel continued.

Garant-Moebel is not alone in watching economic developments in People's Republic with a wary eye.

"It seems obvious that the period of double-digit growth is behind us," said Jan-Christoph Block, head of international sales at drive systems specialist Getriebebau Nord in Bargteheide, north Germany. "It's still possible to achieve growth, but it's become more difficult." 

Both companies can be seen as representative of the mostly family-owned small and medium-sized enterprises (SME) that form the backbone of the German economy and were quick to establish a foothold in China. 

It is not just big companies like Volkswagen, BMW and BASF that are suffering from China's woes, the SMEs are feeling the pinch too. 

'Enormous potential' 

China's economic growth is projected to slow to 6.7 per cent in 2016, its lowest growth rate since 1990,  from 6.9 per cent in 2015, according to the latest forecasts from the World Bank.

The slowdown is worrying for German exporters, since China is their most important market after Europe and the United States.

In 2014, Germany exported a total 74 billion euros ($81 billion) worth of goods to China, not including the sales generated by companies' local subsidiaries in China. 

According to the specialist consultancy firm EAC, some of the major players listed on the Frankfurt stock exchange generated combined turnover in China of 131 billion euros in 2014, an increase of nearly 10 per cent over the previous year. 

So it hardly comes as a surprise that the market turbulence in China has left its mark on Germany's blue-chip DAX 30 index, too. It has lost more then 7 per cent since January 1. 

Nevertheless, China's "enormous growth potential remains", said Block of Getriebebau Nord.

"Currently, more than 5,200 German companies are active in the People's Republic, employing a combined workforce of more than 1 million there," said Alexandra Voss, head of the German Chamber of Commerce in China.

"The economic slowdown in China will certainly not be painless. But the huge growth potential remains," Voss told AFP. 

A number of companies are hoping to benefit from the massive investment programme launched by Beijing to transform China from the world's biggest factory to the world's leading market place for innovation in services and technology. And the sectors covered by German companies were "particularly well placed" to take advantage of this, said Voss.

UniCredit economist Erik Nielsen also argued that "concerns over China are overdone".

 

China's "real economy leaves no particular reason to worry, at least not in the short term," Nielsen said.

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