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About GMS
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The subregion embraces flora and fauna that have expanded northward along the Malay Peninsula into Thailand, encroached upon the high mountains from the Himalayas, or advanced along the broad river valleys as dry deciduous forests similar to those of India. Ten million years of changing sea levels have left a rich legacy of unique life forms that have evolved in isolation on the Cardamom and Annamite mountains of Cambodia, Lao PDR, Thailand, and Viet Nam.
These resources provide both income and sustenance to the great majority of people in the subregion who are leading subsistence or near subsistence agricultural lifestyles. The land yields timber, minerals, coal, and petroleum, while water from the many rivers supports agriculture and fisheries and provides energy in the form of hydropower. The coal reserves of the subregion are abundant, and the oil and gas reserves considerable. Most of these are in Myanmar, Thailand and Viet Nam. These abundant energy resources are still relatively underused.
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About 325 million people live within the GMS region, which has a land area of 2.6 million square kilometers. The region's common link, the mighty Mekong River winds its way for 4,200 kilometers through their midst. The great majority of these people live in rural areas where they lead subsistence or semi subsistence agricultural lifestyles. Around 70 percent of the population of Lao PDR, for example, is rural and even in Thailand, the most urbanized of the Mekong countries, there remain large agricultural communities, particularly in the north and northeastern parts of the country.
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While traditional lifestyles and deep-rooted customs and beliefs have been scarcely altered by time, the area is now undergoing greater change than ever before. With the onset of peace in the 1990s, the peoples of the Mekong are experiencing rapid changes and improvements in their living standards and conditions.
Increasingly, modernization and industrialization are emerging from a process of transition and transformation. The Mekong countries are gradually shifting from subsistence farming to more diversified economies, and to more open, market-based systems. In parallel with this are the growing commercial relations among the six Mekong countries, notably in terms of cross-border trade, investment, and labor mobility. Moreover, natural resources, particularly hydropower, are beginning to be developed and utilized on a subregional basis.
The rich human and natural resource endowments of the Mekong region have made it a new frontier of Asian economic growth. Indeed, the Mekong region has the potential to be one of the world's fastest growing areas.
Yet, still much of its population remains poor. The gross domestic product per capita is under $2 a day in most of the region. Despite significant economic growth, poverty is still widespread. The challenges include
- the disparities between urban and rural communities
- a growing gap between rich and poor
- inadequate attention to the special needs of ethnic minorities
- gender inequities, lack of access to basic health and education
- inadequate protection of the environment on which traditional livelihoods depend
Clearly, the full potential of the Mekong countries can be realized only if the problem of poverty is adequately addressed.
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For detailed information on ADB's operations in each of the six GMS countries, visit the Country Operations links below.
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