Economic Cooperation Across the Mekong SubRegion

1
Economic CooperationAcross the Mekong Sub-Region

• An Overview

2
Regional Context

• Significant economic potential
• strong economic growth and overall poverty
  reduction
• strong export performance
• enhanced cooperation can maximize development
  benefits
• Significant challenges
• uneven poverty reduction
• uneven progress on social indicators
• complexity of issues
• need for strengthened institutions,
  infrastructure, policies, programs

3
Regional Cooperation Programs

• GMS regional cooperation program
• - Launched with support of ADB in 1992
• Mekong River Commission
• - Created in 1995
• ACMECS
• - Initiated by Thailand in 2003
• Fora / Organizations with broader mandates
• - ASEAN UN Organizations- UNDP, UNESCAP MDBs -
  ADB, World Bank
• Bilaterals
• - Japan, China, Thailand, and many others

4
World Bank Involvement in Regional Cooperation

• GMS regional cooperation program
• Working with ADB to support GMS programs
• Energy sector Power Trade
• Water resources Mekong Water Resources
  Assistance Strategy
• GMS Transport and Trade Logistics Programs
• Labor Migration Issues
• MRC
• Water Utilization Program
• Policy and Institutional Capacity Development

5
Overview of Opportunities and Challenges

• Better management of natural resources
• Integrated system for power production and trade
• Better physical linkages to underpin strong
  growth, cooperation, and connectivity
• Expanding regional trade
• Better framework for the flow of and development
  of human resources
• Strengthened regional institutions

6
Mekong River Opportunities and Challenges

• Tremendous opportunities for each country
• Future development in hydropower, agriculture,
  flood mitigation, and navigation
• Among the least developed major river basins in
  the world
• Challenges to successful development of this
  vital regional resource
• Environmental, economic, political, and social
  risks to each of the countries if they pursue
  development without cooperation

7
Building On Experiencethe lessons learned by
the World Bank

• Strong analytical work is key
• Building ownership, commitment and capacity
  through consultative approaches
• Comprehensive, multidimensional and integrated
  approach to priority issues
• Sustained and harmonized donor support for
  regional efforts
• Involvement of stakeholders beyond government
• Technical support and support for investments
• Appropriate institutional arrangements
  coordinated regional programs consistency with
  country programs

8
Proposed World Bank Cooperation Strategy (I)

• Objectives
• Support win-win solutions across countries for
  higher economic growth and faster poverty
  reduction
• Sustainable management of regional resources.
• Selectivity
• Clear principles and explicit rationale for the
  division of labor among partners
• Country demand driven
• Building on broader regional work
• Focus on results.

9
Proposed World Bank Cooperation Strategy (II)

• Approach
• Expanded and strengthened partnership on regional
  initiatives in GMS regional cooperation program
• Collaboration and advice on the MRC Strategy
• Support in areas of comparative advantage
• Close cooperation with other donors.
• Instruments and Resources
• Regional and Country Grants and Credits Analytic
  Work and Policy Advice
• Successful experience of regional work in Africa
  and Eastern Europe

10
Proposed Regional Work Program

• Support the development and implementation of a
  Mekong Water Resources Partnership Program
• Continue to work on regional power trade
• Facilitate increased transport and trade
• Work on human resource issues - especially labor
  migration

11
Mekong Water Resource Management

• WB involvement and experience
• Water Utilization Program (WUP)
• Mekong Water Resource Assistance Strategy (MWRAS)
• WB proposed work program
• The MWRAS transitioning into a World Bank-ADB
  Joint Mekong Water Resources Partnership Program
  (MWARP) and including other partners
• Priority Action and Dialogue Framework 2006-2010
• Integrated approach to planning and
  implementation across countries and sectors
• Regional Integrated Water Resource Management
  Project

12
Power Trade

• WB involvement and experience
• Establishing of GMS Expert Group on Power Trade
  and Interconnection
• Facilitating the GMS Intergovernmental Agreement
  (IGA) on Power Trade, Regional Power Trade
  Coordinating Committee (RPTCC)
• WB proposed work program
• GMS Power Trade and Market Development Project
• Draft GMS Power Trade Strategy Note
• Close partnership with donors, particularly ADB

13
Trade and Transport Facilitation

• WB involvement and experience
• GMS Transportation Forum GMS Trade Facilitation
  Working Group GMS Investment Working Group
  (jointly with ADB)
• Analytical work, engaging stakeholders, building
  consensus
• WB proposed work program
• Work with GMS and ACMECS Business Councils, Thai
  Chamber of Commerce on TTF, capacity building and
  investment issues
• Potential IFC role to catalyze private investment
  
• Sub- regional TTF projects

14
Labor Migration

• WB involvement and experience
• Labor market issues area of WB comparative
  advantage
• Labor Migration Program Phase I launched in
  June 2005, to deepen knowledge on migration
  within and between Thailand, Myanmar, and
  Cambodia
• WB proposed work program
• Aims to improve knowledge of migration issues in
  GMS
• Raise awareness of migration issues and
  significance for poverty reduction at policy
  making level
• Strengthen capacity of governments to implement
  sound systems to regulate labor migration

15
Other Areas for Potential Bank Support

• Environment and Forestry Sectors
• management of forest resources
• establishing linkages between cross-border
  national protected areas through trans-boundary
  corridors
• improving enforcement and monitoring against
  poaching and illegal logging
• harmonizing cross-border custom practices to
  control timber and wildlife trade
• Health
• - HIV/AIDS, avian flu, SARS cross border
  implications
• Capacity Building

16
Managing Risks

• Misunderstanding the complexity of the issues -
  not accurately diagnosing the opportunities and
  challenges
• Not balancing the interests of all countries in
  fair manner
• Weak authority and capacity of regional
  institutions and arrangements
• Civil society, NGOs raise concerns about regional
  support
• Lack of adequate donor coordination
• Inadequate internal World Bank coordination

17
Feedback/Questions/Comments

• Is there a shared understanding of the
  opportunities and challenges of Mekong
  Sub-regional cooperation?
• Are the proposed priorities for World Bank
  support the right ones? Are there other areas
  that should be receiving more World Bank support?
• How can the World Bank better partner with
  concerned governments and with other donors and
  stakeholders on Mekong sub-regional issues?