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Regions and Countries Regional Cooperation Greater Mekong Subregion Publications Proceedings of Ministerial, Forum, and Working Group Meetings Eighth Ministerial Conference on Subregional Cooperation
Eighth Ministerial Conference on Subregional CooperationIntroductionThe Eighth Ministerial Conference on Subregional Economic Cooperation was held at the Asian Development Bank (ADB) Headquarters, Manila Philippines on 2 October 1998. The Ministerial Conference was preceded by a Senior Officials Meeting held on 30 September 1998. The Conference Program is attached as Appendix 1. Conference participants included delegations from Cambodia, People’s Republic of China (PRC), Lao People’s Democratic Republic (Lao PDR), Myanmar, Thailand and Viet Nam; representatives from bilateral and multilateral agencies and organizations; and ADB staff and consultants. The List of Participants is attached as Appendix 2. The welcome and opening statement by the President of ADB and opening statements by the Ministers are given in Appendix 3. The Joint Ministerial Statement adopted at the end of the Conference is attached as Appendix 4. Opening SessionMr. Mitsuo Sato, ADB President, welcomed the Conference participants. He observed that the wide representation in the Conference indicates continued strong support to subregional economic cooperation of GMS countries as well as other partners from bilateral and multilateral agencies. He underscored the importance of the Conference in the context of significant changes in the GMS Program’s environment. He observed that although the Asian financial crisis has adversely affected the region, it has not undermined the fundamental merits of regional cooperation and globalization; on the contrary, it has reinforced the need to pull together. The task of the Conference is to build on GMS members' commitment through a strategy and work program that are responsive to changed economic and social realities in the region. He outlined the new strategy as one that would strengthen regional activity and competitiveness and would entail: (i) the early implementation of priority infrastructure projects to lay the foundation for resumed growth and integration; (ii) the elimination of policy and regulatory impediments to cross-border movements of goods and people, which are the "soft" infrastructure issues; and (iii) an integrated approach to regional cooperation initiatives through economic corridors that would link improvements in infrastructure with policy improvements for facilitating transborder production and trade. He expressed confidence that the GMS Program – as the living proof of "where there is a will, there is a way" – will be able to meet the many challenges of regional cooperation through good times and bad times. H.E. Mr. Ith Praing, Secretary of State, Ministry of Industry, Mines and Energy of Cambodia, began his opening remarks by affirming his government's open door policy of cooperation with all nations and institutions. He noted the progress in Cambodia’s economic, industrial, and public sector development, despite a drop in GDP in 1997, the first time since the country’s transition to a market economy. He cited progress in the implementation of several donor-assisted infrastructure projects, and acknowledged ADB’s loan and technical assistance to some of these projects. He stressed the importance of political stability in Cambodia in sustaining the economy and in establishing full international relations. He reiterated the Cambodian government’s commitment to economic cooperation in the GMS, and expressed full support to the strategy for rapid development of infrastructure projects and an integrated approach through economic corridors. H.E. Mr. Jin Liqun, Vice-Minister of Finance of the PRC, expressed appreciation for the GMS initiative and the headway it had made since 1992 under the auspices of ADB. Citing the challenges of the economic crisis as an important theme of the Conference, he expressed confidence in the ability of the GMS countries to continue to develop despite the many challenges to the "Asian miracle". In this regard, he stressed the need for economic adjustment and restructuring to get back on the track of sustainable economic growth. China, for one, has witnessed its best macroeconomic performance since the opening up of its economy and the economic reform process. He called on the GMS countries to work together on the basis of equality, mutual respect and benefit in order to overcome this crisis. He reaffirmed China’s commitment in contributing to the stability and prosperity of Asia. In his opening statement, H.E. Mr. Phao Bounnaphol, Minister of Communications, Transport, Post, and Construction of the Lao PDR, remarked that the 8th Ministerial Conference is crucial in sustaining the momentum of GMS cooperation. The ongoing crisis has made it urgent to strengthen subregional cooperation and promote the region’s competitiveness. The areas needing immediate attention are trade and investment, infrastructure development, and harmonization of rules and regulations for reducing impediments to the flow of goods and people. He noted considerable progress in the implementation of GMS priority projects despite financial constraints. He encouraged private sector participation in development projects, since they have both funds and managerial skills. He also supported the expansion of transport corridors into economic corridors to pave the way for greater integration of economic activities. H.E. Brigadier General David O. Abel, Minister, Office of the Chairman of the State Peace and Development Council of Myanmar, proposed that, in view of potential delays in project implementation on account of financial difficulties, a phased approach to project implementation may be necessary, with priority being given to projects that generate substantial multiplier effects and impact on the economy as a whole. He emphasized the need to establish links between ASEAN and GMS programs to avoid overlaps. Although the regional economic crisis has had little impact in Myanmar, he cited the need for greater efforts to stabilize the economy through cooperation. He reported on the status of implementation of GMS projects in Myanmar which are being funded by the national government as well as the private sector. He solicited assistance in solving the region's drug problem within the GMS, with ADB acting as catalyst for mobilizing international cooperation and support. H.E. Dr. Supachai Panitchpakdi, Deputy Prime Minister of Thailand, remarked that the economic crisis has not diminished the long-term strengths of GMS. The subregion is centrally located, has a young labor force, and is resource-abundant with a strong agriculture base. The GMS countries are able to convert good relations into economic cooperation, which should be enhanced rather than slowed down in times of crises. The strengthening of the GMS program could provide an effective strategy for increasing scale economies and promoting the attractiveness of the subregion as an investment location. He emphasized "economic development corridors" as a means for establishing clearer economic relationships between real sector restructuring and expansion in infrastructure projects. This approach should be accompanied by measures to reduce barriers to trade and investment, and innovations in project financing. He also cited the need for strengthening capacities in managing the GMS Program, both within the countries, as well as in ADB, as the program approaches a more mature stage and coordination issues become more complex. He expressed the Thai Government’s continuing commitment to the GMS Program, reminding everyone that cooperation can influence the pace and direction of each member’s economy. H.E. Mr. Tran Dinh Khien, Vice Minister of Planning and Investment of Viet Nam, called for appropriate measures to address difficulties arising from the economic crisis, emphasizing the need to review project priorities and to create the necessary conditions to implement them. He welcomed the GMS action plan for 1998-2000 and proposed that a three-year rolling plan be formulated. In implementing the action plan however, he emphasized the importance of resource mobilization, and projects that promote efficient resource use and technology as means for enhancing the competitiveness of the GMS countries. Specific suggestions that were made in this regard include: (i) the establishment of a GMS development fund: (ii) project review and prioritization in favor of high-impact, quick gestation projects that could be supported by the fund; and (iii) continuation of ADB’s catalytic role in mobilizing resources for GMS projects. Consideration of the Report of the Senior Officials' MeetingMr. Geert van der Linden, Director, Programs Department (West), ADB, as Chairperson of the Senior Officials' Meeting held on 30 September 1998, presented the highlights of deliberations in said meeting. The primary purpose of the meeting was to prepare for the Ministerial Conference by reviewing how the regional economic crisis has affected the GMS Program and how subregional cooperation could provide a relevant response. Although the crisis has caused economic difficulties and social hardships, Senior Officials noted that GMS countries are making the necessary adjustments to cope with the present situation. Senior Officials expressed confidence in the inherent strengths of the subregion that will enable it to rebound from the crisis even stronger and more united. A new strategy for the GMS program comprising four key elements was discussed, namely: (i) continued strengthening of subregional infrastructure; (ii) reduction of regulatory and bureaucratic impediments to subregional trade and investment, e.g. barriers to cross-border movements of goods and people; (iii) development of economic corridors, building on transport linkages initially and expanding to production and trade linkages; and (iv) resource mobilization through partnership with the private sector. In view of the difficulty of mobilizing resources for infrastructure projects, ADB and other multilateral and bilateral organizations were called to play an even more active role in helping GMS countries generate financial resources for infrastructure. New approaches would be required, in particular, those involving participation from the private sector. The report highlighted certain items in the deliberation of the Senior Officials. Of particular interest is the implementation of two important transport projects – the Phnom Penh - Ho Chi Minh City Road Project and the East West Transport Corridor Project – which are in the advanced stages of preparation. With respect to energy projects, the slack in energy demand would require adjustments in the implementation timetable. The enormous potential of tourism for helping lift the subregion out of the crisis was also discussed. The importance of human resource development was stressed, especially in the context of the social consequences of the crisis. Considerable progress in developing the institutional framework for addressing cross-border environmental problems was also recognized. A new development concept – economic corridors – was also discussed, with national delegations stressing the need for pragmatism and gradualism in light of financing difficulties. A focused indicative work program to the year 2000 was considered, complementing the four-part strategy closely. A number of international organizations offered their support for the GMS program, and Senior Officials expressed their appreciation. Review of the GMS Program and Proposed Strategy in the Context of Recent DevelopmentsThe GMS Program: A Retrospective OverviewThe Conference reviewed the achievements the GMS Program has so far made. Since its inception in 1992 with assistance from ADB, the GMS Program focused on infrastructure development as a means to promote trade and investment. Gradually, the Program has been broadened to address social issues (in labor, health and education); cross-border issues (in environment and in the transport of goods and people); and in areas of common need (such as training). The Conference noted that many of the subregional projects have been implemented or are entering the implementation stage. About ten subregional infrastructure projects – involving hydropower, roads, ports and airports – were completed or under construction within six years of the Program. These projects cost about $1 billion, with ADB providing $325 million for five projects and mobilizing $234 million of cofinancing. Implementation has so far been on a national basis, covering parts of a subregional link. Several cross-border projects directly involving more than one country are also at advanced stages of preparation and are about to be implemented. Important achievements were also seen in non-infrastructure projects. Since 1992, the Bank supported 24 technical assistance (TA) projects amounting to $35 million. The GMS Program has served as an effective catalyst in stimulating both incremental and external financing. It has contributed to dialogue and trust among the GMS countries, providing opportunities for enhancing initiatives in cooperation. The Proposed GMS Strategy in the Context of Recent DevelopmentsThe Conference urged a stronger pulling together of efforts to maintain the GMS Program momentum and respond effectively to the regional economic crisis. Although the crisis has resulted in economic, social and financial difficulties, the Ministers expressed confidence in the ability of the GMS countries to make the necessary adjustments for recovery and reaffirmed the vital role of subregional cooperation in strengthening the conditions for sustainable development. They agreed that rather than drawing back in the face of the regional crisis, the GMS countries should take the opportunity for strengthening and refocusing subregional cooperation. The Ministers gave full endorsement to a four-pronged strategy for meeting the challenges of the crisis as follows: (i) immediate implementation of infrastructure projects that are at advanced stages of development; adoption of a flexible approach in selecting and sequencing priority projects; (ii) increased emphasis on non-physical aspects of subregional cooperation; (iii) development of economic corridors as an integrated and comprehensive approach to link infrastructure development with production and trade opportunities in a specific geographic area; and (iv) project-specific resource mobilization efforts. National delegations expressed the need to work out further details of the strategy. For instance, for resource mobilization to be successful, profiles of infrastructure plans need to be upgraded to international standards and directed to countries and investors that are specifically looking for investment possibilities in the region. GMS projects could also be brought into the discussions of other fora such as the Asia Europe Meeting (ASEM) and the Asia-Pacific Economic Cooperation Group (APEC) which have started to discuss financing facilities for infrastructure projects in Asia. This will serve to broaden financing options and partnership arrangements involving the private sector. A view was expressed that the resource mobilization strategy should be further refined and developed. A suggestion was made that the earlier proposal for a regional financing facility should be further pursued. A suggestion was also made to use the GMS Business Forum endorsed by the 7th Ministerial Conference for the mobilization of private funds, or if the establishment of the Business Forum is judged still premature, at least to invite private sector representatives to GMS forum/working group meetings Several delegations emphasized that software issues will remain a crucial element in enhancing the viability and maximizing impacts of projects in the context of resource scarcity. Trade and investment issues, in particular will need to be given more attention since infrastructure projects have the basic aim of facilitating trade and investment flows. Trade issues that could be addressed within the GMS framework include exchange of trade information, facilitation of customs procedures, and the facilitation of cross border movements. GMS activities in trade and investment should be seen as complementing, rather than duplicating ASEAN initiatives in these areas, since GMS activities will focus on border issues. Trade and investment facilitation in the GMS will enhance ASEAN agreements by operationalizing them at the level of border transactions. GMS Economic CorridorsIn discussing the new strategy, the Conference considered in further detail the development of economic corridors as a strategic initiative under the GMS Program. They concurred that economic corridors could be an effective approach for linking production, trade, and infrastructure within a specific geographic framework. Within the corridors, special preferences could be extended to certain economic activities, thus increasing investor appeal of projects, and expanding sources of finance. Key elements that would facilitate the emergence of economic corridors include: (i) identifying the economic rationale, including the basis for related economic zones; (ii) physical infrastructure connecting centers of economic activity to each other; (iii) streamlined policies and procedures to allow cross-border utilization of the corridor; (iv) site-specific physical infrastructure and streamlined policies within such zones; and (v) effective marketing strategy of the concept as a set of specific, tangible investment opportunities. All national delegations expressed support for the concept of economic corridors. They shared the view that the approach will provide a wider perspective for the GMS Program where individual projects could fit. Economic corridors will also allow the benefits from transport projects to be extended to remote rural areas though linkages with production activities. In the long term, economic corridors should be able to provide the linkage between national development strategies and subregional priorities. The Conference took note of the five potential economic corridors in the GMS within north-south and east-west routes, including nodal points that would be traversed by these routes. Some of these corridors could serve as potential transshipment areas for South Asia, Southeast Asia, mainland China, and East Asia, by significantly reducing distances between major markets. The Ministers noted that some priority projects within the GMS Program, such as the Phnom Penh-Ho Chi Minh City Road Project and the East West Transport Corridor Project, could serve as "pilot projects" for developing economic corridors. Some delegations, however, cautioned on the scale and complexity of resources that would be required to implement the concept. Investment infrastructure facilities, and not only transport, would be required to attract private capital. It was pointed out that GMS countries could, on their own, mobilize private investments and bilateral assistance for national components of economic corridors which would be facilitated if national priorities and economic corridor activities are consistent with each other. Special arrangements to facilitate the movement of goods, capital and human resources would be required. Further, it was observed that the development of economic corridors is a long-term process and that a phased approach would be needed. The immediate task is to focus on feasibility studies for identified economic corridors, building on transport links that have already been developed under the GMS Program; the second stage, which could overlap with the first, is to focus on the implementation and completion of physical infrastructure to serve as the backbone of the corridors; and the third phase is to promote and implement the long-term development of the corridor. The Ministers agreed on the following activities to further pursue the economic corridors initiative: (i) develop the economic corridors concept in further detail, including a comprehensive review of best "economic zone" concepts with direct GMS relevance; (ii) review priority subregional transport projects and other promising transport corridors, to assess their potential for expansion to economic corridors, and identify two or three potential pilot projects; (iii) review national projects with potential links to economic corridors; (iv) undertake informal consultations with potential public and private investors on their likely interest in participating in particular GMS economic corridor projects; (v) prepare pre-investment studies of selected potential pilot projects as the basis for more detailed feasibility and design studies. Review of Priority Subregional Projects and Confirmation of Agreements at Meetings of GMS Forums and Working GroupsTransportThe Conference adopted the Report of the Fourth Meeting of the Subregional Transport Forum held in Vientiane, Lao PDR on 14-15 May 1998. The Conference noted the following significant developments in the road transport sector projects:
With regard to progress of work on Cross-Border Movement of Goods and People in the GMS, the Conference noted that the study team has submitted its final report which contains a review of current laws, regulations, and related issues in the GMS countries. A draft framework agreement has also been circulated for review by the countries. In this regard, the Conference endorsed the recommendation of the Fourth Meeting of the Subregional Transport Forum to establish a working group to review the draft model agreement. The Conference endorsed the Kunming-Hanoi-Transport Corridor Project as the next priority subregional project under the GMS Program. This would cover the Kunming-Hanoi Road Improvement Project (R5), the Yunnan Province-Vietnam Railway Project (RW2) and the Red River Navigation Improvement Project (W3). The Bank was requested to provide technical assistance for upgrading the related feasibility studies. In designing the project, it was agreed that a broader framework would be adopted to include a financing strategy, transborder production linkages, facilitation of cross-border movement of goods and people, and active public-private sector consultations. The Conference also noted that the GMS countries have been successfully implementing national components of subregional transport networks, as well as pre-investment studies and masterplans, using national funds, or in cooperation with official sources of funds as well as with the private sector. TelecommunicationsThe Conference adopted the report of the Third Meeting of the Subregional Telecommunications Forum held in Pattaya Thailand on 2-4 July 1997, and noted the following developments:
EnergyThe Conference adopted the report of the Fourth Meeting of the Electric Power Forum held in Hanoi, Viet Nam, on 29-31 October 1997. The Conference noted the progress in the implementation of subregional energy projects as follows:
The Conference supported plans to expand power trade in the GMS beyond bilateral power purchases and to move into power pooling and multilateral arrangements. They noted that an Experts Group on Power Interconnection and Trade has been established by the Subregional Electric Power Forum to address technical, institutional, and policy barriers affecting power trade in the region. The Conference endorsed the report of the Inception Meeting of the Experts Group held in Nakorn Pathom, Thailand on 20 June 1998; at that meeting the GMS countries agreed to update their generation and transmission master plans and compile existing criteria for planning generation and transmission systems. The Conference also noted that a Policy Statement for Regional Power Trade in the GMS will be drafted by ADB, at the request of the Experts Group. The Ministers shared the view that slower energy demand resulting from the economic crisis would require a higher degree of selectivity and adjustments in the implementation of new projects. This implies that the effects of the economic crisis on energy demand, system expansion plans, and project finance will have to be closely monitored. At the same time they urged new approaches for promoting private sector participation in energy projects. The Conference agreed however, that completion of ongoing projects, project preparation work, and improvements in the policy environment should continue to be the focus of activities in the next three years. TourismThe Conference adopted the reports of the following meetings of the Working Group on Tourism: Fifth Meeting at Chiang Rai, Thailand on 29-30 May 1997, Sixth Meeting at Ho Chi Minh City, Viet Nam on 30-31 October 1997, and Seventh Meeting at Phnom Penh, Cambodia on 6-7 April 1998. The Conference noted progress in several activities as follows:
The Conference was informed that ADB’s RETA Screening Committee has endorsed the project on Tourism Skills Development in the GMS for technical assistance, which will possibly start in November 1998. Several other planned activities were also noted by the Conference including facilitation of travel at the borders, and improvement of links between tourism and transport projects. Efforts to strengthen the roles of various institutions involved in tourism were also noted. EnvironmentThe Conference adopted the report of the Fourth Meeting of the Working Group on Environment held in Hanoi, Viet Nam on 5-6 March 1998. The Conference noted the following developments in the subregional environment sector projects:
The Conference noted that cross-border issues on the environment will be the new focus of cooperation in the sector. The indicative list of themes and issues that have been identified by the Working Group include: public participation and NGOs; compilation of environmental standards; environmental challenges of the Tonle Sap Lake, Red River, and Lower Mekong Delta; effectiveness of donor-assisted environmental training programs; lessons from hydropower projects in the GMS; bridging the accessibility gap in environmental information; experience in river basin management; and cross-border trade in timber and wildlife. From these topics, new areas and forms of cooperation are expected to emerge Human Resource DevelopmentThe Conference noted the following developments on priority projects in the human resource development sector:
The Conference also noted that a concept paper on the GMS Vaccine Initiative is being developed following from a proposal of the Working Group on HRD. The project aims to introduce new vaccines, develop financing mechanisms for procurement, build capacity, and prevent communicable diseases Recognizing the importance of addressing HRD concerns resulting from the crisis, the Conference endorsed the proposal to conduct a workshop to discuss the social consequences of the economic crisis. This will be a basis for identifying further opportunities for cooperation and redefining the priorities of the Working Group on HRD. It was noted that the Working Group will also consider provision of assistance for enhancing higher education in the region. Trade Facilitation and InvestmentThe Conference noted that trade facilitation and investment have become even more important under the present circumstances in the region. It was suggested that preparations for working group meetings be expedited, and that cooperation activities to be pursued must be those that can progress quickly. The Conference noted that following the endorsement by the 7th Conference to establish a Subregional Trade Facilitation Working Group, consultations between ADB and ESCAP have been taking place in preparing an issues paper to identify potential activities of the Working Group. Consultations have also been made with the GMS countries and the ASEAN Secretariat. Suggested activities for trade include modernization of customs procedures, issues related to transit trade, and improvement of trade information. The Conference also discussed the need to establish closer linkages between GMS trade facilitation activities and ASEAN trade initiatives, as well as between the Working Group on Trade Facilitation and the Subregional Transport Forum on the reduction of cross-border barriers. The Conference requested ADB ad ESCAP to complete the issues paper through further discussions and systematic country consultations and to convene the inception meeting of the Working Group on Trade Facilitation. The issues paper should take into account the implications of both the regional economic crisis on trade issues and the proposed economic corridor approach. For investment, the Conference requested ADB, the ASEAN Secretariat, and the Foreign Investment Advisory Service (FIAS) to review the activities earlier identified by the Subregional Investment Working Group, prioritize them in the context of the new environment for investments, and convene the second meeting of the Working Group. Other potential priority activities may also be identified, taking into account the new environment for investment and the implications of the economic corridor approach. A suggestion was made to create a subgroup for agriculture in the Working Group. GMS Indicative Work Program (1998-2000)The Conference considered the GMS Indicative Work Program for 1998-2000 which translates the Program strategy into concrete projects and activities. The important elements of the Work Program consist of: (i) the priority projects and activities to be pursued up to the year 2000; (ii) resource mobilization efforts underpinning the priority projects and activities; these efforts generally call for a renewed catalytic role for official sources of funds such as the ADB, public-private sector partnerships, and structured project finance that addresses potential commercial financing at the early stage of project preparation; (iii) activities to advance the economic corridors approach as endorsed by the Ministers; and (iv) continuing program support activities that include secretariat support, promoting national and subregional project linkages, implementation of a project monitoring and tracking system and information dissemination. The Working Groups and Forums were requested by the Ministers to further refine the work program elements in their respective sectors in the course of their future meetings. In discussing the Work Program, the Ministers acknowledged the support and cooperation provided by partners from bilateral and multilateral agencies and institutions in implementing many of the GMS projects and activities. They emphasized anew the need for greater involvement of the private sector in the GMS Program, recalling that at the 7th Conference, the private business sector was invited and that a GMS Business Forum was endorsed. Consultations with the private sector will also become very important in the course of developing economic corridors. One option that was suggested is to invite the private sector business representatives to GMS meetings; another is to encourage them to have parallel meetings and to report on these meetings to the Ministerial Conference. The Conference requested ADB to look further into the mechanisms for involving the private sector in GMS activities. Other MattersWorkshop on the Development of the Greater Mekong Area, 4-5 November 1998 Tokyo, JapanThe Conference noted that the Ministry of Foreign Affairs (MOFA) of Japan will be sponsoring a Workshop on the Development of the Greater Mekong Area on 4-5 November 1998 in Tokyo. While appreciating Japan’s keen interest and strong support to the GMS, some Ministers expressed the view that a workshop of this nature should not be chaired by a bilateral donor but by ADB. They recalled that at the 6th Ministerial Conference held in Kunming, Yunnan Province in December 1996, it was decided that ADB should play a coordinating role on behalf of the GMS countries with respect to other GMS-related initiatives. In response, ADB indicated that it would discuss the matter with MOFA. New Areas of CooperationThe Conference endorsed drug eradication as a new area of cooperation under the GMS Program. A specific activity suggested was the substitution of poppy cultivation with other crops, as one area with potential for attracting international awareness and support and at the same time providing benefits to remote areas in the subregion. The ADB was requested to explore the possibility of technical assistance and financial support in this area. Agriculture was another area of cooperation that was proposed. Creation of a subgroup on agriculture in the Subregional Investment Working Group was suggested as an initial step for discussing agriculture issues. It was noted that agriculture issues could be pursued independently or as part of economic corridors. The Conference requested ADB to look into this matter through country consultations and propose a suitable approach and mechanism for addressing agriculture issues in the GMS framework Statement of ObserversMr. Ravi Sawhney, Director, International Trade and Economic Cooperation Division, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), expressed support for efforts of the GMS countries to provide an effective response to the crisis through the GMS Program. Mr. Sawhney briefly introduced an information note on ESCAP’s activities in the GMS which was circulated at the Conference. Citing the importance of trade and investment in promoting economic growth, he observed that despite the decline in intraregional trade as a consequence of the crisis, the commitment to liberalization and cooperation continues within various subregional frameworks such as ASEAN and SAARC. He expressed the hope that the activities of the working group on trade would start soon and expressed ESCAP’s willingness and commitment to cooperate with ADB in this regard. In addition, Mr. Sawhney also endorsed the more active involvement of the private sector in the GMS Program citing that this would complement and support the GMS Program in general and the working group on trade in particular Mr. Junichi Ihara, representing the Ministry of Foreign Affairs of Japan, indicated that Japan is supporting subregional cooperation in the GMS to enhance the resilience of the riparian countries and thus contribute to the political stability of the region. He expressed support for the economic corridors approach. Japan’s plans to provide yen loans for the construction of the second Mekong bridge and grant-aid for the improvement of a portion of Route 9 in Lao PDR as part of the East West Transport Corridor are in fact intended to support a more comprehensive development approach that would be linked to rural development, human resources development, measures to protect the environment, and measures to encourage private investments. He informed the participants of plans to organize a workshop in November on the development of the Greater Mekong area, for which the Government of Japan is closely coordinating with ADB. Ms. Hiroko Taniguchi, Programme Planner/Coordinator, Public Relations and Cooperation Unit, Mekong River Commission Secretariat (MRCS), stated that the MRCS has continuously and successfully cooperated with the ADB in various roles as coordinating agency, main partner, or executing agency in several GMS projects. She stressed that present circumstances in the subregion require closer coordination among donors and various GMS initiatives. In this regard, the role of ADB as facilitator and supporter is highly appreciated. She stated that information exchanges among various organizations would be desirable for better coordination and to avoid overlaps. Ms. Taniguchi also described the various activities of the MRC in environment, fisheries, human resource development, hydropower and more recently, in agriculture and irrigation. H.E. Mr. Graeme Waters, Ambassador of New Zealand to the Philippines, expressed New Zealand’s support to the GMS program and ADB’s role in supporting the subregion’s development priorities. It was important to address the "software" issues of non-physical infrastructure to remove barriers to cross border movement and trade and investment. He cited New Zealand’s support to the GMS countries through its regional and bilateral programs. Although the bilateral development assistance is comparatively modest, it has more than doubled in the last two years from NZ$5 million to NZ$11 million and has provided a strong intellectual contribution through its emphasis on human resource development and capacity building. An important initiative is the establishment of the Mekong Institute in Khon Kaen University in North East Thailand which provides training for senior officials of the GMS countries in areas such as public sector reform, trade policy, tourism management and financial management. Ms. Carroll Long, Deputy Regional Director, East Asia and Pacific Regional Office, UNICEF lauded the GMS Program and noted that the broadening of the Program’s scope to social issues has opened opportunities for collaboration with UNICEF. She remarked that UNICEF’s presence in the Conference is an endorsement of the GMS initiatives, particularly the focus on social issues which have become more important in the present difficult times. UNICEF looks forward to further increasing the exchanges that have been started with the GMS countries to ensure that the needs and concerns of some of the most vulnerable members of society are addressed. Mr. Katsuhiko Umehara, Secretary of the Working Group on Economic Cooperation in Cambodia, Laos, and Myanmar under the ASEAN Economic Ministers and Japan’s Ministry of Trade and Industry, informed the participants of recent changes in the structure of the Working Group. The Working Group was established in 1994 to strengthen the economic linkage between ASEAN and Cambodia, Lao PDR, Myanmar and Viet Nam (the CLMV countries). Since the CLMV countries have now become members of ASEAN, and also because of difficulties experienced by ASEAN countries as a result of the crisis, the Working Group has redirected its objectives and has now been renamed AEM-MITI Economic and Industrial Cooperation Committee (AMEICC) co-chaired by ASEAN and Japan Economic Ministers. The Committee shall initiate, implement, and review projects on (i) enhancing industrial cooperation; (ii) improving ASEAN’s competitiveness; and (iii) providing development cooperation assistance to new members. Consideration and Adoption of the Joint Ministerial StatementThe Conference adopted a Joint Ministerial Statement entitled "Confidence Prevails" which is attached as Appendix 4. The Next ConferenceThe Conference agreed that the 9th Ministerial Conference will be held early in the fourth quarter of 1999 at ADB Headquarters in Manila. AcknowledgementsThe Conference expressed their sincere appreciation to Asian Development Bank for the excellent arrangements for the Meeting and for the hospitality extended during their stay in Manila.
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