Greater Mekong Subregion

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p. 5 of 115 BACK | NEXT Ninth Ministerial Conference on Subregional Cooperation Appendix 1 Appendix 2 Appendix 3 Appendix 4 Eighth Ministerial Conference on Subregional Cooperation 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

Opening Borders and Working Together

During the Ninth Conference on the Program of Economic Cooperation in the Greater Mekong Subregion, key topics addressed by Ministers were opening borders and working together to overcome poverty and shared environmental problems, and to strengthen investment and business linkages. Ministers expressed:

• confidence that the Mekong Subregion is rebounding from the Asian economic crisis stronger and more integrated;
• determination to redouble their initiatives to accelerate, strengthen and extend regional economic cooperation within the Subregion; and
• commitment to broaden the benefits of regional economic co-operation, especially for the poor.

Ministers noted with great appreciation progress in promoting regional economic cooperation since the Eighth Conference in October 1998. They agreed that the GMS Program has graduated to the full implementation stage, now that civil works have begun on two major road corridors linking the subregion: the East-West Corridor and the Phnom Penh-Ho Chi Minh City Highway Improvement Project. Notably, Ministers highlighted the progress in opening borders, which moves the GMS Program into a new policy/regulatory plane. Very importantly, Ministers adopted a time table for application of a Framework Agreement for the Facilitation of the Cross-Border Movement of Goods and People:

• completion of the Framework Agreement by the end of 2000;
• adoption and signing of the Framework Agreement by all six GMS countries by the end of 2001;
• application of the Framework Agreement, including all protocols and annexes, throughout the GMS by 2005; and
• early application of the Framework Agreement for selected corridors, including the two road corridors already noted.

Further, Ministers from Lao PDR, People's Republic of China (PRC) , Thailand, and Myanmar committed to early signing of the Commercial Water Navigation Agreement for the Upper Mekong/Lancang River; ADB was requested to assist in developing and improving water transportation in the subregion.

Ministers recognized the role of framework agreements and time-bound schedules in providing a highly useful mechanism for stepping-up the pace of regional cooperation among GMS countries. They requested ADB assistance in finalizing a quadrangle agreement among Lao PDR, People's Republic of China, Myanmar and Thailand for facilitating water transportation on the Upper Mekong/Lancang River. Ministers expressed interest in possible protocol agreements for regional power trade and a transmission master plan, and for creating a telecommunications "grid" for the GMS. Ministers noted that by extending the concept of framework agreements to address core regional cooperation objectives for each of the eight sectors included in the GMS Program, the benefits of cooperation will be advanced and more apparent.

Progress in trade and investment-related matters, a new dimension of the GMS Program, was of considerable interest for Ministers. They endorsed proposals to simplify and harmonize customs procedures concerning cross-border trade, including the establishment of single-stop inspection facilities. To further promote open borders among GMS countries, Ministers encouraged pilot testing of trade facilitation arrangements, joint review of regulatory procedures, and improvements in the payments systems for GMS trade. Concerning investment, Ministers agreed that a much more prominent role in the GMS Program must be played by the private sector. They expect that the creation of economic corridors will play a major role in attracting investment, in encouraging cross-border production and distribution, and in reducing poverty. These corridors can also act as pilot projects in the development and application of cross-border agreements, such as for trade and investment. In addition to the East-West Economic Corridor currently being assessed, Ministers agreed that other economic corridors should be considered for the subregion.

Ministers expressed strong appreciation for ADB's catalytic and support role in promoting regional cooperation. They requested that ADB 'stay the course' in supporting the eight sets of sector activities included in the GMS Program, even in the case of those sectors such as tourism where considerable advances have already been made. Given changing needs and conditions, Ministers requested ADB's assistance in strengthening the institutional capacity and structures necessary for expanded and more complex regional cooperation arrangements in the future. They also requested that ADB intensify its efforts in mobilizing and coordinating resources in partnership with the donor community and the private sector. Of particular interest is the need to increase private sector participation and financing; Ministers requested early convening of the GMS Business Forum and indicated that establishment of a subregional financing facility should be considered. So as to establish a framework for these efforts, and to give further momentum to the GMS Program, Ministers requested ADB assistance in preparing a Medium-Term Strategy for Regional Cooperation.

Throughout their discussions, Ministers agreed with the opening remarks of the President of ADB, Mr. Tadao Chino, that the benefits of regional economic cooperation must be broadened to more directly benefit the poor. They noted that while the Asian financial crisis is easing, it has revealed the lack of social security measures to assist the unemployed and disadvantaged people. Ministers committed to working closely together to protect the environment, and to strengthen education, health and other services fundamental to ensuring greater opportunity for poor people. They also pledged that poverty alleviation will feature in the design of future regional initiatives. Regional cooperation, they concluded, is vital to the interests of all people in the subregion - especially in this new millennium.

A more detailed statement is attached.

The Ninth Conference

The Ninth Ministerial Conference was held in a much more positive economic environment than prevailed during the Eighth Conference, when the Asian financial and economic crisis was at its height. Delegations from the six participating countries in the GMS Program (Cambodia, People's Republic of China, Lao PDR, Myanmar, Thailand, and Viet Nam) expressed relief and confidence that the worst was over and the prospects for growth and renewed investor interest look strong. The Asian crisis has prompted increased attention to economic reforms, including ways to improve competitiveness through more efficient use of capital, labor and natural resources. In this context, the door is open for further advances in regional economic cooperation. At the same time, however, the Asia crisis has worsened the problem of poverty and future economic cooperation initiatives must favor benefits for the poor.

The ADB-supported GMS Program encourages economic cooperation initiatives within the Subregion, so as to help the member countries be good neighbors and better business partners. The Program includes: improving transportation and telecommunications linkages within the Subregion; energy sharing; measures to facilitate greater trade and investment; collaborative efforts to enhance health, education and labour market services in the Subregion; the promotion of tourism; and joint efforts concerning transborder environmental issues.

National delegations for the six participating countries were headed by the following: H.E. Chhay Than, Minister, Ministry of Planning, Cambodia; H.E. Jin Liqun, Vice Minister, Ministry of Finance, People's Republic of China; H.E. Phao Bounnaphol, Minister, Ministry of Communication, Transport, Post and Construction, Lao People's Democratic Republic; H.E. Brig. Gen. David O. Abel, Minister, Office of the State Peace and Development Council, Myanmar; H.E. Dr. Supachai Panitchpakdi, Deputy Prime Minister, Office of the Prime Minister, Thailand; H.E. Tran Xuan Gia, Minister, Ministry of Planning and Investment, Viet Nam.

Reflecting the step into a new millennium, the Ninth Conference sought to consolidate the gains of previous conferences, so as to firm up the foundation for long-term regional economic cooperation. From this perspective, the Conference addressed a number of strategic issues and challenges, including:

• resource mobilization and the need for greater support by all concerned parties - the governments of the six countries, the donor community, and the private sector;
• capacity building for regional economic cooperation, both at the national and local levels of government;
• coordination of initiatives, particularly concerning national and subregional initiatives; and
• operational priorities, both for the medium and longer terms.

Ministers pledged to give greater priority to advancing regional initiatives, so as to gain full support for the initiatives by their governments. It was acknowledged that progress in regional economic cooperation primarily depends on the will and support of GMS governments. To this end, Ministers requested assistance for capacity building designed to enhance the ability of national and local governments to design, implement and maintain regional economic cooperation initiatives. Ministers concluded that institutional mechanisms for regional cooperation should be reviewed and strengthened. They also concluded that national and subregional programs must be better integrated, so as to enhance and broaden the benefits of regional cooperation.

So as to give greater focus to regional economic cooperation, and to enhance the benefits from regional initiatives, Ministers concluded that the GMS Program should concentrate on four strategic thrusts:

1. Development of the Economic Corridors: Ministers strongly endorsed expanding key transport corridors in the subregion to economic corridors. The first corridor selected for this purpose is the East-West Economic Corridor, linking Viet Nam, Lao PDR and Thailand, and extending to Myanmar. ADB reported on progress to date regarding the pre-investment study, indicating the components of the economic corridor including: the spatial dimensions; the required infrastructure; the industrial estates or towns/cities involved; and the policies, regulations, and agreements needed to foster economic activity in the designated corridor - which involves some of the poorest parts of the Subregion. Ministers requested that other corridors be considered, particularly the north-south corridor.
2. Opening Borders for the Freer Movement of People and Goods: GMS countries have agreed to a draft Framework for the Facilitation of the Cross-Border Movement of Goods and People in the GMS. This Framework served as the basis for the Trilateral Cross-Border Agreement among Lao PDR, Thailand, and Viet Nam relating to the East-West Corridor signed 26 November 1999. Ministers strongly endorsed adoption of the Framework Agreement on a GMS-wide basis, with application by 2005. They urged that the process of opening borders be accelerated, and that the GMS trade and investment facilitation groups work closely with the Subregional Transport Forum.
3. Environmental Strategic Framework: Ministers stated that while protection of the environment is primarily a national concern, there are important transborder issues that must be more effectively addressed than the record to date. They noted the vital role of the Mekong River Commission (MRC), especially concerning water utilization management. Closer collaboration between the MRC and the GMS Program was encouraged, particularly with regards to the cumulative environmental impact assessment of hydropower projects and other critical issues. Ministers approved the agenda of the GMS Working Group on the Environment, which has broadened beyond project monitoring to include topics of serious concern to member countries. Ministers suggested that the Working Group assess the possibility of framework agreements concerning key transborder environmental issues, including deforestation and trade in illegal timber and wildlife products. ADB reported on development of an Environmental Strategic Framework for the GMS Program, which is expected to be completed by September 2000.
4. Targeting Regional Cooperation for Poverty Reduction: Ministers strongly endorsed the opening remarks of Mr. Tadao Chino, President, ADB, which drew attention to widespread poverty in the Subregion. Mr. Chino concluded that "we must broaden the benefits on behalf of the poor, creating thereby a firmer constituency of support for regional cooperation and globalization". Ministers agreed that the GMS Program should ensure that regional cooperation initiatives are designed to assist the poor. To this end, Ministers agreed on the following measures:
   • collaborative research to profile poverty in the Subregion, and to identify its main causes;
   • extend subregional infrastructure projects to reach acutely poor areas;
   • extend subregional human resource development (HRD), tourism and environmental projects to reach acutely poor areas; and
   • expand the GMS Program to include the agricultural sector.

Continuity with the Eighth Conference

Ministers noted that these strategic thrusts complement rather than substitute for the four-part strategy agreed to in October 1998. Reflecting the Asian crisis and worldwide economic instability at that time, Ministers agreed that the work program for economic cooperation should: strengthen subregional infrastructure so as to facilitate trade and investment, and to create employment; reduce non-physical cross-border impediments to trade and investment; create economic corridors to link production, trade and infrastructure; and increase resource mobilization through partnerships with the private sector. These elements of the work program remain valid and will continue to shape the identification, design and implementation of regional cooperation initiatives.

Endorsement of Sector Activities

Ministers noted that there have been remarkable achievements under the GMS Program since its inception in 1992. Nonetheless, a great deal remains to be done. Ministers agreed that the pace of regional economic cooperation should be accelerated, in close concert with ASEAN, APEC, WTO and other organizations relevant to promoting greater economic integration. The Report of the Chairman of the Pre-Ministerial Senior Official's Meeting was adopted, including the initiatives outlined in the Report for each sector. However, in keeping with the desire to step-up the pace of regional cooperation, Ministers expressed the following action-oriented goals and views: