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Overview : Economic Cooperation Across the Mekong Sub-region

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 . Mekong Development.

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Overview : Economic Cooperation Across the Mekong Sub-region

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  1. 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

  2. Mekong Development

  3. Mekong Region : Center of Growth China Korea Afganistan Japan Pakistan East Asia / Europe Bangladesh India Myanmar Laos Thailand South Asia Vietnam Philippines Cambodia Sri Lanka Malaysia Brunei Singapore Indonesia Asean/Australia America Total Population : 312 millions. plus 2,000 millions (India and China)

  4. 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

  5. Transformation of GMS a/ Excludes PRC

  6. Yunnan + Guangxi (PRC) Myanmar Lao PDR Thailand Vietnam Cambodia Greater Mekong Subregion Highlight:Past Achievement - Economic Growth by 9% - Closer Economic Ties among Member Countries - Progress in Infrastructure Development and software to support Economic activities - Promote South-South Cooperation as THA and PRC as Emerging Donors South China Sea Andaman sea Siam Gulf

  7. Major Cross-Cutting Challenges in GMS • 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

  8. Imbalance of Economic and Social Development * Based on National Poverty Line ** Measures Degree to Which an Economy’s Income Distribution Diverges from Perfect Equal Distribution

  9. Cross Border Interactions Thailand FLOW of Goods • ACMECS : to tackle the root of soio-economic problem • Register Aliens Workers • Provide Equal Treatment to Migrants i.e. healthcare, services Raw Materials Capital Technology Labor Positive Flows Negative Flows illegal workers Drugs Illegal Migration Smuggling

  10. Strategy and Direction

  11. Culture as an Effective Collaboration Tool New Regional Development Agenda Balance Economic/Social+ Environment= Sustainability Economic Growth & Quality Capital Knowledge Base & Low Risk Society Good Governance & Transparency People Contact

  12. Corridor Development Recent Strategy New Strategy

  13. Expedite Economic Activities along the Corridors MYA LAO VN THA Chiang Rai SBEZ Yangon Sea Port 10,000-15,000DWT Mukdahan Distribution Center Savan-Seno SEZ Tak SBEZ Dansavan Lao Bao SEZ Hue(World Heritage) Khon Kaen Logistics Center/IE Mawlamying Dong Ha (Tourism) Pitsanulok Logistics Center Da Nang Deep Sea Port 35,000 DWT and Dung Quat IE Contract Farming Poipet Aranyaprathet Bangkok Ho Chi Minh Vung Tao Deep Sea Port Phnom Penh Trad 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,RoadSafety - Socio-Economic Impact of the Development

  15. Road Transport Network 2005 2015

  16. Flagship Initiatives: 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 Cross-border Transport Agreement Single Stop Inspection 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

  17. Energy & Power Highlight : • 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 • 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 : • 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 • 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. Water & Natural Resourses Highlight : • Set Rules and Regulation for Joint Utilization& - Commercial Navigation - 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

  23. Dimensions of Regional Integration Movement of Labor (cross-border employment) Measures of Extent of Integration · 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 · Increased employment numbers and opportunities · Rise in income levels · More freedom of movement – less hassles at border; no visa · Easier to get cheap workers Possible Costs/Untapped Benefits · 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) Movement of Labor The project will try to find data to measure these indices

  24. Resource Mobilization : Thailand & DPs 1500 mil baht since 1996 7000 mil baht since 2001 Financial Assistances via NEDA, BoB Technical Assistances via TICA Regional Development Partnership with Other Development Partners

  25. Key Issues for World Bank’s Regional Strategy

  26. Dimensions of Regional Integration • Transport Links • Communications • Natural Resources • Social Service Links • Movement of • Goods • Labor • Capital Economic Interactions REI Resource/ Infrastructure Interactions Social Interactions • Knowledge Endowment • Social Capital • Cultural Linkage • Legal/Judicial • Political • Regional Institutions • and Projects Governance Interactions

  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.

  28. Ultimate Goals of World Bank’s Regional Strategy Close Coordination with Existing Development Partners i.e. ADB, JP WB Regional Strategy Commitment & Ownership of the Countries Technical Financial R&D Promote Peace and Stability through Trust and Understanding Increase Competitiveness and Growth of the Region Upgrading Living Condition and Well Being of the People Strengthen Core Value i.e. Culture, Nature, Tourist attractions Prosperity for Mekong Community

  29. Thank You http://www.nesdb.go.th

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