Regional Cooperation

Challenges

Political Commitment - Regional cooperation is a complex, long-term process. It is not a short-term panacea. It takes significant time and financial resources to develop the supporting institutions, attitudes, and national capacities that are needed before the strong economic and social benefits of regional cooperation are felt. Sustained political commitment is essential for success, particularly during difficult economic times.

Balancing competing priorities - National, sub-regional, and regional priorities may not always be the same. Success depends on securing a balance between them. To strengthen cooperative regional economic activities, coordinated development of infrastructure and other facilities is critical, as is the need for coherence in economic policies and trade and investment rules.

Managing for results - There are often wide variations among participating countries in the way they manage implementation of regional activities. As long as the focus is on the results, it is not necessary to try and align the management processes across countries.

Economic disparity among participants - It can be a barrier to cooperation and a cost to overall regional efficiency. Successful regional cooperation depends on

• providing adequate funding support to disadvantaged countries and subregions
• equitable sharing of the benefits that come from collective efforts
• clear leadership in organizing and coordinating a regional initiative

Political diversity - Successful cooperation amongst countries with very different political systems - ranging from market economies to centrally planned economies - is possible. It depends on identifying common interests and goals that enable countries to develop more rapidly together - physical environment, socioeconomic characteristics, political and cultural settings, or policy orientation. This in turn provides a crucial basis for peace, stability and economic growth.

A sense of ownership - The private sector must be the engine of growth of regional cooperation programs, but can only reach its full potential if there are clear and concerted actions by the public sector. Governments need to be proactive in providing public services, developing policies that permit cooperation, and establishing many of the institutions needed to sustain cooperation.