Investigation of Motive Enhance China Japan Bond Purchase

Tokyo – Japanese Finance Minister said Thursday Yoshihiko Noda, the government is monitoring closely China’s increased purchases of Japanese government debt and will check in Beijing about his motivations.”We are giving careful attention” to the recent increase in purchases related to China against the Japanese government bond (JGB), “Noda said in a session of the parliamentary committee of financial problems, reported Dow Jones Newswires.

“I do not know the true intention” regarding China’s increasing appetite for JGB.But Tokyo plans to “work together closely (with Beijing) and assesses the point,” he said.China, in July, buying Japanese bonds worth 583.1 billion yen (6.9 billion dollars), Japan’s finance ministry said Wednesday, when the Asian giant will continue to increase purchases of Japanese debt.

This figure is higher than the value of securities purchased in June, 456.7 billion yen.The news came after the yen, Wednesday, 15 highest-reaching new year against the dollar. Currency traders said the yen berdenomiasi China’s purchase of property, even by itself too small to boost the yen, it can support the increase in the currency indirectly.

For the first half of this year, China bought debt worth 1.73 trillion yen, almost seven times over a full year’s record of about 253.8 billion yen in 2005.In May alone China investors buy Japanese government bonds net worth 735.2 billion yen.China seeks to diversify its investments out of the big bucks and Europe since the beginning of the financial crisis.Most bonds are purchased by the government of China is estimated to be used to manage foreign currency reserves.

This increase is in conjunction with the re-doubt recovery in the United States and Europe, and indicates China’s store more foreign currency reserves which as a result continues to expand into the Japanese bonds are relatively stable.With approximately 95 percent is held by domestic investors, the risk did not pay the debt of Japan is considered much smaller than the countries hit by the-debt, even though its public debt approaching 200 percent of gross domestic product, the highest among developed countries.

China’s foreign exchange reserves have swelled in recent years, soaring to a record 2.454 trillion dollars at the end of June.These reserves, has become the world’s largest, grew 15.1 percent from a year ago, China’s central bank said in its website.One way Beijing is diversifying its investment through an independent wealth fund China Investment Corp., which handles about 300 billion dollars and has invested heavily in resource companies.(AFP)

United Nations give warning of second wave of Pakistani flood deaths

Pakistan  The United Nations appealed on Wednesday for $459 million in aid for flood-hit Pakistan, warning of a second wave of death among sick, hungry survivors unless help arrived quickly.Roiling floods triggered by unusually heavy monsoon rain have scoured Pakistan’s Indus river basin, killing more than 1,600 people, forcing 2 million from their homes and disrupting the lives of about 14 million people, or 8 percent of the population.President Asif Ali Zardari, whose government has come in for harsh criticism for its perceived sluggish response to the disaster, defended a decision to travel abroad as the floods began, saying he helped focus international attention on the plight of the victims.The floods, the worst in the region in 80 years, have raised fears for the prospects of the nuclear-armed U.S. ally already battling a deadly Islamist militancy.U.S. Defense Secretary Robert Gates said on Wednesday the U.S. military was tripling the number of helicopters in Pakistan to 19 from six and sending in a landing platform to be used off the coast of Karachi, Pakistan’s biggest city.

Washington, which had already committed $55 million to Pakistani flood relief efforts, also announced it was contributing a further $16.2 million to the U.N. refugee agency and International Red Cross for emergency assistance to flood victims.Aid agencies have complained of a lackluster donor response to the crisis, while a U.N. spokesman said help was needed soon.”If we do not respond soon enough to the urgent needs of the population, if we do not provide life-saving assistance as soon as is necessary, there may be a second wave of death caused by diseases and food shortages,” said U.N. humanitarian operations the spokesman Maurizio Giuliano.Hundreds of roads and bridges have been destroyed from northern mountains to the plains of the southern province of Sindh, where the waters have not yet crested, meaning the situation could get worse.

Countless villages and farms have been inundated, crops destroyed and livestock lost. In some places, families are huddled on tiny patches of water-logged land with their animals surrounded by an inland sea.On the outskirts of the city of Sukkur, in Sindh, hundreds of people waited for food supplies at a tent camp.”I can’t find my 12-year-old son. I’ve been to my village with soldiers on a boat but there was no sign of him,” said farmer Mohammad Hassan.”I’m so worried. I don’t know what to do. Should I take care of my family here or go and look for my son?” Hassan, a father of 10, told Reuters before rushing into a throng jostling around a truck that arrived with rations of cooked rice.

ECONOMIC DAMAGE

The International Monetary Fund has warned of major economic harm and the Finance Ministry said the country would miss this year’s 4.5 percent gross domestic product growth target, although it was not clear by how much.Pakistani stocks ended 0.17 percent down at 9,875.68 as the economic costs of the disaster rattled investors. the market has lost 5.37 percent since the floods began.The United Nations says the disaster is the biggest the country has faced and it would cost billions of dollars to rehabilitate the victims and rebuild ruined infrastructure.Giuliano said he was optimistic aid would arrive and $150 million had already been pledged. The U.N. World Food Program needs $150 million to feed 6 million people for three months.Zardari defended his decision to travel to France and Britain at the end of last month.

“Some have criticized my decision, saying it represented aloofness, but I felt that I had to choose substance over symbolism,” he said in an opinion piece for The Wall Street Journal.The British government had pledged $24 million in aid, following his meeting with Prime Minister David Cameron, the Pakistani leader said.

Pakistan’s military, which has ruled the country for more than half of its 63-year history, has taken the lead in relief efforts, reinforcing the faith many Pakistanis have in their armed forces and highlighting the comparative ineffectiveness of civilian governments.Analysts say the armed forces would not try to take power as they have vowed to shun politics and are busy fighting militants.U.S. military helicopters have been airlifting survivors in an effort that may win Washington some supporters in Pakistan, where anti-American sentiment runs high.

“Let’s not talk about politics. We were trapped here and they came to evacuate us,” said Abdul Rehman, 37, rescued by a U.S. helicopter after being stranded with a new-born baby and wife.”They’re doing good. Let’s appreciate them.”The United States needs a stable Pakistan to help it end a nine-year war by the Taliban in Afghanistan.(Reuters)

Donor money for health care in developing countries could be spent more effectively if it were channeled through a single global fund

Donor money for health care in developing countries could be spent more effectively if it were channeled through a single global fund, experts said Friday.A steady flow of funds is essential for health sector improvements, Gorik Ooms from Belgium’s Institute of Tropical Medicine said.

Research by Ooms and other experts published in The Lancet medical journal Friday said the amount and regularity of international aid was often unpredictable, making it hard for governments to plan ahead.Another study, by Harvard Medical School and the University of Washington, found that in some recipient countries, mainly in sub-Saharan Africa, foreign health aid was partly replacing — not supplementing — domestic health budgets.

In such countries, for every $1 given in aid, governments move between 43 cents and $1.14 of their own health funds to other sectors, such as education or sanitation.”Governments compensate for exceptional international generosity to the health sector by reallocating government funding to other sectors,” Ooms wrote in The Lancet.He said governments also compensated for the unreliability of aid by spreading it over several years.One way to make health aid more stable would be to disburse it via a common pool, similar to the Global Fund To Fight AIDS, Tuberculosis and Malaria set up in 2002.

“If a young institution such as the Global Fund already stands out as delivering stable and predictable financing, it shows the potential advantage of pooling international aid,” Ooms wrote.In a news briefing, he said countries with high dependency on aid usually received pledges from donors for two to four years ahead.”When we in our own countries consider reforming health care, we make estimates for 20, 30, 40 years ahead: how much money will we have? what will happen with the population? what will be the health needs?,” he said.

Another issue is donors’ delivery on their promises.Madalo Nyambose, assistant director at the debt and aid division in Malawi’s Finance Ministry, said aid money was often disbursed later than promised, forcing recipient governments to borrow from financial markets and incur interest payments.

Ooms said a new global health fund could borrow ideas from the Global Fund, which pools donors’ money and allocates it in consultation with the countries in need and independent experts. Its board includes representatives of donors and recipient governments, non-governmental organizations (NGOs), businesses and affected communities.The U.S. researchers examined data on 113 developing countries from 1995 to 2006.(Reuters)