Thank You
For more information:on the GMS Program
visithttp://www.adb.org/gms
*.
Let me first give you a profile in a nutshell of the GMS
Economic Cooperation Program. -The Program began in 1992, covering
Cambodia, Lao PDR, Myanmar, Thailand, Viet Nam, and the Peoples
Republic of China (PRC) (then specifically the Yunnan province and
later on, also the Guangxi autonomous region).-From its inception,
the underlying strategy was to link the GMS countries through
improvements in infrastructure, thus overcoming domestic
constraints and promoting trade and investment to boost economic
growth. The overall vision is of a more integrated, prosperous, and
harmonious subregion. This can be summed up by the so-called 3Cs:
enhanced connectivity, improved competitiveness, and a greater
sense of community. Connectivity through the development of
subregional transport, power, and telecommunications
infrastructure. Competitiveness through transport and trade
facilitation, development of logistics systems, regional power
trade, harnessing of ICT, cross-border agricultural trade, and
promotion of the GMS as a single tourist destination. A sense of
community through jointly addressing shared social and
environmental concerns, such as the prevention and control of
communicable diseases, and the protection of the subregions rich
biodiversity and ecosystems.
*As of the end of 2011, a total of 56 GMS investment projects
totaling almost $15.0 billion. The projects involve subregional
roads, airport and railway improvements, and hydropower projects
for cross-border power supply, tourism infrastructure development,
and communicable disease control. ADB provided around $5.1 billion
in loans and grants for these projects while GMS governments and
development partners provided $4.3 billion and $5.6 billion,
respectively.
In addition, ADB and other development partners had supported
177 technical assistance (TA) projects with a total cost of $286.1
million for project preparation, capacity development, economic and
sector work, and coordination/secretariat assistance. ADB has
played the role of lead development partner, coordinator, and
honest broker in the GMS Program.**The GMS Strategic Framework
defined the vision, goals and strategic thrusts of GMS cooperation
for the period 2002-2012. Lets look at the old strategic framework
and compare it with the new one (next slide).
To achieve the already mentioned vision for the subregion, the
Framework identified five strategic thrusts, namely: (i) strengthen
infrastructure linkages through a multisectoral approach; (ii)
facilitate cross-border trade and investment; (iii) enhance private
sector participation and improve its competitiveness; (iv) develop
human resources and skills competencies; and (v) protect the
environment and promote sustainable use of shared natural
resources.
The Strategic Framework of the GMS program is particularly
useful for all policy and decision makers in the GMS countries. Its
implementation has accelerated, delivering concrete results and
contributing to the shared vision of a prosperous, integrated and
harmonious Mekong subregion.
*The GMS countries, with the assistance of ADB, have prepared a
new strategic framework for 20122022. This was endorsed at the
Fourth GMS Summit in Myanmar in December 2011.
The new GMS Strategic Framework is anchored on the
corridor-development approach and embodies a generational shift in
the nature, direction, and scope of the GMS Program as it enters a
new decade. The next generation of investment programs will
comprise multisector physical infrastructure investments, including
urban development, as well as rural and integrated area development
along the corridors. This entails more investments in urban
services, such as sanitation; rebalancing in transport, with an
emphasis on feeder roads and multimodal transport, including
railways; technologically smart investments in energy and
telecommunications; and green technologies.
The second-generation initiatives also include greater emphasis
on policy and institutional reforms (software) to use more
effectively existing and future infrastructure through progress in
areas related to transport and trade facilitation, development of
the regional power market, single-destination tourism, sustainable
natural resource management, and the development and improved use
of human resources.
The new GMS Strategic Framework also involves an increased role
for knowledge management and partnerships for effective
implementation of the more complex cooperation agenda in the next
phase of the maturing GMS Program. All aspects of the new GMS
Strategic Framework and Program will require increased resources,
and hence greater engagement with the private sector and
development partners. * The GMS is managed by an institutional
mechanism involving both the political and operational levels of
the six GMS member governments.The GMS Summit of Leaders provides
the political mandate for GMS cooperation. The first GMS Summit was
held in Phnom Penh, Cambodia in November 2002; the second Summit in
Kunming, PRC in July 2005; third Summit in Vientiane, Lao PDR in
March 2008 and fourth Summit in Nay Pyi Taw, Myanmar in December
2011At the policy level, a Ministerial Conference coordinates
subregional cooperation and provides overall policy guidance and
support. There have been 17 ministerial conferences so far, the
most recent one held in Ha Noi, Viet Nam in August 2010. The
Ministerial Conference is assisted by the Senior Officials Meeting
that prepares for the Ministerial Conference. For each country, a
GMS National Coordinator serves as a focal point. Working Groups
and Forums in the nine priority sectors of cooperation have been
established and are meeting regularly. ADB provides central
secretariat/coordinating support to the Program. For the past 18
years, ADB has also played a multifaceted role in the GMS Program.
(the cascading connectivity maps-- Click 3 times)The GMS Program is
noted for achieving some quite impressive results in terms of
building physical connectivity among its member countries, that is,
in establishing infrastructure links, such as cross-border roads,
power, and telecoms linkages. The so-called connectivity map shown
on the screen illustrates the progress in GMS infrastructure
connectivity since1992, through the current period, and
prospectively, to the middle-through the close of this new decade,
if all planned projects push through.In 1992, there were only very
few all-weather roads in the subregion, which were mostly found in
Thailand. Likewise, the only cross-border transmission line was the
one linking Lao PDR with Thailand. Also, in telecommunications, the
only backbone lines could be found only in Thailand.As of last
year, 2010, the regional infrastructure landscape has changed
significantly. The original GMS road transport corridors are either
in advanced stages or largely completed. New power transmission
lines and power generation plants have been or are being built. The
basic telecommunications baackbone lines covering all the countries
in the subregion are already in place.By the period 2015-2020, it
is envisioned that the planned infrastructure links for the entire
subregion shall have been completed. These inlcude the expanded
9-corridor road network under current GMS Transport Sector Strategy
(2006-2015), the power generation plants and transmission lines
under the GMS regional power master plan, and mesh connected
Internet Protocol backbone network under the advanced phases of the
GMS Information Superhighway Network (ISN).****
Work has proceeded principally in three corridors, namely:The
East-West Economic Corridor (EWEC) - running from Da Nang in Viet
Nam, through Lao PDR and Thailand to Myanmar, this represents the
only continuous land routes that connects the South China Sea and
the Andaman Sea.The North-South Economic Corridor (NSEC), which
covers the major routes running from Kunming in Yunnan, China,
going through Lao PDR and Myanmar, then through Chiang Rai to
Bangkok in Thailand, its other arm from Nanning in Guangxi, China,
through Hanoi to Haiphong in Vietnam; and The Southern Economic
Corridor (SEC), running through the southern parts of Thailand,
Cambodia, and Viet Nam.
*GMS cooperation is not just about infrastructure. Equal
attention is being given to the softer aspects of regional
development and there have been substantial achievements.
For instance, the benefits of connectivity would not be fully
realized without the effective implementation of the appropriate
software for transport and trade facilitation across borders. Thus,
the GMS countries forged a GMS Cross Border Transport Agreement
(CBTA) in the late 1990s. However, the implementation of this
agreement and other transport and trade facilitation initiatives
still faces many challenges, which the Program is trying to
address.
In the environment, we are in the advanced stages of
implementing the GMS Core Environment Program , including the
establishment of pilot biodiversity conservation corridors. We are
also looking at the wider issues relating to climate change.
The GMS countries are now implementing a strategy and action
plan for tourism development including initiatives for promoting
the subregion as a single tourism destination and developing
tourism-related infrastructure. In agriculture, we are implementing
a Core Agriculture Support Program that will further promote
cross-border agricultural trade, ensure food safety, and improve
farmers livelihoods. We have recently endorsed a second phase of
the program that aims to increase cross-border trade, sub-regional
agricultural competitiveness, and agribusiness investment in the
economic corridors while addressing emerging challenges related to
climate change.In human resource development, we are implementing
programs for the prevention and control of communicable diseases,
including HIV/AIDS; and a capacity development program, the Phnom
Penh Plan for Development Management that provides learning
programs for GMS government officials. Recently, we have adopted a
comprehensive HRD Strategy to guide cooperation in health,
education, labor and migration, and social development.
Major Challenges and Issues (I)Given the foregoing trends and
developments, I will now try to outline the key challenges that
must be addressed in the medium-to-long term, as well as the
related issues.Recovering from the current economic downturn and
mitigating and counteracting its long term negative impact, for
instance, in terms of falling investments in human capital (e.g.,
through education) as well as in physical capital. Related issues
are: (i) the need for and the possible ways of rebalancing the GMS
economies, so that they will be less dependent on international
demand (exports) and so that they will be able to use their savings
and financial resources to fund investments in the region rather
than lend them abroad; (ii) to find ways to minimize the contagion
from crises elsewhere in the world (although much of the solutions
here may require monetary and financial sector cooperation, which
are not yet developed in the GMS Program).Transforming the GMS
connectivity or transport corridors into genuine economic corridors
This remains a major challenges, which as we saw involves several
difficult stages, particularly the crucial TTF and logistics
stages. The crucial issues here are the commitment of the GMS
countries to institute the institutional and policy reforms
required for the effective implementation of TTF measures and how
to effectively engage the private sector, especially in the
development of and investment in the required logistics systems.
Enabling the GMS to tap more fully into the opportunities that the
current economic resurgence and dynamism in Asia offers As we have
seen, among the dramatic changes that have occurred in Asia are the
widespread move toward regionalism and the emergence of two
economic giantsthe PRC and Indiawhich provide opportunities as well
as pose challenges to GMS countries. The critical issues here are:
(i) how effectively the GMS can link with India/South Asia. They
have been benefiting from their increasing links with PRC, a GMS
member, which serves as a key destination for their exports as well
as supplier of manufactured goods and a key source of FDI. But they
still have to develop strong links with India, which is also their
immediate neighbor. (ii) how to take advantage of complementarities
and synergies with other regional cooperation initiatives. With
regard to the ASEAN, the GMS has significant opportunities to
maximize its linkages, considering that all GMS countries, except
the PRC, are also members of ASEAN. The GMS Program, which is
pragmatic and activity-based, complements the rule-based ASEAN
initiatives. Being composed of fewer and geographically contiguous
countries, the GMS has been able to jump-start the implementation
of the various agreements forged in ASEAN as well as to come up
with tighter agreements of its own. For instance, the GMS countries
has helped improve connectivity within a subset of the ASEAN
through joint infrastructure development; paved the way for
facilitating the freer cross-border movement of people and goods
through the CBTA, thus complementing the free trade regime being
built under AFTA; helped build capacity in Cambodia, Lao PDR,
Myanmar, and Viet Nam, thus narrowing the development gap among
ASEAN members; and can serve as a gateway or land bridge of ASEAN
to the PRC and to India. *Major Challenges and Issues
(II)Addressing the risks of global warming and climate change.
These can no longer be ignored. It is important to integrate
climate change adaptation and mitigation measures in both national
and subregional development efforts. One of the issues here is how
to develop GMS projects as well as national development plans along
a "low-carbon" path. This includes, for example, possible further
development of railway links as substitute to fossil fuel-based
transport modes and the development of renewable energy sources.
Another issue, however, is whether GMS countries, which are all
developing countries, should go or to what extent they should go
into mitigation efforts and low-carbon development paths,
considering the tremendous financial and technological requirements
of such efforts; whether they should just concentrate on adaptation
efforts.Effectively addressing the risks in the other soft areas
that are usually associated with increased connectivity these
include:Communicable disease controlHuman trafficking and
transnational crimeFlood and drought managementBiodiversity
conservation corridors.The GMS Program has been pursuing
initiatives in these areas, and they should be continued and
intensified.Respond to challenges posed by the subregion's changing
demographics and increased urbanization. Human resource
development, in particular labor productivity and its implications
on education, labor reforms, and labor and migration will become
more important given the subregion's changing demographics. Safe
migration and protection of migrant workers will become
increasingly important issues.Sustaining investments in
infrastructure As already mentioned, there are still remaining
substantial infrastructure gaps. This challenge is also related to
the preceding ones, which have a bearing on the form and character
of the infrastructure to be developed. For instance, there is now a
greater need for multimodal transport (rather than just roads) and
for renewable energy sources development. Increased mobilization of
private investments for the GMS program, including public-private
partnerships This is always a key challenge for regional
development efforts. As we all know, public funds are extremely
limited compared with the tremendous resource requirements of these
efforts. It is therefore crucial that we are able to find
innovative and viable ways of mobilizing private capital and other
resources to support subregional projects.
**Thank you.
