Business news for Thu, 29 Nov 2007 & with word developing. 4 news.

Russia's rapidly developing market, where huge oil wealth has already helped spawn 53 billionaires, requires manufacturers to address cultural sensitivities.

After 15 years of gloom, Japan's companies have emerged with a new, hybrid model a bit closer to America's, says Tom Standage ONCE it was the Walkman. Then it was the PlayStation. Today it is the Toyota Prius that epitomises Japan's technological and industrial prowess. Built by Japan's largest company, which is now on the verge of becoming the world's largest carmaker, the Prius is a hybrid car propelled by the combination of a petrol engine (for range) and an electric motor (for energy-efficiency). The Prius was the first commercial hybrid car and has become by far the most successful, with sales of over 1m since its launch in 1997. Although that is a modest figure compared with Toyota's annual output of around 8m vehicles, it has transformed the company's image. Toyota is now known for greenery and innovation as well as manufacturing efficiency. But the Prius also symbolises another transformation: that of Japan itself. Just as a hybrid car combines the distinct advantages of petrol and electric propulsion systems, Japan has been developing a new hybrid model of capitalism that brings together aspects of the old Japanese model, which ran into trouble in the early 1990s, with carefully chosen elements of the more dynamic American or Anglo-Saxon variety of capitalism. The resulting hybrid model has been adopted by many firms and has already helped to transform Japan's fortunes. After wrenching political and corporate reforms, the country in 2002 emerged from over a decade of economic stagnation. Since then the recovery, originally export-led, has spread to the economy as a whole (see chart 1). Japanese firms have restructured, paid down their debts and are now posting record profits. The banking system has been cleaned up. Yet despite this progress, Japan still faces huge problems. ...

The vexing question of subsidies AS DUSK falls, kerosene stoves ignite in the poorer kitchens of Delhi. Sengeni, who lives on an alley wedged between the Nizamuddin railway tracks and a tributary known as ganda nallah (or dirty ditch), is looking forward to a dish of rice. He is entitled to a quota of 11 litres of cheap kerosene every fortnight, which he buys for about nine rupees (23 cents) a litre, compared with a free-market rate of about 25 rupees. The price hasn't changed for months, he says, despite the surge in oil prices. In India, as in many countries, the government dares not allow the rising price of crude to be felt in the common man's pockets. Only a third of the 48 developing countries studied in an IMF review let the market set fuel prices. The governments of Yemen and Indonesia, for example, spent more holding down the price of fuel than they spent on health and education combined. Attempts to raise energy prices--as in Yemen in 2005, Nigeria in 2000 or Indonesia in 1998--have a sorry record of prompting riots and revolutions. China's decision to raise prices by 10% in November has also caused tempers to rise. ...

The board of Folsom-based chip design firm Akros Silicon has replaced its co-founder and longtime chief executive Francois Crepin with an executive who has experience developing a broader array of chips, a company spokesman confirmed Wednesday.