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Regions and Countries Regional Cooperation Greater Mekong Subregion Publications Proceedings of Ministerial, Forum, and Working Group Meetings Eleventh Ministerial Conference on Subregional Economic Cooperation
Greater Mekong Subregion: Eleventh Ministerial Conference on Subregional Economic CooperationPhnom Penh, Cambodia; 23-25 September 2002IntroductionThe Eleventh Ministerial Conference on Subregional Economic Cooperaton (the Conference) was held in Phnom Penh, Cambodia on 25 September 2002. The Conference was preceded by the Greater Mekong Subregion (GMS) Senior Officials' Meeting (the SOM) held on 23 September 2002 and a Meeting with Development Partners on 24 September 2002. The main objective of the Conference were as follows:
The Conference Agenda and Program is attached as Appendix 1. The Conference participants included delegations from the Kingdom of Cambodia, the People's Republic of China (the PRC), Lao People's Democratic Republic (Lao PDR), Union of Myanmar, Kingdom of Thailand, and the Socialist Republic of Viet Nam. Representatives from bilateral, multilateral, and international organizations attended the Meeting. Officials from Asian Development Bank (ADB) attended the Conference. The Conference was co-chaired by H. E. Cham Prasidh, Minister of Commerce, Royal Government of Cambodia, and ADB's Vice President for Operations Group 1 Myoung-Ho Shin. The list of participants is attached as Appendix 2. Session I - Inaugural SessionH. E. Deputy Prime Minister and Co-Minister of Interior Mr. Sar Kheng of the Royal Government of Cambodia welcomed the participants to the 11th Ministerial Conference and referred to the important role that Cambodia will play in hosting the GMS Summit Meeting of the Heads of Government on 3 November 2002. The 11th Ministerial Conference will provide the opportunity for the GMS Ministers to review progress of the GMS Program and the 10-Year Strategic Framework, encourage the participation of the development partners in the flagship programs, and prepare for the GMS Summit. Recognizing the important role of ADB, as well as other international agencies in supporting the GMS Program, the Deputy Prime Minister cited that GMS has now been placed at the forefront of the development agenda of international organizations. The GMS Program has also received increasing attention from the participating countries. He noted the important progress made by the GMS sectoral working groups and forums and encouraged development partners to participate in priority subregional initiatives. Cambodia's current political stability and considerable progress in economic and governance reforms has allowed the country to progressively integrate itself into the international economy. The Deputy Minister reaffirmed Cambodia's commitment to free trade and economic integration, which will ultimately contribute to Cambodia's national goals of political stability, prosperity, and poverty reduction. Mr. Myoung-Ho Shin, ADB also welcomed the meeting participants. He noted that the Ministerial Meeting marks the 10th anniversary of the GMS program. He accepted the honor to represent the ADB in the Ministerial Conference, having been the close partner of the GMS countries since the first GMS meeting in 1992. He expressed his profound thanks to the Government of Cambodia for the excellent arrangements and warm hospitality. He noted that the forthcoming GMS Summit and complementary ASEAN events in November will provide further political impetus to the GMS Program following a decade of progressive achievements. Mr. Shin lauded the important contribution of the GMS Program in building trust and confidence. He also cited the increasing support of ADB and other development partners in promoting greater cooperation in the subregion. Mr. Shin conveyed Mr. Chino's keen interest in the proceedings of this Conference and in making the GMS Program more inclusive. Mr. Shin expressed support to the 10-Year Strategic Framework of the GMS Program, including its strategic thrusts and flagship programs. Mr. Shin also highlighted the importance of creating a favorable environment for private sector participation, and greater attention to policy and regulatory reforms. In closing, Mr. Shin noted that the time has come for the GMS Program to expand its horizons and expand participation. Session II - Opening Statements by the GMS MinistersIn his opening remarks, H E. Mr, Cham Prasidh, Minister of Commerce of the Royal Government of Cambodia, recognized that the social and economic development of Cambodia is inextricably linked to the development of the GMS as a whole. On the part of Cambodia, the Government has taken serious efforts to ensure the country's take-off towards sustainable economic development. Despite serious calamities, Cambodia's economy has performed well in recent years, with an average economic growth rate of 7% from 1999-2001 and stable inflation and foreign exchange rates. Investments have also improved with significant build-operate-and transfer projects scheduled for approval in 2002. The Government is taking further measures to intensify legal and judicial reforms to ensure an enabling environment for private sector participation in the development process, consistent with the basic philosophy of reducing the costs of doing business and streamlining the regulatory environment. In 2002, Cambodia will host several very important international meetings that will contribute to the improvement of its international standing. At the meeting of the Consultative Group of Donors for Cambodia in June 2002, Cambodia received pledges of new assistance amounting to $685 million which far exceeded expected levels. Minister Cham Prasidh reaffirmed that continued partnership and collaboration with the regional and international community will be crucial for Cambodia's sustained recovery and economic growth. H.E. Mr. Liqun Jin, Vice Minister of Finance, People's Republic of China expressed his appreciation to the Government of Cambodia for the excellent arrangements for the Ministerial Conference. H.E. Jin noted that with the issue of globalization and the need to address sustainable development issue at a global level, strengthening of regional cooperation becomes even more important. He noted the remarkable success that the GMS Program has achieved since 1992 that promoted economic development and strengthened relationships. He indicated that the flagship programs embodied in the 10-Year Strategic Framework are a good start toward close collaboration with other countries in the GMS. He viewed the forthcoming Summit as an important event that will attest to the ever-strengthening economic cooperation in the subregion. He highlighted the importance of consultation, the pragmatic project-based approach, ADB's role in subregional cooperation, the role of governments, and preparations for the GMS Summit. H.E. Jin reported on the stable economic growth of PRC and the progress it has made in trade liberalization. He also noted the active participation of PRC in a number of GMS projects in coordination with the other parties concerned, as well as in developing new areas for cooperation. H.E. Jin is looking forward to the Summit, which he consider as a significant step in subregional cooperation, and a means to strengthen partnerships. He enjoined the Conference to work together for the subregion's noble purpose and for whatever is good for the people. In his opening remarks, H.E. Mr. Somphong Mongkhonvilay, Minister of the Prime Minister's Office, Lao People's Democratic Republic, acknowledged the Government of Cambodia for hosting the meeting, and the ADB for its continued support to the GMS Program. H.E. Somphong expressed confidence that the GMS region would realize its strategic vision through the operationalization of its strategic thrusts and flagship programs. He noted the significant progress in infrastructure linkages among the GMS member countries with the assistance of development partners, and assured the meeting of Lao PDR's continued commitment to these endeavors. H.E. Somphong highlighted energy development as a major engine for its future economic development and an instrument in poverty alleviation; hence, he confirmed that Lao PDR is ready to sign the Inter-Governmental Agreement for Power Interconnection and Trade (IGA). He also cited Lao PDR's support to the cross border trade facilitation and investment promotion, the GMS Business Forum, human resources development, integration of environmental concerns into development projects, and development of the tourism sector. H.E. Somphong congratulated ADB for recognizing the significance of supporting cooperation in agriculture, for which a working group has been established. He reiterated Lao PDR's full commitment in the design and implementation of development programs to the extent of their capabilities, and expressed appreciation for the continuing generosity and partnership of the international community. He noted the important role of the Ministerial Meeting in preparing for the GMS Summit, and noted the excellent work that has been completed in the past two days. H.E. Brigadier General Lun Thi, Minister of Energy of the Union of Myanmar cited the important role of the GMS Program in pooling regional resources to achieve the shared goals of becoming peaceful and prosperous states. He acknowledged the role of the ADB as catalyst for the GMS Program, as well as the support provided by other development partners. Myanmar attaches great importance to cooperation among the GMS countries, and has actively participated in the GMS Program including the hosting of meetings in the country. Myanmar has largely relied on its own resources for its development endeavors and hopes to make a meaningful contribution to the peace, progress and prosperity of the subregion. He stressed the importance of prioritizing projects included in the 10 flagship programs endorsed by the 10th Ministerial Conference based on balanced availability of development opportunities of individual GMS countries and the long-term objective of narrowing the development gap among them. He expressed the hope that development partners could look at the GMS as an area of opportunity and challenge rather than as a risk. H.E. Mr. Pitak Intrawityanunt, Deputy Prime Minister, Kingdom of Thailand expressed appreciation to the Government of Cambodia and ADB for their excellent organization of the meeting. He noted that the GMS Program has developed into a mature cooperative framework with strong track record that has nurtured trust and confidence over time. He noted, however, the daunting challenges of addressing poverty, income disparity and environmental degradation. He noted the significance of the thrusts and flagship programs under the 10-Year Strategic Framework for the GMS. H.E. Pitak cited Thailand's contribution to these programs through its active involvement in transport-related initiatives, particularly on corridor development, the software side of infrastructure linkages, and in other physical infrastructure needs of the subregion. He underscored the importance accorded by the Government of Thailand to human resource development and in maintaining harmonious relationship with neighboring countries. H.E. Pitak noted the common and number one challenge of poverty reduction in the subregion, and cited Thailand's policy to "unlock" the poor's potential instead of focusing on the burden that they bring to societies. To this end, he highlighted the benefits of addressing cross border impediments and strengthening other regional cooperation initiatives. H.E. Pitak expressed his thanks to ADB for addressing issues on agriculture and tourism. He also encouraged more partnerships among development institutions, private sector, academe, NGOs and civil society. He looks forward to the GMS Summit as a time of celebration of past accomplishments, and an occasion for reflection and renewed political will for the future. H.E. Mr. Vo Hong Phuc, Minister of Planning and Investment, Socialist Republic of Viet Nam echoed the significance of the Ministerial Conference as marking 10 years of successful cooperation among the GMS countries. The benefits of this cooperation has come in the form of programs and projects, as well as policy and institutional support. Among the notable examples of cooperation are the Agreement on the Facilitation of Cross Border Movement of Goods and People in the GMS that has been signed by Cambodia, Lao PDR, Thailand and Viet Nam, and to which PRC will soon accede; and the IGA which is expected to be signed during the Summit. H.E. Phuc expressed appreciation to ADB for its continuous and effective support to the GMS program. He cited other initiatives including the Development Matrix for the GMS Program, and the establishment of the GMS National Secretariat and sector secretariats through ADB technical assistance. H.E. Phuc expressed his support to efforts for mobilizing resources from other financial institutions and the private sector. He also highlighted the forthcoming GMS Summit, which will mark a cornerstone in the cooperation among the GMS countries, and encouraged joint efforts to ensure its success. H.E. Phuc confirmed Viet Nam's continuing support and active participation to the GMS Program. Session III - Review of the Progress of Subregional CooperationAs the Co-Chairperson of the SOM, H.E. Sok Chenda, Secretary General of the Council for the Development of Cambodia, presented the Report of the SOM which includes the following:
The adopted Report of the SOM is attached as Appendix 3. The Conference endorsed the Report of the SOM. As recommended, the Conference approved the adoption of the records of discussions of all the meetings of GMS sectoral Forums and Working Groups held since the Tenth Ministerial Meeting. The Conference endorsed the recommendations contained in the Report of the SOM. The Ministers noted that concerned Senior Officials have initialed the IGA and confirmed that it will be signed at the GMS Summit. The following comments were raised during the session:
Session IV - Dialogue with Development PartnersAs the Co-Chairperson of the SOM, Madame Yuejiao Zhang, Deputy Director General of the Mekong Department, ADB presented a summary report of the Meeting with Development Partners held on 24 September 2002. She noted that participants have concluded that it had been a worthwhile and productive meeting. She further reported that development partners expressed interest in following up with ADB on specific projects, and were encouraged to join the various working groups in order to become more involved in GMS activities. She indicated that participants agreed that the coming decade is very important to GMS, as the region enters the threshold of substantial socio-economic progress. The report on the Meeting with Development Partners is in Appendix 4. Based on the recommendation of the SOM, the Ministers adopted the report on the Meeting with Development Partners. The following interventions were made during the session: ASEAN SecretariatASEAN Secretariat indicated that the common approach to cooperative development between the GMS Program and ASEAN offer synergies and opportunities for accelerated economic growth of the participating countries. The 10-year GMS Strategic Framework coincides to a large extent with the work program of the Initiative of ASEAN Integration (IAI), with several complementary projects and initiatives. The Ministerial Conferences have served as an effective forum for setting the agenda of the GMS Program and for generating interest and funding support from development partners. ASEAN initiatives that complement those of the GMS are in the areas of visa free arrangements, tourism, transport, and cross-border facilitation. UN ESCAPThe representative of UN ESCAP indicated that its assistance to the GMS has always been an important part of its agenda. UN ESCAP, at its 56th Session in June 2000, adopted Resolution 56/1 on the Decade of the Greater Mekong Subregion (GMS) Development Cooperation for the period 2000-2009 which gave it the mandate to coordinate activities in various areas of technical assistance to the GMS countries. The Resolution has been implemented in eight priority sectors most of which coincide with the eight priority sectors under the GMS Program. UN ESCAP has been collaborating closely with ADB and ASEAN especially in the areas of poverty reduction, tourism, trade and investment, transport, and social development, European CommissionThe European Commission indicated that it accords high priority to trade and investment promotion and private sector initiatives. It is providing support to the region in these areas under the framework of the Asia Europe Meeting (ASEM). JapanJapan reaffirmed its support to the GMS Program and emphasized the importance of scrutiny of economic conditions in each GMS country, including the macroeconomy, fiscal balance, and external debt conditions. Japan requested ADB to provide this information by the next Ministerial Conference. Mekong River CommissionThe MRC representative commended the inclusion of the Flood Control and Water Resources Management as one of the flagship programs of the GMS. The MRC has formulated a Regional Strategy on Flood Management and Mitigation for the Lower Mekong Basin, which has the full support of the four riparian countries. However, as the Mekong River flows through six countries, the complex flood problems of the Lower Mekong Basin requires a holistic approach dealing with transboundary and regional issues. In this regard, a draft Flood Management Programme has been prepared incorporating all fields of intervention within the role of MRC. The MRC representative expressed the hope that this Programme could be linked with efforts under the GMS Program framework. United Nations Development ProgrammeThe representative from UNDP reported that they have national and subregional programs in the subregion. He noted that UNDP could associate with the GMS Program and affirmed the importance of exercising the spirit of partnership in providing support to the subregion. United Nations Drug Control Programme (UNDCP)The UNDCP representative indicated that it has been assisting the GMS countries in their drug prevention and control initiatives, including for alternative development and poppy substitution. United Nations Environment Programme (UNEP)On behalf of UNEP's Regional Center for Asia and the Pacific, the representative from UNEP expressed appreciation for the opportunity of being invited to GMS meetings. He reiterated UNEP's full support and cooperation to initiatives geared at the protection of the environment in the GMS through its flagship programs. He reported that since 1995, UNEP has been actively involved at subregional initiatives such as projects on Strategic Environmental Monitoring and Information System, Phases 1 and 2 (SEMIS) and the Strategic Environment Framework, Phase1, in collaboration with ADB and other development partners. In terms of UNEP's regular programs, he reported that UNEP is involved in environmental assessment and reporting, capacity building, database management and harmonization, and development of tools and guidelines. UNEP is expanding their early warning activities through the use of satellite programs or images. He assured the meeting of UNEP's continued involvement in the subregion by fostering partnerships with the GMS countries, ADB and other partners in the region. World BankWorld Bank representative expressed appreciation to the GMS countries for supporting the GMS Program, and to ADB for its effective leadership in mobilizing support form the private sector and NGOs. World Bank looks forward to supporting the GMS Strategic Framework, and the flagship programs, specifically:
World Bank expressed interest in attending sectoral working group and forums, and indicated its continued support to related programs in the GMS, such as the programs of the MRC through Global Environmental Facility, and the Mekong Project Development Facility. The following additional comments were raised during the session.
Session V - Preparations for the GMS Summit of LeadersMeeting Arrangements and Program for the GMS SummitH.E. Cham Prasidh briefed the GMS Ministers on the program and agenda for the GMS Summit. On 2 November, there will be a working dinner for the GMS Ministers to update each other on the latest developments pertaining to the meeting of the GMS Leaders. On 3 November, the GMS Leaders will have a working lunch, followed by the opening ceremony where H. E. Prime Minister Hun Sen will deliver the opening statement. The GMS Summit Meeting will then take place, with the participation of the ADB President. A signing ceremony will be held, after which H. E. Prime Minister Hun Sen will read the Press Statement. As regards the signing ceremony, the order of signing of the documents will be as follows:
The GMS Leaders will be present at the signing ceremony, which will be a breif one. Cambodia noted the following requests, which will be referred to H. E. Prime Minister Hun Sen:
Draft Joint Summit DeclarationThe Ministers endorsed in principle Version III of the draft Joint Summit Declaration as prepared by the SOM Drafting Group, recognizing however, that further internal consultations may be needed. Indicative List of Topics for Discussion by the GMS LeadersThe Ministers endorsed the following list of topics for discussion by the GMS Leaders:
Each topic would be introduced by H. E. Prime Minister Hun Sen, followed by a five to seven-minute statement from each of the GMS Leaders prior to the discussions. Session VI - Closing SessionConsideration and Adoption of the Joint Ministerial StatementThe Conference reviewed the joint ministerial statement entitled "Partnerships for Development: Advancing the GMS Agenda". The adopted statement is attached as Appendix 5. Closing RemarksH.E. Cham Prasidh, in his closing remarks, cited that the GMS Program has done a lot over the years but these have not been fully disclosed to the public. He encouraged the Conference to make known to the public the achievements of the Program, what the Program can offer and what other partners can do to contribute to the GMS endeavors. He expressed appreciation to all participants for the success of the Conference through frank and open discussions. He noted that this manifested a positive signal to the outside world and showed the solidarity of the GMS countries. He expressed his appreciation to ADB for its strong commitment to the development of the subregion, as well as the efforts of the GMS Senior Officials. He hope that the Conference would provide sufficient information for the GMS Leaders during the Summit. He wished the participants a fruitful stay in Cambodia. In his closing remarks, ADB's VP Shin lauded the success of the Conference and considered it as a stepping stone in the long road to realizing the goals of GMS cooperation - growth, equity and prosperity. He highlighted the three results that were achieved during the meeting as follows:
VP Shin recounted the specific items endorsed by the Ministers and observed that the Ministers agreed that the foundations are now in place for accelerating the pace of the GMS Program. He expressed appreciation to the international community for their reassuring support to the GMS Program as manifested by their participation at the development partners meeting. VP Shin reiterated ADB's continuing commitment to the subregion and enjoined the meeting to "make it happen". In closing, VP Shin expressed appreciation to Cambodia's excellent arrangements and warm hospitality, the strong role played by the Ministers and their delegations, and the participation of development partners. Venue for the 12th Ministerial ConferencePRC acknowledged its turn to host the 12th Ministerial Conference following the principle of alphabetical rotation and informed the Ministers that the necessary internal procedures for hosting the Conference have been initiated.
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