Economic Corridor Development in Subregional Programs WorkshopIntegration Exercise

Economic Corridor Development in Subregional Programs Workshop/Integration Exercise for Module 2 What to Present? Suggested Guide and Template 1

Part A: Economic Corridor Key Features • Choose one economic corridor; or can be a subsection of a particular corridor in your subregion • Provide a map and basic information on the economic corridor (or subcorridor) 2

Part B: Economic Corridor Key Features • Brief assessment: - Development and Economic Potential of the Economic Corridor (Opportunities) - Comparative advantages and natural key assets (Strengths) - Implementation Bottlenecks (Weaknesses) - Threats, i. e. environmental, social, etc (Threats) • Only choose top three per S, W, O and T 3

Part B: Economic Corridor Key Features • Use matrix below for your economic corridor (or subcorridor); use key words/phrases only Name of Economic Corridor (Sub-corridor): Comparative Advantages/ Natural Key Assets (Strengths) Economic and Development Potential (Opportunities) Implementation Bottlenecks (Weaknesses) Potential Threats, e. g. social, environmental etc (Threats) Only top three (most important); focused and specific to the economic corridor (subcorridor) 4

Part C: Economic Corridor Key Stakeholders • Use matrix below for your economic corridor (or subcorridor) stakeholders; key words and phrases only Stakeholders Interest in the Economic Corridor Role in the Economic Corridors Resources they bring to the Economic Corridor Only top five (most important); focused and specific to the economic corridor (subcorridor) 5

Part D: Applying Models in Economic Corridor Development • Refer to the models presented and choose what you think is the most relevant/appropriate to your selected corridor • Assess/analyze the selected corridor using the models: refer to powerpoints on: (i) GMS economic corridors; (ii) economic corridors concepts, characteristics and models; and (iii) readings such as P. Srivastava. Regional Corridors Development in Regional Cooperation. ADB. Economics Working Papers Series. No. 258. May 2011 6

How does an Economic Corridor Develop? Stages and Approaches Soft infrastructure Harmonized Institutional Frameworks City-based economic clusters/nodes and agglomeration Multi-sector approach Private sector participation (PSP) Physical infrastructure Multimodal Transport Corridor Logistics Corridor Transport and Trade Facilitation Corridor Warehousing and storage Urban Development Corridor Attract investment Generate economic investments Increased PSP Develop production chains May have some overlap between the stages Sources: Banomyong, 2007; Srivastava, 2011; ADB, CAREC 2012 Economic Corridor

A Framework for Corridor Development (P. Srivastava) B r o a d N a r r o w Zone II National + Broad Urban, SMEs, Rural Roads Zone IV Regional + Broad CBEZ, Integrated regional border plan Zone III National + Narrow Regional + Narrow Road construction, upgrading TTF, logistics National Regional

Part D. 1: Economic Corridor Type and Characteristics • What “type” is your chosen economic corridor (can be stages or zones refer to models) • Can also be in terms of geographical scope, sector and who leads (institutional dimension; see next slide) and who benefits • What are characteristics of the economic corridor (refer to powerpoint of Alfredo in Session 4) 9

Types of Economic Corridors Type Descriptions Geographic Scope Urban vs urban-rural Subnational or national level Transnational or regional (supranational) Sectoral Mono-sectoral (agriculture, environment, tourism) Multi-Sectoral Institutional Dimensions Government (national and sub-national)-led Private sector-led Donor or international financial institution-led Multi-stakeholder partnerships-led (PPP corridor) Beneficiaries SMEs Local community If Transport Corridor Unimodal Bimodal Multimodal 10

Part D. 2: Economic Corridor Development Approaches • Given the type and characteristic of economic corridor (or subcorridor); what is your proposed Economic Corridor Development (ECD) Approach (Strategy and Action Plan) • Present your ECD using a figure; you may refer to the example of the Eastern and Northern Corridors in Malaysia as example 11

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Part D. 2: Economic Corridor Development Approaches • Assess your economic corridor (or subcorridor) in terms of its ECD; you may refer to the Framework/Model which uses Direction and Delivery (next slide) in your assessment 14

Framework for Economic Corridors Delivery at Scale Delivery and Implementation Mechanisms • Effective Direction Hard and Soft Interventions Strategy and Targeted Sectors Corridor Development Matrix • • Leadership and Alignment Soft interventions in the agricultural sector Cross-sectoral soft interventions Hard interventions Finance and Risk Management Source: World Economic Forum (WEF) 2013 as Cited with Approval on pages 35 to 36 Gálvez Nogales, E. 2014. Making economic corridors work for the agricultural sector. Agribusiness and Food Industries Series No. 4. FAO, Rome, 15

Part D. 2: Economic Corridor Development Approaches • Direction and Delivery Model Application, Guide Questions to Consider: 1. Leadership and alignment of the goals and vision of concerned stakeholders. Are enablers and facilitators shaping the corridor clear? Is a participatory process to develop the corridor vision and engage stakeholders in place? 2. Strategy identified and targeting of sectors/industries, products or firms. If the final goal is to have a corridor roadmap, is it agreed upon by all the key stakeholders? 3. Corridor development matrix. The roadmap is materialized in a matrix that lists and prioritize the corridor projects, the funding source and their nature, e. g. investments and TA projects. Does your corridor have a roadmap in place? If yes present highlights ONLY, if not, how to have a road map? 16

Part D. 2: Economic Corridor Development Approaches • Direction and Delivery Model Application, Guide Questions to Consider: 4. Finance and risk management. Are there efforts to mobilize resources (private or public, local or international) to be able to implement the corridor program? How are risks being managed? 5. Soft and hard corridor interventions. What about the (i) soft interventions (TTF, Logistics etc) and (ii) hard infrastructure interventions? Are these in place? If not, what can be done to ensure interventions are effective? 6. Delivery and implementation mechanisms. What is the institutional arrangements established among stakeholders to ensure effective delivery? Is it in place? If not, why? 17

Part E: Economic Corridor Recommended Strategy and Actions • Given your analysis in parts A, B, C and D propose recommendations for the economic corridor (subcorridor) in terms of strategy and actions; can be in the form of policy measures, institutional mechanisms, what about the types of infrastructure (e. g. are the corridors for enhanced connectivity? value chains? ) • Include proposals on how drivers for economic corridors (i. e. multi-modal transport, transport and trade facilitation, cross-border value chains including special economic zones) can be strengthened to promote ECD where relevant and appropriate • NO prescribed format but please spend more time on this 18

Economic Corridor Development Policy Corridor Policy Transport and Trade facilitation Trade Liberalization Measures Roles Integrated trade Government facilitation Private Sector Customs cooperation Border policies Behind-the-border policies Beyond-the-border policies Government Economic Corridor value chains Government Corridor development Corridor towns Private Sector Industrialization development Cross-border investments 19

Levels of Economic Corridors and Interventions Levels Characteristic(s) Priority Focus Interventions 1 Cross-border connection(s) established; many missing links require substantial improvements Physical connectivity – improve transport infrastructure 2 Cross-border connection(s) established; few sections require improvements Physical connectivity – improve transport infrastructure and cross-border facilities 3 Transport infrastructure nearing completion along full length of corridor Improvement of cross-border facilities, TTF and facilitation of logistics services 4 Transport infrastructure completed along full length of corridor; TTF and other measures in progress Continuation of TTF and facilitation of logistics services, border and corridor towns development; investment promotion and enterprise development, multimodal transport development and improve access to and from adjacent areas 5 Transport infrastructure completed along full length of corridor; major sections functioning as trade and transit corridor; able to attract investments Further streamlining rules, regulations and procedures involving transport, trade and investment, multimodal integration and interoperability, expanding urban-rural linkages along and around the corridor

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