The New Nation - Internet Edition

Jewellery shop looted at city market: Armed dacoits decamp with ornaments worth Tk 1.50cr

Police personnel visiting the spot as a daring
dacoity was committed in broad-day light at a jewellery shop
at Shah Ali Shopping Complex at Mirpur in the city on
Tuesday. NN photo

Staff Reporter

A sensational robbery was committed at a jewellery shop at Shah Ali Shopping Complex in the city’s Mirpur area in broad-daylight yesterday.

Police and witnesses said a gang of robbers being equipped with arms entered Dewan Jewellers on the first floor of the market at about 2:20pm and looted cash and 750 bhories of gold ornaments worth over Tk 1.5 crore from the shop at gunpoint.

Police said seven to eight robbers, in the guise of customers, entered the two shops of Dewan Jewellers when the employees were having lunch.

The gangsters then looted the gold ornaments and the money after keeping the employees hostage at gunpoint and left the shops with the looted ornaments and cash.

Dewan, owner of the shops said, “A few days ago some terrorists demanded Tk 20 lakh from him over mobile phone. Later, I filed a general diary with Shah Ali Police Station in this connection. But the police and RAB did not take any action against them”.

Following the yesterday’s incident, Dewan lodged a case with Mirpur police station in this connection.

Meanwhile, the president of Shah Ali Shopping Complex demanded to ensure safety and security of their lives and businesses. He also demanded immediate arrest of the robbers.

Besides, in protest of yesterday’s robbery, all the shop owners and employees of the market kept their shops closed and brought out a procession.

Mohiuddin Mahmud, officer-in-charge of Mirpur police station told The New Nation yesterday evening that several teams of police had launched drives to arrest the culprits.

Deputy Police Commissioner of the Mirpur Zone Anwar Hossain told The New Nation that they had already launched an investigation into the robbery examining the mobile phone call list of the owner of the shop.

“We expect to nab the criminals within a very shot time,” he further said.

Commentary: To start with restore the construction sector to boost economy

As the International Monetary Fund (IMF) on Monday expressed concern at the soaring inflation in Bangladesh and prescribed some measures to tame it, the Bangladesh Bank Governor refused to yield to the 'pressure' saying, the central bank itself will formulate its monetary policy considering the overall situation in the country.

"We told them that we would make a policy on our own to face the challenge of inflation," the Governor said. He declared the central bank's stance against "contractionary" monetary policy as a strategy to maintain macroeconomic stability as well as growth.

One wishes the central bank governor success in delivering what he promises. Since the budget for the current year is about 30 per cent dependent on borrowing - both domestic and foreign - the demand for fund from the banks has far exceeded their ability to generate deposits. Because of this the weighted average interest on deposits has gone up to as high as 12 per cent. If the banks uphold the central bank’s guidelines to keep the interest rate spread restricted to five per cent then the lending rate comes to 17 per cent which is exorbitant for investors.

Inflation coupled with high interest rates on loans is a great disincentive to investment that is not coming even to the once booming construction sector. People are also unwilling to bring their money to the open by making investment for which they might be answerable. As business confidence is yet to come back to normal, activities even in this sector would take time to normalise, say people involved.

The housing sector used to contribute about 12 per cent to the gross domestic product (GDP) about a couple of years ago and had the potential to increase its contribution to about 25 per cent of the GDP. The national economy could also benefit immensely because the construction sector involves the production and use of as many as 200 items through backward linkage, say housing experts. Performance of the sector is now at its lowest level, say real estate developers.

Backward linkage industries and businesses that developed with the construction sector over the years include: rod and steel, cement, paint and colour, glass, tiles and ceramic, furniture, kichen accessories, sanitary -ware, electric cables and appliances, architecture, construction firms, interior design firms, security services and the like.

Due to price hike of commodities the price of rod, the key raw material in construction works, has almost doubled. Similarly, the prices of cement, bricks and other raw materials have also gone up putting a brake on the growth of the sector. Against this backdrop, some irresponsible utterances like, 'none can say when prices will come down’ are only encouragements for people to ask for even higher prices.

When talking about creating jobs as a first step, efforts should be made to revive the construction sector that involves the use of as many as 200 items. Such efforts would help salvage many linkage industries and this would also increase the overall performance of the economy. Other steps must also be taken, so that people have money in their pockets to deal with family financial crisis. No bookish knowledge is any good when general public cannot meet daily requirements to survive. The people also do not see tightening of belts by persons in the government. They have no difficulty in enjoying good life with people’s money. They face no difficulty in raising the income. As people’s government people’s hardship must be taken seriously. So, we suggest to do everything to allow the construction sector to be active by creating jobs for the poor and the unemployed ones.

Launch mishaps claim 5000 lives in 36 years: BIWTA blamed for turning water routes into death trap

Staff Reporter

Unbridled corruption and mismanagement of Bangladesh Inland Water Transport Authority (BIWTA) has turned water routes into death trap for people, alleged Safe Water Way Implementation Movement at a press conference held at the National Press Club yesterday.

More than 5,000 people had died in 529 launch accidents in the last 36 years in the coastal areas of the country, according to a report of the government.

Addressing the press conference Aminur Rasul Babul, Secretary of National Committee of Safe Water Way Movement, held faulty design of launch, loading of excessive passengers and goods, defiance of weather forecast by the launch crew, temptation of earning huge profit and corruption and mismanagement of BIWTA mainly responsible for the launch mishaps.

Though there are rules for examining and surveying each launch annually, fitness of only 2423 launches out of 7,873 water vehicles was examined recently, he noted.

He further alleged that most of launches were plying on different water routes without fitness certificate under shady deal between the BIWTA officials and launch owners.

He called upon the Government to announce the July 8 as 'Safe Water Way Implementation Day'.

Aminur demanded investigation of the irregularity, corruption and mismanagement of BIWTA and harassment of travellers.

He called for providing life jacket to all launch passengers and development of launch terminals.

He also pleaded for establishing launch terminal under BIWTA at important places, allocating Taka five hundred crore to the water transport sector in Budget, installing radio communication system and airing forecast weather report regularly.

Among others, Rafiqul Alam, Shadat Islam Chowdhury, Monir Ahmed Shuvro, Azizul Islam Bachhu, Sharmin Daizy, Shah Jamal Dulal and Foyez Ahmed attended the press conference.

Uptrend in soybean price: Market monitoring needed

Talha Bin Habib

The prices of all varieties of soybean oil maintained a high trend in the kitchen markets of the city yesterday.

Retailers said the prices of those commodities have increased due to short supply from the wholesalers and some brand companies.

But customers alleged that a section of dishonest sellers were charging high prices despite its availability in abundance in the markets.

They said some unscrupulous traders might stock it to make windfall profits.

They called upon the government for proper market monitoring and strong surveillance by the law enforcing agencies for containing the prices of soybean oil.

Retailers said they had to purchase soybean and palm at high prices from the wholesalers.

Insufficient and untimely deliveries of soybean and palm have made the prices high, said retailers at Karwan Bazar yesterday.

Soybean wholesalers at the Moulvi Bazar said they were not getting sufficient quantity of soybean and palm oil from the mills. Crisis of soybean in the markets had caused price hike, they claimed. "Irregular delivery and price hikes in the international market especially in Malaysia and the USA are responsible for high price," said one of the influential traders of Bangladesh Wholesale Edible Oil Association.

Wholesale price of per maund of soybean oil was sold at Tk 4350 to Tk 4400, super soybean between Tk 3900 and Tk 3950 and palm oil at Tk 3800 to Tk 3850 yesterday.

For the last one-year the prices of soybean and palm oil have increased at 67.61 and 53.62 per cent respectively, said persons associated with the trade.

Retailers at Shantinagar bazaar said they were not getting required quantity of soybean oil from the wholesalers for the last couple of days.

We are not getting regular supply of five litre of different brands of canned soybean oil from the distributors appointed by the oil companies, said Abul Jabbar, a retailer at Malibagh Bazar yesterday.

"For the last two weeks some companies have stopped supply of these items to the retailers", he said and apprehended that the prices might jump up further.

3 muggers lynched Looted money, arms recovered

Chittagong Correspondent

Three snatchers were lynched and five of their accomplices suffered public assault after an aborted snatching bid at North Kattuli near Alangkar crossing yesterday afternoon.

Police and eye accounts said that the incident lynching took place at about 1:30 p.m. when an eight-member group of armed snatchers came under public chase and subsequent physical assault.

The snatchers had been escaping the scene after looting Taka 290 thousand in cash from a trader - Mohammad Salah Uddin - who came out of Pahartali Branch of Islami Bank at that time.

The robbed trader chased the snatchers on board three auto-rickshaws and finally caught them after running nearly three kilometers. The villagers and passers-by in their joint efforts recovered some of the looted money and some firearms from the culprits.Officer-in-Charge of Pahartali Police Station Masudul Alam claimed that Taka 106 thousand and three light guns including two rounds of ammunition had been recovered from the possession of the detainees.

The snatchers at this stage underwent merciless beating of the frenzied locals and three of the eight died on the spot. Police, later, rescued five snatchers in a critical condition and took them to Chittagong Medical College Hospital.

Three of the five wounded snatchers were able to talk to the security people after necessary treatment at the hospital, Sub-Inspector Ohidul Islam told the reporters. Two snatchers had been out of sense till the time of dispatching this report.

Identity of the dead snatchers could not be known immediately while the others were Din Mohammad (30) son of Abdul Hamid of Kulgaon under Baizid Police station, Mintu (27), son of Amzad Hossain of village Balugara in Nagoan, Mohammad Uzzal Sheikh (28), son of Liaquat Ali of village Narail, Suman Nath (23), son of Debendra Nath of village South Rangamatia in Fatikchhari and Mohammad Sharif (26) son of Safiul Alam of village Charfakira in Hatia island.

Bodies of the lynched snatchers have been sent to Chittagong Medical College Hospital morgue for autopsy.

Pahartali police recorded three cases in connection with the incidents. Three of the detainees had been undergoing police interrogation.

CA for D-8 flood found to ease crisis

BSS, Kuala Lumpur

Chief Adviser Dr Fakhruddin Ahmed on Tuesday made a clarion call to create a 'D-8 Food Fund' for enhancing collective food security, against the backdrop of the current global food crisis.

The Chief Adviser made this call to 'seriously consider' this matter while making his statement at the D-8 Summit held at the Conference Centre of Hotel Hilton here.

D-8 Chairperson and Malaysian Prime Minister Abdullah Ahmad Badawi gave the address of welcome and chaired the session attended by the heads of government of the Developing 8 large Muslim countries including Chief Adviser Dr Fakhruddin Ahmed.

Dr Fakhruddin's statement was highly appreciated by the D-8 leaders that covered important current global issues like price hike, climate change, energy crisis, tariff liberalisation, migration for development, tourism, people-to-people contact, and simplification of visa procedure.

The Chief Adviser reiterated Bangladesh's unflinching commitment to the principles and objectives of D-8 in promoting equitable development.

Bangladesh is confident that D-8 would reach a new trajectory of meaningful cooperation in the second decade of its existence, he hoped.

The Chief Adviser expressed gratitude to Malaysian Prime Minister Badawi and his government for hosting the Summit at this critical juncture and for showing warm welcome and gracious hospitality.

He also conveyed deepest appreciation to D-8 Secretary General Dipo Alam and his staff for advancing forward the forum despite limited resources and myriad challenges.

Referring to unprecedented price hike of food-grains globally, Dr Fakhruddin said, "It is disproportionately affecting the poor in many countries. We need to develop mechanisms, not only to address short-term supply-side shocks but also strengthen cooperation to increase agricultural productivity."

This is a must to prevent hunger and malnutrition-one of the key priorities of the Millennium Development Goals (MDGs), he added.

The Chief Adviser said, Bangladesh-as the current Chair of the LDCs-urged the UN Secretary General to form a high-level Task Force to address the current food crisis. It is heartening that the Secretary General has accepted Bangladesh's proposal and taken prompt action.

Pointing to the on-going world-wide energy crisis, Dr Fakhruddin said, the ever-rising price of bio-fuel make it an imperative that D-8 enhances its cooperation in the field of energy.

"We should collectively explore and implement capacity building programmes to ensure energy security of the member-states," he said and added among the D-8 members, we should be able to establish innovative financing mechanisms to ensure a steady supply of reliable and affordable energy.

Dr Fakhruddin said, D-8 should also strengthen its focus on renewable energy. Achieving energy security is a must if we are to realise our development potentials.

Referring to assuming of office by the Caretaker Government in Bangladesh, Dr Fakhruddin said it took the responsibility in January 2007 against the backdrop of a looming political crisis.

"Following our pledge and the roadmap, we are now at the final phase of political reforms to make our democracy meaningful and sustainable for our people," he added.

He said, the Caretaker Government has taken significant measures to eradicate corruption, promote the rights of our people, establish rule of law, improve law and order situation and make the Government, especially the judiciary, more effective and accountable.

The government is working relentlessly and uncompromisingly to achieve these goals of good governance, he said and added that these reforms are irreversible, the Caretaker Government has already started dialogue with political parties to forge a national consensus for good governance.

"Bangladesh's experience, we believe, can serve as an example for many developing countries who face the challenges of democracy and governance," he added.

Pointing that D-8 has prioritised trade as a thrust sector for growth, Dr Fakhruddin said, the current volume of D-8 intra- trade is, however, still very small-roughly US dollar 49 billion. It is only about 9 percent of the world trade.

"The relentless efforts of our High Level Trade Officials have already brought some tangible results. I am confident that full implementation of the Preferential Trade Agreement (PTA) provisions will significantly boost the volume of our trade," he told the summit.

Our model of economic cooperation must, however, strike a balance between equity and efficiency, he said adding, this will set us apart from other economic cooperation frameworks. We must ensure equitable distribution of benefits and opportunities among the member-countries, taking into account the differences in our national circumstances.

The full "Recognition of needs of the Least Developed Contracting members" of D-8, as envisaged under Article-3(b) of the PTA, should be upheld in all contexts, the Chief Adviser hammered.

Tariff liberalisation, Dr Fakhruddin said, is only one aspect of the challenge. Our trade often faces significant difficulties due to lack of harmonisation in measurement, standards and testing quality. We must make comparable and consistent efforts to reduce these non- tariff and para-tariff barriers to optimise our trade potentials.

He cited the Customs Agreement, signed by all D-8 countries, as a good step forward and said, we must take the necessary next step to operationalise this agreement without further delay.

While making steady progress in forging a Preferential Trade Agreement, the Chief Adviser said, "We should, at the same time, aim at creating a D-8 Free Trade Area. It is encouraging that four members of D-8 have already concluded bilateral Free Trade Agreements."

This trend should continue to include all others. While the Doha Development Round continues to elude us, we must re-double our efforts to make trade an engine of growth, he added.

He emphasised the need for working together so that the developed countries remove their tariff and non-tariff barriers against our agricultural and textiles exports. "D-8 countries should enhance cooperation to reverse climate change and global warming", the Chief Adviser said and added keeping in mind that many LDCs and low-lying coastal states will be the worst victims of a climatic catastrophe.

Dr Fakhruddin said, D-8 members should cooperate in regional and multilateral forums to uphold the sacrosanct principle of "common but differentiated responsibility".

"Cooperation amongst us is a must to ensure that the developed countries make unilateral, meaningful and unconditional commitments to reduce their greenhouse gas emissions," he argued.

Dr Fakhruddin said, D-8 should actively pursue sustainable development with special emphasis on adaptation and technology transfers. The developed countries should provide us with adequate additional resources to address climate change adaptation needs in addition to regular Overseas Development Assistance.

He said, Bangladesh stands ready to offer its own experiences in adaptation techniques and practices.

In his speech, Dr Fakhruddin said, we should recognize the full potential of international migration to foster development.

"Migration, through remittances and transfer of knowledge, has proved to be a strong antidote for poverty. Opportunities for legal migration, however, remain limited because of various restrictive policies and practices in many destination countries" he added.

Dr Fakhruddin said, we should take concrete measures, and go beyond the visa agreement, to facilitate the movement of natural persons among the D-8 member-countries.

D-8 should also take a common position on liberalisation of Mode IV services to ease the movement of labour to the developed economies, he added.

He said, the Global Forum on Migration and Development offers a new platform to deliberate on these issues and we should work together in the Forum to make migration a development priority.

Since its inception in 1997, Dr Fakhruddin said, D-8 countries have crossed significant milestones in forging closer cooperation among our nations.

This Summit offers an opportunity to take stock of the achievements and assess the challenges that the Group faces today. This also provides us the momentum to formulate a plan of action for the second decade of D-8, he added.

"The venue of this Summit gives our Group the right perspective to prioritise our objectives. The Developing-8 should be able to replicate the success of Malaysia, individually and collectively" he added.

Dr Fakhruddin said, D-8 was established to promote economic and trade cooperation among member countries. Its goal is to create new trade opportunities, promote linkages, enhance leverage in multilateral decision-making process and, most importantly, attain better standards of living for people.

Against these targets, he said, "we must measure our success at the same time, identify the hurdles. Let us renew our resolve and devote additional resources to attain our cherished goals".

Referring to importance of enhancing people-to-people contact, Dr Fakhruddin said, the D-8 Agreement on Simplification of Visa Procedures for businessmen and the MOU on Air Services Cooperation are two landmarks in connecting the minds and hearts of our peoples.

"But agreement must translate into action. And this must happen soon. I am glad to inform you that Bangladesh has just ratified the D-8 Visa Agreement, which will greatly facilitate business travels to Bangladesh from other D-8 countries," he added.

The establishment of D-8 Business Forum is surely one of our remarkable achievements and will provide a useful platform for cross-fertilisation of ideas, innovation and investment, he said and hoped that the Business Forum would take up realistic projects and joint ventures to foster meaningful cooperation among the D-8 countries.

Investment cost in Bangladesh increases nominally: JETRO

Staff Reporter

Japan External Trade Organization (JETRO) identified that cost of investment in Bangladesh increased nominally last year.

A survey conducted by JETRO found that all the cost-components have switched to 2.45 from 2.44 of 17th survey of last year.

JETRO conducted the 18th survey during January this year like the previous one based on 32 cost-components gathered from 30 countries through questionnaire using its overseas office.

The cost-components include wages, plot of industrial estate, office space, telecommunication both land and mobile, internet connectivity, utilities covering electricity, water and gas, container transportation, energy covering gasoline an diesel and tax covering personal, corporate, Vat, interest and dividend remitted to Japan.

During the survey period it was found that the maximum corporate tax for non-listed companies in Bangladesh was 40 per cent highest among all the participating 30 countries. JETRO said introducing 2008-09 budget the government has reduced corporate tax to 37.5 per cent which will help to competitive edge to some extent.

However, it said, Bangladesh is still holding the second highest position in terms of this particular cost component of investment among the Asian nations who are also welcoming foreign investment.

"For coveted Foreign Direct Investment (FDI), Bangladesh ought to monitor closely the change of cost-components in other countries and has to carry on its endeavour to realise greater competitive edge by adjusting to cost," it said.

"To be more competitive, immediate attention should be given to the cost components that still remain less competitive to various extent especially container transportation, land price of industrial estate, initial internet connection fee, monthly basic internet connection fee, telephone installation fee, mobile phone subscription fee and corporate income tax."

The survey found that Bangladesh is the most expensive country in case of container transportation from Chittagong Port to Yokohama Port.

It said it is also necessary for Bangladesh to address and eliminate the impediments that are responsible for cost of investment.

For attracting coveted FDI Bangladesh needs to take necessary measures to listen to the opinions of existing investors and assess their level of satisfaction. Many countries used to conduct survey among the foreign investors with the objective to assess accurately the degree of their satisfaction and then try to undertake the possible measures on the basis of the outcome of the assessment.

"Government has to ensure proper care of the existing foreign investors to attract more investment."

The survey said, "Without having any exception from their views of last year, existing Japanese investors feel that hidden costs still remain one of the key elements for the escalation of cost of investment which is making Bangladesh less attractive to both existing and prospective Japanese investors."

"Comprehensive one stop service, poor law and order situation, delay in the settlement of L/C payment, sudden changes in government policies, inadequate infrastructure facilities, unethical business practices, delay in paper processing and political instabilities need urgent attention and continuous monitoring from the government to reduce the hidden cost," JETRO said.

JETRO urged for a more crystal clear government policies in case of attracting more foreign investment. "If the interpretation of the policies contradicts the practice in reality, there is a high probability to lose prospective investors," it added.

It said, the separate presence of each investment agencies without unified government strategy is making the Japanese investors confused to a great extent.

G-8 aims to halve gas emissions

Group of Eight (G-8) leaders pose for a photograph
at Japan's traditional star festival as part of a social
event at the Windsor Hotel Toya in Toyako northern, Japan on
Monday. From left: Italian Prime Minister Silvio Berlusconi,
Russian President Dmitry

AP, Rusutsu

World leaders on Tuesday endorsed halving world emissions of greenhouse gases by 2050, edging forward in the battle against global warming but stopping short of tough, nearer-term targets.

The Group of Eight leading industrial nations - the United States, Japan, Russia, Germany, France, Britain, Canada and Italy - also called on all major economies to join together to stem the potentially dangerous rise in world temperatures.

"This global challenge can only be met by a global response, in particular, by the contributions from all major economies," the G-8 said in a joint, five-page communique. The G-8 last year at a summit in Germany pledged to consider the 2050 target, and this year's Japanese hosts had hoped to solidify that commitment at the meeting in Toyako, northern Japan.The G-8 has been under pressure to secure commitments by wealthy nations to push forward stalled U.N.-led talks on forging a new accord to battle global warming by the end of next year. The new accord would succeed the troubled Kyoto Protocol when its first phase expires in 2012.The United States hailed the agreement as substantial progress, and a top European Union official called it a "new, shared vision" by wealthy nations on climate.

The leaders of major developing countries such as China, India, Mexico, Brazil and South Africa said they expect the G-8 to take the lead and provide more aid to the developing world to help it cope with climate change.

The leaders, including Chinese President Hu Jintao and Indian Prime Minister Manmohan Singh, said the industrial nations must lead because they have the economic strength to adopt sweeping changes.

They called on the G-8 countries to reduce their greenhouse gas emissions by up to 45 percent by 2012, compared with their 1990 levels, and by up to 95 percent by 2050.

Tuesday's statement, however, addressed total world emissions rather than just those produced by wealthy countries, and critics attacked it for failing to go much beyond the G-8 statement last year. The communique also did not set a base year from which emissions would be cut.

"It falls dangerously short of what is needed to protect people and nature from climate change," said Kim Carstensen, director of the World Wildlife Fund's Global Climate Initiative.

Environmentalists have argued that the 50 percent reduction target is insufficient, and have clamored for ambitious targets for countries to cut emissions by 2020. Japan itself has set a national target for cutting emissions by between 60 percent and 80 percent by 2050, but has not set a midterm goal.

"To be meaningful and credible, a long term goal must have a base year, it must be underpinned by ambitious midterm targets and actions," said Marthinus van Schalkwyk, South African Minister of Environmental Affairs and Tourism. "As it is expressed in the G8 statement, the long term goal is an empty slogan."

Shorter-term targets have been much more difficult to reach consensus on, since they would require nations to act more quickly. The United States, for instance, has argued that meeting a Europe-supported goal of reducing emissions by between 25 and 40 percent by 2020 is unrealistic.

In a nod to such disagreements, Japanese Prime Minister Yasuo Fukuda - the summit host - said the G-8 countries would set individual targets, and he did not mention a range. The statement also said that the issue would be discussed in talks on Monday among the 17-member Major Economies Meeting, a U.S.-led group working on climate change.

"The G-8 will implement aggressive midterm total emission reduction targets on a country-by-country basis," he said.

The White House quickly hailed the agreement and said it was a validation of Bush's global warming policy.

The G-8 acknowledged that it alone cannot effectively address climate change - that contributions from all major economies are required - a position Bush has argued repeatedly, said Dan Price, the president's deputy national security adviser for international economic affairs.

The agreement also urged nations to set high goals for energy efficiency, promote clean energy and technologies and mobilize financing to help poor nations cut their own emissions and grapple with the effects of warming.

Scientists say urgent action is needed to make greenhouse gas emissions fall after peaking within the next 15 years, to limit the increase in global temperatures to under 3.6 degrees Fahrenheit. Temperatures beyond that could trigger the worst effects of warming, such as melting ice sheets and extreme weather.

The U.N.-led climate talks have been plagued by divisions. Quickly developing nations have urged wealthy countries to take the first, toughest steps. The United States, Japan and others, meanwhile, say they want to hear what up-and-coming economies like China are willing to do.

European Commission President Jose Manuel Barroso said the agreement constituted a "new, shared vision by the major economies" that would support the U.N.-led effort on a new global warming accord.

"This is a strong signal to citizens around the world," he said in a statement, calling for a renewed push behind the U.N. talks, which aim to conclude a new pact at a meeting in Copenhagen, Denmark, in December 2009.

German Chancellor Angela Merkel called the agreement a "major step forward" from the climate deal reached in Germany.

G-8 concerned over soaring oil, food prices

AP, Rusutsu

Leaders from the Group of Eight industrialized powers are deeply concerned about rising oil and food prices but remain positive about the outlook for the global economy, they said in a communique released Tuesday.

Saying that surging oil prices pose a risk to the world economy, the G-8 leaders urged that production increase in the short term and refining capacities be increased and that investment be boosted over a longer period.

They also called for further efforts in improving energy efficiency and diversifying energy sources.

"We express our strong concern about elevated commodity prices, especially of oil and food, since they pose a serious challenge to stable growth worldwide, have serious implications for the most vulnerable, and increase global inflationary pressure," the communique said.