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GMS Leaders Pledge Closer Economic and Regional Cooperation at Historic Summit

PHNOM PENH, CAMBODIA (3 November 2002) - Leaders of six countries along the Mekong River concluded a historic Summit by signing a joint declaration to reaffirm their commitment to subregional economic cooperation and a shared vision of equal partnership in the pursuit of economic growth and greater prosperity.

The first ever GMS Summit attended by leaders of the Greater Mekong Subregion (GMS) concluded with pledges to work more closely to reduce poverty and promote greater subregional integration among the six GMS countries. The GMS comprises Cambodia, the People's Republic of China (Yunnan Province), Lao People's Democratic Republic, Myanmar, Thailand and Viet Nam.

The GMS Summit, held to commemorate the 10th anniversary of the GMS Economic Cooperation Program (GMS Program), highlighted the significant progress made so far. "Our most important achievement has been the growing trust and confidence among our countries, which has provided a favorable environment for trade and investment, economic growth and social well-being," stated the joint declaration.

The leaders recognized the challenges of managing the subregion's natural environment and said they would take responsibility and leadership for the sustainable management of national and shared resources. That view was shared by Asian Development Bank (ADB) President, Mr. Tadao Chino. "Sound management of the environment is a prerequisite for, and not a constraint to, sustainable economic development," Mr. Chino said.

Mr. Chino pledged to broaden the Bank's support for the GMS Program which was started in 1992 with ADB's financial assistance and support. In a progress report delivered at the Summit, he said: "The Summit allows all of us to reaffirm our commitment to our shared vision of creating a prosperous and equitable subregion in the countries that share the Mekong River."

"By the end of this decade, the GMS countries will be even more closely connected. At the same time, the subregion's role as a strategic bridge between East and Southeast Asia as well as between South and East Asia, will become increasingly important," Mr. Chino said.

He outlined the challenges facing GMS countries in their move toward regional integration. Besides managing the subregion's natural environment, these included mobilizing financial resources, developing the subregion's human resource potential and adapting to changes in the global and regional economic environment.

"To prepare for these challenges, we must continue to break down barriers by harmonizing legal and institutional arrangements in the subregion. Investment in human resource development needs to be increased. Policies and institutional structures that support macroeconomic stability, sound financial systems and competitive markets need to be strengthened. I am confident that the GMS Program will provide an appropriate framework for such action," Mr. Chino said.

The GMS leaders signed the Inter-Governmental Agreement on Regional Power and Trade to promote and facilitate electricity trade in the subregion. They welcomed PRC's accession to the GMS Agreement to facilitate the cross-border movement of goods and people and endorsed the GMS-Phnom Penh Plan for Development Management to develop human resources in the subregion.

Looking ahead, the GMS Summit leaders underscored their strong commitment to:

• Human resources development
• Protect the environment and cooperate on the use of common natural resources
• Complete road links in the subregion to strengthen productivity and competitiveness, and evolve transport corridors into economic corridors,
• Enhance transport linkages through full implementation of an agreement to facilitate the cross-border movement of goods and people
• Accelerate development of energy and telecommunications infrastructure linking the subregion
• Create a favorable trade and investment climate and promote tourism

"All these investments and efforts will, within the foreseeable future, transform the subregional economy into a broad, rapidly growing market reaching 300 million people who enjoy the benefits of prosperity and peace," said Cambodian Prime Minister Hun Sen in his keynote address, as the Chair of the Summit.

The other leaders at the Summit were H.E. Zhu Rongji, Premier of the State Council, People's Republic of China (PRC); H.E. Bounnhang Vorachith, Prime Minister, Lao PDR; Senior General Than Shwe, Chairman of the State Peace and Development Council, Myanmar; H.E. Thaksin Shinawatra, Prime Minister of Thailand; and H.E. Phan Van Khai, Prime Minister, Viet Nam.

Given the challenges and opportunities facing the subregion, Summit leaders said it was important to build effective partnerships with bilateral and multilateral development agencies, non-government organizations, the private sector and civil society.

GMS leaders recognized and appreciated ADB's role as a catalyst and core supporter of the GMS Program. "We call on ADB to continue and broaden its coordinating and supporting role to GMS."

GMS leaders also reaffirmed a strategic action plan that will include 11 flagship programs. So far, the GMS Program has financed projects totaling US$2 billion in areas such as transportation, energy, telecommunications, human resources development, tourism, environment and trade and investment. It has also addressed environment and social issues such as HIV/AIDS and drug trafficking through technical assistance grants.

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