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Empowering Nations Through Regional Cooperation

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Conclusion

• relative assurance of net social gains,²³
• some complementarity among nations,
• a resource base (natural resources, labor, and capital)
• geographic proximity and cultural and linguistic affinity,
• political commitment and willingness to forgo some measure of sovereignty,
• ownership and commitment to the success of the initiative,
• a clear vision and strong public policy, and
• readiness to invest in physical infrastructure and accommodate policy changes.

Certain elements are required for successful cooperation, notably patience, monitoring mechanisms, and financial resources. It takes time to create the appropriate institutions and build up national capacities. It takes time to achieve results. In regions with a recent history of political conflict, even more time is needed to overcome suspicion and build trust. Regional cooperation programs become more complex as they mature. This leads to increased potential for disagreements over the cost of borrowing for physical investments and the division of benefits—outcomes and natural resources—resulting from the regional cooperation program. To minimize the incidence of disagreements, it is important to establish—as early as possible—monitoring and evaluation capabilities and dispute resolution processes, and to provide training in project appraisal techniques for both local and national planners.

Successful regional economic cooperation also requires significant financing to establish links among geographically contiguous countries and to develop national and regional economies once the basic framework for cooperation has been established.

ADB has provided much of the financing needed to establish the modalities of regional cooperation, most notably in the GMS, and has actively sought cofinancing. The IMT-GT and, to a lesser extent, BIMP-EAGA, were successfully mobilizing private sector capital before the 1997 Asian financial crisis. With the current global and regional economic climate, private capital inflows will slow. Nevertheless, regional cooperation programs will continue to look to the private sector for financing, as well as for local knowledge of small- and medium-sized enterprises.

The form of future ADB assistance will depend on such factors as global and regional developments, program maturity, strength of the private sector, and capacity for mobilizing capital. In programs established more recently, efforts will be directed toward improving confidence among participating members, and ensuring that the institutional basis for sustainable cooperation is properly established. ADB assistance could also be extended to develop new cooperation programs which have a limited number of members and have come into being as a result of greater confidence between countries. Programs in Northeast Asia and several initiatives within the GMS are in this category. In these, ADB’s role as a catalyst and honest broker is still critical.

Cooperation is a powerful instrument. Nations combine their strengths and their resources are maximized. Nations work to a common purpose and their goals are reached. Regional cooperation programs have built corridors across nations once divided, saved forests, built schools, and brought stability and peace to lands once at war. Together, the strength of the group can stop the spread of infectious diseases, mitigate the effects of an environmental disaster, reduce poverty. Together, nations are empowered.

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