1. INTRODUCTION

The European Union's humanitarian aid policy reflects its founding principles - solidarity, tolerance and respect for human dignity. Humanitarian aid, while not a crisis management tool, is one of the pillars of Community action for countries affected by natural or man made disasters as well as by complex emergencies(1). Through its activities in disaster areas and through its active contribution to promoting respect for and adherence to International Humanitarian Law, the European Commission has asserted itself as a major player in international humanitarian

This price watch bulletin covers the quarterly period from September to November 2008. The objective of the bulletin is to provide early warning information on price changes of staple food commodities and their likely impact on the cost of the food basket. Price changes are determined for each country on a quarterly basis.

Highlights:

- Prices still remain significantly higher compared to last year and long term averages, especially in Eastern and Southern Africa, Asia and Middle East. Overall, the impact on the cost of the food basket remains relatively high.

Summary

Incentives and sanctions are used by external actors to try to stop armed conflicts in the short term. But are they effective in promoting peace? This research by Conciliation Resources argues that these instruments are often not used as part of a broader strategy aimed at resolving conflict. They are often a confused mix of coercion and assistance, which neither force nor encourage the conflict parties towards a negotiated settlement.

This report covers the period 01 July to 31 December 2008.

In brief

Programme purpose: As outlined in the 2008-09 plan, the aim of the International Federation South Asia regional office is to increase the capacity of the South Asian national societies to provide services that improve the lives of vulnerable people.

Programme(s) summary: In the second half of 2008, one of the key areas of support provided by the International Federation to national societies was in responding to the monsoon flooding in Pakistan, India and Nepal and the earthquake in Baluchistan (Pakistan).

COLOMBO, Dec 30, 2008 (Xinhua via COMTEX News Network) -- Heavy clashes have been reported in Sri Lanka's northern battle front as the troops extended their forward defense lines, Ministry of Defense said here Tuesday.

"Heavy clashes have been reported between Army infantrymen and the terrorists in the North of Mulliyawali from 9 a.m. to 2:30 p.m. on Monday as troop extended their forward boundaries further northwards. Intercepted terrorist radio transmissions have confirmed heavy damages to the terrorists during these clashes" a statement said.

Long-term work helps build economies, improve lives

By Nancy Pontius
Special Correspondent

Washington - Four years ago, the Indian Ocean tsunami swept over coastal lands in Asia and Africa, killing more than 200,000 people, destroying cities and crippling the ability of the remaining millions to survive.

In 2008 in Sri Lanka, the U.S. Agency for International Development completed a new bridge, built and equipped nine vocational schools, rehabilitated three damaged fishing harbors, installed a water supply system and built 87 children's play parks. Scores of additional