Overview Economic Cooperation Across the Mekong Subregion Dr
Overview : Economic Cooperation Across the Mekong Sub-region Dr. Porametee Vimolsiri Senior Advisor, NESDB At the Workshop on World Bank’s Regional Strategy paper 14 March 2007 Nai Lert Park Hotel, Bangkok NESDB 1
Mekong Development NESDB 2
Mekong Region : Center of Growth China Korea Afganistan Japan Pakistan India East Asia / Europe Bangladesh Myanmar South Asia Laos Thailand Vietnam Philippines Cambodia Sri Lanka Malaysia Singapore Brunei Indonesia America Asean/Australia 3 NESDB Population : 312 millions. plus 2, 000 millions (India and China) Total
GMS Economic Corridors • Well-defined area centered on a transport corridor • Integrated with the development of other infrastructure and economic activities • Planned and systematic project, policy, and institutional interventions Key Objectives • Connect centers of economic activity • Facilitate trade, investment, and tourism • Reduce transport costs, and facilitate mobility across borders NESDB 4
Transformation of GMS 1992 2004 Total exports (US$ million) 36, 343 Intraregional exports (US$ million) 2, 397 27, 339 Tourist arrivals (thousands) 10, 005 19, 549 Foreign direct investment (US$ million) a/ 129, 428 a/ (1995) 2, 144 3, 898 a/ Excludes PRC NESDB 5
Greater Mekong Subregion Highlight: Past Achievement Yunnan + Guangxi (PRC) Myanmar Lao PDR Thailand Andaman sea - Progress in Infrastructure Development and software to support Economic activities - Promote South-South Cooperation as THA and PRC as Emerging Donors Vietnam Cambodia Siam Gulf NESDB - Economic Growth by 9% South China - Closer Economic Ties Sea among Member Countries 6
Major Cross-Cutting Challenges in GMS ¡ ¡ ¡ ¡ NESDB Economic integration Infrastructure development Rural Development & Poverty Reduction Development of markets and a strong private sector Policy and institutional reform Human resource development Environmental protection 7
Imbalance of Economic and Social Development GMS Country Poverty Incidence* (%) Gini Coefficient** 1992 2004 39 36 0. 37 0. 45 23. 8 7. 9 0. 31 0. 35 43 32. 7 0. 29 0. 37 MYANMAR N/A 22. 9 N/A THAILAND 23. 2 9. 8 0. 54 0. 5 VIET NAM 58. 1 28. 9 0. 18 0. 2 CAMBODIA PRC LAOPDR * Based on National Poverty Line ** Measures Degree to Which an Economy’s Income Distribution Diverges from Perfect Equal Distribution NESDB 8
NESDB 9
Cross Border Interactions FLOW of Goods Capital Raw Materials Technology Labor Positive Flows Negative Flows illegal workers Drugs Illegal Migration Smuggling NESDB Thailand q ACMECS : to tackle the root of soioeconomic problem q Register Aliens Workers q Provide Equal Treatment to Migrants i. e. healthcare, services 10
Strategy and Direction NESDB 11
New Regional Development Agenda Balance Economic/Social+ Environment= Sustainability Culture as an Effective Collaboration Tool Economic Growth & Quality Capital NESDB Knowledge Base & Low Risk Society Good Governance & Transparency People Contact 12
Corridor Development Recent Strategy NESDB New Strategy 13
Expedite Economic Activities along the Corridors MYA Yangon Sea Port 10, 000 -15, 000 DWT Tak SBEZ Mawlamying Contract LAO THA Chiang Rai SBEZ Khon Kaen Mukdahan Savan-Seno Logistics Center/IE Distribution Center SEZ Dansavan Lao Bao SEZ Dong Ha Logistics Center Bangkok Hue (World Heritage) Pitsanulok Farming VN Da Nang (Tourism) Deep Sea Port 35, 000 DWT and Dung Quat IE Aranyaprathet Poipet Phnom Penh Trad Ho Chi Minh Vung Tao Deep Sea Port Koh Kong Cambodia Malaysia Kota-Perdana 14
Infrastructure & Transport Highlight : ¡ Fulfill Missing Links & Expand Linkages ¡ Upgrade Logistics Systems – Multimodal Transport ¡ Develop Software to Facilitate Free Flow of Goods and People ¡ Promote Sustainable Use of Infrastructure - Joint Utilization of Infrastructure - Maintenance, Capacity Building, Road. Safety - Socio-Economic Impact of the Development NESDB 15
Road Transport Network 2005 NESDB 2015 16
Flagship Initiatives: Cross-border Transport Agreement Single Stop Inspection The Negotiation of All Annexes& Protocols has been finalized and Signed by March 2007, waiting for the ratification from countries. After ratification, full implementation of CBTA has scheduled in 2008 First Step Second Step One Stop Service For CBTA in Thailand First step : Mukdahan, Aranyaprathet , Mae Sai, Mae Sot Second Step : Nong Khai, Chiang Kong, Chong Mek and Trat Thailand can Provide Assistance in Customs &Cross Broder Management to CLMV NESDB 17
Energy & Power Highlight : ¡ ¡ ¡ NESDB Establish Energy Power Market - Transmission Lines - Power Trade Operating Agreement Promote Alternative Energy i. e. Biofuels Hydropower & others Support Energy for the Poor i. e. Rural Electricity, Border Power Trade 18
Enhancing Competitiveness ¡ ¡ ¡ NESDB Inter-Governmental Agreements on travel and trade facilitation and power trade Major reduction in travel time Removal of non-tariff barriers (Cross Border Transport Agreement) Customs facilitation Enabling policy environment for private investments (financial sector reform, judicial reform) Capacity Building – Phnom Penh Plan for Development Management 19
Trade & Investment Highlight : NESDB ¡ Facilitation - AISP, One Stop Service, Account Trade, Transaction with Local Currencies ¡ Promotion - Roadshow, Tradefairs, ¡ Investment Bases Preparation – Contract Farming, IE, SBEZ ¡ Investment Protection ¡ Private Sector Participation 20
Building a Community ¡ ¡ ¡ NESDB Joint promotion of trade, investment, and tourism New initiatives for closer cooperation such as ACMECS Integrating Ethnic Minorities in mainstream GMS development Joint work on HIV/AIDS, Malaria, and Avian Flu Preservation of shared environmental and cultural heritage Economic Integration: From an integrated market to an economic community? 21
¡ ¡ ¡ NESDB Set Rules and Regulation for Joint Utilization& - Commercial Navigation. Resourses Water & Natural - MRC Joint Management&Conservation Integrate Environment with Development i. e. EOC 22
Health & Migration Highlight : ¡ Cooperation on Communicable Diseases i. e. warning& control systems ¡ Capacity Building ¡ Community Development Projects NESDB 23
Movement of Labor Dimensions of Measures of Extent Regional Integration of Integration Movement of Labor (cross-border employment) The project will try to find data to measure these indices NESDB · Labor/migration policies like no-visa policy · Increase in migration numbers · Increase in number of workers going across the border · Rise in employment rates · Decline in wage rate Expected Benefits Possible Costs/Untapped Benefits · Increased employment numbers and opportunities · Rise in income levels · More freedom of movement – less hassles at border; no visa · Easier to get cheap workers · Trafficking · Loss of jobs due to competition from immigrant workers; · Fall in wage rate · Deterioration in labor rules working conditions · Social effects of greater migrant workers (e. g. HIV/AIDS, and increased crime) 24
Resource Mobilization : Thailand & DPs 1500 mil baht since 1996 Technical Assistances via TICA 7000 mil baht since 2001 Financial Assistances via NEDA, Bo. B Regional Development Partnership with Other Development Partners NESDB 25
Key Issues for World Bank’s Regional Strategy NESDB 26
Dimensions of Regional Integration • Transport Links • Communications • Natural Resources • Social Service Links Resource/ Infrastructure Interactions • Legal/Judicial • Political • Regional Institutions and Projects NESDB Economic Interactions REI Governance Interactions Movement of • Goods • Labor • Capital Social Interactions • Knowledge Endowment • Social Capital • Cultural Linkage 27
Promote 3 Securities for Emerging Issues Energy Security & Efficiency Cooperate in developing and using subregional resources. Ensure fair income distribution to the poor& responsibility to environment. Food Security & Food Safety Adopt co-production process based on comparative advantage of each countries. Promote intra-regional trade to substitute import from outside. Use green approach for the food safety. Human Security Well Manage Transboundary issues i. e. illegal labor, trafficking, poverty reduction and environmental degradation. Ensure capacity of people for development. NESDB 28
Ultimate Goals of World Bank’s Regional Strategy Commitment & Ownership of the Countries Fina ncia Increase Competitiveness and Growth of the Region NESDB WB Regional Strategy l Upgrading Living Condition and Well Being of the People R&D ch e T Close Coordinatio n with Existing Development Partners i. e. ADB, JP al c i n Promote Peace and Stability through Trust and Understanding Strengthen Core Value i. e. Culture, Nature, Tourist attractions Prosperity for Mekong Community 29
Thank You http: //www. nesdb. go. th NESDB 30
- Slides: 30