News & Reports 2010-11-07

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In This Edition

The Board of Executive Directors of the International Monetary 1 Fund approves historic reforms, including shifting voting power from advanced nations to emerging economies.

APEC finance ministers call on member economies to take policy measures to achieve "stronger, more sustainable and more balanced growth" in the region.

Tens of thousands of protestors in Germany take part in one of the largest anti-nuclear rallies in years as shipment of waste is slowed by activists 2 on its way from France back to Germany.

And a fire in a shopping centre in the northern Chinese city of Jilin has left 19 people dead.

Hot Issue Reports

IMF board approves historic reforms

The Board of Executive Directors of the International Monetary Fund has approved historic reforms, including shifting quota 3 or voting power from advanced economies to "dynamic" emerging and developing countries.

As part of the far-reaching reforms, more than 6 percent of quota shares will be shifted to dynamic emerging market and developing countries, while protecting the quota shares and voting power of the poorest members. The Board also endorsed 4 proposals that would lead to a more representative, all-elected Executive Board.

IMF managing director Dominique Strauss-Kahn calls the reforms "historical".

"It's a very important increase in the voice and representation of emerging markets and developing countries, especially among the ten major shareholders 5 and it's also a rather big change in governance. It is a historical reform of the IMF."

After this reform, China will become the third biggest member in the Washington-based international organization.

The move also lifts large emerging powers -- India, Brazil and Russia -- into the top 10 ranks of the 187-member institution.

The Executive Board, which oversees 6 the Fund's day-to-day operations, recommended the reform package to the Board of Governors, which represents all 187 members and must approve the proposed reforms.

Following the Board of Governors' approval, the proposed quota increases and the amendment 7 will have to be accepted by the membership, which in many cases involves parliamentary approval, and which members will make best efforts to complete by the IMF's annual meetings in 2012.

APEC Finance Ministers Gather to Discuss Kickstarting Global Economy

APEC finance ministers on Saturday called on member economies to take policy measures to achieve "stronger, more sustainable and more balanced growth" in the region.

The finance chiefs made the call in a joint 8 statement adopted towards the end of the 17th APEC Finance Ministers' Meeting.

Admitting the global economy is recovering from the recent financial crisis, they noted 9 that growth in the region is uneven 10 across the economies.

Net capital flows have returned in a significant volume to emerging economies of the region, raising the risk of capital flow volatility 11 and increases in asset prices in some economies, they warned in the document.

In this respect, they pledged concerted efforts to build a stronger and more resilient global financial system and the maintenance of open markets, and fight protectionism.

In the statement, the ministers and senior officials also recognized the need to ensure appropriate financing for key areas to boost growth.

This weekend's two-day APEC gathering 12 is sandwiched between two G-20 gatherings 13. It will offer officials another opportunity to figure out how to kick-start the global economy.

Japanese Finance Minister Yoshihiko Noda points out the importance of the Asia-Pacific region in the world's economic recovery.

"Today the Asia-Pacific region represents over half the world's GDP. I hope ministers will discuss how to achieve growth from within the region and send a healthy message to the rest of the world."

APEC is composed of countries that border the Pacific Ocean, including advanced economies such as the U.S., Japan and Australia, as well as emerging economies like China, Vietnam and Mexico.

Norwegian PM Says US Midterm Vote is Setback 15 for Combating Climate Change

Norway's Prime Minister Jens Stoltenberg says the results of the U.S. midterm elections are a setback for nations pushing for global action to combat climate change, but future elections will hopefully bring the United States around.

"The election in the U.S. was a setback for everyone who would like to see an ambitious climate-change agreement and a nationwide cap-and-trade system in the United States. On the other hand, we cannot give up our efforts to try to reach an agreement on how to reduce emissions 16 of greenhouse gases."

U.S. President Barack Obama has conceded that big Republican gains in the recent congressional elections will hurt prospects 17 for legislation to tackle climate change with mandatory 18 cuts in greenhouse gas emissions.

U.S. Republicans, who are loathe 19 to add more business regulations, have slammed any attempt to put a price on carbon emissions as an "energy tax" on corporations.

Earlier on Friday, Stoltenberg handed U.N. Secretary-General Ban Ki-moon a report on financing action against climate change prepared by a high-level advisory 20 panel.

The report says carbon markets and taxes on foreign exchange deals or plane tickets could be sources for a promised $100 billion (USD) a year starting in 2020 to help poor nations fight climate change.

Norway's prime minister Jens Stoltenberg adds:

"To reach the goal of 100 billion U.S. dollars will require a mix of new public sources, scaling up of existing public sources, and increased private funding."

While there will almost certainly be no binding 21 agreement on limiting greenhouse gas emissions, Stoltenberg says he hopes the process will move forward in the next climate talks in Mexico.

Anti-nuclear rallies continue in Germany

Tens of thousands of protestors have taken part in one of the largest anti-nuclear rallies in years as the first shipment of waste in two years has been slowed by activists on its way from France back to Germany.

The transport has become a tense political issue due to anger over Chancellor 22 Angela Merkel's decision to extend the lifespan of Germany's 17 nuclear power plants in the face of overwhelming public opposition 23.

Merkel urges those taking part in the rally to refrain from committing criminal acts while attempting to stop the convoy 24 of 11 train cars.

"Peaceful protests are part of our lives. There are of course limits which need to be set, things that may seem harmless, like removing the gravel 25 from train tracks, this is not a peaceful demonstration 26 but rather it is an offence. I want to say this just now, because it puts other people in danger."

The train carrying 154 tonnes of waste was held up for hours by an earlier demonstration near the German-French border when thousands of activists blocked the tracks.

Kumi Naidoo is one of the protestors.

"I'm quite moved by the level of participation 27, the numbers of people and also the passion. But on the other hand this is also a reflection of the fact that at least 75 percent of German people oppose the nuclear madness. I mean people understand that in fact the reason why we oppose nuclear is that it is too expensive, it's too dangerous and it will deliver too little, too late to actually have the kind of impact we need by 2015 to avoid catastrophic climate change."

Merkel's government has slumped 28 in popularity due in large part to its decision to extend nuclear power by about 12 years beyond the original shut-down set for 2021. Germany gets 23 percent of its energy from nuclear power.

France Backed the UN Tribunal to Investigate Hariri's Death

France's foreign minister Bernard Kouchner met his Lebanese counterpart Ali Al-Shami in Beirut on Saturday, and appealed for calm amid rising tensions in the country.

They discussed the latest developments in Lebanon, including reports that the international tribunal investigating the 2005 assassination 29 of former Lebanese Prime Minister Rafik Hariri, would soon begin issuing indictments 30.

After meeting Sfeir in Bkerki, Kouchner sais that France backed the UN tribunal set up to investigate Hariri's death.

"The international community, and France as part of the international community, has decided 31 this tribunal and approved it. In Europe we have the special international war crimes tribunal for the former Yugoslavia set up by Europe with the participation of France, therefore you shouldn't be suprised that France is part of the international decision to support your tribunal."

In recent months, the United States, France and other countries have appealed for calm and spoken out in support of the tribunal as part of a diplomatic effort to back the investigation 32.

The bombing that killed Rafik Hariri along Beirut's Mediterranean 33 waterfront on Feb. 14, 2005, was one of the most dramatic political assassinations 34 the Mideast has seen.

Hamas Calls on Fatah to Reconcile

Hamas has called on Fatah to reconcile, as the two rival Palestinian factions 36 prepare to meet in Damascus next week.

The two sides have been bitterly divided since Hamas took control of the Gaza Strip in 2007.

Exiled Hamas leader, Khaled Meshaal, addressed an audience in Syria, saying unity 14 between the two is essential.

"The better solution for my brothers in the Palestinian Authority and the Fatah movement is to invest in this historic moment to announce the accomplishment 37 of the reconciliation 38 and the rebuilding of unity and the political Palestinian position on the basis of the national agreement document of 2006, as well as the rehabilitation 39 of the resistance option and the right of our people to continue the struggle and face the occupation."

In 2007, Hamas took complete control of the Gaza Strip in a brief war with security forces loyal to Palestinian President Mahmoud Abbas's Fatah faction 35. Hamas accused Abbas of conspiring 40 against it while Abbas described what happened as a coup 41.

Hamas has deepened its control of the Gaza Strip, building its own bureaucracy and security forces, while Fatah has extended its influence in the West bank with U.S. support.

Fatah and Hamas are scheduled to meet in Damascus on November 9.

Shopping Center Fire Kills 18 in Jilin

A fire in a shopping centre in the northern Chinese city of Jilin has left 19 people dead.

The State Administration of Work Safety said the fire broke out on Friday morning in the complex located in the city's downtown Yunchun Road shopping area.

Most of the casualties were employees, as the fire broke out shortly after shops opened when few customers were inside.

Another 24 people were reportedly injured in the blaze, and a total of 91 people were rescued.

Investigations 42 into the cause of the blaze are underway.

Firefighters doused 43 the charred 44 storefront with water canons as black smoke billowed from the building.

Lin Hong, vice 45 director of the Jilin City Firefighting Squad 46, describes the situation inside:

"Inside the building the visibility is very bad, the smoke is very strong. Heat waves suffocate 47 people; the radiating heat is burning hot."

The building was constructed in 1987 and contained 64 shops selling mainly in home electronics, garments, and furniture.

Farce 48 Between Chinese IT Companies Urges Innovative 49 Growth

Hundreds of millions of internet users must choose between China's top internet chat room QQ and its bestselling internet security tool Qihoo 360. The difficult choice has provoked anger among both companies' product users.

China Daily: Gov't Must Put People First in National Census 50

The sixth national population census that started on Monday will provide key information to help China translate its new blueprint 51 of inclusive growth into reality in the coming years.

To make the once-a-decade tally 52 a success, the government has urged all Chinese and foreign residents alike to take part in the census and cooperate with census takers.

But in light of growing privacy concerns, many citizens are worried whether authorities can guarantee that the information they provide on their census forms will be kept strictly 53 confidential 54. They believe that the authorities should do their best to ensure the authenticity 55, accuracy and completeness of the results, and pledge to make full use of the census to fine-tune the country's growth model to significantly improve people's livelihoods 56.

An editorial in "China Daily" argues that as the central government prepares to roll out a new five-year plan next year, the transformation 57 of the country's growth pattern has become more closely related than ever to its demography 58 which is undergoing drastic changes.

The editorial points out that many believe that China's proposed transformation of its development model from one that relies on excessive investment and exports to one based on domestic consumption, will be difficult. It says China's growing population, which is rapidly aging and has seen greater flows of people across provincial 59 borders, has made this task even more urgent and difficult to accomplish.

The editorial points out that on the one hand, China can no longer sustain its long-term growth miracle on its seemingly unlimited 60 supply of cheap labor 61, because industrial wages will rise quickly once the supply of surplus labor from the countryside tapers 62 off.

On the other hand, the country's increasing level of domestic consumption is not strong enough to be a leading engine for sustainable growth as Chinese policymakers have yet to effectively curb 63 the widening wealth gap among citizens.

Before most Chinese consumers are both able and willing to loosen their purse strings 64, it seems unlikely that the country will be able to shift from its dependence 65 on investment and exports to consumer-led growth.

The editorial concludes that to address these challenges the government first must have a better grasp of the country's massive demographic changes. An accurate census will provide much-needed information to allow policymakers to effectively target needy 66 groups and tilt 67 public finance in favor of the majority of citizens.

Xinhua News Agency: County Gov't Officials Cannot Detain Citizens Who Try to File Appeals

The controversial policy of a Party official in Wanxia County of Jiangxi Province concerning citizens who lodge 68 complaints about local matters with the central government in Beijing has prompted a response by China's leading news agency.

Chen Xiaoping, Communist Party Secretary of Wanzai County, recently gave a public speech, later posted on the local government's website, in which he said county officials would admonish 69 and fine local citizens who lodged 70 complaints with Beijing authorities about local matters. If they continued with what he called their "abnormal appeals," local officials in Wanzai would detain them, while those who persisted a third time would be "reeducated through labor."

An editorial posted on Xinhuanet.com argues that counties should abide 71 by existing laws when fining, detaining and reeducating people through labor, and that such activities should only be carried out by law-enforcement departments. It says other local government departments do not have the right to impose fines and restrict the personal liberty of citizens.

The editorial questions whether a county Party secretary has the authority to send people to be reeducated through labor and what exactly an "abnormal appeal" is.

The editorial points out that some local government officials abuse their power by believing they can make decisions about everything, including matters that can only be determined 72 by law.

Such officials believe the power they wield 73 is equal to or above the law. The editorial goes on to say that the behavior of local government officials who abuse their power damages the authority of the law and hurts the public.

Although no one has any idea about how many people in Wanzai County have been detained for trying to file "abnormal appeals" for their grievances 74, the editorial argues that it is certain that the local government will not focus on trying to resolve complaints or conflicts as long as it feels threatened by its citizens.

The editorial notes that county-level governments are key to the country because they are the basic units that directly implement 75 all official guidelines and policies issued by Beijing. For local citizens, they are the most straightforward 76 representatives of the country and the Communist Party.

But when county Party leaders do not adhere to the law, citizens become more concerned about the state of their society. In conclusion, the editorial says it hopes that the policy of the Wanzai county official was nothing more than a muddled 77 idea which other county-government officials will not adopt.