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America’s Crisis: Asian Perspectives   AsiaSource Report Sections

On September 11, 2001, the twin towers of the World Trade Center in New York were destroyed and the Pentagon in Washington, DC, partially damaged by suicide attackers aboard civilian aircraft. More than 3,000 people are estimated to have died as a result of the attacks (initial figures were as high as 6,000).

American investigations immediately following the attacks led to Saudi dissident, Osama bin Laden, being identified as the mastermind behind this operation.

On October 7, the United States began air strikes against Afghanistan aimed at ousting the Taliban (who had long sheltered Mr bin Laden) , thereby creating the conditions for his capture, and the eventual dissolution of the Al-Qaida network.

The Taliban have since been overthrown and an interim government established in Kabul. Mr bin Laden remains elusive.

This Special Report provides some background to the important issues, regions and players involved in this crisis.

The Drug Trade in Central Asia

The “Golden Crescent” (Afghanistan, Pakistan, and Iran) and the former Soviet republics of Uzbekistan, Kyrgyzstan, Kazakhstan, Turkmenistan, and Tajikistan, play a central role in the global heroin trade. Access commentary, news stories, online reports, and multimedia, along with international resources and conferences and papers, in this special report.

Afghanistan: The Humanitarian Crisis

The war in Afghanistan has brought international attention to the large-scale humanitarian crisis in the country, with relief organizations estimating that at least five million Afghans will rely on aid in order to survive the harsh winter. Keep track of the Afghan relief effort with this special report.

Afghanistan’s Economic Challenges

With an interim government in place, rebuilding Afghanistan’s economy poses huge challenges for a country ravaged by war and drought. Access commentary, news sources, multimedia, and resources examining the issues and developments.

War in Afghanistan

On October 7, the United States began air strikes against Afghanistan aimed at destroying the military capability of the Taliban government. Access Commentary, News Sources and Web Special Reports in this report.

Asian Leaders and General Public Response

In Asia there has been widespread reaction to the attack on the World Trade Center and the Pentagon. Access statements from Asian leaders as well as general public response.

Who is Osama bin Laden?

Osama bin Laden, the Saudi dissident and millionaire, is presently the prime suspect in the World Trade Center and Pentagon attacks. Mr Bin Laden has been in Afghanistan since 1996, where he was welcomed by the Taliban leadership, who have since refused to extradite him despite repeated attempts by the United States. Keep abreast of developments by accessing the latest news, links, and commentary in this special report.

Who are the Taliban?

The rise to power of the Taliban (literally: students) in Afghanistan began in 1994. They now control over 90 per cent of the country. Pakistan is now the only state that recognizes the Taliban as the legitimate government of Afghanistan. Access information on how the Taliban is responding to this crisis in this special report.

Role of Pakistan

Pakistan is now the only state that recognizes the Taliban as the legitimate government of Afghanistan (both Saudi Arabia and the United Arab Emirates have severed ties in the wake of this crisis). President General Pervez Musharraf has, despite domestic constraints, agreed to cooperate with the US government. Monitor events in the region in this special report.

Hate Crimes in America

In wake of the terrorist attacks on New York and Washington, D.C. on September 11, many Americans of Middle Eastern, Central Asian and South Asian descent have become the targets of threats, harassment, racial profiling and violence, regardless of religious affiliation. Access a comprehensive collection of news stories, commentaries, links to organizations that combat hate crimes, listings of websites which track media coverage of minority groups and general resources.

Economic Repercussions in Asia

The economic effects of the September 11th terrorist attack are beginning to register throughout Asia. With Wall Street’s reopening Monday, investors fear that the US economy could plunge into a recession with stock prices falling and companies announcing more layoffs in the wake of the devastation. Now, fears of a global recession are taking shape. With Asia’s markets so closely tied to the global trading system, the recent turbulence in financial markets is cause for concern. Keep abreast of the developments by accessing the latest news developments, links, and commentary in this special report.

Islam in Asia

While Islam is commonly portrayed as a Middle Eastern religion, most of the world’s Muslims live in Asia. In this special report, we provide multimedia links, links to mosques and Muslim associations, general links, and resources in order to help further a greater understanding of Islam.

Japanese American Responses to the Treatment of Muslim Americans

Many members of the Japanese American community have spoken out against the ill treatment of Muslim Americans in the wake of the terrorist attacks. Access links to news stories covering their response.

Special Report

Asian Economies Respond to Crisis

September 18, 2001

The economic effects of the terrorist attacks on New York and the Pentagon are beginning to register throughout Asia. With Wall Street’s reopening last Monday, investors fear that the US economy could plunge into a recession with stock prices falling and companies announcing more layoffs in the wake of the devastation. Heavy losses were registered last week in Australia, Hong Kong, India, Indonesia, Malaysia, Taiwan and Thailand markets amid uncertainty before the opening of the US equities market September 17, 2001.

Many in Asia believed that the US had seen the worst of the downturn and that the economy had bottomed out. Now, fears of a global recession are taking shape. For many Asian companies, the US is the biggest export market. Singapore is already in a recession due to decreased demand for high tech exports and Taiwan suffered its most dismal trade performance to date. With Asia’s markets so closely tied to the global trading system, the recent turbulence in financial markets is also cause for concern. Central banks have injected more than $190 billion into global markets, according to the BBC.

The region’s economies have already been working with European counterparts to promote global stability. Keep abreast of the developments by accessing the latest regional news and commentary in this special report.

 

Nation traumatised

Clearly, feelings are strongest in the United States. The nation was traumatised by an act of calculated mass murder. The fact that the attack took place on its own soil also had a profound effect on the nation’s psyche.

It was an event so momentous that it seemed to shake many of the old certainties about life in America.

Much has been said about the way in which a nation’s people have come together in the face of overwhelming tragedy. Visiting the United States, you feel a sense of common purpose.

The American flag is everywhere, flying from homes and office blocks, and draped across the windows of shops and bars. Often it is accompanied by a simple message: “United We Stand”. That slogan is a conscious echo of the other great trauma of modern America.

Another surprise attack, on Pearl Harbour, propelled the United States into World War II. T

Can we add 11 September 2001, to the list of dates that changed the world? It is a judgement that will have to be left to the historians

Military might is no longer enough, it has to attack the roots of terrorism, and win hearts and minds.

The rise of religious fundamentalism is one of the greatest challenges facing the world in the 21st Century. It a threat faced not just by Western democracies but by governments of many nations in the Middle East, Africa and Asia.

The United States and its allies have to find a way of combating the fanatics who plot terror, while avoiding any perception that this is a conflict between cultures and religions.

The world may well have been changing before the attacks on the United States but the issues now appear in sharper focus.

So can we add 11 September 2001, to the list of dates that changed the world?

It is a judgement that will have to be left to the historians.

General  HeadLines

Terror fears push events insurance through the roof Straits Times (October 4)

US Budget Surplus Is Expected to Turn Into Deficits New York Times (Oct 1)

New York to issue $1bn recovery notes Financial Times (October 1, 2001)

Cool nerves at the central banks Financial Times (September 30, 2001)

Business gurus warn of US recession BBC (September 25, 2001)

Asia joins freeze on terror groups’ assets Straits Times (September 25, 2001)

Recession looming for Asian five CNN (September 25, 2001)

US consumer confidence sinks to five-year low Financial Times (September 25)

Bush declares economic war The Guardian (September 25, 2001)

IMF shrugs off recession fears BBC (September 25, 2001)

World tourism faces uncertain future BBC (September 24, 2001)

Bush freezes ‘terrorist’ assets and warns banks Financial Times (September 4)

Week of turmoil for Asian markets BBC (September 21, 2001)

Equities tumble worldwide on war fears Financial Times (September 21, 2001)

Pipeline Co Increase Security, Push for More Air Patrols Bloomberg(Sep 21)

Dow Could Log Weakest Week Since Depression Reuters (Sep 21,2001)

War Fears Fuel Global Recession Talk Reuters (September 21, 2001) Greenspan Says Foundation Solid Reuters (September 20, 2001)

Asia Markets Tank, Bush Speech Cheers US Reuters September 20, 2001)

Job Cuts Mount in Wake of Air Attacks Reuters (September 19, 2001) Corporate Warnings Erupt from NY to Tokyo Reuters (September 19, 2001) Central banks move in force to boost confidence Financial Times (Sep 18) Asia’s regional markets feel the pain ahead of US reopen FT (September 17)

Going solo

However, there are many who view India’s comparative isolation from the world economy as a saving grace in such times.

The Indian finance minister, Mr. Yashwant Sinha, told the BBC during the course of a recent interview that a large domestic market saves the country’s economy from plunging into a recession in a difficult international environment.

“Imagine our plight if exports accounted for 30% of India’s GDP instead of the present 10%.

It is in times like these that India is saved by the fact that its economy is not much integrated with the rest of the world,” he said.

Rural economy hopes

It is because of this large domestic market and the fact that India still remains a largely rural, agriculture based economy that the country’s central bank has predicted a growth rate of around 5.5% on the back of a good monsoon this year.

Already some sectors are showing signs of a tentative turnaround on the back of increased rural demand and more money in the pocket of farmers.

Two of India’s main auto makers- Bajaj Auto and Hero Honda - have posted a handsome rise in sales and profit numbers for October.

Sale of motorbikes - preferred more in rural areas both because of their rugged looks and the rough terrain in Indian countryside - have shot up by more than 40% in October.

So have the sale of colour TV sets. The colour TV market has shown a growth of 16% this year largely on the back of rural demand as people living in small towns and villages continue to discard the cheaper and old black and white TV sets.

In contrast, TV sales have grown by a much more modest 5% in urban areas.

Staying afloat

Sales numbers from consumer goods companies like Hindustan Lever, Colgate and Nestle have also continued to show a decent growth rate indicating that a good monsoon and more purchasing power in the countryside is saving the day for them.

But analysts say rural demand is only sufficient to keep the economy afloat.

For things to really look up its necessary for the services and exports sectors to do well as they provide the much needed feel good factor to any economy.

Luxury purchases

For a buoyant economy, consumers need to spend on luxury goods and not just on the essentials.

And for that to happen, the Indian earning in dollars needs to have his fund flow coming in and pushing up the sales of luxury cars and the occupancy rate of super deluxe five star hotels.

In volume terms, the money spent by these dollar-earning Indians may not be huge, but their spending has a positive spin off effect which goes a long way in boosting demand and consumer confidence.

Attack on Terrorism

President Bush was praised for building the coalition after the September 11 attacks. But following the defeat of the Taliban and the installation of Hamid Karzai’s interim government, the war against terrorism moves towards a second phase and the US position is looking increasingly unilateral.

This should have been the year that the yellow metal regained its status, It didn’t 

 New York Back to business

Overview               -               Out of calamity come plans for a stronger city

-               Politics: Bloomberg must ring in the changes

-               Conferences: Signs of faith in the future

Retail & transport -               Boom comes to an unnatural end

                -               A long road to recovery

Property                 -               Tenants wait for a new-look downtown

-               City slickers head for the suburbs

Finance   -               Wall Street: Banks scatter over Manhattan

-               Decentralised exchange the hot topic of debate

Tourism -               Stars come out for a city that never sleeps

-               Broadway makes a come-back

 

The attack on New York has emboldened the city, the tristate area and the country. Companies and the government are planning an aggressive redevelopment of the affected areas and are working hard to rebuild confidence. The financial district, seriously damaged in September, is already undergoing a renewal as companies are determined not to allow the attack to undermine their role at the heart of the world’s leading financial centre. New York is also pushing hard to rebuild its tourism and conference businesses, while retailers are anticipating that the seasonal shoppers will soon return to the streets. Meanwhile, the city is in the middle of a mayoral election that has heightened debate about development plans for the region.

 

SURVEY - NEW YORK: Stars come out for a city thhat never sleeps

Financial Times; Nov 27, 2001

By LISA FINGERET

TOURISM by Lisa Fingeret

Stars come out for a city that never sleeps

New York is now harnessing its marketing muscle in a way itnever had to in a desperate bid to bring back foreign visitors ‘New York is alive and well and open for business.’ Those were some of Mike Bloomberg’s first words as mayor-elect of New York City in early November, but they may as well be painted on the New York skyline.

For the past 10 weeks, civic and hospitality leaders have been working to bring visitors - and their money - back to the city that never sleeps. In the first six weeks after the terrrorist attacks, New York City lost Dollars 325m in tourism spending, an industry worth Dollars 25bn to the city last year. But the task of reinvigorating New York’s tourism industry may be easier said than done.

‘The biggest challenge is the perception of New York City looking like ground zero,’ said Cristyne Nicholas, president and CEO of NYC & Company, the city’s official tourism organisation.

To overcome images of ash and rubble, Ms Nicholas has been working with other tourism bureaux, travelling abroad and recruiting stars such as Cindy Crawford and Regis Philbin to declare their love for the city, all to emphasise that this is still the city Frank Sinatra crooned over and that hotel rooms can be had for a fraction of their normal cost. And she is doing this with a budget of Dollars 12m.

Though it is one of the nation’s biggest visitor attractions, New York’s tourism budget is a pittance compared with those of its competitors. Last year, Las Vegas’s budget of Dollars 150m dwarfed those of all other US cities, but New York did not even rank in the top 10. Budgets for Reno, Nevada, Los Angeles and Orlando were each more that double the Big Apple’s budget.

‘Everybody says - ‘Oh, New York doesn’t need anything’. That doesn’t make sense to me,’ says Alan Stillman, chairman and CEO of Smith & Wollensky Restaurant Group, which owns seven restaurants in New York and others nationwide. ‘I’m from the school of saying ‘If you’ve got it, flaunt it’. And New York City has it. So why not just tell people? You have to convince the voting public that spending some money on tourism and hospitality is not penny-wise and pound-foolish but it’s pound wise. It’s going to bring in huge, huge money.’

NYC & Company, which is made up of 1,300 businesses, on November 5 launched ‘Paint the Town Red, White & Blue’, a program that offers New York at a discount in a variety of ways, such as overnight packages that include a Broadway show and a donation to the Twin Towers Fund for as low as Dollars 157 a night and Twofor-Tuesdays, in which NYC residents get ‘2 for-1’ admission to some museums, tours and other attractions when accompanied by a visitor.

‘The demand generators, the reasons that people came to New York on September 10, are exactly the same as they are going forward after September 12,’ said Jonathan Tisch, chairman and CEO of Loews Hotels and chairman of the Travel Business Roundtable, a national travel and tourism organisation.

‘The museums are in place, the restaurants, the hotels, the cultural attractions, Broadway, the whole infrastructure of New York is very much here. What we need are the dollars to promote ourselves across the country and internationally...We need marketing dollars, not capital dollars.’

Now, it seems, tourists are slowly coming back to the city. Hotel occupancy, which plunged from 91 per cent on September 10 to 35 per cent on September 14, is now hovering near 80 per cent, Ms Nicholas said.

In October, Restaurant Week, in which upscale eateries offer prix fixe menus, was extended for a week to boost business, with some venues continuing the deals in November.

The promotion helped ‘beyond imagination’, Mr Stillman said. ‘We’ve actually got New York City and the people in the suburbs turned around to feel that it’s comfortable again going out in New York.’

But there is a dark side to even this silver lining. ‘Even though you’ve got people coming to the hotels, occupancies are getting a bit better, our profitability is still suffering because people are spending a lot less, we’ve cut rates and, for the most part, businesses are not entertaining like they used to,’ Mr Tisch said.

PKF Consulting of New York estimates that 2002 hotel occupancy will be at about 68.5 per cent, compared with a pre-attack forecast of 78 per cent. PKF estimates an average room will cost Dollars 182 in 2002, compared with a pre-attack estimate of Dollars 225.

A large part of New York’s post-September 11 visitors have come from within driving range and spend considerably less than the long-distance traveller. International visitors spend almost 40 per cent more than domestic visitors, not including retail purchases, according to statistics from the New York City Partnership, a local business group. International visitors comprised 18 per cent of the city’s 37.4m visitors in 2000.

‘The international visitor spends six times on retail what the domestic traveller spends,’ Mr Tisch said.

Legislation passed by Congress in mid-November to put baggage screeners on the federal payroll could boost tourism by reassuring travellers it is safe to fly. No doubt industry leaders in New York and worldwide hope it does just that.

Technology, media and telecoms

A year of abstinence many would like to forget

 Like New Year’s Eve revellers, many technology users began 2001 with a thumping hangover. Computer departments in companies had overdosed on investments in software, personal computers, handhelds and internet strategising

A topsy-turvy year for the media industry

 2001 has been a topsy-turvy year for the media industry. Although the year ended on a sour note with a string of layoffs, profit warnings and a dramatic slide in global advertising revenues, it started very differently.

ober climate of goodwill write-down

Just as 2000 had been the year of the dotcom collapse, 2001 was the year when the telecommunications industry began to realise it had been running on empty. In the US, the year began on a high note but in Europe, a wave of scepticism about new wireless technology was already growing’

 

Following that crisis, dozens of American magazines featured the Stars and Stripes on their front covers. The campaign was called “United We Stand”. Sixty years on, the message and the images have been rediscovered.

Fact Sheet: On Expanded U.S.-India Cooperation

(Military, economic, strategic, nuclear, space, counter-terrorism)

(240)

Following is a fact sheet on U.S-Indian cooperation issued in Washington November 9:

* Prepared to approve a minimum of $800K in peacekeeping assistance.

* Anti-terrorism and interdiction assistance will be enhanced. • Joint Cyber-Terrorism Initiative agreed upon.

* President Bush and Prime Minister Vajpayee discussed Afghanistan and acknowledged an active role for India in consultations on the political and economic future of Afghanistan.

* Establish a “New Strategic Framework Dialogue.”

* Expand cooperation on export controls, including provision of additional training programs and equipment.

* Discuss means to stimulate bilateral high technology commerce between the two countries.  Economic Dialogue

* Hail the Economic Dialogue as broad-based, public and private sector interaction and cooperation in the areas of trade, finance, commerce, energy and the environment.

(Distributed by the Office of International Information Programs, U.S.

 

 

 

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