May 14 07:03 AFP

The United States and Finland have the most competitive economies in the world, according to the 2003 World Competitiveness Yearbook released by the Swiss business school IMD on Wednesday.

Both countries topped the new split annual rankings of national business and economic efficiency despite restructuring affecting their traditional strengths, the information technology and finance industries, IMD said in its report.

The IMD's ranking has been split into two for the first time, separating economies with over 20 million inhabitants from smaller countries.

The competitiveness ranking of large economies places the United States ahead of Australia, Canada, Malaysia, Germany and Taiwan respectively.

Finland, Singapore, Denmark, Hong Kong, Switzerland and Luxembourg head the list of 29 smaller economies.

Australia, Malaysia, Singapore and Hong Kong improved their efficiency over the past year, but the SARS outbreak was expected to have "dire consequences" for Asian competiveness in next year's ranking, IMD warned.

The United States maintained its top slot thanks to interest rate cuts and consumer spending.

But report also warned that the US current account deficit, its expected budget deficit and the Bush administration's proposed tax cuts could increase foreign debt and lead to a further weakening of the dollar in 2003. advertisement advertisement

"As a consequence, it will be harder for developing nations to raise capital because the US economy would drain most of the world's financial resources," competitiveness director Stephane Garelli of IMD said.

"Two time bombs are ticking," he added, warning that global corporate debt was at an all-time high and pension funds were losing 2.8 trillion dollars worth of assets and were in need of "significant refinancing by enterprises and states".

Major European economies are battling with deficits, overregulation and government reform, with Germany (5th), Britain (7th) and France (8th) afflicted by structural problems weighing on their competitiveness, IMD said.

"Some fresh air could come from the next wave of EU member states which show solid economic growth," Mr Garelli said.

Latin America is in need of "stability and predictability" following economic collapse in Argentina and Venezuela, according to Mr Garelli.

However, he praised recently-elected Brazilian president Luiz Inacio Lula da Silva for bringing "a very pragmatic administration".

Eight regions have also been integrated into the rankings, which assess various criteria for business efficiency, government efficiency and regulation, infrastructure and economic performance.

Sao Paulo state in 13th position of the large economies is rated as more competitive than its home country Brazil (21st), and Zhejiang province on China in 14th place ranks just below mainland China (12th).

The Ile de France region, including Paris, is the most competitive European region among the smaller economies (15th).

IMD reveals that only four of the 59 countries and regions in its annual ranking of business and economic efficiency saw their Gross Domestic Product (GDP) shrink in 2003.

"The good news is that the world economy is not in recession. The bad news is that no one realises it," Mr Garelli commented.

NewsMax.comTiana Perez Tuesday May 13, 2003

Less than three months away from the date of the referendum that would question Chávez’ term, neither the date, nor the organizing body have yet been confirmed. We don’t even know who the candidates might be in the case of reelection.

While the opposition tried to launch a constitutional debate on the subject, the government assures that a president withdrawn by referendum can become president again unless the option is expressly denied within the constitution.

The Venezuelan President is counting on being one of the candidates for reelection thirty days after the binding referendum is held and has started to reorganize the party that he founded, MVR (Movement of the Fifth Republic).

Different streams seem to be present within the party, a body famous for its utter disorganization and lack of political direction. The Left has abandoned Chávez, but it is not sure whether it still waves the flag of the Fifth Republic.

In any case, Chávez is borrowing communist techniques to ensure that even if not communist, the party will be the state, and the state shall be the party, and everyone will work toward the revolution.

The President said that the party, which has not yet had internal elections since its founding, was not fit for a presidential reelection process. He will try to put order within the party lines, which should be represented by “Patriotic Circles,” the basis of the party and the revolution.

Chávez, who has appointed most if not all of the members of MVR, complains about these “Patriotic Circles” having ended up mixed up with “Bolivarian Circles”. The “Bolivarian Circles” were meant to draw members from the peoples on the street, the neighbors, the workers but it all got a bit fuzzy last April 2002 when civil servants, and other revolutionaries were filmed shooting on protesters organized by major of Caracas and ex-policeman Freddy Bernal.

Freddy Bernal is a strong supporter of Chávez, maybe not so much as before but he has publicly declared that the streets of Caracas are dirty because 80% of his time is devoted to the revolution.

The “Patriotic Circles” will soon elect a “Patriotic Council”, which in representation of the different states of Venezuela will elect a “Strategic National Commando”. The Commando, composed of 60 members and 40 substitutes will finally be able to choose members of the “National Tactic Commando,” the very organization that will elect three members of a 9 member board, where Chávez, who will be the President, will designate the remaining six members.

The belief that the referendum will be postponed is not unjustified considering the work ahead of the MVR. Congress is also struggling with the appointment of a five-member board that will be in charge of coordinating the coming elections. An ad hoc committee has been appointed after about two months of reviewing resumes to select the last round of electoral officials by May 15th. If this comes true, Congress would not need to grant a two thirds approval for each of the five members.

The Committee failed to meet yesterday. If it fails to meet its deadline, the Supreme Courts of Justice may take the decision instead. An opposition faction is appealing to the higher justice body for preventing the return to the stalemate in Congress.

Whenever the referendum happens, if it happens, sentiment is that Chávez will be recalled. The MVR believes that he is in for a 48% victory during re election; but polls suggest that he will gather 28% of votes. So far, no one seems to want the referendum any more, at least not just yet.

CINCINNATI, May 13 /<a href=www.prnewswire.com>PRNewswire/ -- Procter & Gamble Company's snacks manufacturing plant in Jackson, Tenn. began production late last night, only one week after the plant was struck by a tornado. The Plant was forced to shut down production after suffering significant damage from a level IV tornado on May 5. Additional water damage was sustained from continued rain in the days following the tornado.

The first priority of the Company has been to insure all employees were safe, and they are.  All personnel have been accounted for and are in good health.  However, some employees did suffer damage to their homes ranging from minor damage to total destruction.  Emergency loans are being made available to employees.  The Company is committed to helping its employees get their lives back to normal as quickly as possible.

Pringles(R), the original stacked crisp, will be returning to consumers so they can "pop" once again.  Orders will resume on May 15, with shipping beginning the following week.  The first production will be the most popular flavors -- Original, Sour Cream & Onion, and Reduced Fat Original.  There continue to be round-the-clock efforts to return the facility to full operation.

"Getting production up and running on this short timing is a heroic feat that would not have been possible without the spirit and dedication of our P&G people.  It's a testament to the values of leadership and ownership that they possess," said Jamie Egasti, Vice President, North American Snacks. "Tremendous support from the Company, our contractors, suppliers, and customers has also helped to make all this possible."

Specific examples of how this work was accomplished includes:
* On-Site engineering and construction support went from less than 100 people to over 700 in seventy-two hours.
* Technical support from corporate experts and P&G plants around the country responded to the need for engineering, information systems, shipping and warehouse support.
* Over 10 retired P&G employees came back to help with the recovery efforts.

P&G is donating excess capacity in utilities and technical expertise to support the rebuilding of the community.  Extra fuel from temporary generators has been donated to non-profit organizations and to the fire department to aid in community recovery efforts.  P&G has also donated $100,000 to the American Red Cross to support current Midwest disaster relief efforts.  In addition, P&G donates $25,000 to the American Red Cross annually for their disaster relief fund.  Truckloads of P&G products are en route to the Jackson community to provide everyday essentials for people affected by the tornado.  P&G product donations are being coordinated by the America's Second Harvest local affiliate.  This affiliate is working with other social services in the area like the American Red Cross to distribute products.

Recovery efforts will continue over the next weeks and months, with the focus on getting the plant fully operational so that consumers can enjoy their favorite Pringles(R) and Torengos(R) snacks.

All statements, other than statements of historical fact included in this news release, are forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995.  In addition to the risks and uncertainties noted in this news release, there are certain factors that could cause actual results to differ materially from those anticipated by some of the statements made.  These include:  (1) the achievement of expected cost and tax savings associated with changes in the Company's organization structure; (2) the ability to achieve business plans, including growing volume profitably, despite high levels of competitive activity, especially with respect to the product categories and geographical markets in which the Company has chosen to focus; (3) the ability to manage and maintain key customer relationships; (4) the achievement of growth in significant developing markets such as China, Turkey, Mexico, the Southern Cone of Latin America, the countries of Central and Eastern Europe and the countries of Southeast Asia; (5) the ability to successfully manage regulatory, tax and legal matters, including resolution of pending matters within current estimates; (6) the ability to successfully implement, achieve and sustain cost improvement plans in manufacturing and overhead areas; (7) the ability to successfully manage currency (including currency issues in Latin America), interest rate and certain commodity cost exposures; (8) the ability to manage the continued political and/or economic uncertainty in Latin America (including Venezuela) and war in the Middle East, as well as any political and/or economic uncertainty due to terrorist activities or war (including Korea); and (9) the successful acquisition, transition, integration, and operation of the Wella business.  If the Company's assumptions and estimates are incorrect or do not come to fruition, or if the Company does not achieve all of these key factors, then the Company's actual results might differ materially from the forward-looking statements made herein.

About Procter & Gamble
Two billion times a day, P&G brands touch the lives of people around the world.  Some of the nearly 300 P&G brands consumers know and use with confidence in over 160 countries around the world include: Pampers(R), Tide(R), Ariel(R), Always(R), Whisper(R), Pantene(R), Bounty(R), Pringles(R), Folgers(R), Charmin(R), Downy(R), Lenor(R), Iams(R), Crest(R), Actonel(R), Olay(R) and Clairol Nice 'n Easy(R).  The P&G community consists of nearly 102,000 employees working in almost 80 countries worldwide.  Please visit http://www.pg.com for the latest news and in-depth information about P&G and its brands.

By JEANNINE AVERSA Associated Press Writer

WASHINGTON (AP)--A big jump in imported oil helped catapult the U.S. trade deficit in March to $43.5 billion, the second-highest level on record.

The Commerce Department reported Tuesday that the trade gap grew by 7.6 percent in March from February's deficit of $40.4 billion.

Although exports went up in March for the third month in a row, imports rose nearly five times faster, leading to a bloated trade deficit that was second only to the record deficit of $44.9 billion produced in December.

``Boy, does this country like to buy things,'' said Joel Naroff, president of Naroff Economic Advisors.

To combat the trade deficit, the Bush administration says the United States should seek to boost American exports by attacking foreign trade barriers, rather than raising barriers to imports coming into the country.

Trade critics, including labor unions, say the deficit is evidence that President Bush's free-trade policies are not working and are contributing to hefty job losses in manufacturing.

``The gap between this president's policies and the American workers who need jobs is widening by the day,'' said Rep. Sherrod Brown, D-Ohio.

In March, imports of goods and services increased by 2.9 percent from the previous month, to $126.3 billion, the second-highest level of imports ever recorded for a month.

Imports of a wide variety of industrial supplies, including crude oil and plastics, rose to a record $28.3 billion in March.

America's bill for imported crude oil hit a record $9.1 billion in March. That reflected an increase in the amount of imported crude oil to 300.7 million barrels of oil in March, from 247.1 million in February. The price of crude oil dipped to $30.27 a barrel in March, from $30.46 in February, which marked a 20-year high.

Although the United States' economy is struggling to get back to full speed, its economic health remains better than many other countries' that have been mired in a worldwide economic slump.

Exports of goods and services grew by 0.6 percent in March from the previous month to $82.8 billion. Private economists say the weaker U.S. dollar, which has lost altitude over the past year, is helping exports at a time of lackluster global demand. Weak growth abroad, however, will continue to challenge U.S. exporters, economists say.

In March, exports of industrial supplies, including cotton and chemicals, rose to $14.3 billion, the highest level since February 2001.

A weaker dollar makes U.S.-made products more competitive on foreign markets and less expensive for overseas buyers.

The U.S. dollar fell to a new four-year low against the euro Monday. The decline came one day after Treasury Secretary John Snow said a weaker dollar would help U.S. exports, a view that private economists and U.S. manufacturers share.

However, traders viewed the remarks as signaling a retreat from the long-standing position of the Bush administration and the previous Clinton administration in support of a strong dollar.

Treasury Department spokesman Rob Nichols on Monday said Snow's remarks on Sunday were not meant to signal a shift away from a strong dollar policy.

Tuesday's trade report also showed that the U.S. deficit with Mexico reached a record $3.9 billion in March. The U.S. trade shortfall with Canada widened to $5.2 billion in March, the highest level since January 2001.

The U.S. deficit with oil-producing nations, including Saudi Arabia and Venezuela, grew to an all-time monthly high of $5 billion in March.

The United States' politically sensitive trade deficit with China grew to $7.7 billion in March, from $7.6 billion in February. In a bright spot, though, exports to China rose to a record $2.4 billion in March.

The United States' trade gap with Japan widened to $5.8 billion in March, from $5.3 billion in February.

On the Net: Trade report: www.commerce.gov AP-NY-05-13-03 1550EDT

<a href=www.vheadline.com>Venezuela's Electronic News Posted: Tuesday, May 13, 2003 By: Patrick J. O'Donoghue

Landmines Monitor-Venezuela NGO chief, Antonio Gonzalez  says he will be meeting Venezuelan government officials this week to draw up a plan for the destruction of 90% of Venezuela's known landmines. 

The meeting is part of a scheduled follow-up process to the Convention Against the Use, Storage, Production and Transfer of Anti-Personal Mines and Their Destruction, which Venezuela signed in Ottawa (Canada) in 1999. 

Gonzalez admits that there is confusion about the number of mines currently possessed by the Venezuelan Armed Force (FAN).  "We aren't certain whether the actual number is 2,400 or 4,600 personal mines because of contradictions in preliminary reports." 

The government has an October 1st deadline to comply with the treaty.

Gonzalez points out that the majority of the mines are in FAN arms dumps and reveals that 100 landmines have been sown in four fields each in border areas of Apure and Amazonas States. "It happened before Venezuela signed the treaty and we are asking France to donate anti-mine uniforms and equipment to help us ... we are also concerned about mines in the hands of non-State sectors."