Catalog

Mekong Countries Adopt 10-Year Strategy

Landmark cross-border agreement promises to facilitate the flow of people and goods

By Tsukasa Maekawa (tmaekawa@adb.org)
Senior External Relations Officer

HISTORIC AGREEMENT. Four GMS countries signed the agreement; the other two are expected to sign in the near future

In the first ministerial meeting ever held in Yangon, Myanmar, ministers of the six countries bordering the Mekong River adopted on 29 November 2001 a new strategy for the next 10 years to strengthen regional cooperation.

“GMS countries envision a Mekong subregion that is more integrated, prosperous, and equitable,” said the ministers in a joint statement concluding the 10th Ministerial Conference of the GMS Economic Cooperation Program, assisted by ADB.

The conference, held on 27–29 November, was attended by the ministers responsible for the program from Cambodia, People’s Republic of China (PRC) (Yunnan Province), Lao People’s Democratic Republic (Lao PDR), Myanmar, Thailand, and Viet Nam.

“The September 11 terrorist attacks have worsened an already weak world economic outlook, causing downward revisions to growth forecasts—including those in this region. In this context, it is even more important that GMS countries work together so as to benefit from each other’s strengths,” said ADB Vice-President Myoung-Ho Shin.

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Four GMS countries—Cambodia, Lao PDR, Thailand, and Viet Nam—signed a landmark cross-border agreement to facilitate the flow of people and goods. The PRC and Myanmar are expected to join the agreement in the near future. The agreement simplifies and harmonizes legislation, regulations, and procedures relating to cross-border transport to facilitate speedy joint inspections.

The ministers noted that the agreement would be a vital complement to free trade among the Association of Southeast Asian Nations (ASEAN) and the PRC. It will maximize the benefits of major road projects linking north to south and west to east.

The GMS Program started in 1992 with ADB assistance. The Program has helped build trust and confidence through conferences and joint initiatives, and led to a series of infrastructure projects and other activities. So far, it has assisted 10 projects, with investments totaling about $2 billion. It also has addressed environment as well as social issues, such as HIV/AIDS and drug trafficking.

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“The spirit of cooperation and determination to resolve obstacles for development with the joint effort was firmly established,” said Khin Nyunt, Secretary-1 of the State Peace and Development Council of Myanmar, in his address to the conference.

Under the new strategy, the GMS countries will cooperate further to realize the potential of the subregion through an enabling policy environment and effective infrastructure linkages that will facilitate cross-border trade, investment, tourism, and other forms of economic cooperation; and develop human resources and skills competencies.

The strategy also called for GMS efforts to ensure that development process is equitable and sustainable, and environment and social interests will be fully respected in formulating and implementing the GMS Program.

The strategy included a detailed action plan for the next three years, involving 10 flagship projects that require more than $900 million in investment financing and $30 million in technical assistance. ADB will help the GMS Program with resource mobilization by organizing a GMS Donors’ Coordination Meeting and encouraging more private sector participation.

The projects identified under the action plan are North-South Economic Corridor, East-West Economic Corridor, Southern Economic Corridor, Telecommunications Backbone, Regional Power Interconnection and Trading Arrangement, Facilitating Cross-Border Trade and Investment, Enhancing Private Sector Participation and Competitiveness, Developing Human Resources and Skills Competencies, Strategic Environment Framework, and Flood Control and Water Resources Management.

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