Greater Mekong Subregion

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p. 10 of 115 BACK | NEXT Ninth Ministerial Conference on Subregional Cooperation Eighth Ministerial Conference on Subregional Cooperation Appendix 1 Appendix 2 Appendix 3 Appendix 4 Sixth Meeting of the Subregional Transport Forum Fifth Meeting of the Subregional Transport Forum Fourth Meeting of the Subregional Transport Forum Seventh Meeting of the Subregional Electric Power Forum Sixth Meeting of the Subregional Electric Power Forum Fifth Meeting of the Subregional Electric Power Forum Fifth Meeting of the Experts Group on Power Interconnection and Trade Fourth Meeting of the Experts Group on Power Interconnection and Trade Third Meeting of the Experts Group on Power Interconnection and Trade Second Meeting of the Experts Group on Power Interconnection and Trade Fifth Meeting of the Subregional Telecommunications Forum Steering Committee Meeting for the Regional Technical Assistance on the Establishment of the Backbone Telecommunications Project for the Greater Mekong Subregion - Phase 1 (RETA 5915) Fourth Meeting of the Subregional Telecommunications Forum Sixth Meeting of the Working Group on Environment Fifth Meeting of the Working Group on Environment Fourth Meeting of the Working Group on Environment Third Meeting of the Working Group on Human Resource Development Second Meeting of the Working Group on Human Resource Development Twelfth Meeting of the Subregional Working Group on Tourism Eleventh Meeting of the Subregional Working Group on Tourism Tenth Meeting of the Subregional Working Group on Tourism Ninth Meeting of the Subregional Working Group on Tourism Eighth Meeting of the Subregional Working Group on Tourism Workshop on Customs Facilitation in the GMS Meeting of the Ad Hoc Group on Customs Matters Inception Meeting of Trade Facilitation Working Group Third Meeting of the Subregional Investment Working Group Inception Meeting of the GMS Business Forum (Core Group) Second Meeting of the Subregional Investment Working Group GMS Mid-Term Review cum Senior Officials Meeting Workshop on the Preinvestment Study for the Greater Mekong Subregion: East-West Economic Corridor

Confidence Prevails

Rationale

In their concluding remarks to the Eighth Conference on the Program of Economic Cooperation in the Greater Mekong Subregion, National delegations expressed:

• confidence that the Mekong Subregion will rebound from the Asian economic crisis stronger and more united;
• confidence that economic cooperation plays a vital role in strengthening the conditions for sustainable development;
• confidence in the GMS strategy to the year 2000 for subregional cooperation.

The Eighth Conference

This was the Eighth Ministerial Conference since the inception in 1992 of the Program of Economic Cooperation in the Greater Mekong Subregion, which includes Cambodia, the Lao People’s Democratic Republic, Myanmar, Thailand, Viet Nam, and Yunnan Province of the People’s Republic of China. Supported by the Asian Development Bank, the GMS Program provides a forum to identify and implement subregional projects for improving transportation and telecommunications linkages, energy sharing, greater trade and investment, human resource development, expansion of tourism, and protection of the environment.

The Eighth Conference took stock of the GMS Program in light of the Asian economic crisis, and endorsed a new strategy of economic cooperation in response to the changed circumstances of the subregion. The Conference also endorsed priority sector projects and a work program to the year 2000.

National delegations for the six countries were headed by the following: H.E. Mr. Ith Praing, Secretary of State, Ministry of Industry, Mines and Energy, Cambodia; H.E. Mr. Jin Liqun, Vice Minister, Ministry of Finance, PRC; H.E. Mr. Phao Bounnaphol, Minister of Communication, Transport, Post and Construction, Lao PDR; H. E. Brig Gen. David Abel, Minister, Office of the Chairman of the State Peace and Development Council, Myanmar; H. E. Dr. Supachai Panitchpakdi, Deputy Prime Minister, Thailand; and H. E. Mr. Tran Dinh Khien, Vice Minister, Ministry of Planning and Investment, Viet Nam.

In addition, the Conference was attended by representatives of multilateral and bilateral organizations. A number of these organizations made presentations of support during the Conference.

The Conference was chaired by Mr. Myoung-Ho Shin, Vice President (West), ADB. In his opening remarks to the Conference, Mr. Mitsuo Sato, President, ADB, stated that the Asian crisis has not undermined the fundamental merits of regional cooperation and globalization; on the contrary, it has reinforced the need to pull together. He applauded GMS countries for staying the course on economic cooperation through good times and bad times.

National delegations expressed optimism and strong support for closer economic ties and other forms of cooperation. The Asian economic crisis reinforces the need and benefits of subregional cooperation. National delegations emphasized the practicality of building on progress to date and on projects already "in the pipeline". At the same time, National delegations emphasized the need for new approaches and initiatives for facilitating trade and investment, and for mobilizing resources in partnership with the private sector.

Rather than drawing back in the face of the Asian crisis, several National delegations called for expansion of the GMS Program to include new financial, sectoral and social initiatives. Some delegations noted the critical need to address the serious problem of illicit drug production and drug distribution in the region. They suggested that the GMS Program framework be expanded to include work on this critical issue. The delegates requested that, within the GMS framework, ADB explore the need for and scope of technical and financial support. All delegations stressed that subregional economic cooperation is a long-term commitment; the institutional capacity for effective regional cooperation must be strengthened.

Confidence that the Greater Mekong Subregion will rebound.

National delegations expressed confidence that the Greater Mekong Subregion will shake off the Asian economic and financial crisis, wiser for the experience and better structured for sustained growth into the 21st Century. The inherent strengths of the subregion gained over the past decade, and in some cases over the past 2-3 decades, have not been lost. Workers throughout the subregion are now much healthier and better educated and trained. Management skills and modern technologies have been acquired which, combined with low wage labor, provide a highly competitive basis for the future. Infrastructure throughout the subregion has also been vastly improved, providing the basis for enterprise and community well-being. Progress too has been made in realizing what is at stake in protecting the environment, and the mutual interests of all stakeholders in ensuring management of natural resources on a sustainable basis.

GMS countries are making the necessary adjustments to deal with the Asian economic and financial crisis. It is in the mutual interest of GMS countries to continue working closely together during these difficult times. The GMS Program of Economic Cooperation provides an important framework and forum for "pulling together".

Confidence that economic cooperation is vital.

National delegations emphasized that economic cooperation has well served the mutual interests of the GMS countries. The subregion is now internationally recognized as more than the sum of its parts: borders have opened and goods and people move throughout the subregion in a much freer manner than was the case a decade ago. However, much more needs to be done in this regard and – as stated by several National delegations – it is urgent to reduce bureaucratic and other barriers to trade so as to promote competitiveness and subregional markets.

Economic cooperation has contributed to a ground-swell of trust and goodwill among the six countries. In turn, this has created a positive climate for high levels of investment and economic growth. Also, economic cooperation has facilitated attention to cross-border challenges, including protection of the environment.

At this time of financial crisis, national delegations agreed that it is in each country’s interest to forge closer economic ties, and to guard against counterproductive measures. Subregional initiatives under the GMS Program thus take on added importance, and the strategy for economic cooperation over the next 2-3 years will be important in helping to lift the subregion out of the grip of the financial crisis.

Confidence in a four-part strategy to the year 2000.

The National delegations agreed that the Asian crisis and worldwide market instability call for new ideas and fresh approaches to development. At the same time, the crisis must not slow the momentum of the GMS Program of economic cooperation. All delegations supported the following four-part strategy and work program for subregional economic cooperation:

• continued strengthening of subregional infrastructure so as to facilitate trade and investment, and to create employment; priority attention is given to transportation corridors linking the subregion north-south and east-west;
• reduction of "soft" infrastructure impediments to trade and investment; GMS member countries undertake to reduce bureaucratic and other impediments to the cross-border movement of goods and people; other reforms will continue to contribute to greater openness, and subregional sharing in the development and use of natural resources will expand;
• economic corridors, to link production, trade and infrastructure; GMS member countries will create economic corridors linking the subregion to major markets; nodal points within these economic corridors will serve as centers for enterprise development and transshipment; economic corridors will be an expansion of key transport corridors so as to enhance economic activities and benefits, and over the longer term to build on the potential of the subregion as a land bridge serving the PRC, Southeast Asia, South Asia, and East Asia;
• resource mobilization through partnerships with the private sector; GMS member countries, together with the Asian Development Bank and other financing institutions, will ensure that the structuring of financing is integral to project preparation; in response to the Asian crisis, special attention will be given to structuring the financing of infrastructure investments so as to encourage public/private sector partnerships.

Endorsement of ADB's indicative GMS Work Program to the year 2000.

National delegations expressed strong appreciation for the Bank’s on-going support for the GMS Program. All delegations confirmed the Bank’s continuing role in coordinating subregional economic cooperation activities and endorsed the following highlights of the Bank’s Indicative GMS Work Program to the year 2000:

• transport: implementation of the Phnom Penh-Ho Chi Minh City Highway Project, the East-West Transport Corridor Project, and the Chiang Rai-Kunming Road Improvement Project; project preparation for the Kunming-Hanoi Corridor; and extension of work on minimizing non-physical impediments to the cross-border movement of goods and people;
• telecommunications: completion of the feasibility study for the East Loop Project; funding support will be sought for studies on training needs and mobile telecommunications; support for the establishment of a working group on tariffs policy will also be sought;
• energy: financial and technical assistance support for several hydropower projects, including the study on the development of the Se Kong-Se San and Nam Theun River Basins, the prospective Nam Ngum 3 hydropower project, and the 500 KV transmission line from Nam Ngum to Udon Thani; and participation in the Experts Group on Power Interconnection and Trade, to promote full scale regional electricity trade;
• tourism: technical assistance for on-going initiatives to improve international recognition of the subregion as a tourism destination, to improve access to and movement within the subregion, and to develop tourism products; completion of the Mekong/Lancang River Tourism Planning Study;
• environment: follow-up on the completed Subregional Environmental Monitoring and Information System (SEMIS) Project and the Subregional Environmental Training and Institutional Strengthening (SETIS) Project; implementation of three additional projects - Poverty Reduction and Environmental Improvement in Remote GMS Watersheds Project, Strategic Environmental Framework for the GMS Project, and Protection and Management of Critical Wetlands of the Lower Mekong Basin Project; further, the Bank will address more closely cross-border environmental issues;
• human resource development: follow-up on the completed Cooperation in Employment Promotion and Training in the GMS, including a workshop on the social consequences of the Asian economic crisis and its implications for the Working Group on Human Resource Development; also, completion of the project on Strengthening Capacity for Addressing the Health and Education Needs of Ethnic Minorities, implementation of projects for HIV/AIDS Prevention and Control, and consideration of a subregional vaccine initiative;
• trade: preparation of the issues paper for the inception meeting of the Trade Facilitation Working Group, which will take into account implications of the Asian economic crisis and the economic corridor approach;
• investment: review of the potential activities in the context of the Asian economic crisis and the economic corridor approach; and
• economic corridors: technical assistance to identify and assess potential economic corridors, and the steps needed for the concept to become reality.

Call for partnership in the next phase of the GMS Program.

National delegations expressed appreciation for the support of multilateral and bilateral donor organizations for the GMS Program. In addition to the support of ADB, contributors have included Australia, Finland, France, Japan, Norway, Singapore, Sweden, and Switzerland, as well as UNEP, and ESCAP. National delegations are also appreciative of the support to subregional economic cooperation by multilateral and bilateral organizations, including the World Bank and ASEAN, outside of the GMS Program.

The next phase of the GMS Program is critical. The Asian financial and economic crisis has greatly compounded the difficulties of mobilizing resources for new initiatives. National delegations stressed that there are many opportunities for subregional cooperation, both social and economic. National delegations invite multilateral and bilateral donor organizations and the private sector to be partners with GMS countries in responding to these opportunities.

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