The US recession and the growing difficulties faced by migrants in finding or keeping jobs there are factors leading to a drop in remittances this year.

The fall in migrant remittances to Latin America caused by the global financial crisis is posing a threat to middle and lower-income households, especially in countries where cash transfers represent a large proportion of GDP.
For some families, shrinking remittances could actually mean going without food for several days, Gabriel Polanco, a researcher on migration issues at the National Autonomous University of Mexico, told Ipsnews.net.
The Economic Commission for Latin America and the Caribbean (ECLAC) predicts a moderate drop in cash transfers to the region. But the impact will be especially heavy in countries like Mexico--the top recipient of remittances in Latin America, and one of the top in the worldÐ-or El Salvador and the Dominican Republic, where cash transfers represented 17 and 10 percent of GDP in 2008, respectively.
There is so far no data or evidence that the fall in remittances has begun to cause major social problems.
“But if the trend continues, it’s possible that we will soon begin to feel it,“ Polanco said.

Cash Transfer Down
There are already some statistics on the phenomenon, however. Preliminary figures from the Inter-American Development Bank (IDB) show that cash transfers in several countries of the region dropped by up to 13 percent in January. The lending institution said 2009 would be the first year of declining remittances after a decade of steady growth.
In Mexico, cash transfers, mainly from the United States, were down 4.9 percent in the first quarter of 2009 compared to the same period in 2008. Last year, remittances to Mexico totaled just over $25 billion, representing 2.5 percent of GDP.
In terms of sheer volume, Mexico heads the pack in the region, followed by Brazil ($7.2 billion), Colombia ($4.8), Guatemala ($4.3), El Salvador ($3.8), the Dominican Republic ($3.1), Peru ($2.9), Ecuador ($2.8), and Honduras ($2.7, according to the IDB.
Researchers say the US recession, the growing difficulties faced by migrants in finding or keeping jobs there, the toughening of immigration enforcement in the workplace, and stepped-up controls along the border are all factors leading to a drop in remittances this year and in following years, if the crisis continues.
Cuban Example
In Cuba, the impact of the global crisis has been eased by recent measures taken by the US administration of Barack Obama, researchers say.
Regardless of the volume of remittances, they are a source of net revenues. Because of the strong ideological component of the decades-long conflict with the United States, authorities in Cuba do not give out statistical information on annual remittances, most of which come from that country, which is home to more than one million Cuban immigrants.
Cuban economist Pedro Monreal reached the conclusion that remittances are a decisive factor in curbing the impoverishment of various sectors of the Cuban population and a major source of income for the state coffers, through indirect taxes.
But because of the characteristics of that cash flow, it has contributed to the social “stratification of consumption, the segmentation of markets, and social exclusion“.

Oil Minister Gholamhossein Nozari hailed a decision in recent months by Iran and Algeria for cutting their output by 4.2 million barrels per day, stressing that the rebound in crude prices was the result of this move.
The decision was taken in the recent meeting of Organization of Petroleum Exporting Countries (OPEC) and its impact was evident on the global oil market, Nozari told IRNA.
Meanwhile, Deputy Oil Minister Noureddin Shahnazizadeh said Iran will become self-sufficient in gasoline by 2012. Shahnazizadeh pointed out that since 2005, the ground has been prepared for producing 120 million liters of gasoline a day.
He said that in the past four years, more than three billion euros were invested for commissioning gasoline production projects and a further 2.2 billion euros have been added to the amount.
The official added that the allocation of $500 million for refining projects is a sign of the government’s resolve to expedite self-sufficiency in gasoline.
He said 9 percent have been added to the country’s gasoline production in the past four years.
The country’s gasoline production capacity rose to 45 million liters/day this year from 40 million liters/day in 2005.
He stated that once the projects for renovation of Lavan, Arak, Isfahan, Abadan and Tehran refineries come on stream, 39,500,000 liters/day will be added to the country’s daily gasoline production capacity.
Despite General Motors filing for bankruptcy, crude oil prices continued to charge to seven-month highs on Monday on optimism about demand from China.
Oil is trading around double its 2009 lows, with the price on Monday rising $1.12 to $67.43 per barrel.
China reportedly said its industrial activity was increasing in May for the third month in a row, while the country’s Purchasing Managers Index shows it has played a role in the rising demand for oil.
The US is not showing great improvements for demand, leaving China’s growth in the lead as its manufacturing demand increases.

The Sri Lankan Cabinet has approved a plan submitted by Power and Energy Minister W.D.J. Seneviratne to launch rural electrification with financial assistance from Iran.
Addressing the weekly press briefing, Media and Information Minister Anura Priyadarshana Yapa said Iran has provided $95.5 million for the promotion of rural electrification in Sri Lanka and this project would boost the rural community, Moj News Agency wrote.
“There are various areas that the government has not been able to provide electricity and this project is aimed at providing electricity to such areas,“ he said.
Yapa said Sri Lanka will join the International Renewable Energy Organization (IREO), following a submission by Power and Energy Ministry, which has been approved by the Cabinet. The minister said the country’s renewable energy sector will see tremendous development after becoming a member of IREO, which provides cutting edge technology and expertise to promote renewable energy sector in member countries.
The Cabinet also approved a memorandum submitted by Higher Education Minister Wiswa Warnapala to build an auditorium and a gymnasium at the Sri Jayawardenapura University at a cost of 535 million rupees. The construction is completely handled by the Central Engineering Bureau.

Iran has expressed interest in energy cooperation with Serbia that has announced plans to invest nine billion euros in its energy sector.
Bulgaria’s neighbor to the west, Serbia, is starting a new program involving an investment of nine billion euros in its energy sector.
The sum is supposed to be invested in the country in the next 5-6 years, Novinite.com wrote.
The planned investments are for boosting Serbia’s oil industry, two thermal power plants--Kolubara B and Nikola Tesla B3, and for the construction of a new natural gas station at Novi Sad, and potentially in New Belgrade.
“With the realization of the South Stream gas transit pipeline project, Serbia will have plenty of natural gas, and is going to construct several power plants to produce electricity. The country will have a surplus of electricity and become an electricity exporter,“ Serbia’s Energy and Mines Minister Petar Skundric said.
Skundric also said he expected serious investments as a result of Serbia’s strategic energy partnership with Italy, and that Iran, Syria, Iraq and Cuba had also expressed their interest in energy cooperation with Serbia.

The IDB approved a $180-million loan to Iran on Tuesday which will be used to finance five major development projects in the dam construction and mining sectors.

Heading a high-ranking delegation, Iran’s Minister of Economic Affairs and Finance Shamseddin Hosseini is in Ashgabat, Turkmenistan, to attend the 34th Annual Summit of Islamic Development Bank (IDB).
The Iranian delegation includes deputy ministers of economic affairs and finance, members of the parliament and top economists. During the two-day summit on June 2-3, the participants will be discussing global economic crisis, IDB activities and its financial bills and funds.
Iran is the fourth top stockholder of the IDB with a key role in its decision makings and activities.
On Tuesday, the IDB approved a $180-million loan to Iran which will be used to finance five major development projects in the dam construction and mining sectors.

Structure
Islamic Development Bank is a multilateral development financing institution located in Jeddah, Saudi Arabia. It was founded by the first conference of Finance Ministers of the Organization of the Islamic Conference (OIC), convened 18 December 1973. The bank officially began its activities in 1975. On the basis of paid-up capital, the main shareholders of the bank are Saudi Arabia, Sudan, Kuwait, Libya, Turkey, UAE, Iran, Egypt, Indonesia and Pakistan. The IDB is also a United Nations General Assembly observer.
The functions of the bank are to participate in equity capital and grant loans for productive projects and enterprises besides providing financial assistance to member countries in other forms for economic and social development. The bank tries to foster the economic development and social progress of member countries and Muslim communities in non-member countries individually as well as jointly in accordance with the principles of Islamic jurisprudence.
The bank is authorized to accept deposits and to mobilize financial resources through Sharia compatible modes. It is also charged with the responsibility of assisting in the promotion of foreign trade especially in capital goods, among member countries; providing technical assistance to member countries; and extending training facilities for personnel engaged in development activities in Muslim countries to conform to the Sharia.
Sharia compatible practices include loan, leasing, installment sale, equity participation and lines of financing. The currency of account of the bank is the Islamic dinar.
The present member states of the bank include 56 countries. The basic condition for membership is that the prospective member country should be a member of the Organization of the Islamic Conference, pay its contribution to the capital of the bank and be willing to accept such terms and conditions as may be decided upon by the IDB Board of Governors.

Private Sector Development
The IDB has given a great emphasis to development of the private sector in member countries. At the initial stage of its establishment, the IDB participated in equity of many unlisted companies in member countries with the view to boost their growth until such time they are listed at stock exchange, after which shares will be sold to the local investors. The IDB also provides line of financing to several National Development Financing Institutions in member countries.

Accession to WTO
The bank (through Cooperation Office) assists member countries in the region in facilitating their participation in inter-governmental consultation and identifies suitable consultants to advise on accession into the World Trade Organization (WTO). The bank also conducted several consultation meetings of OIC member countries and several courses on WTO which participants from the countries in the region have attended.
The IDB extends cooperation with the Organization of Islamic Conference, its organs and member countries, which are also IDB member countries. Assistance given by the IDB includes presenting a paper titled “Preparing the Ummah for the 21st Century in the Areas of Economic, Trade and Financing Cooperation Among OIC Member Countries“ at the 8th OIC Summit in Tehran in December 1997; increasing intra-trade (trade among OIC countries) from 10 percent to 13 percent within 3 years through increased level of trade financing operations; supporting seminars and training programs; establishing OIC Information System Network; and participating in the activities of the Standing Committee for Economic and Commercial Cooperation of the OIC, among others.

By Sadeq Dehqan

The value of development projects has hit $60 billion based on the latest statistics released by the Central Bank of Iran (CBI), member of Majlis Development Commission, Mohammad Ali Rezaei told Iran Daily in a telephone interview.
He referred to the government’s special attention to development of rural regions and added, “The government took a very fundamental step with implementation of the plan for renovating rural buildings. This issue was not heeded in any other period in the post-revolution era. The government has so far procured the credit for renovating 700,000 rural residential buildings. From the said number renovation operations of 500,000 units have been completed and the remaining portion is speedily being implemented.“
The official emphasized that based on the government’s plans all rural buildings should be rebuilt and renovated.
“The government has also had a very good performance in terms of building residential units in urban areas. It has actually managed to control the astronomical growth in house prices. The attention paid to the housing sector within the framework of Mehr Housing Scheme helped curb prices.“
The parliamentarian said allocation of credit to the development projects should be supervised effectively. “During its tenure, the incumbent government has implemented numerous projects in construction of residential units, dams and power plants.“
Rezaei recalled that the government has also had a good performance in finishing incomplete projects. “One of the most important incomplete projects is Bushehr Nuclear Power Plant which the government is seriously pursuing its completion.“
The rise in credit allocated to development projects, most of which pertained to incomplete projects of the previous governments, including 9,000 incomplete cases left from the Khatami period, continued during the second year of the incumbent government’s tenure.

Japanese companies are interested in Iran’s market, said head of Iran Chamber of Commerce.
Mohammad Nahavandian, who was in Tokyo to attend the joint meeting of the Iranian and Japanese chambers of commerce, said on Monday that Japanese companies are looking for new markets in Asia due to the recent economic downturn.
He said that Japan’s economy faced a 5.4-percent plunge in its gross domestic product (GDP) and its exports fell by 50 percent, as the recessions in the US and Europe have cut demand for Japanese goods, Presstv wrote.
Japan has been hit harder by the global financial crisis than other developed countries due to its heavy reliance on exports. The GDP decline in Japan is more than twice compared to that of the United States.
“Iran’s economy presents an opportunity for Japanese companies to ease their economic crises“ Nahavandian said.

A senior provincial official underlined the importance of cooperation between the country’s northern provinces, including Golestan, with Russia’s Astrakhan as a means of deepening friendly ties, especially as two Caspian Sea littoral states.
Reminding the Golestan-Astrakhan growing cooperation, deputy governor of Golestan province Abbas Niavand said bilateral cooperation would contribute to the establishment of peace and stability in the region, Fars News Agency wrote.
Commenting on political and economic relations between the two regions, Niavand said cooperation would help deepen ties and foster cooperation between public and private sectors.
Stressing capacities of the two regions for investment, and trade with the Caspian Sea littoral states, Niavand said a cooperation agreement has been inked between Golestan and Astrakhan.