Strengthening Connectivity for Sustainable, Pro-Poor Growth
Improving connectivity will not only increase the volume of trade, it can also affect the pattern of trade in a way that increases competitiveness. Connectivity will facilitate trade by bringing down transaction costs and making neighboring markets more accessible.
From 1972 to 2004, ADB funded 18 regional investment projects totaling $3,926 million with ADB providing $1,361.3 million, and cofinancing of $962.4 million had been mobilized for 8 of these projects. ADB has also provided 95 technical assistance grants totaling $57.8 million for the Greater Mekong Subregion (GMS) program’s priority areas.
Central Asia Regional Economic Cooperation (CAREC)
ADB initiated the Central Asia Regional Economic Cooperation (CAREC) program in 1997. CAREC is also an alliance of institutions that support regional cooperation including the European Bank for Reconstruction and Development, the International Monetary Fund, the Islamic Development Bank, the United Nations Development Programme, and the World Bank.
The primary objective of the CAREC program is to promote economic growth and raise living standards by encouraging economic cooperation. The program focuses on financing infrastructure projects and improving the region's policy environment in the priority areas of water and energy, trade facilitation, and transport. The goal is to lessen Central Asia’s economic isolation; maximize the potential benefits of available natural resources such as water, coal, and natural gas; and support the development of policy frameworks that enable trade within and beyond the region.
Greater Mekong Subregion
ADB’s strategy for 2004–2008 supports sustainable pro-poor growth by strengthening connectivity and facilitating cross-border movements and tourism in the GMS. This will be implemented through priority subregional projects in transport, energy, telecommunications, and trade facilitation identified in the plan of action endorsed by the 30th GMS ministerial meeting in Vientiane, Lao People’s Democratic Republic in December 2004 to enhance connectivity, competitiveness, and community. The strategy also proposes developing an updated and integrated master plan beyond 2006 for the transport and energy sectors, and extending assistance in implementing key sector reforms to foster the development of information and communication technology, particularly in the delivery of services to the poor. Measures are also in place to mitigate the negative impact of greater connectivity, e.g., transmission of communicable diseases, environmental degradation, and trafficking in people and wildlife.
Southeast Asia
Building connectivity in the archipelagic geography of Indonesia, Malaysia, and Philippines is a major undertaking requiring carefully coordinated planning of infrastructure links. In the more remote islands of the Association of Southeast Asian Nations region this enhanced connectivity is an essential precondition for improving the livelihood of local populations. ADB is currently working with stakeholders to finalize its first Regional Cooperation Strategy and Program for Southeast Asia, in which strengthened regional transport and energy linkages are two of the core areas of activity. Actual investments in infrastructure are being complemented by technical assistance to facilitate trade through improved logistics, capacity building in multimodal transport planning, and harmonization.
South Asia
ADB promotes economic cooperation and integration within South Asia and beyond. In 2004, under the South Asia Subregional Economic Cooperation program, a transport loan was approved, and several technical projects were implemented or processed in six priority areas: transport; energy; tourism; environment; trade, investment, and private sector cooperation; and information and communication technology. The Subregional Economic Cooperation in South and Central Asia program includes Afghanistan, Pakistan, Tajikistan, Turkmenistan, and Uzbekistan, and Iran as an observer. Its objective is to promote cooperation in transport, transit, and trade. ADB is also working with the South Asian Association for Regional Cooperation to explore ways in which it can assist with the regional cooperation agenda.
The Pacific
Two of the most critically needed regional public goods are specialized knowledge and technology that address common needs in the Pacific, including regional institutional capacity in transport and communications.