Greater Mekong Subregion GMS Economic Cooperation Program

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Greater Mekong Subregion (GMS) Economic
Cooperation Program
Presentation by Jacques M. FerreiraPrincipal
Regional Cooperation SpecialistMekong
Department, Asian Development Bank
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Regional CooperationJustifications / Conditions

• peace dividend
• improved access to markets
• border area development and poverty reduction
• economies of scale and market size
• greater trade creation
• address common problems together HIV/AIDS,
  environment hotspots

• vision,
• political will,
• trust
• economic complementarity
• active public-private development partners
• strong institutional framework, including an
  efficient coordinating capacity

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Yunnan Guangxi, PRC Land area 624 thou sq
km Population 92.3 M GDP per capita US680
Myanmar Land area 677 thou sq km Population
53.2 M GDP per capita US320
Viet Nam Land area 332 thou sq km Population
80.9 M GDP per capita US480
Thailand Land area 513 thou sq km Population
64.0 M GDP per capita US2,240
Lao PDR Land area 237 thou sq km Population
5.7 M GDP per capita US410
The GMS in 2004 Land area 2.5 M sq
km Population 309.4 M GDP per capita US875
Cambodia Land area 181 thou sq km Population
13.3 M GDP per capita US320
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Transformation of GMS
a/ Excludes PRC
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The GMS Program

• Confidence building
• Pragmatism and results orientation
• Building blocks
• Initial focus on infrastructure
• Soft sectors health, education, HRD, environment
  
• Policy and regulatory frameworks

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GMS Priority Sectors

• Transport
• Telecoms
• Energy
• Environment
• Tourism

• Trade facilitation
• Investment
• Human resource development
• Agriculture

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Major Achievements

• Mutual trust and confidence
• Ownership and commitment at the highest political
  level
• 19 infrastructure projects amounting to US5.2
  billion
• 104 technical assistance projects amounting to
  US110 million

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Multicountry Agreements

• Agreement to facilitate cross-border
  transportation of goods and people
• Inter-Governmental agreement on regional power
  trade
• MOU for the planning and implementation of a GMS
  Information Super Highway among telecoms operators

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Achievements in Other Sectors

• Promotion of the GMS as a single tourist
  destination
• Cooperation in the prevention and control of
  animal epidemics
• Phnom Penh Plan for Development Management
• Promotion of cooperation on HIV/AIDS
• Adoption of a Core Environment Program

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The THREE Cs

• Connectivity
• Competitiveness
• Community

GMS Beyond Borders- The RCSP 2004-2008
(i) Strengthening connectivity(ii)
Integrating national markets / private
sector development (iii) Addressing human
development and (iv) Sharing environmental
management.
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GMS Infrastructure Improvement 1992-2012
Connectivity
As of 1992
As of 2004
Projected by 2012
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GMS Economic Corridors
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Future Prospects of the GMS

• Recent global and regional developments
• Increasing integration in Asia- Pacific
• Strong economies of India and PRC
• ASEAN Economic Community

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GMS Challenges and Opportunities

• Challenges of responding to emerging development
  issues
• Health/ Social Issues- preventing the spread of
  diseases and human trafficking
• Opportunities communicable disease control,
  approaches against human trafficking
• Environment- sustainable management of resources
• Opportunities commitments to environment
  protection, addressing impacts of infrastructure
  development, Core Environment Program

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GMS Challenges

• Trade- cross border trade facilitation
• Opportunities CBTA, SFA- TFI
• Private sector- developing vibrant markets and
  strengthening private sector
• Opportunities promoting financial efficiency,
  sound policy/ institutional/ legal/ regulatory
  framework

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GMS Challenges

• Challenges of managing development and regional
  integration
• Poverty Reduction- achieving MDG targets
• Opportunities macroeconomic and sector reforms,
  decentralization
• Infrastructure- appropriate levels to support
  growth and poverty reduction
• Opportunities sustained inputs for
  infrastructure linkages, use of multi-sector/
  holistic approach, transport study, power trade,
  information superhighway

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GMS Challenges

• Policy and Institutional Reform- for maximizing
  growth and poverty reduction
• Opportunities macroeconomic/ sector reforms,
  decentralization
• Economic Integration- managing economic
  integration
• Opportunities deepening/ broadening integration,
  within GMS and across other regional cooperation
  initiatives

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GMS Challenges

• Financial Resource Mobilization- tapping
  resources to fund programs
• Opportunities fostering strong GMS ownership,
  greater focus/ convergence, engagement of private
  sector, targeted use of resources
• Human Resources Development- managing human
  resource investments
• Opportunities building development management
  capacity, training/ education exchanges

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HRD and Social Dimensions in the GMS Program
Challenge Cross-border migration and increased
labor mobility may worsen problems with
communicable diseases, human/ drug trafficking,
child exploitation Who are more affected women,
children, ethnic minorities
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ADBs HRD/ Social Strategy for the GMS Program

• ADBs Strategy address HD thru health, social,
  capacity building programs
• Managing negative effects from a regional
  perspective thru a common framework
• Promote safe migration of women
• Prevent HIV/ AIDS, communicable diseases
• Enhance ethnic minority education
• Careful management of social dimensions to fully
  utilize social/ human capital
• Build up of national capacities and regional
  institutions (Phnom Penh Plan)

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Environment in the GMS Program

• GMS rich in resources, but with high poverty
• Degradation now a pressing challenge
• Need for wise stewardship of resources to
  sustain development

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GMS CORE ENVIRONMENT PROGRAM (CEP) Systematic and
Integrated
ECONOMIC CORRIDORS
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PERFORMANCE MEASUREMENT
PRIORITY SECTORS
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CORE ENVIRONMENT PROGRAM
BIODIVERSITY CONSERVATION
REGIONAL INSTITUTIONAL DEVELOPMENT
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5
FINANCING MECHANISMS
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GMS Regional Response Biodiversity Conservation
Corridors Initiative

• Focus on conserving critical ecosystems
• Greening the economic corridors

VISION By 2015, GMS countries will have
established priority biodiversity conservation
landscapes and corridors for maintaining the
quality of ecosystems, ensuring sustainable use
of shared natural resources, and improving the
livelihoods of people.

• PURPOSE Establishing sustainable management
  regimes in the biodiversity corridors for
  improved benefits of natural resources goods and
  services

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Functions of Biodiversity Corridors

• Species and
• habitat-related
• Prevent/minimize fragmentation of intact habitat
  
• Enhance species movements (dispersal, migrations)
• Expand functional boundaries

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Nine Priority GMS Biodiversity Landscapes and
Corridors

• Represent the regions biodiversity
• Maintain large-scale processes and viable
  populations
• Buffer core areas from the effects of potentially
  damaging development activities

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Culture in the GMS Program Tourism Sector
Cooperation

• Heritage Conservation Management
• A Key Tourism Sector Strategy

• Heritage Social Programs
• Enhancing coordination
• Capacity building
• Protecting ethnic minorities heritage
• Management/ mitigation

• PROJECTS-
• Strengthening Capacities
• Infrastructure Strengthening
• Heritage Necklace Circuit

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• HRD AND TOURISM COOPERATION IN THE GMS PROGRAM
• Towards a Stronger Cultural Community

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Thank You!

• For more information
• on the GMS Program - visit http//www.adb.org/gms
  
• on ADB Business Opportunities - visit
• http//www.adb.org/opportunities
• on information about the Mekong countries visit
  http//www.adb.org/Mekong