Connecting Nations, Linking People · 4 CONNECTING NATIONS, LINKING PEOPLE CONNECTING NATIONS,...
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COMPETITIVENESS. CONNECTIVITY. COMMUNITY. Connecting Nations, Linking People Asian Development Bank Greater Mekong Subregion Economic Cooperation Program
Transcript of Connecting Nations, Linking People · 4 CONNECTING NATIONS, LINKING PEOPLE CONNECTING NATIONS,...
CONNECTING NATIONS, LINKING PEOPLE 1
COMPETITIVENESS. CONNECTIVITY. COMMUNITY.
Connecting Nations,Linking People
Asian Development BankGreater Mekong Subregion
Economic Cooperation Program
CONNECTING NATIONS, LINKING PEOPLE 32 CONNECTING NATIONS, LINKING PEOPLE
CONTENTSADB President’s Message
Peace, Prosperity, and Poverty Reduction
Road to Opportunity
Joint Effort Tackles Trafficking
Battling Bird Flu
Going with the Flow
Driving Change
Air Wave Awareness
Tourism Boom
Easing Border Barriers
Business Blooms
Corridor Lifts Hopes, Incomes
Frequently Asked Questions
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6
14
18
22
26
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32
36
38
40
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Rich
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© 2005 Asian Development Bank
This report was prepared by staff of the AsianDevelopment Bank (ADB). The analyses andassessments contained herein do not necessarilyreflect the views of ADB, or its Board of Governors,or the governments its members represent.
ADB does not guarantee the accuracy of the dataincluded in this publication and accepts noresponsibility for any consequence of their use.
The term “country,” as used in the context of ADB,refers to a member of ADB and does not implyany view on the part of ADB as to the member’ssovereignty or independent status.
Asian Development Bank6 ADB Avenue, Mandaluyong City1550 Metro Manila, PhilippinesTel +63 2 632 4444Fax +63 2 636 2444www.adb.org
Publication Stock No. 051405
Cover photo by Richie Abrina
CONNECTING NATIONS, LINKING PEOPLE 32 CONNECTING NATIONS, LINKING PEOPLE
CONTENTSADB President’s Message
Peace, Prosperity, and Poverty Reduction
Road to Opportunity
Joint Effort Tackles Trafficking
Battling Bird Flu
Going with the Flow
Driving Change
Air Wave Awareness
Tourism Boom
Easing Border Barriers
Business Blooms
Corridor Lifts Hopes, Incomes
Frequently Asked Questions
5
6
14
18
22
26
28
32
36
38
40
44
48
Rich
ie A
brin
a
© 2005 Asian Development Bank
This report was prepared by staff of the AsianDevelopment Bank (ADB). The analyses andassessments contained herein do not necessarilyreflect the views of ADB, or its Board of Governors,or the governments its members represent.
ADB does not guarantee the accuracy of the dataincluded in this publication and accepts noresponsibility for any consequence of their use.
The term “country,” as used in the context of ADB,refers to a member of ADB and does not implyany view on the part of ADB as to the member’ssovereignty or independent status.
Asian Development Bank6 ADB Avenue, Mandaluyong City1550 Metro Manila, PhilippinesTel +63 2 632 4444Fax +63 2 636 2444www.adb.org
Publication Stock No. 051405
Cover photo by Richie Abrina
CONNECTING NATIONS, LINKING PEOPLE 54 CONNECTING NATIONS, LINKING PEOPLE
ADBPRESIDENT’S
MESSAGE
Subregional economic cooperation andintegration play a vital role in the future ofAsia and the Pacific in helping promote
peace among nations, increase prosperity, andreduce poverty.
Since 1992, the pioneering initiative known asthe Greater Mekong Subregion Economic Coopera-tion Program, or GMS Program for short, has shownus the benefits that subregional cooperation canbring. The six countries that share the MekongRiver—Cambodia, People’s Republic of China, LaoPeople’s Democratic Republic, Myanmar, Thailand,and Viet Nam—are together reaping the benefits ofincreased connectivity, competitiveness, and agreater sense of community that would not havebeen possible two decades ago.
The GMS Program’s success is evident in theprogress being made in the 11 flagship programs.These initiatives are helping to knit the subregiontogether by building vital infrastructure links;developing policies to overcome market constraintsand promote trade, tourism, and investment; andcreating initiatives to build capacity and institutions
to better manage the changes taking place in thesubregion now—and in the future.
Governments in the subregion have workedhard to make the vision of “borders withoutbarriers” a reality through initiatives to streamlineprocedures such as the Cross-Border TransportAgreement. They are helping mitigate the illeffects of greater openness, for instance, withinitiatives to combat the spread of HIV/AIDS andother communicable diseases, as well as humantrafficking.
The GMS Program also highlights the impor-tance of the subregion’s environment with initia-tives such as the Core Environment Program thatwill help protect critical ecosystems in the GMS.
As the GMS Program continues to gathermomentum, the Asian Development Bank remainsproudly committed to supporting the MekongSubregion’s long-term development and helpingto create the opportunities that will bring prosper-ity with equity to about 300 million people of theGMS.
Haruhiko KurodaPresidentAsian Development Bank
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a The Greater Mekong Subregion Programis helping create economic opportunitiesthat will bring peace and prosperity toabout 300 million people in the subregion
The Greater Mekong Subregion Programis helping create economic opportunitiesthat will bring peace and prosperity toabout 300 million people in the subregion
CONNECTING NATIONS, LINKING PEOPLE 54 CONNECTING NATIONS, LINKING PEOPLE
ADBPRESIDENT’S
MESSAGE
Subregional economic cooperation andintegration play a vital role in the future ofAsia and the Pacific in helping promote
peace among nations, increase prosperity, andreduce poverty.
Since 1992, the pioneering initiative known asthe Greater Mekong Subregion Economic Coopera-tion Program, or GMS Program for short, has shownus the benefits that subregional cooperation canbring. The six countries that share the MekongRiver—Cambodia, People’s Republic of China, LaoPeople’s Democratic Republic, Myanmar, Thailand,and Viet Nam—are together reaping the benefits ofincreased connectivity, competitiveness, and agreater sense of community that would not havebeen possible two decades ago.
The GMS Program’s success is evident in theprogress being made in the 11 flagship programs.These initiatives are helping to knit the subregiontogether by building vital infrastructure links;developing policies to overcome market constraintsand promote trade, tourism, and investment; andcreating initiatives to build capacity and institutions
to better manage the changes taking place in thesubregion now—and in the future.
Governments in the subregion have workedhard to make the vision of “borders withoutbarriers” a reality through initiatives to streamlineprocedures such as the Cross-Border TransportAgreement. They are helping mitigate the illeffects of greater openness, for instance, withinitiatives to combat the spread of HIV/AIDS andother communicable diseases, as well as humantrafficking.
The GMS Program also highlights the impor-tance of the subregion’s environment with initia-tives such as the Core Environment Program thatwill help protect critical ecosystems in the GMS.
As the GMS Program continues to gathermomentum, the Asian Development Bank remainsproudly committed to supporting the MekongSubregion’s long-term development and helpingto create the opportunities that will bring prosper-ity with equity to about 300 million people of theGMS.
Haruhiko KurodaPresidentAsian Development Bank
Rich
ie A
brin
a The Greater Mekong Subregion Programis helping create economic opportunitiesthat will bring peace and prosperity toabout 300 million people in the subregion
The Greater Mekong Subregion Programis helping create economic opportunitiesthat will bring peace and prosperity toabout 300 million people in the subregion
CONNECTING NATIONS, LINKING PEOPLE 76 CONNECTING NATIONS, LINKING PEOPLE
PEACE,PROSPERITY,
AND POVERTYREDUCTION
The Greater Mekong Subregionis experiencing one of the most
remarkable turnarounds in recenttimes, from conflict
to peace and growth
The Greater Mekong Subregion EconomicCooperation Program (GMS Program) hasbeen the driving force in bringing together
the six countries that share the Mekong River—Cambodia, People’s Republic of China, Lao People’sDemocratic Republic (Lao PDR), Myanmar, Thailand,and Viet Nam—to become one of the world’sfastest growing subregions.
The GMS covers 2.6 million square kilometers(km). Its rich human and natural resources make it anew frontier for economic growth. As a “landbridge” between South and East Asia, it is ideallypositioned for trade with its neighbors.
But despite its geographic advantage andresources, about 50 million of the subregion’s300 million people are still living in poverty on lessthan the equivalent of one dollar a day.
Established in 1992 with the support of theAsian Development Bank (ADB), the GMS Programpromotes closer economic ties and cooperationamong the six countries. Its vision is to create amore integrated, prosperous, and equitable Mekongsubregion, complementing national efforts topromote economic growth and reduce poverty, andaugmenting domestic development opportunities tocreate subregional opportunities. It seeks to encour-age trade and investment among GMS countries,ease the cross-border movement of people andgoods, and meet common resource and policyneeds.
The GMS Program helps improve the quality oflife across the subregion by emphasizing the “threeCs”: Connectivity, increased Competitiveness, and agreater sense of Community.
Based on activities rather than formal rules, theGMS Program is guided by a general set of prin-ciples and institutional arrangements. It is results-oriented and pragmatic, with the six countriesplanning and implementing projects for their mutualbenefit.
It is also inclusive, involving all parties that wishto contribute. Increasingly, the program is seeing awider range of players from, among others, non-government organizations, other funding agencies,and the private sector.
The GMS Program promotes subregionalcooperation in nine key sectors: transportation,energy, telecommunications, human resourcedevelopment, tourism, environment, trade,investment, and agriculture.
The program’s activities can be grouped intothree main areas: physical infrastructure—transport,power, and telecommunication facilities—topromote overall economic growth and greater trade,investment, and tourism flows; policy and institu-tional initiatives to maximize the benefits andopportunities from physical infrastructure; andinitiatives to address common social developmentand environmental sustainability concerns.
ADB plays a multifaceted role in the GMSProgram—as an “honest broker,” a catalyst fordialogue and cofinancing, provider of advisory andsecretariat services, and major financier of projects.
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Rube
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By Judy Bryant*
A better life awaitsthe children of theMekong region
A better life awaitsthe children of theMekong region*Judy Bryant is a consultant with the Department of External Relations.
CONNECTING NATIONS, LINKING PEOPLE 76 CONNECTING NATIONS, LINKING PEOPLE
PEACE,PROSPERITY,
AND POVERTYREDUCTION
The Greater Mekong Subregionis experiencing one of the most
remarkable turnarounds in recenttimes, from conflict
to peace and growth
The Greater Mekong Subregion EconomicCooperation Program (GMS Program) hasbeen the driving force in bringing together
the six countries that share the Mekong River—Cambodia, People’s Republic of China, Lao People’sDemocratic Republic (Lao PDR), Myanmar, Thailand,and Viet Nam—to become one of the world’sfastest growing subregions.
The GMS covers 2.6 million square kilometers(km). Its rich human and natural resources make it anew frontier for economic growth. As a “landbridge” between South and East Asia, it is ideallypositioned for trade with its neighbors.
But despite its geographic advantage andresources, about 50 million of the subregion’s300 million people are still living in poverty on lessthan the equivalent of one dollar a day.
Established in 1992 with the support of theAsian Development Bank (ADB), the GMS Programpromotes closer economic ties and cooperationamong the six countries. Its vision is to create amore integrated, prosperous, and equitable Mekongsubregion, complementing national efforts topromote economic growth and reduce poverty, andaugmenting domestic development opportunities tocreate subregional opportunities. It seeks to encour-age trade and investment among GMS countries,ease the cross-border movement of people andgoods, and meet common resource and policyneeds.
The GMS Program helps improve the quality oflife across the subregion by emphasizing the “threeCs”: Connectivity, increased Competitiveness, and agreater sense of Community.
Based on activities rather than formal rules, theGMS Program is guided by a general set of prin-ciples and institutional arrangements. It is results-oriented and pragmatic, with the six countriesplanning and implementing projects for their mutualbenefit.
It is also inclusive, involving all parties that wishto contribute. Increasingly, the program is seeing awider range of players from, among others, non-government organizations, other funding agencies,and the private sector.
The GMS Program promotes subregionalcooperation in nine key sectors: transportation,energy, telecommunications, human resourcedevelopment, tourism, environment, trade,investment, and agriculture.
The program’s activities can be grouped intothree main areas: physical infrastructure—transport,power, and telecommunication facilities—topromote overall economic growth and greater trade,investment, and tourism flows; policy and institu-tional initiatives to maximize the benefits andopportunities from physical infrastructure; andinitiatives to address common social developmentand environmental sustainability concerns.
ADB plays a multifaceted role in the GMSProgram—as an “honest broker,” a catalyst fordialogue and cofinancing, provider of advisory andsecretariat services, and major financier of projects.
Rich
ie A
brin
a
Rube
n M
arm
ita
By Judy Bryant*
A better life awaitsthe children of theMekong region
A better life awaitsthe children of theMekong region*Judy Bryant is a consultant with the Department of External Relations.
CONNECTING NATIONS, LINKING PEOPLE 98 CONNECTING NATIONS, LINKING PEOPLE
These reforms are transformingpreviously isolated and command-based economies into anintegrated and competitivemarket-based region
—Rajat M. Nag, Director General, ADB Mekong Departmentand Special Advisor to the President in charge of RegionalEconomic Cooperation and Integration
Rich
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Better educationcreates opportunityBetter educationcreates opportunity
From 1992 to April 2005, ADB approved about$1.4 billion in loans and mobilized another $2.2 bil-lion in cofinancing for subregional developmentprojects, including national projects with significantregional benefits. During the same time frame, ADB,together with cofinanciers and GMS governments,provided $105 million in technical assistance grantsfor preparing projects and conducting studies topromote effectiveness.
Despite challenges such as the Asian financialcrisis, the remarkable progress in the GMS isreflected in an increase in average gross domesticproduct per capita from about $630 in 1992 toabout $900 in 2003.
Moreover, the biggest dividends from the GMSinitiative are the prevalence of peace, the increasedtrust and confidence among the countries, a senseof common purpose, and the inroads being madeto reduce poverty.
Peace Provides a Window of OpportunityThe possibility of bringing the six GMS countriestogether became apparent in the early 1990s when,for the first time in decades, peace prevailedbetween the countries. Through this window ofopportunity, the countries began to examine ways ofworking together for their mutual benefit.
At that time, trade and other economic activi-ties among the GMS countries were limited: oppor-tunities for development were hampered by thesubregion’s lack of infrastructure, such as roads andtelecommunication linkages between countries, andlack of information about neighboring markets.
Building trust and confidence was a prerequisitefor cooperation. By initiating consultations, ADBtook up the challenge of bringing the countriestogether to discuss shared development constraintsand opportunities. This led to the establishment ofthe GMS Program in 1992.
As trust developed, the six countries began toinvestigate joint projects that would enhance thesubregion’s development prospects, with ADBplaying the role of catalyst and core supporter of theGMS Program.
The program’s first priority was to lay thefoundations for growth in the form of transport andenergy infrastructure to create vital links within andbetween countries, and promote the developmentof the subregion’s resource base.
Vision of Peace, Prosperity,and Poverty ReductionAmong the most important of the program’sinitiatives are the three economic corridors that linkthe subregion: the East-West Economic Corridor(EWEC), North-South Economic Corridor, andSouthern Economic Corridor.
These corridors are helping “knit” the GMStogether and have been planned around majortransport infrastructure developments that areexpected to generate wide-ranging benefits, such asincreased trade, investment, and tourism.
The EWEC is the most advanced of theseprojects and, when completed, will be a 1,500-kmartery from Da Nang Port in Viet Nam to theAndaman Sea in the west. The benefits are alreadyapparent: so far, 60 companies have invested in thespecial economic zone located on the Lao PDR-VietNam border in the EWEC.
Because the GMS Program is a work inprogress, regular forums for the six countries anddevelopment partners are vital. At the 10th Ministe-rial Meeting of the GMS Program in 2001, ministersof the six countries endorsed the GMS StrategicFramework to take the program into the nextdecade. The framework, which articulated a visionof a more integrated, prosperous, and equitableGMS, had five strategic thrusts and 10 flagshipprograms.
A tunnel through Hai Van Passnear Da Nang, Viet Nam willshorten travel time along theEast-West Economic Corridor
A tunnel through Hai Van Passnear Da Nang, Viet Nam willshorten travel time along theEast-West Economic Corridor
CONNECTING NATIONS, LINKING PEOPLE 98 CONNECTING NATIONS, LINKING PEOPLE
These reforms are transformingpreviously isolated and command-based economies into anintegrated and competitivemarket-based region
—Rajat M. Nag, Director General, ADB Mekong Departmentand Special Advisor to the President in charge of RegionalEconomic Cooperation and Integration
Rich
ie A
brin
a
Rich
ie A
brin
a
Better educationcreates opportunityBetter educationcreates opportunity
From 1992 to April 2005, ADB approved about$1.4 billion in loans and mobilized another $2.2 bil-lion in cofinancing for subregional developmentprojects, including national projects with significantregional benefits. During the same time frame, ADB,together with cofinanciers and GMS governments,provided $105 million in technical assistance grantsfor preparing projects and conducting studies topromote effectiveness.
Despite challenges such as the Asian financialcrisis, the remarkable progress in the GMS isreflected in an increase in average gross domesticproduct per capita from about $630 in 1992 toabout $900 in 2003.
Moreover, the biggest dividends from the GMSinitiative are the prevalence of peace, the increasedtrust and confidence among the countries, a senseof common purpose, and the inroads being madeto reduce poverty.
Peace Provides a Window of OpportunityThe possibility of bringing the six GMS countriestogether became apparent in the early 1990s when,for the first time in decades, peace prevailedbetween the countries. Through this window ofopportunity, the countries began to examine ways ofworking together for their mutual benefit.
At that time, trade and other economic activi-ties among the GMS countries were limited: oppor-tunities for development were hampered by thesubregion’s lack of infrastructure, such as roads andtelecommunication linkages between countries, andlack of information about neighboring markets.
Building trust and confidence was a prerequisitefor cooperation. By initiating consultations, ADBtook up the challenge of bringing the countriestogether to discuss shared development constraintsand opportunities. This led to the establishment ofthe GMS Program in 1992.
As trust developed, the six countries began toinvestigate joint projects that would enhance thesubregion’s development prospects, with ADBplaying the role of catalyst and core supporter of theGMS Program.
The program’s first priority was to lay thefoundations for growth in the form of transport andenergy infrastructure to create vital links within andbetween countries, and promote the developmentof the subregion’s resource base.
Vision of Peace, Prosperity,and Poverty ReductionAmong the most important of the program’sinitiatives are the three economic corridors that linkthe subregion: the East-West Economic Corridor(EWEC), North-South Economic Corridor, andSouthern Economic Corridor.
These corridors are helping “knit” the GMStogether and have been planned around majortransport infrastructure developments that areexpected to generate wide-ranging benefits, such asincreased trade, investment, and tourism.
The EWEC is the most advanced of theseprojects and, when completed, will be a 1,500-kmartery from Da Nang Port in Viet Nam to theAndaman Sea in the west. The benefits are alreadyapparent: so far, 60 companies have invested in thespecial economic zone located on the Lao PDR-VietNam border in the EWEC.
Because the GMS Program is a work inprogress, regular forums for the six countries anddevelopment partners are vital. At the 10th Ministe-rial Meeting of the GMS Program in 2001, ministersof the six countries endorsed the GMS StrategicFramework to take the program into the nextdecade. The framework, which articulated a visionof a more integrated, prosperous, and equitableGMS, had five strategic thrusts and 10 flagshipprograms.
A tunnel through Hai Van Passnear Da Nang, Viet Nam willshorten travel time along theEast-West Economic Corridor
A tunnel through Hai Van Passnear Da Nang, Viet Nam willshorten travel time along theEast-West Economic Corridor
CONNECTING NATIONS, LINKING PEOPLE 1110 CONNECTING NATIONS, LINKING PEOPLE
The challenge lies in promotingregional cooperation to accelerateeconomic growth and integration,and narrow the income gapamong countries
—Haruhiko Kuroda, President of Asian Development Bank
Rich
ie A
brin
a An improved roadhelped expand a localmarket in the Lao PDR
The strategic thrusts focus onstrengthening infrastructure linkages with amultisectoral approach,facilitating cross-border trade and investment,enhancing private sector participation andimproving competitiveness,developing human resources and skills compe-tencies, andprotecting the environment and promoting thesustainable use of shared natural resources.
The 10 GMS flagship programs are the North-South Economic Corridor Development; East-WestEconomic Corridor Development; Southern Eco-nomic Corridor Development; TelecommunicationsBackbone Development; Regional Power Intercon-nection and Trading Arrangements; FacilitatingCross-Border Trade and Investment; EnhancingPrivate Sector Participation and Competitiveness;Developing Human Resources and Skills Competen-cies; Strategic Environment Framework; and FloodControl and Water Resource Management.
At the 11th Ministerial Meeting in 2002, minis-ters added GMS Tourism Development as the 11th
flagship program.At the first GMS Summit in November 2002
in Phnom Penh, the leaders of the six countriesendorsed the flagship programs.
Already the increased connectivity created bythe GMS Program is providing opportunities. AsRajat M. Nag, Director General of ADB’s MekongDepartment, recently pointed out, intraregionalexports have increased more than tenfold since1992. Interregional trade is also beginning to growas the GMS becomes more competitive, and a senseof community is clearly discernible.
“While connectivity is key in bringing thesubregion closer together, it was quickly recognizedthat it must be accompanied by investments ineasing processes and building capacities,” he toldADB Review in December 2004.
In response to this, ADB helped the GMScountries forge a Cross-Border Transport Agreementthat is expected to dramatically boost the flow ofpeople, goods, and investments across borders andspur growth.
In the energy field, the six countries have signedan intergovernmental agreement on regional powerinterconnection and trade, and are now draftingoperational guidelines. These will ensure that powerwill be bought and sold across borders in ways thatbenefit all.
“These reforms are transforming previouslyisolated and command-based economies into anintegrated and competitive market-based region,”Mr. Nag said.
Capacity building in the region is vital. At theSummit in Phnom Penh, the leaders recognized theneed to develop a pool of highly competent andqualified middle- and senior-level planners andmanagers to steer economic and social develop-ment. And so the Phnom Penh Plan for Develop-ment Management, supported by ADB and the NewZealand Agency for International Development, wasestablished.
Already around 400 middle- and senior-levelofficials from the six countries have undergonespecialized learning in key development areas. Since2003, the program has offered 20 learningprograms covering governance, leadership, povertyreduction, private sector participation, environmen-tal management, government and civil societyparticipation, regional cooperation, negotiations,strategic management, health care financing,human resource management, and e-governance.
Challenges in the GMSDespite its progress, many challenges exist in thesecond decade of the GMS Program. These includeseeking sufficient resources to fund the program,harmonizing efforts, mitigating the ill effects ofmore people and goods crossing borders, andsupporting the achievement of the MillenniumDevelopment Goals, including substantially reducingpoverty in the subregion by 2015.
Seeking the resources to finance the manyprojects that countries have identified andprioritized—currently estimated to cost at least$10 billion—is challenging. ADB is working tomobilize public and private partners for thispurpose.
The GMS Program recognizes the crucial role ofthe private sector in providing the required financial,technological, and management resources forgrowth. To help foster an enabling environment forprivate sector activity, the GMS Business Forum wasestablished in 2000 with the assistance of theUnited Nations Economic and Social Commissionfor Asia and the Pacific and ADB. The goal of theForum is to strengthen business links amongmember countries and strengthen strategic partner-ships among local business chambers andgovernment authorities.
In 2004, several meetings—the MekongDevelopment Forum in Paris in June, the Public-Private Partnership Consultation Meeting in Bangkokin September, and the 13th GMS Ministerial Meetingin Vientiane in December—stimulated the involve-ment of the private sector in the GMS.
Harmonization of development efforts is alsoessential. For more effective progress, the GMSProgram encourages GMS countries to take aregional perspective by harmonizing their nationalpriorities with regional priorities. As Mr. Nag puts it,“to think regionally but invest nationally.”
The most difficult and overriding challenge,however, is to reduce poverty and achieve theMillennium Development Goals by 2015. Spreadingthe benefits of economic growth to people in theGMS—while mitigating the potential ill effects ofdevelopment—will require strong collaboration andpartnership.
Protecting the environment is therefore anothermajor challenge. For instance, Cambodia’s greatlake, the Tonle Sap—a United Nations-designatedbiosphere reserve—directly supports more than onemillion people and is the single largest source ofprotein for Cambodia’s young and growing popula-tion. The challenge is to achieve the right balancebetween development and preservation in theseareas.
To address these concerns, the GMS WorkingGroup on Environment was established in 1995 asone of the earliest efforts set up under the GMSProgram.
The group’s two most recent meetings laid thegroundwork for the Core Environment Program,designed to ensure that environmentally sustainabledevelopment takes root in the subregion throughstrategic environmental assessments, knowledgesharing, and financial mobilization for conservationefforts.
CONNECTING NATIONS, LINKING PEOPLE 1110 CONNECTING NATIONS, LINKING PEOPLE
The challenge lies in promotingregional cooperation to accelerateeconomic growth and integration,and narrow the income gapamong countries
—Haruhiko Kuroda, President of Asian Development Bank
Rich
ie A
brin
a An improved roadhelped expand a localmarket in the Lao PDR
The strategic thrusts focus onstrengthening infrastructure linkages with amultisectoral approach,facilitating cross-border trade and investment,enhancing private sector participation andimproving competitiveness,developing human resources and skills compe-tencies, andprotecting the environment and promoting thesustainable use of shared natural resources.
The 10 GMS flagship programs are the North-South Economic Corridor Development; East-WestEconomic Corridor Development; Southern Eco-nomic Corridor Development; TelecommunicationsBackbone Development; Regional Power Intercon-nection and Trading Arrangements; FacilitatingCross-Border Trade and Investment; EnhancingPrivate Sector Participation and Competitiveness;Developing Human Resources and Skills Competen-cies; Strategic Environment Framework; and FloodControl and Water Resource Management.
At the 11th Ministerial Meeting in 2002, minis-ters added GMS Tourism Development as the 11th
flagship program.At the first GMS Summit in November 2002
in Phnom Penh, the leaders of the six countriesendorsed the flagship programs.
Already the increased connectivity created bythe GMS Program is providing opportunities. AsRajat M. Nag, Director General of ADB’s MekongDepartment, recently pointed out, intraregionalexports have increased more than tenfold since1992. Interregional trade is also beginning to growas the GMS becomes more competitive, and a senseof community is clearly discernible.
“While connectivity is key in bringing thesubregion closer together, it was quickly recognizedthat it must be accompanied by investments ineasing processes and building capacities,” he toldADB Review in December 2004.
In response to this, ADB helped the GMScountries forge a Cross-Border Transport Agreementthat is expected to dramatically boost the flow ofpeople, goods, and investments across borders andspur growth.
In the energy field, the six countries have signedan intergovernmental agreement on regional powerinterconnection and trade, and are now draftingoperational guidelines. These will ensure that powerwill be bought and sold across borders in ways thatbenefit all.
“These reforms are transforming previouslyisolated and command-based economies into anintegrated and competitive market-based region,”Mr. Nag said.
Capacity building in the region is vital. At theSummit in Phnom Penh, the leaders recognized theneed to develop a pool of highly competent andqualified middle- and senior-level planners andmanagers to steer economic and social develop-ment. And so the Phnom Penh Plan for Develop-ment Management, supported by ADB and the NewZealand Agency for International Development, wasestablished.
Already around 400 middle- and senior-levelofficials from the six countries have undergonespecialized learning in key development areas. Since2003, the program has offered 20 learningprograms covering governance, leadership, povertyreduction, private sector participation, environmen-tal management, government and civil societyparticipation, regional cooperation, negotiations,strategic management, health care financing,human resource management, and e-governance.
Challenges in the GMSDespite its progress, many challenges exist in thesecond decade of the GMS Program. These includeseeking sufficient resources to fund the program,harmonizing efforts, mitigating the ill effects ofmore people and goods crossing borders, andsupporting the achievement of the MillenniumDevelopment Goals, including substantially reducingpoverty in the subregion by 2015.
Seeking the resources to finance the manyprojects that countries have identified andprioritized—currently estimated to cost at least$10 billion—is challenging. ADB is working tomobilize public and private partners for thispurpose.
The GMS Program recognizes the crucial role ofthe private sector in providing the required financial,technological, and management resources forgrowth. To help foster an enabling environment forprivate sector activity, the GMS Business Forum wasestablished in 2000 with the assistance of theUnited Nations Economic and Social Commissionfor Asia and the Pacific and ADB. The goal of theForum is to strengthen business links amongmember countries and strengthen strategic partner-ships among local business chambers andgovernment authorities.
In 2004, several meetings—the MekongDevelopment Forum in Paris in June, the Public-Private Partnership Consultation Meeting in Bangkokin September, and the 13th GMS Ministerial Meetingin Vientiane in December—stimulated the involve-ment of the private sector in the GMS.
Harmonization of development efforts is alsoessential. For more effective progress, the GMSProgram encourages GMS countries to take aregional perspective by harmonizing their nationalpriorities with regional priorities. As Mr. Nag puts it,“to think regionally but invest nationally.”
The most difficult and overriding challenge,however, is to reduce poverty and achieve theMillennium Development Goals by 2015. Spreadingthe benefits of economic growth to people in theGMS—while mitigating the potential ill effects ofdevelopment—will require strong collaboration andpartnership.
Protecting the environment is therefore anothermajor challenge. For instance, Cambodia’s greatlake, the Tonle Sap—a United Nations-designatedbiosphere reserve—directly supports more than onemillion people and is the single largest source ofprotein for Cambodia’s young and growing popula-tion. The challenge is to achieve the right balancebetween development and preservation in theseareas.
To address these concerns, the GMS WorkingGroup on Environment was established in 1995 asone of the earliest efforts set up under the GMSProgram.
The group’s two most recent meetings laid thegroundwork for the Core Environment Program,designed to ensure that environmentally sustainabledevelopment takes root in the subregion throughstrategic environmental assessments, knowledgesharing, and financial mobilization for conservationefforts.
CONNECTING NATIONS, LINKING PEOPLE 1312 CONNECTING NATIONS, LINKING PEOPLE
BOOSTING GMS BUSINESSThe private sector is becoming an increasinglyimportant partner in providing the growing intel-lectual support and financial resources required todevelop the Greater Mekong Subregion (GMS).
Enhancing Private Sector Participation andCompetitiveness is one of the 11 GMS flagshipprograms—and the GMS Economic CooperationProgram (GMS Program) strives to consult andinvolve the private sector as a standard practice.
The GMS Business Forum (GMS-BF) wasestablished in October 2000 under the frameworkof the GMS Program, with assistance from the AsianDevelopment Bank (ADB) and the United NationsEconomic and Social Commission for Asia and thePacific, to promote trade and investment within andamong the six countries of the GMS.
The Board of Directors of the GMS BusinessForum has agreed on the following basic principlesof the GMS-BF: (i) foster GMS cooperation; (ii) addvalue to national chamber of commerce and industry(CCI) programs; (iii) strengthen ties with national CCIs;(iv) address gaps in trade and investment facilitationservices; (v) offer services on a cost-recovery basis;(vi) build intra- and interregional partnerships;(vii) achieve GMS development program consensus;(viii) document activities and decision-making.
Based in Vientiane, Lao People’s DemocraticRepublic, the GMS-BF comprises the nationalchambers of commerce of the six GMS countries.Membership is open to businesses of all kinds;international, national, professional, and sectoralassociations; business and employers’ federations;and chambers of commerce and industry. The GMS-BF opened a satellite office in Bangkok with anotherplanned in Kunming.
In December 2002, the GMS-BF launcheda virtual GMS Business Support Center at www.
gmsbizforum.com to disseminate information on theforum’s activities and to support the developmentof business activities in the GMS.
In 2004, the GMS-BF was further strengthenedby establishing a corporate governance frameworkand formulating a business plan based on the deliveryof six value-added, fee-based services.
The 13th GMS Ministerial Meeting in Vientiane inDecember 2004 produced a GMS Program Plan ofAction. This included improving the informationarchitecture for facilitating investment in the GMS byposting a GMS investment template on the GMS-BFwebsite to be available by the end of June 2005. Thiswill provide a cross-reference of all major investmentlaws and regulations in the GMS.
In disseminating a range of relevant and timelybusiness services to investors about GMS activities,the GMS-BF plays an important role in promotingawareness of trade and investment opportunities inthe GMS.
In addition and complementary to the regularactivities of the GMS-BF, the GMS Program hasorganized major events to step up and deepen thedialogue with the private sector. For instance,interaction between GMS governments and theprivate sector has been intensified through the High-Level Public-Private Sector Consultation Meeting heldin Bangkok in September 2004, where the privatesector raised key concerns and proposals for furtherimprovements in the business environment.
Knowing the key role of the private sector inthe overall success and sustainability of the GMSProgram, the countries will continue step-up measuresto create a more favorable climate for the private sector,enabling it to take advantage of the opportunitiesarising from increased connectivity and greatereconomic integration in the subregion.
Rich
ie A
brin
a
By Judy Bryant*
A key component of the Core EnvironmentProgram is the Biodiversity Conservation CorridorsInitiative, the goal of which is to protect high-valueterrestrial biodiversity and protected areas in eco-nomic corridors. The GMS environment ministersoversaw the finalization of a strategic frameworkand 3-year action plan to protect priority biodiversityconservation and other areas during their meetingheld in Shanghai in May 2005.
ADB, in conjunction with the United NationsEnvironment Programme, has also taken the lead bypublishing in April 2004 the Greater MekongSubregion Atlas of the Environment. The atlasprovides comprehensive environmental informationto improve planning for sustainable developmentand decision making in the subregion.
For HIV/AIDS, ADB and the Southeast AsianMinisters of Education Organization worked on aGMS information and technology project addressingthree major factors contributing to the spread ofAIDS in the subregion: high-risk behavior, traffickingin girls and women, and drug abuse among high-land minorities.
ADB is also already addressing other diversechallenges presented by greater connectivity inthe GMS. Among these is its assistance to the
GMS countries to develop a regional cooperationframework on controlling transboundary animaldiseases.
The road ahead for the GMS Program will see agroundswell of activity as projects come on line.The GMS Program in its second decade is increas-ingly results oriented, emphasizing the provision ofessential infrastructure in the context of socialdevelopment and environmental sustainability tocreate economic growth and reduce poverty. It isshowing what is possible when countries possessthe will and the commitment to move forwardtogether.
As ADB President Haruhiko Kuroda said inFebruary 2005 as he acknowledged the considerablemomentum the GMS has gained in recent years:“The challenge lies in promoting regional coopera-tion to accelerate economic growth and integration,and narrow the income gap among countries.”
It is a challenge that ADB and the governmentsof the six GMS countries are ready to meet as partof moving toward a greater Asian economiccommunity.
Lao Bao Commercial Area,Viet Nam near the borderof the Lao PDR attractsforeign investors
Lao Bao Commercial Area,Viet Nam near the borderof the Lao PDR attractsforeign investors
*Judy Bryant is a consultant with the Department of External Relations
CONNECTING NATIONS, LINKING PEOPLE 1312 CONNECTING NATIONS, LINKING PEOPLE
BOOSTING GMS BUSINESSThe private sector is becoming an increasinglyimportant partner in providing the growing intel-lectual support and financial resources required todevelop the Greater Mekong Subregion (GMS).
Enhancing Private Sector Participation andCompetitiveness is one of the 11 GMS flagshipprograms—and the GMS Economic CooperationProgram (GMS Program) strives to consult andinvolve the private sector as a standard practice.
The GMS Business Forum (GMS-BF) wasestablished in October 2000 under the frameworkof the GMS Program, with assistance from the AsianDevelopment Bank (ADB) and the United NationsEconomic and Social Commission for Asia and thePacific, to promote trade and investment within andamong the six countries of the GMS.
The Board of Directors of the GMS BusinessForum has agreed on the following basic principlesof the GMS-BF: (i) foster GMS cooperation; (ii) addvalue to national chamber of commerce and industry(CCI) programs; (iii) strengthen ties with national CCIs;(iv) address gaps in trade and investment facilitationservices; (v) offer services on a cost-recovery basis;(vi) build intra- and interregional partnerships;(vii) achieve GMS development program consensus;(viii) document activities and decision-making.
Based in Vientiane, Lao People’s DemocraticRepublic, the GMS-BF comprises the nationalchambers of commerce of the six GMS countries.Membership is open to businesses of all kinds;international, national, professional, and sectoralassociations; business and employers’ federations;and chambers of commerce and industry. The GMS-BF opened a satellite office in Bangkok with anotherplanned in Kunming.
In December 2002, the GMS-BF launcheda virtual GMS Business Support Center at www.
gmsbizforum.com to disseminate information on theforum’s activities and to support the developmentof business activities in the GMS.
In 2004, the GMS-BF was further strengthenedby establishing a corporate governance frameworkand formulating a business plan based on the deliveryof six value-added, fee-based services.
The 13th GMS Ministerial Meeting in Vientiane inDecember 2004 produced a GMS Program Plan ofAction. This included improving the informationarchitecture for facilitating investment in the GMS byposting a GMS investment template on the GMS-BFwebsite to be available by the end of June 2005. Thiswill provide a cross-reference of all major investmentlaws and regulations in the GMS.
In disseminating a range of relevant and timelybusiness services to investors about GMS activities,the GMS-BF plays an important role in promotingawareness of trade and investment opportunities inthe GMS.
In addition and complementary to the regularactivities of the GMS-BF, the GMS Program hasorganized major events to step up and deepen thedialogue with the private sector. For instance,interaction between GMS governments and theprivate sector has been intensified through the High-Level Public-Private Sector Consultation Meeting heldin Bangkok in September 2004, where the privatesector raised key concerns and proposals for furtherimprovements in the business environment.
Knowing the key role of the private sector inthe overall success and sustainability of the GMSProgram, the countries will continue step-up measuresto create a more favorable climate for the private sector,enabling it to take advantage of the opportunitiesarising from increased connectivity and greatereconomic integration in the subregion.
Rich
ie A
brin
a
By Judy Bryant*
A key component of the Core EnvironmentProgram is the Biodiversity Conservation CorridorsInitiative, the goal of which is to protect high-valueterrestrial biodiversity and protected areas in eco-nomic corridors. The GMS environment ministersoversaw the finalization of a strategic frameworkand 3-year action plan to protect priority biodiversityconservation and other areas during their meetingheld in Shanghai in May 2005.
ADB, in conjunction with the United NationsEnvironment Programme, has also taken the lead bypublishing in April 2004 the Greater MekongSubregion Atlas of the Environment. The atlasprovides comprehensive environmental informationto improve planning for sustainable developmentand decision making in the subregion.
For HIV/AIDS, ADB and the Southeast AsianMinisters of Education Organization worked on aGMS information and technology project addressingthree major factors contributing to the spread ofAIDS in the subregion: high-risk behavior, traffickingin girls and women, and drug abuse among high-land minorities.
ADB is also already addressing other diversechallenges presented by greater connectivity inthe GMS. Among these is its assistance to the
GMS countries to develop a regional cooperationframework on controlling transboundary animaldiseases.
The road ahead for the GMS Program will see agroundswell of activity as projects come on line.The GMS Program in its second decade is increas-ingly results oriented, emphasizing the provision ofessential infrastructure in the context of socialdevelopment and environmental sustainability tocreate economic growth and reduce poverty. It isshowing what is possible when countries possessthe will and the commitment to move forwardtogether.
As ADB President Haruhiko Kuroda said inFebruary 2005 as he acknowledged the considerablemomentum the GMS has gained in recent years:“The challenge lies in promoting regional coopera-tion to accelerate economic growth and integration,and narrow the income gap among countries.”
It is a challenge that ADB and the governmentsof the six GMS countries are ready to meet as partof moving toward a greater Asian economiccommunity.
Lao Bao Commercial Area,Viet Nam near the borderof the Lao PDR attractsforeign investors
Lao Bao Commercial Area,Viet Nam near the borderof the Lao PDR attractsforeign investors
*Judy Bryant is a consultant with the Department of External Relations
CONNECTING NATIONS, LINKING PEOPLE 1514 CONNECTING NATIONS, LINKING PEOPLE
ROAD TOOPPORTUNITY
Upgrading the road link betweenPhnom Penh and Ho Chi Minh City
marks a milestone in the GMS initia-tive to promote economiccooperation in a formerly
conflict-torn area
By Floyd WhaleyEXTERNAL RELATIONS SPECIALIST
Chim Somphorse cradles her 10-month-oldson, Chea Dy, in the back of a tidy motor-cycle shop in southern Cambodia. Nearby,
her husband, Chea Noeun, works quietly on amotorcycle engine.
Before the highway between Phnom Penh andHo Chi Minh City was improved and brought asteady flow of motorcycles and other vehicles to thearea, Chim Somphorse worked in a garment factory.
Today, she and her husband run a small motor-cycle repair shop that also sells gasoline and helpsrepair flat tires. She earns about the same amount ofmoney, but her time is spent with her family ratherthan at the factory.
“Life is easier now,” she says. “We own ourown business and I can stay with my baby all day.”
The Phnom Penh-Ho Chi Minh City Highway,where the motorcycle shop is located, is the firstmulticountry Asian Development Bank (ADB) loanproject between Cambodia and Viet Nam. It marks amilestone in the Greater Mekong Subregion (GMS)initiative to promote economic cooperation in aformerly conflict-torn area.
The project began in 1998 when ADB approvedloans amounting to $40 million for Cambodia and$100 million for Viet Nam to upgrade an existing—but rough—road between the two cities.
About 240 kilometers (km) of the road—160 km in Cambodia and 80 km in Viet Nam—were upgraded to increase traffic and trade betweenCambodia and Viet Nam. Border facilities were alsoimproved and efforts are under way to cut bureau-cratic requirements for border crossings.
“This is one of the first borders in the GMSwhere we are trying this,” says Nou Vaddhananak,
Project Manager for the Cambodian component ofthe highway. “This is a model project.”
Smooth Road Leads to Business BoomThe road is still rough in some sections near PhnomPenh, and traffic stalls due to a ferry crossing of theMekong River in Cambodia. Border crossings alsodo not currently offer the one-stop customs clear-ance that is envisioned for the future. But theoverall improvement of the highway is dramaticallyevident.
What used to be a long, grueling ride overrough road is now a much quicker trip over mostlysmooth, paved surfaces. Tour buses can now beseen zipping between the two cities throughout theday, and restaurants and other businesses line thehighway, offering conveniences for travelers.
“Traffic on the road increased immediately afterit was improved,” says Javed Sultan, a member of
Floy
d W
hale
y
Floy
d W
hale
y
Traffic on Phnom Penh-Ho Chi Minh CityHighway grew by about 47% between2000 and 2004 due to the improved road
Traffic on Phnom Penh-Ho Chi Minh CityHighway grew by about 47% between2000 and 2004 due to the improved road
Chea Noeunfixes motor-cycles at hisroadside shopin southernCambodia
Chea Noeunfixes motor-cycles at hisroadside shopin southernCambodia
CONNECTING NATIONS, LINKING PEOPLE 1514 CONNECTING NATIONS, LINKING PEOPLE
ROAD TOOPPORTUNITY
Upgrading the road link betweenPhnom Penh and Ho Chi Minh City
marks a milestone in the GMS initia-tive to promote economiccooperation in a formerly
conflict-torn area
By Floyd WhaleyEXTERNAL RELATIONS SPECIALIST
Chim Somphorse cradles her 10-month-oldson, Chea Dy, in the back of a tidy motor-cycle shop in southern Cambodia. Nearby,
her husband, Chea Noeun, works quietly on amotorcycle engine.
Before the highway between Phnom Penh andHo Chi Minh City was improved and brought asteady flow of motorcycles and other vehicles to thearea, Chim Somphorse worked in a garment factory.
Today, she and her husband run a small motor-cycle repair shop that also sells gasoline and helpsrepair flat tires. She earns about the same amount ofmoney, but her time is spent with her family ratherthan at the factory.
“Life is easier now,” she says. “We own ourown business and I can stay with my baby all day.”
The Phnom Penh-Ho Chi Minh City Highway,where the motorcycle shop is located, is the firstmulticountry Asian Development Bank (ADB) loanproject between Cambodia and Viet Nam. It marks amilestone in the Greater Mekong Subregion (GMS)initiative to promote economic cooperation in aformerly conflict-torn area.
The project began in 1998 when ADB approvedloans amounting to $40 million for Cambodia and$100 million for Viet Nam to upgrade an existing—but rough—road between the two cities.
About 240 kilometers (km) of the road—160 km in Cambodia and 80 km in Viet Nam—were upgraded to increase traffic and trade betweenCambodia and Viet Nam. Border facilities were alsoimproved and efforts are under way to cut bureau-cratic requirements for border crossings.
“This is one of the first borders in the GMSwhere we are trying this,” says Nou Vaddhananak,
Project Manager for the Cambodian component ofthe highway. “This is a model project.”
Smooth Road Leads to Business BoomThe road is still rough in some sections near PhnomPenh, and traffic stalls due to a ferry crossing of theMekong River in Cambodia. Border crossings alsodo not currently offer the one-stop customs clear-ance that is envisioned for the future. But theoverall improvement of the highway is dramaticallyevident.
What used to be a long, grueling ride overrough road is now a much quicker trip over mostlysmooth, paved surfaces. Tour buses can now beseen zipping between the two cities throughout theday, and restaurants and other businesses line thehighway, offering conveniences for travelers.
“Traffic on the road increased immediately afterit was improved,” says Javed Sultan, a member of
Floy
d W
hale
y
Floy
d W
hale
y
Traffic on Phnom Penh-Ho Chi Minh CityHighway grew by about 47% between2000 and 2004 due to the improved road
Traffic on Phnom Penh-Ho Chi Minh CityHighway grew by about 47% between2000 and 2004 due to the improved road
Chea Noeunfixes motor-cycles at hisroadside shopin southernCambodia
Chea Noeunfixes motor-cycles at hisroadside shopin southernCambodia
CONNECTING NATIONS, LINKING PEOPLE 1716 CONNECTING NATIONS, LINKING PEOPLE
the ADB consulting team that supervised the Vietnam-ese part of the highway. “In fact, the highway hasbecome so popular so quickly that we now havebottlenecks in some areas that we need to work out.”
There are customers all day nowand they are not only Cambodians,but also Vietnamese and peoplefrom other countries. The wholetown is busier now
—Cheng Sophon, Cambodian fruit vendor
Dramatic Rise in Land Prices, IndustryDo Ngoc Dzung, Vice General Director of theMinistry of Transport, who is overseeing the projecton the Vietnamese side, said the impact of the roadon the area near Ho Chi Minh City has beensignificant.
“Since the road was upgraded, five newindustrial sites are being built near it,” he says.“Trade between the two countries, including fishand sugarcane, is increasing.”
The most visible aspect of the increased use ofthe road is the tour buses that can be seen through-out the day. The highway improvements haveresulted in reduced travel time and ticket prices forpassengers, and lower maintenance costs for buscompanies and other road users.
“In addition, firms are producing higher qualityservice with larger, more comfortable and, in somecases, air-conditioned buses,” the report said.“Transport companies are employing more drivers,using more vehicles, moving more passengers, andgenerally operating more frequent trips betweendestinations.”
The faster travel time and more comfortablebuses have pushed up demand for bus ticketsbetween the two cities. This has triggered fiercecompetition among bus companies, which havereduced ticket prices from $20 one way to as lowas $5.
For travelers between Ho Chi Minh City andPhnom Penh, this new fast and affordable land linkmeans an end to long and difficult overland jour-
Since the road was upgraded,five new industrial sitesare being built near it
—Do Ngoc Dzung, Vice General Director of Viet Nam’sMinistry of Transport
neys on rough roads—or expensive flights.For Cheng Sophon, a 32-year-old fruit vendor
who works on the Cambodian side of the highway,the growth in traffic flow has resulted in an increasein her income. She uses the extra money to buybooks and support her 12-year-old son and 9-year-old daughter.
“My business has doubled since the road wasimproved,” Ms. Sophon says. “There are customersall day now and they are not only Cambodians, butalso Vietnamese and people from other countries.The whole town is busier now.”
Mr. Dzung, with the Viet Nam Ministry ofTransport, points out that the greatest economicbenefits from the road are still to come as its useincreases.
“This road is a major contribution to theeconomic development of Ho Chi Minh City and animportant way for us to work together with ourneighbors,” he says. According to an ADB study, the road improve-
ment prompted traffic on the highway (excludingmotorcycles and other two-wheel vehicles) to growby about 47% between 2000 and 2004, comparedwith about 2.5% growth in traffic in the 4 yearsbefore that. The growth in traffic generated morethan $450,000 in toll revenue for the Governmentof Viet Nam in 2004.
“The project continues to produce sizableeconomic benefits, including higher levels of traffic,improved traffic flow, increased transport of goods,higher toll revenues, and enhanced bus services forpassengers using public transport,” the study noted.
Floy
d W
hale
y (x
3) Upgrading border facilitiesand cutting bureaucraticrequirements for bordercrossings are part of theproject
What used to bea grueling ride isnow a much quickerand smoother trip
Vendors along the highwayhave seen a dramatic risein business and customersfrom a variety of countries
Vendors along the highwayhave seen a dramatic risein business and customersfrom a variety of countries
What used to bea grueling ride isnow a much quickerand smoother trip
Upgrading border facilitiesand cutting bureaucraticrequirements for bordercrossings are part of theproject
CONNECTING NATIONS, LINKING PEOPLE 1716 CONNECTING NATIONS, LINKING PEOPLE
the ADB consulting team that supervised the Vietnam-ese part of the highway. “In fact, the highway hasbecome so popular so quickly that we now havebottlenecks in some areas that we need to work out.”
There are customers all day nowand they are not only Cambodians,but also Vietnamese and peoplefrom other countries. The wholetown is busier now
—Cheng Sophon, Cambodian fruit vendor
Dramatic Rise in Land Prices, IndustryDo Ngoc Dzung, Vice General Director of theMinistry of Transport, who is overseeing the projecton the Vietnamese side, said the impact of the roadon the area near Ho Chi Minh City has beensignificant.
“Since the road was upgraded, five newindustrial sites are being built near it,” he says.“Trade between the two countries, including fishand sugarcane, is increasing.”
The most visible aspect of the increased use ofthe road is the tour buses that can be seen through-out the day. The highway improvements haveresulted in reduced travel time and ticket prices forpassengers, and lower maintenance costs for buscompanies and other road users.
“In addition, firms are producing higher qualityservice with larger, more comfortable and, in somecases, air-conditioned buses,” the report said.“Transport companies are employing more drivers,using more vehicles, moving more passengers, andgenerally operating more frequent trips betweendestinations.”
The faster travel time and more comfortablebuses have pushed up demand for bus ticketsbetween the two cities. This has triggered fiercecompetition among bus companies, which havereduced ticket prices from $20 one way to as lowas $5.
For travelers between Ho Chi Minh City andPhnom Penh, this new fast and affordable land linkmeans an end to long and difficult overland jour-
Since the road was upgraded,five new industrial sitesare being built near it
—Do Ngoc Dzung, Vice General Director of Viet Nam’sMinistry of Transport
neys on rough roads—or expensive flights.For Cheng Sophon, a 32-year-old fruit vendor
who works on the Cambodian side of the highway,the growth in traffic flow has resulted in an increasein her income. She uses the extra money to buybooks and support her 12-year-old son and 9-year-old daughter.
“My business has doubled since the road wasimproved,” Ms. Sophon says. “There are customersall day now and they are not only Cambodians, butalso Vietnamese and people from other countries.The whole town is busier now.”
Mr. Dzung, with the Viet Nam Ministry ofTransport, points out that the greatest economicbenefits from the road are still to come as its useincreases.
“This road is a major contribution to theeconomic development of Ho Chi Minh City and animportant way for us to work together with ourneighbors,” he says. According to an ADB study, the road improve-
ment prompted traffic on the highway (excludingmotorcycles and other two-wheel vehicles) to growby about 47% between 2000 and 2004, comparedwith about 2.5% growth in traffic in the 4 yearsbefore that. The growth in traffic generated morethan $450,000 in toll revenue for the Governmentof Viet Nam in 2004.
“The project continues to produce sizableeconomic benefits, including higher levels of traffic,improved traffic flow, increased transport of goods,higher toll revenues, and enhanced bus services forpassengers using public transport,” the study noted.
Floy
d W
hale
y (x
3) Upgrading border facilitiesand cutting bureaucraticrequirements for bordercrossings are part of theproject
What used to bea grueling ride isnow a much quickerand smoother trip
Vendors along the highwayhave seen a dramatic risein business and customersfrom a variety of countries
Vendors along the highwayhave seen a dramatic risein business and customersfrom a variety of countries
What used to bea grueling ride isnow a much quickerand smoother trip
Upgrading border facilitiesand cutting bureaucraticrequirements for bordercrossings are part of theproject
CONNECTING NATIONS, LINKING PEOPLE 1918 CONNECTING NATIONS, LINKING PEOPLE
From the street, it looks like a simple housebeside a trickling stream. But venture closerand one can see dozens of children playing in
the yard, balancing on improvised stilts, and tossinga ball. As they play, other children can be heardreciting the Khmer alphabet.
Not long ago, many of these children weresurviving on the streets in a neighboring country,begging for money, and being exploited by syndi-cates. Today they live in Goutte d’eau Poipet, ashelter on the border between Thailand and Cambo-dia. More than 100 children, aged 5 to 15, whowere rescued from criminals who used them forbegging, or who were destined for such a life, arebeing cared for and educated at the shelter.
“We try to find their parents in Cambodia,” saysKim Bath Wetch, who helps manage the shelter runby the Goutte d’eau Foundation, a Cambodia-basednongovernment organization with offices in Europe.“Some children know where they are from, some donot. Some have just a bit of information aboutwhere they are from—like they only know theirparents live near a river.”
The foundation staff sometimes spend monthstracking down families of Cambodian children whowere trafficked to work as beggars. Sometimes thefamilies have moved on and can no longer be found.Sometimes when they are located, the families cannotafford to take their children back.
Widespread ProblemOften Misunderstood“The children at Goutte d’eau Poipet(www.gouttedeau.org) are part of the widespreadbut often misunderstood problem of human traffick-ing in the Mekong,” says an official who is working
on the issue. And this misunderstanding can hinderlaw-enforcement efforts.
“The term ‘trafficking’ itself denotes movementrather than exploitation and is one of the reasonsthis crime—a crime against a person—continues tobe confused with smuggling, a crime against thestate,” says Phil Robertson, Program Manager of theUnited Nations Inter-Agency Project (UNIAP) onHuman Trafficking in the Greater Mekong Subregion(GMS). “The key problem with human trafficking isexploitation.”
In the GMS, trafficking occurs amid a highvolume of cross-border migration. Cambodianchildren are trafficked to Thailand to beg or sellflowers, Vietnamese children are trafficked toCambodia for the sex trade, adults are traffickedfrom Myanmar, Lao People’s Democratic Republic(Lao PDR), and Cambodia to labor in debt bondage,and young women are often trafficked as brides.
Estimates on the extent of migration andtrafficking vary widely, but international agenciesworking on the issue agree that a growing number
JOINT EFFORTTACKLES
TRAFFICKING
The countries of the GMS havecommitted to step up efforts to
stem the trafficking of peopleacross borders
By Floyd WhaleyEXTERNAL RELATIONS SPECIALIST
The term “trafficking” itselfdenotes movement rather thanexploitation and is one of thereasons this crime—a crimeagainst a person—continues tobe confused with smuggling,a crime against the state
—Phil Robertson, Program Manager with the United NationsInter-Agency Project on Human Trafficking in the GMSIa
n G
ill
Cambodian children aresometimes traffickedinto neighboring countriesto beg or sell flowers
Cambodian children aresometimes traffickedinto neighboring countriesto beg or sell flowers
CONNECTING NATIONS, LINKING PEOPLE 1918 CONNECTING NATIONS, LINKING PEOPLE
From the street, it looks like a simple housebeside a trickling stream. But venture closerand one can see dozens of children playing in
the yard, balancing on improvised stilts, and tossinga ball. As they play, other children can be heardreciting the Khmer alphabet.
Not long ago, many of these children weresurviving on the streets in a neighboring country,begging for money, and being exploited by syndi-cates. Today they live in Goutte d’eau Poipet, ashelter on the border between Thailand and Cambo-dia. More than 100 children, aged 5 to 15, whowere rescued from criminals who used them forbegging, or who were destined for such a life, arebeing cared for and educated at the shelter.
“We try to find their parents in Cambodia,” saysKim Bath Wetch, who helps manage the shelter runby the Goutte d’eau Foundation, a Cambodia-basednongovernment organization with offices in Europe.“Some children know where they are from, some donot. Some have just a bit of information aboutwhere they are from—like they only know theirparents live near a river.”
The foundation staff sometimes spend monthstracking down families of Cambodian children whowere trafficked to work as beggars. Sometimes thefamilies have moved on and can no longer be found.Sometimes when they are located, the families cannotafford to take their children back.
Widespread ProblemOften Misunderstood“The children at Goutte d’eau Poipet(www.gouttedeau.org) are part of the widespreadbut often misunderstood problem of human traffick-ing in the Mekong,” says an official who is working
on the issue. And this misunderstanding can hinderlaw-enforcement efforts.
“The term ‘trafficking’ itself denotes movementrather than exploitation and is one of the reasonsthis crime—a crime against a person—continues tobe confused with smuggling, a crime against thestate,” says Phil Robertson, Program Manager of theUnited Nations Inter-Agency Project (UNIAP) onHuman Trafficking in the Greater Mekong Subregion(GMS). “The key problem with human trafficking isexploitation.”
In the GMS, trafficking occurs amid a highvolume of cross-border migration. Cambodianchildren are trafficked to Thailand to beg or sellflowers, Vietnamese children are trafficked toCambodia for the sex trade, adults are traffickedfrom Myanmar, Lao People’s Democratic Republic(Lao PDR), and Cambodia to labor in debt bondage,and young women are often trafficked as brides.
Estimates on the extent of migration andtrafficking vary widely, but international agenciesworking on the issue agree that a growing number
JOINT EFFORTTACKLES
TRAFFICKING
The countries of the GMS havecommitted to step up efforts to
stem the trafficking of peopleacross borders
By Floyd WhaleyEXTERNAL RELATIONS SPECIALIST
The term “trafficking” itselfdenotes movement rather thanexploitation and is one of thereasons this crime—a crimeagainst a person—continues tobe confused with smuggling,a crime against the state
—Phil Robertson, Program Manager with the United NationsInter-Agency Project on Human Trafficking in the GMSIa
n G
ill
Cambodian children aresometimes traffickedinto neighboring countriesto beg or sell flowers
Cambodian children aresometimes traffickedinto neighboring countriesto beg or sell flowers
CONNECTING NATIONS, LINKING PEOPLE 2120 CONNECTING NATIONS, LINKING PEOPLE
of men, women, and children who are trying tomigrate out of poverty and deprivation end up indebt bondage and are forced to work in illegal andhazardous occupations.
“While migration can lead to improved liveli-hoods, increasing migration arising out of economicdistress, without due preparation and protection ofthe law, can lead to illegal and often hazardousforms of employment, ending up in trafficking,”says Manoshi Mitra, Asian Development Bank (ADB)Senior Social Development Specialist.
Coinciding with this expansion in trafficking isthe increasing international attention on the issue.For instance, all GMS countries now have a range ofinitiatives to address the complex issues related totrafficking, and Cambodia and Thailand have signedthe world’s first memorandum of understanding ontrafficking between two nations.
Consistency Neededto Protect Poor, VulnerableADB is working with UNIAP as well as other devel-opment partners to deal with the issue of how toconsistently protect poor and vulnerable people inthe region from illegal trafficking and exploitativework situations.
A technical assistance grant for $700,000from ADB’s Poverty Reduction Cooperation Fund,financed by the Government of the UnitedKingdom, is encouraging subregional cooperationamong GMS countries for promoting safe migra-tion, and will help address trafficking issues inADB’s subregional projects.
Over 2 years, the grant covers four GMScountries—Cambodia, Lao PDR, Thailand, and Viet
Nam. It is helping develop pilot programs, a subre-gional action plan, a resource center, and trainingprogram for governments and civil society.
The grant will pilot programs to minimize therisks of migrant trafficking in two ADB-financedprojects—the North-South Economic CorridorProject and GMS Mekong Tourism DevelopmentProject—and raise country level awareness throughadvocacy and policy dialogue.
The plan of action being formulated under thegrant is already under way. In March 2005, seniorofficials from Cambodia, People’s Republic of China(PRC), Lao PDR, Myanmar, Thailand, and Viet Namheld a 3-day meeting in Hanoi under the Coordi-nated Mekong Ministerial Initiative (COMMIT)Process, and agreed on a subregional plan of actionagainst human trafficking for the next 3 years.
The plan of action outlines activities focusing onlaw enforcement and criminal justice; and preven-tion, protection, and recovery of victims. It also setsthe standard for anti-trafficking work in the Mekongregion. The plan is a practical road map for priorityaction and translates into concrete activities thepolitical commitments made under the COMMITmemorandum of understanding, signed by all sixcountries in October 2004.
These commitments include collaborating onthe investigation and prosecution of traffickers, andon supportive systems of repatriation and assistanceto help trafficked victims return home. The plan willbe buttressed by the technical expertise and supportof UN agencies, international and national nongov-ernment organizations, and bilateral and multilateralfunding agencies.
While migration can lead toimproved livelihoods, increasingmigration arising out of economicdistress, without due preparationand protection of the law, can leadto illegal and often hazardousforms of employment, ending upin trafficking
—Manoshi Mitra, ADB Senior Social Development Specialist
At the Hanoi meeting, Viet Nam’s DeputyMinister of Public Security, General Nguyen VanTinh, urged the international community to “joinhands with us, to make the world a better future,void of exploitative practices and human rightsabuses.”
As Jordan Ryan, United Nations ResidentCoordinator and United Nations DevelopmentProgramme Resident Representative in Viet Nam,says, “Human trafficking is a complex problem thatoften crosses international borders and that, there-fore, requires international cooperation.”
Ian
Gill
(x2
)
A growing number ofpeople trying to migrateend up in debt bondageand are forced to workin illegal and hazardousoccupations such asthe sex trade
Cambodia and Thailand signedthe world’s first memorandumof understanding on addressingcross-border human trafficking
A growing number ofpeople trying to migrateend up in debt bondageand are forced to workin illegal and hazardousoccupations such asthe sex trade
Cambodia and Thailand signedthe world’s first memorandumof understanding on addressingcross-border human trafficking
CONNECTING NATIONS, LINKING PEOPLE 2120 CONNECTING NATIONS, LINKING PEOPLE
of men, women, and children who are trying tomigrate out of poverty and deprivation end up indebt bondage and are forced to work in illegal andhazardous occupations.
“While migration can lead to improved liveli-hoods, increasing migration arising out of economicdistress, without due preparation and protection ofthe law, can lead to illegal and often hazardousforms of employment, ending up in trafficking,”says Manoshi Mitra, Asian Development Bank (ADB)Senior Social Development Specialist.
Coinciding with this expansion in trafficking isthe increasing international attention on the issue.For instance, all GMS countries now have a range ofinitiatives to address the complex issues related totrafficking, and Cambodia and Thailand have signedthe world’s first memorandum of understanding ontrafficking between two nations.
Consistency Neededto Protect Poor, VulnerableADB is working with UNIAP as well as other devel-opment partners to deal with the issue of how toconsistently protect poor and vulnerable people inthe region from illegal trafficking and exploitativework situations.
A technical assistance grant for $700,000from ADB’s Poverty Reduction Cooperation Fund,financed by the Government of the UnitedKingdom, is encouraging subregional cooperationamong GMS countries for promoting safe migra-tion, and will help address trafficking issues inADB’s subregional projects.
Over 2 years, the grant covers four GMScountries—Cambodia, Lao PDR, Thailand, and Viet
Nam. It is helping develop pilot programs, a subre-gional action plan, a resource center, and trainingprogram for governments and civil society.
The grant will pilot programs to minimize therisks of migrant trafficking in two ADB-financedprojects—the North-South Economic CorridorProject and GMS Mekong Tourism DevelopmentProject—and raise country level awareness throughadvocacy and policy dialogue.
The plan of action being formulated under thegrant is already under way. In March 2005, seniorofficials from Cambodia, People’s Republic of China(PRC), Lao PDR, Myanmar, Thailand, and Viet Namheld a 3-day meeting in Hanoi under the Coordi-nated Mekong Ministerial Initiative (COMMIT)Process, and agreed on a subregional plan of actionagainst human trafficking for the next 3 years.
The plan of action outlines activities focusing onlaw enforcement and criminal justice; and preven-tion, protection, and recovery of victims. It also setsthe standard for anti-trafficking work in the Mekongregion. The plan is a practical road map for priorityaction and translates into concrete activities thepolitical commitments made under the COMMITmemorandum of understanding, signed by all sixcountries in October 2004.
These commitments include collaborating onthe investigation and prosecution of traffickers, andon supportive systems of repatriation and assistanceto help trafficked victims return home. The plan willbe buttressed by the technical expertise and supportof UN agencies, international and national nongov-ernment organizations, and bilateral and multilateralfunding agencies.
While migration can lead toimproved livelihoods, increasingmigration arising out of economicdistress, without due preparationand protection of the law, can leadto illegal and often hazardousforms of employment, ending upin trafficking
—Manoshi Mitra, ADB Senior Social Development Specialist
At the Hanoi meeting, Viet Nam’s DeputyMinister of Public Security, General Nguyen VanTinh, urged the international community to “joinhands with us, to make the world a better future,void of exploitative practices and human rightsabuses.”
As Jordan Ryan, United Nations ResidentCoordinator and United Nations DevelopmentProgramme Resident Representative in Viet Nam,says, “Human trafficking is a complex problem thatoften crosses international borders and that, there-fore, requires international cooperation.”
Ian
Gill
(x2
)
A growing number ofpeople trying to migrateend up in debt bondageand are forced to workin illegal and hazardousoccupations such asthe sex trade
Cambodia and Thailand signedthe world’s first memorandumof understanding on addressingcross-border human trafficking
A growing number ofpeople trying to migrateend up in debt bondageand are forced to workin illegal and hazardousoccupations such asthe sex trade
Cambodia and Thailand signedthe world’s first memorandumof understanding on addressingcross-border human trafficking
CONNECTING NATIONS, LINKING PEOPLE 2322 CONNECTING NATIONS, LINKING PEOPLE
At the end of a dirt road, surrounded bypicturesque rice fields, Somporn Kalikawalks quietly among thousands of ducks.
The birds flow like schools of fish in the ocean as hemoves among them in the late afternoon sunshine.
Somporn has been taking care of ducks inThailand’s Saphan Buri Province for the last 20 years.The farm where he works, in the province’s MuangDistrict, is a hatchery that sells the ducklings ofmore than 8,000 birds.
During peak season, the farm produces about6,000 eggs a day. It is not obvious from the bucolicsetting, but the farm sits at the epicenter of thecountry’s fight against avian flu. Its owner workswith the Thai Government to take measures againstthe spread of the disease.
The ducks at the farm are kept overnight in anopen-air barn, where they lay their eggs. In themorning, they are moved outside so their eggs canbe collected.
Before the bird flu outbreak, the ducks wereallowed to roam freely in the area around the farmand swim in a nearby pond. But now, the ducks areconfined to a fenced area when let outside and arenot allowed to mingle with wild birds.
“The protective measures are simple but, ifreplicated in livestock farms around Thailand, theycan be instrumental in helping curb the outbreak ofanimal diseases such as avian influenza,” saysTippawon Parakgamawongsa, a veterinary officer atthe Provincial Livestock Office in Saphan Buri.
For Somporn, the 39-year-old farmer who isimplementing the new procedures, the issue is moreabout his 9-year-old daughter, Chantima, who lives
with him and his wife in their small home near thefarm. He is worried that if bird flu takes hold in thearea, farms might be closed and he could lose hisjob. He has no skills or experience other than beinga duck farmer.
“These precautions are necessary,” Sompornsays. “They are the best chance of saving the farmfrom disease and staying in business.”
Health and livestock officials have been onalert for avian influenza across the Mekongsubregion since late 2003. The virus has beenblamed for killing people and causing the slaugh-ter of millions of chickens and ducks, andharming the livelihood of farmers, vendors, andother small businesspeople.
Team Effort to Prevent OutbreaksInternational organizations are working withgovernments, private industries, and people in thesubregion to address the issue. Although avianinfluenza has captured the headlines, efforts are alsounder way to help prevent the spread of two othermajor animal diseases: swine fever and foot-and-mouth disease.
Together, these diseases drive morbidity andmortality rates of livestock to as high as 70% in thesubregion, according to an Asian Development Bank(ADB) study. The diseases kill animals and reduceproductivity, threaten the livelihoods of poorfarmers, drain public sector resources, restrict trade,and hinder efforts to reduce poverty. Nearly 23 mil-lion people are small-scale farmers who depend onlivestock for food and as a source of cash income.
“The poor in the developing world face a
BATTLING BIRD FLUPrevention and control are key elements of a joint effort between governments and internationalorganizations in tackling avian influenza and other diseases spread by livestock
By Floyd WhaleyEXTERNAL RELATIONS SPECIALIST
These precautions are necessary.They are the best chance of savingthe farm from disease and forstaying in business
—Somporn Kalika, Thai duck farmer
Floy
d W
hale
y
Floy
d W
hale
y
Since late 2003, healthand livestock officials havebeen on alert acrossthe Mekong region foravian influenza
Somporn Kalikahas been takingcare of ducks inThailand’s SaphanBuri Province forthe last 20 years
Since late 2003, healthand livestock officials havebeen on alert acrossthe Mekong region foravian influenza
Somporn Kalikahas been takingcare of ducks inThailand’s SaphanBuri Province forthe last 20 years
CONNECTING NATIONS, LINKING PEOPLE 2322 CONNECTING NATIONS, LINKING PEOPLE
At the end of a dirt road, surrounded bypicturesque rice fields, Somporn Kalikawalks quietly among thousands of ducks.
The birds flow like schools of fish in the ocean as hemoves among them in the late afternoon sunshine.
Somporn has been taking care of ducks inThailand’s Saphan Buri Province for the last 20 years.The farm where he works, in the province’s MuangDistrict, is a hatchery that sells the ducklings ofmore than 8,000 birds.
During peak season, the farm produces about6,000 eggs a day. It is not obvious from the bucolicsetting, but the farm sits at the epicenter of thecountry’s fight against avian flu. Its owner workswith the Thai Government to take measures againstthe spread of the disease.
The ducks at the farm are kept overnight in anopen-air barn, where they lay their eggs. In themorning, they are moved outside so their eggs canbe collected.
Before the bird flu outbreak, the ducks wereallowed to roam freely in the area around the farmand swim in a nearby pond. But now, the ducks areconfined to a fenced area when let outside and arenot allowed to mingle with wild birds.
“The protective measures are simple but, ifreplicated in livestock farms around Thailand, theycan be instrumental in helping curb the outbreak ofanimal diseases such as avian influenza,” saysTippawon Parakgamawongsa, a veterinary officer atthe Provincial Livestock Office in Saphan Buri.
For Somporn, the 39-year-old farmer who isimplementing the new procedures, the issue is moreabout his 9-year-old daughter, Chantima, who lives
with him and his wife in their small home near thefarm. He is worried that if bird flu takes hold in thearea, farms might be closed and he could lose hisjob. He has no skills or experience other than beinga duck farmer.
“These precautions are necessary,” Sompornsays. “They are the best chance of saving the farmfrom disease and staying in business.”
Health and livestock officials have been onalert for avian influenza across the Mekongsubregion since late 2003. The virus has beenblamed for killing people and causing the slaugh-ter of millions of chickens and ducks, andharming the livelihood of farmers, vendors, andother small businesspeople.
Team Effort to Prevent OutbreaksInternational organizations are working withgovernments, private industries, and people in thesubregion to address the issue. Although avianinfluenza has captured the headlines, efforts are alsounder way to help prevent the spread of two othermajor animal diseases: swine fever and foot-and-mouth disease.
Together, these diseases drive morbidity andmortality rates of livestock to as high as 70% in thesubregion, according to an Asian Development Bank(ADB) study. The diseases kill animals and reduceproductivity, threaten the livelihoods of poorfarmers, drain public sector resources, restrict trade,and hinder efforts to reduce poverty. Nearly 23 mil-lion people are small-scale farmers who depend onlivestock for food and as a source of cash income.
“The poor in the developing world face a
BATTLING BIRD FLUPrevention and control are key elements of a joint effort between governments and internationalorganizations in tackling avian influenza and other diseases spread by livestock
By Floyd WhaleyEXTERNAL RELATIONS SPECIALIST
These precautions are necessary.They are the best chance of savingthe farm from disease and forstaying in business
—Somporn Kalika, Thai duck farmer
Floy
d W
hale
y
Floy
d W
hale
ySince late 2003, healthand livestock officials havebeen on alert acrossthe Mekong region foravian influenza
Somporn Kalikahas been takingcare of ducks inThailand’s SaphanBuri Province forthe last 20 years
Since late 2003, healthand livestock officials havebeen on alert acrossthe Mekong region foravian influenza
Somporn Kalikahas been takingcare of ducks inThailand’s SaphanBuri Province forthe last 20 years
CONNECTING NATIONS, LINKING PEOPLE 2524 CONNECTING NATIONS, LINKING PEOPLE
particularly high risk from animal diseases,” saysAkmal Siddiq, Senior Project Economist with ADB’sMekong Department.
The diseases could have even wider economicimpact if they begin moving freely across borderswith the increasing cross-border trade in livestockamong GMS countries. For example, Yunnan
The grant will bring together internationalexperts and people throughout the GMS who areworking with livestock and poultry. These includefarmers, traders, veterinarians, community healthservice providers, nongovernment organizations,border-control units, private pharmaceutical compa-nies, and other stakeholders.
Among the rice fields and poultry farms ofSaphan Buri, such practical, grassroots efforts areclearly necessary. On a quiet road running throughvast green fields, a truck stuffed with live ducksstops and disgorges the birds into nearby ricepaddies. There, the ducks graze on snails and otherpests—thus helping the rice farmers clean their
fields of vermin. The ducks are later rounded up andput back in the truck.
“The danger of this kind of free-range grazing isthat these ducks will mix with wild birds that couldcarry or spread diseases,” says Mr. Tippawon, thelocal veterinary official in the area. “If one flock isinfected and it moves from field to field, theinfection can spread fast.”
Most farmers who use this free-grazing methodare too poor to buy the feed necessary for theirducks. To minimize the risk of spreading the diseasewithout putting free-graze duck farmers out ofwork, Thai officials are not allowing new free-grazing duck farms to start up. They are also
The poor in the developingworld face a particularly high riskfrom animal diseases
—Akmal Siddiq, Senior Project EconomistADB Mekong Department
Province in the People’s Republic of China hasan annual cross-border trade in livestock andlivestock products worth about $365 million.In Viet Nam, the figure is $136 million, andThailand, $32 million.
ADB is working with its partners in the subre-gion to assist GMS countries develop a subregional
cooperation framework to control these animaldiseases through a $1 million technical assistancegrant.
The grant will address common issues related tothe control of the diseases, which are predominantlyspread by animal movement across borders, inCambodia, People’s Republic of China, Lao People’sDemocratic Republic, Thailand, and Viet Nam. Inthe long term, this grant is expected to enhancefood security and food safety, while promotinggreater trade in livestock and livestock products.
“This will be a team effort to address thisimportant problem,” says Subhash Morzaria of theBangkok office of the Food and Agriculture Organi-zation (FAO) of the United Nations. In addition tothe work of GMS member countries, there will beprojects led by the Association of Southeast AsianNations, Japan International Cooperation Agency,and the European Union.
Developing a Framework for Cooperation“The immediate task is to develop a framework forsubregional cooperation, upgrade national andsubregional laboratories, and build staff capacity inthe participating countries to control transboundaryanimal diseases,” says Mr. Siddiq. “The projectrepresents a major shift toward control rather thanthe traditional approach of applying mass, blanketvaccination to control outbreaks, which has provenunsustainable and expensive.”
“Introducing policy and technological optionsthat make livestock-dependent poor farmers,especially women, less vulnerable to the devastatingeffects of animal diseases and support their accessto markets for economic growth is a major priorityin the GMS,” says Mr. Siddiq.
Floy
d W
hale
y
Floy
d W
hale
y (x
2)
The farm where SompornKalika works has under-taken protective measuresagainst avian influenza
Simple yet effective protective measuresare being put into place in Saphan Buri;if replicated around Thailand, they couldbe instrumental in helping curb theoutbreak of animal diseases
A veterinarianofficer (left) atthe ProvincialLivestock Officein Saphan Buri helpsmonitor avianinfluenza controlmechanisms
The farm where SompornKalika works has under-taken protective measuresagainst avian influenza
Simple yet effective protective measuresare being put into place in Saphan Buri;if replicated around Thailand, they couldbe instrumental in helping curb theoutbreak of animal diseases
A veterinarianofficer (left) atthe ProvincialLivestock Officein Saphan Buri helpsmonitor avianinfluenza controlmechanisms
restricting current free-grazing duck farmers to theirimmediate area to limit the possible spread ofdisease.
Such measures are a good start, butMr. Tippawon points out that more work is neededand international help is appreciated.
CONNECTING NATIONS, LINKING PEOPLE 2524 CONNECTING NATIONS, LINKING PEOPLE
particularly high risk from animal diseases,” saysAkmal Siddiq, Senior Project Economist with ADB’sMekong Department.
The diseases could have even wider economicimpact if they begin moving freely across borderswith the increasing cross-border trade in livestockamong GMS countries. For example, Yunnan
The grant will bring together internationalexperts and people throughout the GMS who areworking with livestock and poultry. These includefarmers, traders, veterinarians, community healthservice providers, nongovernment organizations,border-control units, private pharmaceutical compa-nies, and other stakeholders.
Among the rice fields and poultry farms ofSaphan Buri, such practical, grassroots efforts areclearly necessary. On a quiet road running throughvast green fields, a truck stuffed with live ducksstops and disgorges the birds into nearby ricepaddies. There, the ducks graze on snails and otherpests—thus helping the rice farmers clean their
fields of vermin. The ducks are later rounded up andput back in the truck.
“The danger of this kind of free-range grazing isthat these ducks will mix with wild birds that couldcarry or spread diseases,” says Mr. Tippawon, thelocal veterinary official in the area. “If one flock isinfected and it moves from field to field, theinfection can spread fast.”
Most farmers who use this free-grazing methodare too poor to buy the feed necessary for theirducks. To minimize the risk of spreading the diseasewithout putting free-graze duck farmers out ofwork, Thai officials are not allowing new free-grazing duck farms to start up. They are also
The poor in the developingworld face a particularly high riskfrom animal diseases
—Akmal Siddiq, Senior Project EconomistADB Mekong Department
Province in the People’s Republic of China hasan annual cross-border trade in livestock andlivestock products worth about $365 million.In Viet Nam, the figure is $136 million, andThailand, $32 million.
ADB is working with its partners in the subre-gion to assist GMS countries develop a subregional
cooperation framework to control these animaldiseases through a $1 million technical assistancegrant.
The grant will address common issues related tothe control of the diseases, which are predominantlyspread by animal movement across borders, inCambodia, People’s Republic of China, Lao People’sDemocratic Republic, Thailand, and Viet Nam. Inthe long term, this grant is expected to enhancefood security and food safety, while promotinggreater trade in livestock and livestock products.
“This will be a team effort to address thisimportant problem,” says Subhash Morzaria of theBangkok office of the Food and Agriculture Organi-zation (FAO) of the United Nations. In addition tothe work of GMS member countries, there will beprojects led by the Association of Southeast AsianNations, Japan International Cooperation Agency,and the European Union.
Developing a Framework for Cooperation“The immediate task is to develop a framework forsubregional cooperation, upgrade national andsubregional laboratories, and build staff capacity inthe participating countries to control transboundaryanimal diseases,” says Mr. Siddiq. “The projectrepresents a major shift toward control rather thanthe traditional approach of applying mass, blanketvaccination to control outbreaks, which has provenunsustainable and expensive.”
“Introducing policy and technological optionsthat make livestock-dependent poor farmers,especially women, less vulnerable to the devastatingeffects of animal diseases and support their accessto markets for economic growth is a major priorityin the GMS,” says Mr. Siddiq.
Floy
d W
hale
y
Floy
d W
hale
y (x
2)
The farm where SompornKalika works has under-taken protective measuresagainst avian influenza
Simple yet effective protective measuresare being put into place in Saphan Buri;if replicated around Thailand, they couldbe instrumental in helping curb theoutbreak of animal diseases
A veterinarianofficer (left) atthe ProvincialLivestock Officein Saphan Buri helpsmonitor avianinfluenza controlmechanisms
The farm where SompornKalika works has under-taken protective measuresagainst avian influenza
Simple yet effective protective measuresare being put into place in Saphan Buri;if replicated around Thailand, they couldbe instrumental in helping curb theoutbreak of animal diseases
A veterinarianofficer (left) atthe ProvincialLivestock Officein Saphan Buri helpsmonitor avianinfluenza controlmechanisms
restricting current free-grazing duck farmers to theirimmediate area to limit the possible spread ofdisease.
Such measures are a good start, butMr. Tippawon points out that more work is neededand international help is appreciated.
CONNECTING NATIONS, LINKING PEOPLE 2726 CONNECTING NATIONS, LINKING PEOPLE
Flooding has traditionally been seen as aproblem to be fixed with engineering orrelocation. After major floods, political
leaders and the media frequently call for a greateremphasis on fighting floods.
“One often hears the expression ‘fightingfloods’ in the context of flood control,” says Ian Fox,an Asian Development Bank (ADB) Principal ProjectSpecialist (Natural Resources). “Flood control is astructural means of keeping a river within itschannel. The thinking is that floods are bad andhave to be fought with the whole armory of modernengineering capability.”
On the Mekong River, which flows for 4,800kilometers through six countries, Mr. Fox and otherexperts on flooding have found that spending moremoney on flood control is not the answer. “Floods areoften made worse by human interventions, especiallyflood control, as well as the expansion of humansettlements into flood-affected areas,” says Mr. Fox.
Throughout Asia, the frequency of floods hasdoubled since 1978, according to a report by theInternational Center for Urban Safety Engineering atthe University of Tokyo. On the Mekong, the floodslast for months and are sometimes too heavy andquick for villagers to cope.
Poor People Hardest Hit by FloodingThe people who are hit hardest are those who areleast equipped to deal with the onslaught of thewaters. Poor people living on river banks and flood-
GOINGWITH THE
FLOW
Strategies for dealing withflooding have evolved away
from structural solutions towardmanagement programs that
address the way communitieslive near rivers
Despite the devastation, floods canserve an important function in thelives of people residing near the river
Our member countries are not justlooking at their own interests. Theyare approaching the issue in termsof the effects on the entire basin
—Olivier Cogels, Chief Executive Officer of the Mekong River Commission
By Floyd WhaleyEXTERNAL RELATIONS SPECIALIST
plains and in low-lying coastal areas will most likelylose their crops, livestock, possessions, and eventheir lives when rivers overflow.
Yet, despite the devastation, floods can serve animportant function in the lives of people residingnear the river. “In the Mekong River Basin, theannual flood cycle creates the conditions for anextremely productive fishing industry on whichmillions of people depend for their livelihood,”says Mr. Fox.
Flooding is a source of livelihood and food. Thefloods feed the wetlands, which are breeding areasfor aquatic plants, fish, and animals. They alsoenrich the soil with sediment and nutrients broughtfrom upstream, and replenish groundwater that isdesperately needed during the dry season.
“Floods are essential for the communities livingon the floodplains, as they nurture the fisheries andmaintain the agricultural sectors,” says OlivierCogels, Chief Executive Officer of the Mekong RiverCommission (MRC). “People very much depend onthe positive aspects of flooding. For them, we needto maintain the flooding, but we need to ensurethere is the right amount of water at the right times.It is a very difficult and complex problem.”
To respond to the flooding, ADB is workingwith MRC and the Government of the Nether-lands to provide technical assistance to helpdevelop a basin-wide flood management andmitigation program for the Mekong River.
The technical assistance will support MRC’sFlood Management and Mitigation Program tostudy the potential flood control benefits of struc-tural measures, the effect on flooding of the rapidlyproliferating infrastructure within the basin, and theuse of flood-proofing measures as a cost-effectivemeans of mitigating floods at the local level. Thetechnical assistance will also provide flood-
management training for those tasked with manag-ing floods at both the basin and country levels.
MRC is also coordinating the sharing of floodand river information among its members and withthe Mekong upstream countries, the People’sRepublic of China and Myanmar.
Benefits in a Basin-Wide Approach“Our member countries are not just looking at theirown interests. They are approaching the issue in termsof the effects on the entire basin,” says Mr. Cogels.“The countries realize that cooperation in the manage-ment of water resources will help them avoid thecatastrophes flooding can bring. They are aware thatthe impact of one project or one action by one areamay have disastrous effects on another area.”
The goal of the program is to prevent, mini-mize, or mitigate people’s suffering and economiclosses due to floods, while preserving the environ-mental benefits. But it will also have the overallimpact of helping the countries in the region buildties and solidify relationships.
“Countries are working together to manage thisimportant resource,” says Mr. Cogels. “The coopera-tive efforts in flood management are a key aspect ofregional cooperation as a whole.”
MRC
Throughout Asia, the frequencyof floods has doubled since 1978Throughout Asia, the frequencyof floods has doubled since 1978
CONNECTING NATIONS, LINKING PEOPLE 2726 CONNECTING NATIONS, LINKING PEOPLE
Flooding has traditionally been seen as aproblem to be fixed with engineering orrelocation. After major floods, political
leaders and the media frequently call for a greateremphasis on fighting floods.
“One often hears the expression ‘fightingfloods’ in the context of flood control,” says Ian Fox,an Asian Development Bank (ADB) Principal ProjectSpecialist (Natural Resources). “Flood control is astructural means of keeping a river within itschannel. The thinking is that floods are bad andhave to be fought with the whole armory of modernengineering capability.”
On the Mekong River, which flows for 4,800kilometers through six countries, Mr. Fox and otherexperts on flooding have found that spending moremoney on flood control is not the answer. “Floods areoften made worse by human interventions, especiallyflood control, as well as the expansion of humansettlements into flood-affected areas,” says Mr. Fox.
Throughout Asia, the frequency of floods hasdoubled since 1978, according to a report by theInternational Center for Urban Safety Engineering atthe University of Tokyo. On the Mekong, the floodslast for months and are sometimes too heavy andquick for villagers to cope.
Poor People Hardest Hit by FloodingThe people who are hit hardest are those who areleast equipped to deal with the onslaught of thewaters. Poor people living on river banks and flood-
GOINGWITH THE
FLOW
Strategies for dealing withflooding have evolved away
from structural solutions towardmanagement programs that
address the way communitieslive near rivers
Despite the devastation, floods canserve an important function in thelives of people residing near the river
Our member countries are not justlooking at their own interests. Theyare approaching the issue in termsof the effects on the entire basin
—Olivier Cogels, Chief Executive Officer of the Mekong River Commission
By Floyd WhaleyEXTERNAL RELATIONS SPECIALIST
plains and in low-lying coastal areas will most likelylose their crops, livestock, possessions, and eventheir lives when rivers overflow.
Yet, despite the devastation, floods can serve animportant function in the lives of people residingnear the river. “In the Mekong River Basin, theannual flood cycle creates the conditions for anextremely productive fishing industry on whichmillions of people depend for their livelihood,”says Mr. Fox.
Flooding is a source of livelihood and food. Thefloods feed the wetlands, which are breeding areasfor aquatic plants, fish, and animals. They alsoenrich the soil with sediment and nutrients broughtfrom upstream, and replenish groundwater that isdesperately needed during the dry season.
“Floods are essential for the communities livingon the floodplains, as they nurture the fisheries andmaintain the agricultural sectors,” says OlivierCogels, Chief Executive Officer of the Mekong RiverCommission (MRC). “People very much depend onthe positive aspects of flooding. For them, we needto maintain the flooding, but we need to ensurethere is the right amount of water at the right times.It is a very difficult and complex problem.”
To respond to the flooding, ADB is workingwith MRC and the Government of the Nether-lands to provide technical assistance to helpdevelop a basin-wide flood management andmitigation program for the Mekong River.
The technical assistance will support MRC’sFlood Management and Mitigation Program tostudy the potential flood control benefits of struc-tural measures, the effect on flooding of the rapidlyproliferating infrastructure within the basin, and theuse of flood-proofing measures as a cost-effectivemeans of mitigating floods at the local level. Thetechnical assistance will also provide flood-
management training for those tasked with manag-ing floods at both the basin and country levels.
MRC is also coordinating the sharing of floodand river information among its members and withthe Mekong upstream countries, the People’sRepublic of China and Myanmar.
Benefits in a Basin-Wide Approach“Our member countries are not just looking at theirown interests. They are approaching the issue in termsof the effects on the entire basin,” says Mr. Cogels.“The countries realize that cooperation in the manage-ment of water resources will help them avoid thecatastrophes flooding can bring. They are aware thatthe impact of one project or one action by one areamay have disastrous effects on another area.”
The goal of the program is to prevent, mini-mize, or mitigate people’s suffering and economiclosses due to floods, while preserving the environ-mental benefits. But it will also have the overallimpact of helping the countries in the region buildties and solidify relationships.
“Countries are working together to manage thisimportant resource,” says Mr. Cogels. “The coopera-tive efforts in flood management are a key aspect ofregional cooperation as a whole.”
MRC
Throughout Asia, the frequencyof floods has doubled since 1978Throughout Asia, the frequencyof floods has doubled since 1978
CONNECTING NATIONS, LINKING PEOPLE 2928 CONNECTING NATIONS, LINKING PEOPLE
DRIVINGCHANGE
A breakthrough initiative in humanresource development is creating a core
of highly skilled GMS middle- andsenior-level managers committed to
economic and social development inthe subregion
A n overwhelming spirit of camaraderieenvelops alumni of the Phnom Penh Planfor Development Management (PPP) every
time they gather.As they recall their life-changing experiences in
the learning program, the PPP alumni reflect timeand again on “new perspectives, different versionsof leadership, a renewed spirit to work for develop-ment, and a deeper commitment to regionalcooperation.”
Although the PPP alumni come from the sixcountries of the Greater Mekong Subregion (GMS),they call themselves “GMS citizens,” an apt refer-ence to the growing community of Mekong leadersand managers who make up the critical mass ofchange agents that the PPP has established, and willcontinue to do so in the next 3 years.
The PPP is a breakthrough initiative in humanresource development that aims to create a core ofGMS champions who will drive economic and socialdevelopment in the subregion.
The need to develop the subregion’s mostvaluable resource—its people—was given impetus atthe first GMS Summit of Leaders in Phnom Penh,Cambodia, in November 2002. The Asian Develop-ment Bank (ADB) approved funding for the PPP in2002, initially at $800,000 for two years (2003–2004). ADB recently extended the program’simplementation, expanded its scope, and providedan additional $800,000 to fund the program foranother two years (2005–2006). The New ZealandAgency for International Development and theMinistry of Foreign Affairs of the Government ofFrance also support the program.
The program is targeted at middle- to senior-level officials in GMS governments and aims to
By Pamela AsisPHNOM PENH PLAN PROGRAM OFFICER
build capacities in public policy and developmentmanagement. The PPP has delivered 20 demand-based learning programs since its inception in July2003. These customized learning programs run from1–3 weeks and cover a range of subjects such asstrategic leadership, regional cooperation, gover-nance, participatory development, environment andnatural resource planning and management, ruralleadership, poverty reduction, health care financing,project feasibility and design, education manage-ment, social protection systems, trade policydevelopment, and electronic governance.
The PPP’s learning programs—which are of thehighest quality and in high demand among GMSpublic servants—deliberately focus on a critical setof development-related issues. About 400 middle-and senior-level officials from Cambodia, People’sRepublic of China, Lao People’s Democratic Repub-lic (Lao PDR), Myanmar, Thailand, and Viet Namhave participated in the programs. Of these, morethan half were at levels equivalent to director andabove.
A PPP fellowship program that sends promisingalumni to programs of higher learning at reputableinternational institutions was launched in 2004.
Sustained Ownership andSustained Ownership andSustained Ownership andSustained Ownership andSustained Ownership andPoliticalPoliticalPoliticalPoliticalPolitical CommitmentCommitmentCommitmentCommitmentCommitmentThe PPP is strongly supported by GMS governments,which have acknowledged its catalytic role inimproving the subregion’s human resources.
Senior GMS officials who are members of thePPP Steering Committee ensure the relevance andresponsiveness of the PPP to their needs. Further,GMS ministers and senior officials form part of thedistinguished roster of PPP alumni.Pa
mel
a A
sisA participant shares
his thoughts on humanresource challenges
A participant shareshis thoughts on humanresource challenges
CONNECTING NATIONS, LINKING PEOPLE 2928 CONNECTING NATIONS, LINKING PEOPLE
DRIVINGCHANGE
A breakthrough initiative in humanresource development is creating a core
of highly skilled GMS middle- andsenior-level managers committed to
economic and social development inthe subregion
A n overwhelming spirit of camaraderieenvelops alumni of the Phnom Penh Planfor Development Management (PPP) every
time they gather.As they recall their life-changing experiences in
the learning program, the PPP alumni reflect timeand again on “new perspectives, different versionsof leadership, a renewed spirit to work for develop-ment, and a deeper commitment to regionalcooperation.”
Although the PPP alumni come from the sixcountries of the Greater Mekong Subregion (GMS),they call themselves “GMS citizens,” an apt refer-ence to the growing community of Mekong leadersand managers who make up the critical mass ofchange agents that the PPP has established, and willcontinue to do so in the next 3 years.
The PPP is a breakthrough initiative in humanresource development that aims to create a core ofGMS champions who will drive economic and socialdevelopment in the subregion.
The need to develop the subregion’s mostvaluable resource—its people—was given impetus atthe first GMS Summit of Leaders in Phnom Penh,Cambodia, in November 2002. The Asian Develop-ment Bank (ADB) approved funding for the PPP in2002, initially at $800,000 for two years (2003–2004). ADB recently extended the program’simplementation, expanded its scope, and providedan additional $800,000 to fund the program foranother two years (2005–2006). The New ZealandAgency for International Development and theMinistry of Foreign Affairs of the Government ofFrance also support the program.
The program is targeted at middle- to senior-level officials in GMS governments and aims to
By Pamela AsisPHNOM PENH PLAN PROGRAM OFFICER
build capacities in public policy and developmentmanagement. The PPP has delivered 20 demand-based learning programs since its inception in July2003. These customized learning programs run from1–3 weeks and cover a range of subjects such asstrategic leadership, regional cooperation, gover-nance, participatory development, environment andnatural resource planning and management, ruralleadership, poverty reduction, health care financing,project feasibility and design, education manage-ment, social protection systems, trade policydevelopment, and electronic governance.
The PPP’s learning programs—which are of thehighest quality and in high demand among GMSpublic servants—deliberately focus on a critical setof development-related issues. About 400 middle-and senior-level officials from Cambodia, People’sRepublic of China, Lao People’s Democratic Repub-lic (Lao PDR), Myanmar, Thailand, and Viet Namhave participated in the programs. Of these, morethan half were at levels equivalent to director andabove.
A PPP fellowship program that sends promisingalumni to programs of higher learning at reputableinternational institutions was launched in 2004.
Sustained Ownership andSustained Ownership andSustained Ownership andSustained Ownership andSustained Ownership andPoliticalPoliticalPoliticalPoliticalPolitical CommitmentCommitmentCommitmentCommitmentCommitmentThe PPP is strongly supported by GMS governments,which have acknowledged its catalytic role inimproving the subregion’s human resources.
Senior GMS officials who are members of thePPP Steering Committee ensure the relevance andresponsiveness of the PPP to their needs. Further,GMS ministers and senior officials form part of thedistinguished roster of PPP alumni.Pa
mel
a A
sisA participant shares
his thoughts on humanresource challenges
A participant shareshis thoughts on humanresource challenges
CONNECTING NATIONS, LINKING PEOPLE 3130 CONNECTING NATIONS, LINKING PEOPLE
In December 2004, new perspectives andparadigms on development issues in Asia, particu-larly in the GMS, were introduced to GMS ministersand senior officials, together with the PPP fellowsand selected ADB staff, in a cutting-edge and shorthigh-impact course entitled Top DevelopmentManagement Program (TDMP).
The TDMP was held on 16 December 2004 atthe 13th GMS Ministerial Conference in Vientiane,Lao PDR. Topics covered in the course were thechanging role of governments in the 21st century,need for partnerships, role of leadership in GMSdevelopment, and governance in GMS cooperation.
Resource persons were Robert Klitgaard, agovernance and regional cooperation academicand Dean of the Pardee-RAND Graduate School inSanta Monica, California; and John Thomas,Harvard professor and public policy expert.
Key Instrument to PromoteRegional Cooperation“If subregional cooperation is our common en-deavor, then there is no better breeding ground forfriendships and camaraderie among civil servants ofthe six GMS countries than the PPP,” said ADB Vice-President (Operations 1) Liqun Jin, at the inaugura-tion of the PPP in December 2003 in Phnom Penh.
Envisaged as a key instrument to promoteregional cooperation, the PPP has implementedactivities that are regional in scope and character. Ithas contributed to an enhanced awareness of theGMS and, specifically, the GMS Economic Coopera-tion Program. Its alumni represent various organiza-tions and agencies in the GMS governments. Theircoming together to participate in shared learning
has fostered friendships and bonds and a sharedvision for the GMS.
Although a seemingly intangible benefit, thegrowth of a cooperative spirit in the GMS is apowerful tool in the subregion’s development, towhich the PPP learning programs contribute.
The PPP alumni, after being exposed to newparadigms and cutting-edge management tools andconcepts, are expected to initiate reforms in theirrespective institutions. Through the alumni network,the PPP intends to create a multiplier effect infostering capacity building in the GMS. Feedbackfrom participants indicates a high level of motivation
In the spirit of partnership, the PPP has created asupportive institutional network. It collaborates withleading organizations, think tanks, and networks tosecure the highest-quality learning programs. Thecurrent PPP network includes Asian Institute ofTechnology; Economics and Finance Institute,Cambodia; Kunming University of Science andTechnology; Kennedy School of Government atHarvard University; National University of LaoPeople’s Democratic Republic; Mekong Institute;Hanoi School of Business, Viet Nam; the Administra-tive Staff College of India; and National University ofSingapore. The PPP is also working with the GMSAcademic and Research Network to develop a GMSdevelopment research framework, and to participatein the research effort.
If subregional cooperation is ourcommon endeavor, then there isno better breeding ground forfriendships and camaraderieamong civil servants of the sixGMS countries than the PPP
—Liqun Jin, Vice-President of Asian Development Bank
Beyond a Traditional ApproachGoing beyond the traditional approach to buildingcapacity, the PPP allows participants to discuss keydevelopment issues. A learning resource center inPhnom Penh will enhance that dialogue and providethe public with “all-that-you-need-to-know-informa-tion” about the GMS.
The PPP already has a dedicated website(www.adb.org/GMS/Phnom-penh-plan) and willdevelop a portal to enable PPP alumni to maintainlifelong contacts. Apart from a newsletter, the PPPlaunched the GMS Journal of Development Studiesto provide a platform for sharing research, reviewingdevelopment literature, and fostering debate.
The GMS Distinguished Speaker Series will offerthe subregion the opportunity to share experience
to share knowledge and adapt skills acquired orstrengthened through participation in PPP learningcourses.
Central to the PPP’s philosophy is a commit-ment to design learning programs in collaborationwith the best talent, and to research these programsthoroughly for content and for the target groupsthey aim to reach. The educational content of thelearning programs is a carefully designed blend ofcutting-edge knowledge and GMS situations. Mostprograms are customized and provide a learningexperience not usually available in traditionalacademic environments.
and insights from the world’s leading figures indevelopment, research, and governance. The GMSDevelopment Management Dialogue, video-conference sessions will provide opportunities forthe exchange of ideas on pressing issues that call forcollective action and regional cooperation. Likelysubjects will be finance, health, education, HIV/AIDS, environment, corruption, infrastructure, trade,private sector, and civil society.
The PPP seeks to instill in managers a perpetualcuriosity about the people and issues that they arecharged to lead and to foster a thirst for knowledge.At the end of each learning program, participantsare inducted as PPP alumni and commit to upholdthe PPP ideals as part of their lifelong learningexperience. They are imbued with a spirit for puttingthe GMS on the path to high growth with equity.
Rich
ie A
brin
a
Vor
avat
e Ch
onla
sin
GMS ministers and senior officialsexchange ideas with John Thomas,Harvard professor and public policyexpert, on the need for leadershipin regional cooperation
GMS ministers and senior officialsexchange ideas with John Thomas,Harvard professor and public policyexpert, on the need for leadershipin regional cooperation
Teaching organic farming atthe Kyusei Nature Farmingand Environment Center inSaraburi Province, Thailand
Teaching organic farming atthe Kyusei Nature Farmingand Environment Center inSaraburi Province, Thailand
CONNECTING NATIONS, LINKING PEOPLE 3130 CONNECTING NATIONS, LINKING PEOPLE
In December 2004, new perspectives andparadigms on development issues in Asia, particu-larly in the GMS, were introduced to GMS ministersand senior officials, together with the PPP fellowsand selected ADB staff, in a cutting-edge and shorthigh-impact course entitled Top DevelopmentManagement Program (TDMP).
The TDMP was held on 16 December 2004 atthe 13th GMS Ministerial Conference in Vientiane,Lao PDR. Topics covered in the course were thechanging role of governments in the 21st century,need for partnerships, role of leadership in GMSdevelopment, and governance in GMS cooperation.
Resource persons were Robert Klitgaard, agovernance and regional cooperation academicand Dean of the Pardee-RAND Graduate School inSanta Monica, California; and John Thomas,Harvard professor and public policy expert.
Key Instrument to PromoteRegional Cooperation“If subregional cooperation is our common en-deavor, then there is no better breeding ground forfriendships and camaraderie among civil servants ofthe six GMS countries than the PPP,” said ADB Vice-President (Operations 1) Liqun Jin, at the inaugura-tion of the PPP in December 2003 in Phnom Penh.
Envisaged as a key instrument to promoteregional cooperation, the PPP has implementedactivities that are regional in scope and character. Ithas contributed to an enhanced awareness of theGMS and, specifically, the GMS Economic Coopera-tion Program. Its alumni represent various organiza-tions and agencies in the GMS governments. Theircoming together to participate in shared learning
has fostered friendships and bonds and a sharedvision for the GMS.
Although a seemingly intangible benefit, thegrowth of a cooperative spirit in the GMS is apowerful tool in the subregion’s development, towhich the PPP learning programs contribute.
The PPP alumni, after being exposed to newparadigms and cutting-edge management tools andconcepts, are expected to initiate reforms in theirrespective institutions. Through the alumni network,the PPP intends to create a multiplier effect infostering capacity building in the GMS. Feedbackfrom participants indicates a high level of motivation
In the spirit of partnership, the PPP has created asupportive institutional network. It collaborates withleading organizations, think tanks, and networks tosecure the highest-quality learning programs. Thecurrent PPP network includes Asian Institute ofTechnology; Economics and Finance Institute,Cambodia; Kunming University of Science andTechnology; Kennedy School of Government atHarvard University; National University of LaoPeople’s Democratic Republic; Mekong Institute;Hanoi School of Business, Viet Nam; the Administra-tive Staff College of India; and National University ofSingapore. The PPP is also working with the GMSAcademic and Research Network to develop a GMSdevelopment research framework, and to participatein the research effort.
If subregional cooperation is ourcommon endeavor, then there isno better breeding ground forfriendships and camaraderieamong civil servants of the sixGMS countries than the PPP
—Liqun Jin, Vice-President of Asian Development Bank
Beyond a Traditional ApproachGoing beyond the traditional approach to buildingcapacity, the PPP allows participants to discuss keydevelopment issues. A learning resource center inPhnom Penh will enhance that dialogue and providethe public with “all-that-you-need-to-know-informa-tion” about the GMS.
The PPP already has a dedicated website(www.adb.org/GMS/Phnom-penh-plan) and willdevelop a portal to enable PPP alumni to maintainlifelong contacts. Apart from a newsletter, the PPPlaunched the GMS Journal of Development Studiesto provide a platform for sharing research, reviewingdevelopment literature, and fostering debate.
The GMS Distinguished Speaker Series will offerthe subregion the opportunity to share experience
to share knowledge and adapt skills acquired orstrengthened through participation in PPP learningcourses.
Central to the PPP’s philosophy is a commit-ment to design learning programs in collaborationwith the best talent, and to research these programsthoroughly for content and for the target groupsthey aim to reach. The educational content of thelearning programs is a carefully designed blend ofcutting-edge knowledge and GMS situations. Mostprograms are customized and provide a learningexperience not usually available in traditionalacademic environments.
and insights from the world’s leading figures indevelopment, research, and governance. The GMSDevelopment Management Dialogue, video-conference sessions will provide opportunities forthe exchange of ideas on pressing issues that call forcollective action and regional cooperation. Likelysubjects will be finance, health, education, HIV/AIDS, environment, corruption, infrastructure, trade,private sector, and civil society.
The PPP seeks to instill in managers a perpetualcuriosity about the people and issues that they arecharged to lead and to foster a thirst for knowledge.At the end of each learning program, participantsare inducted as PPP alumni and commit to upholdthe PPP ideals as part of their lifelong learningexperience. They are imbued with a spirit for puttingthe GMS on the path to high growth with equity.
Rich
ie A
brin
a
Vor
avat
e Ch
onla
sin
GMS ministers and senior officialsexchange ideas with John Thomas,Harvard professor and public policyexpert, on the need for leadershipin regional cooperation
GMS ministers and senior officialsexchange ideas with John Thomas,Harvard professor and public policyexpert, on the need for leadershipin regional cooperation
Teaching organic farming atthe Kyusei Nature Farmingand Environment Center inSaraburi Province, Thailand
Teaching organic farming atthe Kyusei Nature Farmingand Environment Center inSaraburi Province, Thailand
CONNECTING NATIONS, LINKING PEOPLE 3332 CONNECTING NATIONS, LINKING PEOPLE
Tradition runs deep among ethnic minoritygroups in the heartland of Yunnan Province inthe People’s Republic of China (PRC), but
some influences are eroding their customarylifestyle.
In the rural village of Gunsai, visitors experiencecustomary hospitality when greeted by a small bandof Jingpo musicians and girls in red ceremonial dresswho offer rice wine. But villagers say other ways oflife are changing, including more open attitudes tosex and increased drug abuse.
“We are conservative in this village,” says JinMa Nian, a 29-year-old mother of two. “But theyounger generation is becoming more open aboutsex.”
Several kilometers away, in Luliang village nearthe Myanmar border, a white-haired woman, Ms.Ma, aged 76, says she is sad because her three sonshave all had problems with drugs.
To counter these influences, a unique radiodrama series, warning of the dangers of HIV/AIDSand drug use, has been broadcast for the Jingpopeople of Yunnan Province.
The radio series is special because it is deliveredin the Jingpo language and deals with everydaysituations in the context of Jingpo culture. Thebroadcasts first aired in October 2004 and wererebroadcast in February 2005 during the SpringFestival (Chinese New Year).
Villagers Respond toFamiliar Soap SituationsFeedback from the Jingpo, who live mostly inmountain areas between Yunnan Province andMyanmar, has been positive and constructive.
Though generations apart, both Ms. Jin and Ms. Malike the soap operas because they dramatize impor-tant social problems.
Sitting in a spartan community hall, Ms. Jinsays she listened with interest to a heartbreakingepisode about a girl who went to hospital, acciden-tally contracted HIV/AIDS through a blood transfu-sion, and decided to break off with her lover toavoid infecting him.
Blood transfusions and contaminated needlescontinue to be a major cause of the spread of HIV/AIDS in this region.
“I already knew about this problem,” saysMs. Jin. “But it’s helpful to reinforce such messages.”
Next to her, a stocky farmer, Wang La Dong,likes the soap operas “because they’re about ourculture, and I feel they’re about my life.” He saysthe soap operas are useful because they offerknowledge on how to protect oneself againstdisease.
In the mountain village of Luliang, Ms. Ma saysthe social messages are useful—but not strongenough. “They are too indirect,” she says. “Themessage should be more direct as new infectionsare increasing and people are dying.”
By Ian GillPRINCIPAL EXTERNAL RELATIONS SPECIALIST
AIR WAVEAWARENESS
Radio soap operas broadcast in locallanguages are proving to be an inexpensive
and effective way to teach remote andvulnerable communities about the dangers
of HIV/AIDS and drug use
The main benefit of the radioprogram is to deliver socialmessages through an art formthat is more interesting thanexplanatory materials
—Yue Jian, a Jingpo radio drama scriptwriter
Ian
Gill
Getting the messageabout HIV/AIDS topeople in remote areas
Getting the messageabout HIV/AIDS topeople in remote areas
CONNECTING NATIONS, LINKING PEOPLE 3332 CONNECTING NATIONS, LINKING PEOPLE
Tradition runs deep among ethnic minoritygroups in the heartland of Yunnan Province inthe People’s Republic of China (PRC), but
some influences are eroding their customarylifestyle.
In the rural village of Gunsai, visitors experiencecustomary hospitality when greeted by a small bandof Jingpo musicians and girls in red ceremonial dresswho offer rice wine. But villagers say other ways oflife are changing, including more open attitudes tosex and increased drug abuse.
“We are conservative in this village,” says JinMa Nian, a 29-year-old mother of two. “But theyounger generation is becoming more open aboutsex.”
Several kilometers away, in Luliang village nearthe Myanmar border, a white-haired woman, Ms.Ma, aged 76, says she is sad because her three sonshave all had problems with drugs.
To counter these influences, a unique radiodrama series, warning of the dangers of HIV/AIDSand drug use, has been broadcast for the Jingpopeople of Yunnan Province.
The radio series is special because it is deliveredin the Jingpo language and deals with everydaysituations in the context of Jingpo culture. Thebroadcasts first aired in October 2004 and wererebroadcast in February 2005 during the SpringFestival (Chinese New Year).
Villagers Respond toFamiliar Soap SituationsFeedback from the Jingpo, who live mostly inmountain areas between Yunnan Province andMyanmar, has been positive and constructive.
Though generations apart, both Ms. Jin and Ms. Malike the soap operas because they dramatize impor-tant social problems.
Sitting in a spartan community hall, Ms. Jinsays she listened with interest to a heartbreakingepisode about a girl who went to hospital, acciden-tally contracted HIV/AIDS through a blood transfu-sion, and decided to break off with her lover toavoid infecting him.
Blood transfusions and contaminated needlescontinue to be a major cause of the spread of HIV/AIDS in this region.
“I already knew about this problem,” saysMs. Jin. “But it’s helpful to reinforce such messages.”
Next to her, a stocky farmer, Wang La Dong,likes the soap operas “because they’re about ourculture, and I feel they’re about my life.” He saysthe soap operas are useful because they offerknowledge on how to protect oneself againstdisease.
In the mountain village of Luliang, Ms. Ma saysthe social messages are useful—but not strongenough. “They are too indirect,” she says. “Themessage should be more direct as new infectionsare increasing and people are dying.”
By Ian GillPRINCIPAL EXTERNAL RELATIONS SPECIALIST
AIR WAVEAWARENESS
Radio soap operas broadcast in locallanguages are proving to be an inexpensive
and effective way to teach remote andvulnerable communities about the dangers
of HIV/AIDS and drug use
The main benefit of the radioprogram is to deliver socialmessages through an art formthat is more interesting thanexplanatory materials
—Yue Jian, a Jingpo radio drama scriptwriter
Ian
Gill
Getting the messageabout HIV/AIDS topeople in remote areas
Getting the messageabout HIV/AIDS topeople in remote areas
CONNECTING NATIONS, LINKING PEOPLE 3534 CONNECTING NATIONS, LINKING PEOPLE
Her eldest son lost his job with a radio stationafter taking drugs and has been lost to the family formany years. Ms. Ma says her younger sons tried tohelp their brother but ended up taking drugs them-selves. One is now in a rehabilitation center.
In her time, says Ms. Ma, villagers commonly tookopium for medical or relaxation purposes, but they lednormal lives. In contrast, she says, today’s drug userscannot work and end up destroying their lives.
The Jingpo soap operas are produced in theprovincial capital, Kunming, by the Yunnan Peoples’Broadcasting Station under a Greater MekongSubregion (GMS) project being implemented by theUnited Nations Educational, Scientific and CulturalOrganization (UNESCO) and financed by the AsianDevelopment Bank. Meanwhile, the Southeast AsianMinistry of Education Organization, as co-executingagency of the project, has trained teachers anddeveloped teaching materials in local languages forHIV/AIDS prevention for use in schools in high-riskcross-border areas.
Risks are High in Mobile Populations“The main benefit of the radio program is to deliversocial messages through an art form that is moreinteresting than explanatory materials,” says radioscriptwriter Yue Jian, a Jingpo. “It is closer toeveryday life and can be easily understood. It isexpected to make people more aware of socialproblems like taking drugs, and trafficking womenand children.”
Adds Yang Zaipeng, Jingpo program coordina-tor, “Radio is a good vehicle for combining educa-tion with entertainment. Drama and singing are partof the traditional culture, so the Jingpo are comfort-able with it.”
Radio is a medium withoutborders, and people can listento it while working in the field
—Heather Peters, Consultant of UNESCO
HIV/AIDS is particularly acute in border areas.Some of the first cases of HIV/AIDS in the PRC werediscovered in Ruili, a bustling town near theMyanmar border where the ethnic mix of traders inthe market—including the people of Myanmar,Kachin, Shan, and Indian—reflects a highly mobilepopulation.
As Ms. Yang Xing, Vice Governor of LongChuan County, says, “Three factors contribute to theabove-average infection rate among the popula-tion—they live in a poor and remote mountainregion, their education level is low, and there is aprevalence of drug addiction.”
With television still a luxury in rural Yunnan,radio is a cheap and effective way to reach remoteand vulnerable communities, says Heather Peters,a Bangkok-based UNESCO consultant who isworking on the program.
Programs Reach Beyond Borders“Radio is a medium without borders, and peoplecan listen to it while working in the field,” notesDr. Peters. “This program started because the Kachinin Myanmar asked if we could provide some kindof programming to inform them about HIV/AIDSand drug abuse.”
As well as its Jingpo program, UNESCO ishelping produce soap operas in Lahu with RadioThailand Chiangmai, and in Hmong through LaoNational Radio. Earlier, UNESCO piloted the projectwith 30 programs in Shan with Radio ThailandChiangmai.
“The pilot had a tremendous reach—acrossMyanmar and into PRC, Lao PDR, and Viet Nam—and was popular enough for people to request forrepeats and for taped copies of the programs,” says
David Feingold, UNESCO’s International Coordinatorfor HIV/AIDS and Trafficking. “The Jingpo and theLahu programs have a call-in feature, which pro-vides us with instant feedback.”
The Yunnan People’s Broadcasting station plansto reproduce the Jingpo programs for distribution.They will make 780 sets of CD-ROMs and 750 setsof tapes to be distributed in 260 Jingpo villages inDehong Prefecture as well as to local governments,schools, and local centers for disease control.
Under the GMS Program, expanded use ofbroadcasting media for reducing the risk andvulnerability of HIV/AIDS among ethnic groups arebeing planned.
Ian
Gill
Ian
Gill
A poster warns of thedangers of HIV/AIDSA poster warns of thedangers of HIV/AIDS
CONNECTING NATIONS, LINKING PEOPLE 3534 CONNECTING NATIONS, LINKING PEOPLE
Her eldest son lost his job with a radio stationafter taking drugs and has been lost to the family formany years. Ms. Ma says her younger sons tried tohelp their brother but ended up taking drugs them-selves. One is now in a rehabilitation center.
In her time, says Ms. Ma, villagers commonly tookopium for medical or relaxation purposes, but they lednormal lives. In contrast, she says, today’s drug userscannot work and end up destroying their lives.
The Jingpo soap operas are produced in theprovincial capital, Kunming, by the Yunnan Peoples’Broadcasting Station under a Greater MekongSubregion (GMS) project being implemented by theUnited Nations Educational, Scientific and CulturalOrganization (UNESCO) and financed by the AsianDevelopment Bank. Meanwhile, the Southeast AsianMinistry of Education Organization, as co-executingagency of the project, has trained teachers anddeveloped teaching materials in local languages forHIV/AIDS prevention for use in schools in high-riskcross-border areas.
Risks are High in Mobile Populations“The main benefit of the radio program is to deliversocial messages through an art form that is moreinteresting than explanatory materials,” says radioscriptwriter Yue Jian, a Jingpo. “It is closer toeveryday life and can be easily understood. It isexpected to make people more aware of socialproblems like taking drugs, and trafficking womenand children.”
Adds Yang Zaipeng, Jingpo program coordina-tor, “Radio is a good vehicle for combining educa-tion with entertainment. Drama and singing are partof the traditional culture, so the Jingpo are comfort-able with it.”
Radio is a medium withoutborders, and people can listento it while working in the field
—Heather Peters, Consultant of UNESCO
HIV/AIDS is particularly acute in border areas.Some of the first cases of HIV/AIDS in the PRC werediscovered in Ruili, a bustling town near theMyanmar border where the ethnic mix of traders inthe market—including the people of Myanmar,Kachin, Shan, and Indian—reflects a highly mobilepopulation.
As Ms. Yang Xing, Vice Governor of LongChuan County, says, “Three factors contribute to theabove-average infection rate among the popula-tion—they live in a poor and remote mountainregion, their education level is low, and there is aprevalence of drug addiction.”
With television still a luxury in rural Yunnan,radio is a cheap and effective way to reach remoteand vulnerable communities, says Heather Peters,a Bangkok-based UNESCO consultant who isworking on the program.
Programs Reach Beyond Borders“Radio is a medium without borders, and peoplecan listen to it while working in the field,” notesDr. Peters. “This program started because the Kachinin Myanmar asked if we could provide some kindof programming to inform them about HIV/AIDSand drug abuse.”
As well as its Jingpo program, UNESCO ishelping produce soap operas in Lahu with RadioThailand Chiangmai, and in Hmong through LaoNational Radio. Earlier, UNESCO piloted the projectwith 30 programs in Shan with Radio ThailandChiangmai.
“The pilot had a tremendous reach—acrossMyanmar and into PRC, Lao PDR, and Viet Nam—and was popular enough for people to request forrepeats and for taped copies of the programs,” says
David Feingold, UNESCO’s International Coordinatorfor HIV/AIDS and Trafficking. “The Jingpo and theLahu programs have a call-in feature, which pro-vides us with instant feedback.”
The Yunnan People’s Broadcasting station plansto reproduce the Jingpo programs for distribution.They will make 780 sets of CD-ROMs and 750 setsof tapes to be distributed in 260 Jingpo villages inDehong Prefecture as well as to local governments,schools, and local centers for disease control.
Under the GMS Program, expanded use ofbroadcasting media for reducing the risk andvulnerability of HIV/AIDS among ethnic groups arebeing planned.
Ian
Gill
Ian
Gill
A poster warns of thedangers of HIV/AIDSA poster warns of thedangers of HIV/AIDS
CONNECTING NATIONS, LINKING PEOPLE 3736 CONNECTING NATIONS, LINKING PEOPLE
TOURISM BOOMBy Ian GillPRINCIPAL EXTERNAL RELATIONS SPECIALIST
The plain classrooms of the Hue TourismSchool come alive with color when thefemale students take their seats. They are
dressed in shimmering red or blue ao dai, theflowing tunic and wide-bottomed trousers thatmake up Viet Nam’s national costume.
The school began only 5 years ago with capac-ity for 300 students. Yet so great has been thedemand that 800 full-time and 500 part-timestudents now cram into eight classrooms that areused in three shifts.
Many of the young men and women are fromthe Central Region—one of Viet Nam’s poorestareas—and are taking advantage of the currenttourism boom to improve their lives.
The students—more than 80% young women—are enrolled in either 1-year professional or 2-yearcollege courses.
“Some 30% of our students are from poorhouseholds, including ethnic minorities. They comebecause of the strong development of tourism incentral Viet Nam,” says Le Duc Trung, the school’saffable vice director. “They know tourism is animportant means to escape poverty.”
The tourism boom is spurred in part by theimproved East-West Economic Corridor, also knownas Highway 9, which provides easier access to VietNam’s Central Region from the Lao People’s Demo-cratic Republic (Lao PDR) and Thailand, as well asother parts of the country (see story, page 44).
The rehabilitation of the highway in the LaoPDR and Viet Nam—which the Asian DevelopmentBank (ADB) helped cofinance under the GMSEconomic Cooperation Program—is nearingcompletion.
In Viet Nam, the GMS Program’s promotion of the subregionas a single tourism destination is providing young people from
poor families with a chance to improve their lives
Easing Access for TouristsThe GMS countries—Cambodia, People’s Republicof China, Lao PDR, Myanmar, Thailand, and VietNam—are promoting the subregion as a singletourist destination. They have relaxed visa regimes,upgraded and improved airports, developed roads,initiated tourism training programs, and intensifiedjoint marketing efforts.
Tourist arrivals in the six countries last yeartotaled nearly 16 million, and these are expected tosoar to 20 million in 2006. By 2010, tourist arrivalsare expected to increase to nearly 30 million.
At the ochre-colored An Dinh Palace, by thePerfume River that runs through Hue, Ngo Hoa,Vice Chairman of the People’s Committee of ThuaThien Hue Province, says improved road and raillinks are contributing to a boom that has seen a risein the number of visitors to the province by about17–20% annually in recent years. This is well abovethe national average.
“Our tourism drive includes stepping upadvertising as well as using the Internet more,” saysMr. Hoa. “The Central Region has a strong attractionfor ecotourists as well as those interested in historyand culture.”
Some 30% of our students arefrom poor households, includingethnic minorities. They knowtourism is an important meansto escape poverty
—————Le Duc Trung, Vice Director, Hue Tourism School
Ancient History AttractsMajor Central Region tourist attractions—whichinclude the Ho Chi Minh Trail, the Imperial City ofHue, and the 17th century trading port of Hoi An—are expected to play a key role in that increase.
Hue’s hotels are also gearing up to handleincreased business. At the historic Saigon MorinHotel, general manager Tao Van Nghe sends hisstaff for training to cope with the demands of risingoccupancy rates, with 60% of the guests comingfrom Europe.
Meanwhile, the Hue Tourism School is planningto expand its facilities to cater to the ever-increasingnumber of students. In 2006, the 2-year collegecourse will be upgraded to a 3-year course. Despitestrained resources, Mr. Trung says the school waivestuition fees for the poorest students.
Some students come from neighboring coun-tries, says Mr. Trung. Currently, 10 students are fromthe Lao PDR. Most are male, but the contingentincludes Manohay Sindonthan, who wants to workas a travel agent when she returns home toChampassak in Southern Lao PDR.
The Hue Tourism School receives financing fromthe European Union. Vincent Gibbon, an Irish senior
technical advisor with the Luxembourg DevelopmentAgency, helps ensure training is up to internationalstandards. “We’ve supported the training programand have developed the examination and certifica-tion system under the Viet Nam Tourism Certifica-tion Board,” he says. English language skills are thetop priority.
By easing access to and within the subregion,improving training in the tourism industry, andpromoting the GMS as a single tourist destination,new opportunities for both poor people and touristswill be developed. The poor are improving their livesthrough training and greater availability and diversityof employment, and the tourists can now enjoy moreof the subregion’s geographical beauty and historicaland cultural richness while availing of good servicefrom an increasingly professional industry.
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The Hue Tourism Schoolhelps meet growingdemand for hotel staff
The Hue Tourism Schoolhelps meet growingdemand for hotel staff
A hotel in Hue,Viet Nam enjoysthe tourist boom
A hotel in Hue,Viet Nam enjoysthe tourist boom
CONNECTING NATIONS, LINKING PEOPLE 3736 CONNECTING NATIONS, LINKING PEOPLE
TOURISM BOOMBy Ian GillPRINCIPAL EXTERNAL RELATIONS SPECIALIST
The plain classrooms of the Hue TourismSchool come alive with color when thefemale students take their seats. They are
dressed in shimmering red or blue ao dai, theflowing tunic and wide-bottomed trousers thatmake up Viet Nam’s national costume.
The school began only 5 years ago with capac-ity for 300 students. Yet so great has been thedemand that 800 full-time and 500 part-timestudents now cram into eight classrooms that areused in three shifts.
Many of the young men and women are fromthe Central Region—one of Viet Nam’s poorestareas—and are taking advantage of the currenttourism boom to improve their lives.
The students—more than 80% young women—are enrolled in either 1-year professional or 2-yearcollege courses.
“Some 30% of our students are from poorhouseholds, including ethnic minorities. They comebecause of the strong development of tourism incentral Viet Nam,” says Le Duc Trung, the school’saffable vice director. “They know tourism is animportant means to escape poverty.”
The tourism boom is spurred in part by theimproved East-West Economic Corridor, also knownas Highway 9, which provides easier access to VietNam’s Central Region from the Lao People’s Demo-cratic Republic (Lao PDR) and Thailand, as well asother parts of the country (see story, page 44).
The rehabilitation of the highway in the LaoPDR and Viet Nam—which the Asian DevelopmentBank (ADB) helped cofinance under the GMSEconomic Cooperation Program—is nearingcompletion.
In Viet Nam, the GMS Program’s promotion of the subregionas a single tourism destination is providing young people from
poor families with a chance to improve their lives
Easing Access for TouristsThe GMS countries—Cambodia, People’s Republicof China, Lao PDR, Myanmar, Thailand, and VietNam—are promoting the subregion as a singletourist destination. They have relaxed visa regimes,upgraded and improved airports, developed roads,initiated tourism training programs, and intensifiedjoint marketing efforts.
Tourist arrivals in the six countries last yeartotaled nearly 16 million, and these are expected tosoar to 20 million in 2006. By 2010, tourist arrivalsare expected to increase to nearly 30 million.
At the ochre-colored An Dinh Palace, by thePerfume River that runs through Hue, Ngo Hoa,Vice Chairman of the People’s Committee of ThuaThien Hue Province, says improved road and raillinks are contributing to a boom that has seen a risein the number of visitors to the province by about17–20% annually in recent years. This is well abovethe national average.
“Our tourism drive includes stepping upadvertising as well as using the Internet more,” saysMr. Hoa. “The Central Region has a strong attractionfor ecotourists as well as those interested in historyand culture.”
Some 30% of our students arefrom poor households, includingethnic minorities. They knowtourism is an important meansto escape poverty
—————Le Duc Trung, Vice Director, Hue Tourism School
Ancient History AttractsMajor Central Region tourist attractions—whichinclude the Ho Chi Minh Trail, the Imperial City ofHue, and the 17th century trading port of Hoi An—are expected to play a key role in that increase.
Hue’s hotels are also gearing up to handleincreased business. At the historic Saigon MorinHotel, general manager Tao Van Nghe sends hisstaff for training to cope with the demands of risingoccupancy rates, with 60% of the guests comingfrom Europe.
Meanwhile, the Hue Tourism School is planningto expand its facilities to cater to the ever-increasingnumber of students. In 2006, the 2-year collegecourse will be upgraded to a 3-year course. Despitestrained resources, Mr. Trung says the school waivestuition fees for the poorest students.
Some students come from neighboring coun-tries, says Mr. Trung. Currently, 10 students are fromthe Lao PDR. Most are male, but the contingentincludes Manohay Sindonthan, who wants to workas a travel agent when she returns home toChampassak in Southern Lao PDR.
The Hue Tourism School receives financing fromthe European Union. Vincent Gibbon, an Irish senior
technical advisor with the Luxembourg DevelopmentAgency, helps ensure training is up to internationalstandards. “We’ve supported the training programand have developed the examination and certifica-tion system under the Viet Nam Tourism Certifica-tion Board,” he says. English language skills are thetop priority.
By easing access to and within the subregion,improving training in the tourism industry, andpromoting the GMS as a single tourist destination,new opportunities for both poor people and touristswill be developed. The poor are improving their livesthrough training and greater availability and diversityof employment, and the tourists can now enjoy moreof the subregion’s geographical beauty and historicaland cultural richness while availing of good servicefrom an increasingly professional industry.
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The Hue Tourism Schoolhelps meet growingdemand for hotel staff
The Hue Tourism Schoolhelps meet growingdemand for hotel staff
A hotel in Hue,Viet Nam enjoysthe tourist boom
A hotel in Hue,Viet Nam enjoysthe tourist boom
CONNECTING NATIONS, LINKING PEOPLE 3938 CONNECTING NATIONS, LINKING PEOPLE
Mr. Vinh, a Vietnamese truck driver, has along wait ahead of him as he sits at theLao People’s Democratic Republic (Lao
PDR) side of the border checkpoint betweenDansavanh (Lao PDR) and Lao Bao (Viet Nam).
The Vietnamese truck driver is waiting for hisload to be carried on hand-pulled wagons to theVietnamese side of the border and then loaded backinto his Vietnamese-licensed truck before he headsback to his country. The process takes a few hours.
Worse, it may take him an additional 4 hours ifmany trucks are waiting to go through the check-point, where he has to stop at four windows forcustoms and immigration clearance.
Such are the nonphysical barriers that hinder theflow of people and goods at borders in the GreaterMekong Subregion (GMS). However, these non-physical barriers may soon be banished to history asthe GMS Cross-Border Transport Agreement isimplemented.
In addition to developing transport networks inthe GMS, reducing the time spent at border check-points and harmonizing rules and regulations onborder-crossing formalities are integral to fullyrealizing the subregion’s development potential.
Joint Control at CrossingsThe GMS countries are starting to test single-stopcustoms inspection at borders. This means that theofficials of countries with common borders helpeach other perform their duties by carrying outinspections jointly and simultaneously.
The first testing is taking place at the Dansavanh-Lao Bao border and aims at joint, simultaneousinspection by customs officials of the two countries atthe border checkpoint at the country of entry.
The GMS Cross-Border Transport Agreement aims toease the flow of goods and people across borders
and help boost local business and foreigninvestment throughout the region
By Tsukasa MaekawaPRINCIPAL EXTERNAL RELATIONS SPECIALIST
Nguyen An Binh, Deputy Director of theVietnamese Customs Office, says single-stopcustoms inspection will be fully implemented bymid-2007 at the Dansavanh-Lao Bao border.
“When the single-stop customs inspection isrealized and restrictions on cargo loads are removed,I can do my business much easier and businesscosts will be greatly reduced,” says Mr. Vinh.
Currently, he drives to the Lao PDR side andgoes around border villages and towns for 3–4 daysbuying local products. Because of cargo restrictions,he hires local people to carry the products inwagons to the Vietnamese side and reload them todrive back home.
Mr. Vinh is not the only one eagerly awaitingthe streamlining of cross-border procedures.
“When the East-West Economic Corridor iscompleted, we want to export our products toThailand through Route 9,” said PhornchaiChiravinijnjandh, Managing Director of Camel Rubber(Viet Nam) Co., a Thai motorcycle tire company.
Business Booms Near BordersDansavanh-Lao Bao is one of the three borders onthe East-West Economic Corridor being developedunder the GMS Economic Cooperation Program.
Camel Rubber is one of 60 small- and medium-sized enterprises—manufacturers and trade andbusiness services companies—operating at the LaoBao Special Border Zone that the Government ofViet Nam set up in late 1998.
The establishment of the commercial centerhas led to water, electricity, and transport servicesbeing provided to the place for the first time. Inthe past few years, more than 1,500 jobs forlocal people were created.
EASING BORDERBARRIERS
“With work on the East-West Economic Corri-dor nearing completion, and the easier flow ofpeople and goods at the border expected, we wouldlike to attract more investors and tourists to thisarea,” says Nguyen Huy, Deputy Chief of the SpecialBorder Zone.
Currently, 22 Vietnamese and Thai manufactur-ers operate in the Special Border Zone. “We hope tohave about 60 manufacturers by 2020, turning thearea into an industrial city,” says Mr. Huy.
He says they are planning to create a betterenvironment for foreign investors and local peopleby building facilities and providing water, banking,power, education, and health care systems. Compa-nies from the People’s Republic of China havealready shown interest in investing in the area.
When the East-West EconomicCorridor is completed, we want toexport our products to Thailandthrough Route 9
—Phornchai Chiravinijnjandh, Managing Director of Camel Rubber (Viet Nam) Co.
Some foreign investors are using local rawmaterials. For example, one enterprise producescassava flour and another processes coffee. Someare training local people by sending them to Thailandand elsewhere in Viet Nam to improve their skills.
Camel Rubber is the Thai company’s firstoverseas manufacturing venture. It started producingmotorcycle tires in mid-2004, initially mainly forthe Vietnamese market. It employs 130 Vietnameseand 20 foreigners, mostly from Thailand. “We wantto export our products back to Thailand whentransportation through the East-West EconomicCorridor becomes economically beneficial for us,”says Mr. Chiravinijnjandh.
Clearly, improved physical infrastructure andexpected easier cross-border procedures are alreadyproviding incentives for businesspeople and provid-ing jobs for the poor. When nonphysical barriers totrade and investment are removed, trade andinvestment will inevitably expand, making thesubregion more integrated economically.
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Cargos unloaded froma truck are carried onhand-pulled wagons tothe other side of theLao PDR-Viet Namborder
Cargos unloaded froma truck are carried onhand-pulled wagons tothe other side of theLao PDR-Viet Namborder
Customs cooperationis to be implementedat a Lao PDR-Viet Namborder
Customs cooperationis to be implementedat a Lao PDR-Viet Namborder
CONNECTING NATIONS, LINKING PEOPLE 3938 CONNECTING NATIONS, LINKING PEOPLE
Mr. Vinh, a Vietnamese truck driver, has along wait ahead of him as he sits at theLao People’s Democratic Republic (Lao
PDR) side of the border checkpoint betweenDansavanh (Lao PDR) and Lao Bao (Viet Nam).
The Vietnamese truck driver is waiting for hisload to be carried on hand-pulled wagons to theVietnamese side of the border and then loaded backinto his Vietnamese-licensed truck before he headsback to his country. The process takes a few hours.
Worse, it may take him an additional 4 hours ifmany trucks are waiting to go through the check-point, where he has to stop at four windows forcustoms and immigration clearance.
Such are the nonphysical barriers that hinder theflow of people and goods at borders in the GreaterMekong Subregion (GMS). However, these non-physical barriers may soon be banished to history asthe GMS Cross-Border Transport Agreement isimplemented.
In addition to developing transport networks inthe GMS, reducing the time spent at border check-points and harmonizing rules and regulations onborder-crossing formalities are integral to fullyrealizing the subregion’s development potential.
Joint Control at CrossingsThe GMS countries are starting to test single-stopcustoms inspection at borders. This means that theofficials of countries with common borders helpeach other perform their duties by carrying outinspections jointly and simultaneously.
The first testing is taking place at the Dansavanh-Lao Bao border and aims at joint, simultaneousinspection by customs officials of the two countries atthe border checkpoint at the country of entry.
The GMS Cross-Border Transport Agreement aims toease the flow of goods and people across borders
and help boost local business and foreigninvestment throughout the region
By Tsukasa MaekawaPRINCIPAL EXTERNAL RELATIONS SPECIALIST
Nguyen An Binh, Deputy Director of theVietnamese Customs Office, says single-stopcustoms inspection will be fully implemented bymid-2007 at the Dansavanh-Lao Bao border.
“When the single-stop customs inspection isrealized and restrictions on cargo loads are removed,I can do my business much easier and businesscosts will be greatly reduced,” says Mr. Vinh.
Currently, he drives to the Lao PDR side andgoes around border villages and towns for 3–4 daysbuying local products. Because of cargo restrictions,he hires local people to carry the products inwagons to the Vietnamese side and reload them todrive back home.
Mr. Vinh is not the only one eagerly awaitingthe streamlining of cross-border procedures.
“When the East-West Economic Corridor iscompleted, we want to export our products toThailand through Route 9,” said PhornchaiChiravinijnjandh, Managing Director of Camel Rubber(Viet Nam) Co., a Thai motorcycle tire company.
Business Booms Near BordersDansavanh-Lao Bao is one of the three borders onthe East-West Economic Corridor being developedunder the GMS Economic Cooperation Program.
Camel Rubber is one of 60 small- and medium-sized enterprises—manufacturers and trade andbusiness services companies—operating at the LaoBao Special Border Zone that the Government ofViet Nam set up in late 1998.
The establishment of the commercial centerhas led to water, electricity, and transport servicesbeing provided to the place for the first time. Inthe past few years, more than 1,500 jobs forlocal people were created.
EASING BORDERBARRIERS
“With work on the East-West Economic Corri-dor nearing completion, and the easier flow ofpeople and goods at the border expected, we wouldlike to attract more investors and tourists to thisarea,” says Nguyen Huy, Deputy Chief of the SpecialBorder Zone.
Currently, 22 Vietnamese and Thai manufactur-ers operate in the Special Border Zone. “We hope tohave about 60 manufacturers by 2020, turning thearea into an industrial city,” says Mr. Huy.
He says they are planning to create a betterenvironment for foreign investors and local peopleby building facilities and providing water, banking,power, education, and health care systems. Compa-nies from the People’s Republic of China havealready shown interest in investing in the area.
When the East-West EconomicCorridor is completed, we want toexport our products to Thailandthrough Route 9
—Phornchai Chiravinijnjandh, Managing Director of Camel Rubber (Viet Nam) Co.
Some foreign investors are using local rawmaterials. For example, one enterprise producescassava flour and another processes coffee. Someare training local people by sending them to Thailandand elsewhere in Viet Nam to improve their skills.
Camel Rubber is the Thai company’s firstoverseas manufacturing venture. It started producingmotorcycle tires in mid-2004, initially mainly forthe Vietnamese market. It employs 130 Vietnameseand 20 foreigners, mostly from Thailand. “We wantto export our products back to Thailand whentransportation through the East-West EconomicCorridor becomes economically beneficial for us,”says Mr. Chiravinijnjandh.
Clearly, improved physical infrastructure andexpected easier cross-border procedures are alreadyproviding incentives for businesspeople and provid-ing jobs for the poor. When nonphysical barriers totrade and investment are removed, trade andinvestment will inevitably expand, making thesubregion more integrated economically.
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Cargos unloaded froma truck are carried onhand-pulled wagons tothe other side of theLao PDR-Viet Namborder
Cargos unloaded froma truck are carried onhand-pulled wagons tothe other side of theLao PDR-Viet Namborder
Customs cooperationis to be implementedat a Lao PDR-Viet Namborder
Customs cooperationis to be implementedat a Lao PDR-Viet Namborder
CONNECTING NATIONS, LINKING PEOPLE 4140 CONNECTING NATIONS, LINKING PEOPLE
The cut-flower industry is flourishing inKunming, the provincial capital of Yunnan inthe People’s Republic of China (PRC).
“Our biggest market is Southeast Asia,” saysPienne Lam, Vice General Manager of Jin YuanFlowery Industry Ltd. “We are waiting for thecompletion of the North-South Economic Corridor(NSEC) because we could then ship our products—cut-flowers—to Thailand by a land route.”
As one of the leading cut-flower producers/exporters in Kunming, the company air freights2–3 tons of cut flowers daily to Thailand and HongKong, China. Products are also flown via Thailand orHong Kong, China to the Republic of Korea, Japan,and other Asian countries, and to Russia, the MiddleEast, Europe, and the United States.
Some flowers are transported by land toViet Nam. “There are not enough flights, and wewould like to cut freight costs,” says Ms. Lam.
The hopes for industrial enterprises are highboth in Yunnan and in neighboring Lao People’sDemocratic Republic (Lao PDR), Myanmar, and VietNam—and countries beyond—for increased tradeand tourism once the main road links between thesouthern PRC and neighboring countries arecompleted.
Under the Greater Mekong Subregion EconomicCooperation Program (GMS Program), assisted bythe Asian Development Bank (ADB), the 2,000-kilometer road link between Kunming and Bangkok,Thailand, is being upgraded.
Given the good road network from Bangkok toSingapore and Kunming to Beijing, the NSEC willreduce transport costs from the PRC capital to thetip of the Malay Peninsula; improve the ease ofmovement of people, vehicles, and goods; and
BUSINESSBLOOMS
Improved transport links haveeased the way for trade and
business development for bothdomestic and foreign investors in
the PRC’s Yunnan Province
By Tsukasa MaekawaPRINCIPAL EXTERNAL RELATIONS SPECIALIST
expand trade between the PRC and the MekongRegion and beyond.
The major portions of the NSEC in the PRC andThailand have already been completed. A remainingsection in the PRC toward the Lao PDR border willbe completed in 2006, and a section in Lao PDR isdue to be finished by the end of 2007. In addition,another road link is planned between Kunming andthe port city of Haiphong in Viet Nam, whichincludes an expressway from Hanoi to Lao Cai thatwould be completed by 2012.
Once the Kunming-Haiphong road link iscompleted, trucks can carry container cargo in oneday. “There will be a dramatic increase in trafficflows between Kunming and the bordering countrieswhen the road links are completed,” said YinYonglin, Chief of Yunnan’s Division of InternationalTrade and Economic Affairs.
Along with the main road links, many feederroads will be improved, allowing farmers to moreeasily bring their produce to markets in major cities.
Tapping International Markets“Farmers were producing only vegetables inKunming before as they did not know how to growflowers,” says Ms. Lam. Ten years ago, she says, thecompany thought that the mild and dry climatemight be suitable for growing flowers. It providedfarmers with seeds, equipment, and the necessaryskills to grow roses, lilies, carnations, and otherflowers. “Now we can sell them at internationalmarkets,” she says.
The company’s exports have since expandedrapidly: in 2005, the company expects to ship 1 billionyuan ($120 million) worth of flowers from 700million yuan in 2004, and 500 million yuan in 2003.
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The biggest marketfor cut-flowersproduced in Kunmingis Southeast Asia
The biggest marketfor cut-flowersproduced in Kunmingis Southeast Asia
CONNECTING NATIONS, LINKING PEOPLE 4140 CONNECTING NATIONS, LINKING PEOPLE
The cut-flower industry is flourishing inKunming, the provincial capital of Yunnan inthe People’s Republic of China (PRC).
“Our biggest market is Southeast Asia,” saysPienne Lam, Vice General Manager of Jin YuanFlowery Industry Ltd. “We are waiting for thecompletion of the North-South Economic Corridor(NSEC) because we could then ship our products—cut-flowers—to Thailand by a land route.”
As one of the leading cut-flower producers/exporters in Kunming, the company air freights2–3 tons of cut flowers daily to Thailand and HongKong, China. Products are also flown via Thailand orHong Kong, China to the Republic of Korea, Japan,and other Asian countries, and to Russia, the MiddleEast, Europe, and the United States.
Some flowers are transported by land toViet Nam. “There are not enough flights, and wewould like to cut freight costs,” says Ms. Lam.
The hopes for industrial enterprises are highboth in Yunnan and in neighboring Lao People’sDemocratic Republic (Lao PDR), Myanmar, and VietNam—and countries beyond—for increased tradeand tourism once the main road links between thesouthern PRC and neighboring countries arecompleted.
Under the Greater Mekong Subregion EconomicCooperation Program (GMS Program), assisted bythe Asian Development Bank (ADB), the 2,000-kilometer road link between Kunming and Bangkok,Thailand, is being upgraded.
Given the good road network from Bangkok toSingapore and Kunming to Beijing, the NSEC willreduce transport costs from the PRC capital to thetip of the Malay Peninsula; improve the ease ofmovement of people, vehicles, and goods; and
BUSINESSBLOOMS
Improved transport links haveeased the way for trade and
business development for bothdomestic and foreign investors in
the PRC’s Yunnan Province
By Tsukasa MaekawaPRINCIPAL EXTERNAL RELATIONS SPECIALIST
expand trade between the PRC and the MekongRegion and beyond.
The major portions of the NSEC in the PRC andThailand have already been completed. A remainingsection in the PRC toward the Lao PDR border willbe completed in 2006, and a section in Lao PDR isdue to be finished by the end of 2007. In addition,another road link is planned between Kunming andthe port city of Haiphong in Viet Nam, whichincludes an expressway from Hanoi to Lao Cai thatwould be completed by 2012.
Once the Kunming-Haiphong road link iscompleted, trucks can carry container cargo in oneday. “There will be a dramatic increase in trafficflows between Kunming and the bordering countrieswhen the road links are completed,” said YinYonglin, Chief of Yunnan’s Division of InternationalTrade and Economic Affairs.
Along with the main road links, many feederroads will be improved, allowing farmers to moreeasily bring their produce to markets in major cities.
Tapping International Markets“Farmers were producing only vegetables inKunming before as they did not know how to growflowers,” says Ms. Lam. Ten years ago, she says, thecompany thought that the mild and dry climatemight be suitable for growing flowers. It providedfarmers with seeds, equipment, and the necessaryskills to grow roses, lilies, carnations, and otherflowers. “Now we can sell them at internationalmarkets,” she says.
The company’s exports have since expandedrapidly: in 2005, the company expects to ship 1 billionyuan ($120 million) worth of flowers from 700million yuan in 2004, and 500 million yuan in 2003.
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The biggest marketfor cut-flowersproduced in Kunmingis Southeast Asia
The biggest marketfor cut-flowersproduced in Kunmingis Southeast Asia
CONNECTING NATIONS, LINKING PEOPLE 4342 CONNECTING NATIONS, LINKING PEOPLE
“We are very hopeful that the flower industrywill boom further in the next several years as thequality of products improves and better road linksreduce transportation costs,” says Ms. Lam. Thecompany’s business now has 170 farming house-holds and 5,000 people involved in Kunming.
As the PRC economy grows, incomes increase,and more people are able to afford flowers, thecompany will consider expanding its business to thedomestic PRC market.
Growing flowers is one of 39 leading industriesin Yunnan: the others include tobacco, minerals,nonferrous metals, chemicals, electric power,medicines, foods, agriculture, and tourism.Yunnan Copper Industry (Group) Import/ExportCorporation, the third largest copper company inthe PRC, is one of the companies that hopes toexpand its shipment route when the NSEC iscompleted.
In addition to producing copper for domesticconsumption, the company exports silver and goldto Thailand via the ports of Fengcheng andZhanjiang in neighboring provinces east of Yunnan.
“Obviously, the completion of the Corridor willprovide an important option for transporting silverand gold,” said Wang Yu Yun, one of thecompany’s managers.
Yunnan Reaps Economic RewardsThe copper and flower industries are only two ofmany major industries that have been supportingthe high economic growth of Yunnan Province.Fueled by exports and strong domestic consump-tion, the province has been showing an 8–10%annual economic growth rate since 1992, when theGMS Program started. Before 1992, trade had beenexpanding moderately. The entry of the PRC into theWorld Trade Organization in late 2001 has alsohelped boost trade.
Yunnan’s overall trade has been steadily expand-ing from $2 billion in 2001 to more than $3 billionin 2004. Its trade with three border countries—LaoPDR, Myanmar, and Viet Nam—has especiallysoared: trade with the Lao PDR shot up 75%; tradewith Myanmar rose 15% in the first 11 months of2004 against a year earlier; and trade with Viet Namjumped 48% in the same period.
Foreign direct investment in Yunnan has beenincreasing, especially in the areas of agriculture andmanufacturing. “Yunnan is open to foreign directinvestment. It has simplified approval procedures,created a system to deal with business disputes withforeign investors, and created a better environmentfor them,” says Bao Wentao, Deputy Director ofYunnan Province’s Division of Foreign InvestmentAdministration.
One unique foreign investment has been madeby a Thai diamond processing company owned by a
We are very hopeful that the flowerindustry will boom further in thenext several years as the quality ofproducts improves and better roadlinks reduce transportation costs
—Pienne Lam, Vice General Manager of Jin Yuan Flowery Industry Ltd
There will be a dramatic increase intraffic flows between Kunming andthe bordering countries when theroad links are completed
—Yin Yonglin, Chief of Yunnan’s Division of International Trade and Economic Affairs
wealthier and can afford diamonds,” says GeneralManager Daniel Gaspar.
Mr. Gaspar says abundant cheap but qualitylabor, a good access road to an international airport,regular flights to the major markets, and goodservices provided by the local government forforeign investors encourage them to stay inKunming.
Belgian businessman. Kunming Pyramid DiamondProcessing Co., which was established in Kunmingin 1995, has been exporting polished diamondsback to Thailand, and to Belgium.
“We are now planning to tap the PRC market.The PRC has huge potential as people are getting
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The cut-flower industry inKunming is creating new jobs
Local farmers arebeing trained ingrowing flowers
Local farmers arebeing trained ingrowing flowers
Flowers: an industrywith lots of promise
The cut-flower industry inKunming is creating new jobs
CONNECTING NATIONS, LINKING PEOPLE 4342 CONNECTING NATIONS, LINKING PEOPLE
“We are very hopeful that the flower industrywill boom further in the next several years as thequality of products improves and better road linksreduce transportation costs,” says Ms. Lam. Thecompany’s business now has 170 farming house-holds and 5,000 people involved in Kunming.
As the PRC economy grows, incomes increase,and more people are able to afford flowers, thecompany will consider expanding its business to thedomestic PRC market.
Growing flowers is one of 39 leading industriesin Yunnan: the others include tobacco, minerals,nonferrous metals, chemicals, electric power,medicines, foods, agriculture, and tourism.Yunnan Copper Industry (Group) Import/ExportCorporation, the third largest copper company inthe PRC, is one of the companies that hopes toexpand its shipment route when the NSEC iscompleted.
In addition to producing copper for domesticconsumption, the company exports silver and goldto Thailand via the ports of Fengcheng andZhanjiang in neighboring provinces east of Yunnan.
“Obviously, the completion of the Corridor willprovide an important option for transporting silverand gold,” said Wang Yu Yun, one of thecompany’s managers.
Yunnan Reaps Economic RewardsThe copper and flower industries are only two ofmany major industries that have been supportingthe high economic growth of Yunnan Province.Fueled by exports and strong domestic consump-tion, the province has been showing an 8–10%annual economic growth rate since 1992, when theGMS Program started. Before 1992, trade had beenexpanding moderately. The entry of the PRC into theWorld Trade Organization in late 2001 has alsohelped boost trade.
Yunnan’s overall trade has been steadily expand-ing from $2 billion in 2001 to more than $3 billionin 2004. Its trade with three border countries—LaoPDR, Myanmar, and Viet Nam—has especiallysoared: trade with the Lao PDR shot up 75%; tradewith Myanmar rose 15% in the first 11 months of2004 against a year earlier; and trade with Viet Namjumped 48% in the same period.
Foreign direct investment in Yunnan has beenincreasing, especially in the areas of agriculture andmanufacturing. “Yunnan is open to foreign directinvestment. It has simplified approval procedures,created a system to deal with business disputes withforeign investors, and created a better environmentfor them,” says Bao Wentao, Deputy Director ofYunnan Province’s Division of Foreign InvestmentAdministration.
One unique foreign investment has been madeby a Thai diamond processing company owned by a
We are very hopeful that the flowerindustry will boom further in thenext several years as the quality ofproducts improves and better roadlinks reduce transportation costs
—Pienne Lam, Vice General Manager of Jin Yuan Flowery Industry Ltd
There will be a dramatic increase intraffic flows between Kunming andthe bordering countries when theroad links are completed
—Yin Yonglin, Chief of Yunnan’s Division of International Trade and Economic Affairs
wealthier and can afford diamonds,” says GeneralManager Daniel Gaspar.
Mr. Gaspar says abundant cheap but qualitylabor, a good access road to an international airport,regular flights to the major markets, and goodservices provided by the local government forforeign investors encourage them to stay inKunming.
Belgian businessman. Kunming Pyramid DiamondProcessing Co., which was established in Kunmingin 1995, has been exporting polished diamondsback to Thailand, and to Belgium.
“We are now planning to tap the PRC market.The PRC has huge potential as people are getting
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2)The cut-flower industry inKunming is creating new jobs
Local farmers arebeing trained ingrowing flowers
Local farmers arebeing trained ingrowing flowers
Flowers: an industrywith lots of promise
The cut-flower industry inKunming is creating new jobs
CONNECTING NATIONS, LINKING PEOPLE 4544 CONNECTING NATIONS, LINKING PEOPLE
CORRIDORLIFTS
HOPES,INCOMES
Incomes are being boosted and opportunitiesincreased as the road links making up the
East-West Economic Corridor near completion
By Tsukasa MaekawaPRINCIPAL EXTERNAL RELATIONS SPECIALIST
Mr. Alo, in his 60s, stands smiling in frontof a local market in the southeasterntown of Sepon in the Lao People’s
Democratic Republic (Lao PDR) after selling almostall the sweet potatoes he carried from his farm some12 kilometers (km) away.
“The road was so rugged and bumpy beforethat I was never able to bring my sweet potatoesfrom my farm,” he says. “Now I come here twicea month to earn kip 20,000–50,000 ($2–$5) eachtime.”
The proceeds from the sale are an importantsecondary income for Mr. Alo. He also grows rice,but his family consumes most of it.
Mr. Alo and his family, including grandchildren,leave their house in an ethnic village while it is stilldark. They pull two wagons for several hours to thefront of a local market as Mr. Alo does not want topay for a slot inside.
His regular visits to the market were madepossible more than a year ago after the road wasrehabilitated under the Greater Mekong SubregionEconomic Cooperation Program (GMS Program).The road is a section of the East-West EconomicCorridor (EWEC), a pioneering project to develop aneconomic corridor in the GMS.
With the rehabilitation of the narrow anddilapidated National Road 9—described as a “moonsurface” by a long-term resident—and its transfor-mation into an all-weather highway, the localmarket has expanded significantly over the pastcouple of years.
The market houses hundreds of small family-owned shops selling not only clothes and consumergoods but also vegetables, fish, and other freshproducts. A 16-year-old student selling vegetables
grown in her small garden says, “I come here toopen my shop twice a week after school to earnmoney for my family.”
The EWEC stretches coast to coast from DaNang to Mawlamyine, linking Viet Nam, Lao PDR,Thailand, and Myanmar. It is a flagship project ofthe GMS Program that the Asian Development Bank(ADB), in partnership with governments and otherinternational development agencies, is promoting.It is a pioneering initiative for economic corridordevelopment.
The 1,500-km road link is the most advanced ofseveral planned corridors crisscrossing the GMS.
Attracting Foreign InvestmentThe EWEC not only helps improve the lives of thepoor residing along the highway but also vitalizeslocal business and attracts foreign investors in theLao PDR.
A 1-hour drive from the Sepon market is thegold and copper producer, Lane Xang MineralsLimited, a joint venture with an Australian company.
The Melbourne-based metals producer employs5,500 people, of whom 3,000 local people areworking for the construction of the gold and coppermine.
The EWEC has made it easier for usto come to this area to invest. Withthe old road, it would have beendifficult to do this business
—Mick Wilkes, General Manager of Lane Xang Minerals Limited’s Sepon operationsRi
chie
Abr
ina
Better roads are good for everyoneBetter roads are good for everyone
CONNECTING NATIONS, LINKING PEOPLE 4544 CONNECTING NATIONS, LINKING PEOPLE
CORRIDORLIFTS
HOPES,INCOMES
Incomes are being boosted and opportunitiesincreased as the road links making up the
East-West Economic Corridor near completion
By Tsukasa MaekawaPRINCIPAL EXTERNAL RELATIONS SPECIALIST
Mr. Alo, in his 60s, stands smiling in frontof a local market in the southeasterntown of Sepon in the Lao People’s
Democratic Republic (Lao PDR) after selling almostall the sweet potatoes he carried from his farm some12 kilometers (km) away.
“The road was so rugged and bumpy beforethat I was never able to bring my sweet potatoesfrom my farm,” he says. “Now I come here twicea month to earn kip 20,000–50,000 ($2–$5) eachtime.”
The proceeds from the sale are an importantsecondary income for Mr. Alo. He also grows rice,but his family consumes most of it.
Mr. Alo and his family, including grandchildren,leave their house in an ethnic village while it is stilldark. They pull two wagons for several hours to thefront of a local market as Mr. Alo does not want topay for a slot inside.
His regular visits to the market were madepossible more than a year ago after the road wasrehabilitated under the Greater Mekong SubregionEconomic Cooperation Program (GMS Program).The road is a section of the East-West EconomicCorridor (EWEC), a pioneering project to develop aneconomic corridor in the GMS.
With the rehabilitation of the narrow anddilapidated National Road 9—described as a “moonsurface” by a long-term resident—and its transfor-mation into an all-weather highway, the localmarket has expanded significantly over the pastcouple of years.
The market houses hundreds of small family-owned shops selling not only clothes and consumergoods but also vegetables, fish, and other freshproducts. A 16-year-old student selling vegetables
grown in her small garden says, “I come here toopen my shop twice a week after school to earnmoney for my family.”
The EWEC stretches coast to coast from DaNang to Mawlamyine, linking Viet Nam, Lao PDR,Thailand, and Myanmar. It is a flagship project ofthe GMS Program that the Asian Development Bank(ADB), in partnership with governments and otherinternational development agencies, is promoting.It is a pioneering initiative for economic corridordevelopment.
The 1,500-km road link is the most advanced ofseveral planned corridors crisscrossing the GMS.
Attracting Foreign InvestmentThe EWEC not only helps improve the lives of thepoor residing along the highway but also vitalizeslocal business and attracts foreign investors in theLao PDR.
A 1-hour drive from the Sepon market is thegold and copper producer, Lane Xang MineralsLimited, a joint venture with an Australian company.
The Melbourne-based metals producer employs5,500 people, of whom 3,000 local people areworking for the construction of the gold and coppermine.
The EWEC has made it easier for usto come to this area to invest. Withthe old road, it would have beendifficult to do this business
—Mick Wilkes, General Manager of Lane Xang Minerals Limited’s Sepon operationsRi
chie
Abr
ina
Better roads are good for everyoneBetter roads are good for everyone
CONNECTING NATIONS, LINKING PEOPLE 4746 CONNECTING NATIONS, LINKING PEOPLE
For its part, the Government of the Lao PDRviews it as a “win-win” project. The Governmentexpects to receive significant taxes and royalties fromthe mine’s operations.
Lane Xang Minerals Limited’s schedule is ontrack. After it started gold production in 2003, thecompany has been producing 140,000–166,000ounces (oz) annually. It expects to boost goldproduction to 220,000 oz in 2005. It started copperproduction in mid-March 2005. In the next 5 years,it expects to boost the annual production to400,000 oz of gold and 100,000 tons of copper.
Underpinning the showcase operations is thetransport infrastructure. “The EWEC has made iteasier for us to come to this area to invest. Withthe old road, it would have been difficult to dothis business,” said Mick Wilkes, General Man-ager of Lane Xang Minerals Limited’s Seponoperations.
Moreover, once Lane Xang Minerals Limitedstarts exporting copper to its major Asian markets—such as People’s Republic of China, India, andJapan—it will need ready access to ports. Majorbottlenecks to ports in Thailand and Viet Nam willhave been eased with a new bridge across theMekong between Mukdahan in Thailand andSavannakhet in the Lao PDR, and a tunnelthrough the Hai Van Pass near Da Nang, VietNam—projects that are also being undertaken aspart of the EWEC.
The bridge is scheduled to be completed in2006, while the tunnel was officially opened in June2005.
Savannakhet officials hope that better transportlinks will bring more investors to lay the basis formore diversified economic activity in the country.
Increasing Expectations of More BusinessFor the small but growing number of Lao PDRentrepreneurs, change in the form of expandedmarkets is clearly welcome.
Lahasin Indigo is a Savannakhet-basedweaving company that uses natural dyes andlocally grown cotton to make high-quality fabricsfor export to Japan in collaboration with Japanesedesigners.
The business involves 1,000 households in sixnearby villages that grow cotton and indigo. Thecotton is spun by people in ethnic minority villageswho are experienced in traditional handspinning.
Currently, 90% of the products are shipped toJapan after being transported by land fromSavannakhet to Mukdahan on the other side of theMekong River, and then to Bangkok.
“Shipping through the Da Nang Port is not yetviable,” says Songbandith Nhotmanhkhong, Directorof Lahasin Indigo. “But once the EWEC is fullycompleted, with the easing of border crossingformalities and export clearance procedures at theDa Nang Port, we would like to seriously considerusing Route 9 because it should provide a shortcutto Japan.”
Serving the Local CommunityBenefits are also spilling over to the local commu-nity. Lao PDR citizens comprise 85% of theworkforce of Lane Xang Minerals Limited. Many,working as drivers, electricians, or maintenancepersonnel, are developing the skills and confidenceto start their own small businesses.
A community program sponsored by the com-pany includes helping farmers diversify from unsus-tainable slash-and-burn agriculture toward cash cropsand mulberry trees to support a fledgling silk industry.
Another program has trained 72 women in10 villages in the art of weaving and dyeing.Currently, their products are sent via the EWEC tobe sold in the Lao PDR capital of Vientiane, andSavannakhet.
People in Savannakhet hope the GMS Programwill boost trade and local business. Savannakhet—the Lao PDR’s most populous province with 14% ofthe total population—is already achieving economicgrowth 1–2% faster than the national rate of 6%.
The pace of change will accelerate with thecompletion of the bridge over the Mekong River.The $75 million bridge—plus an upgraded airport inSavannakhet and improved highway—is expected tobring major changes to the town and the province.
The bridge, a joint undertaking of the Lao PDRand Thailand, is being financed by the Japan Bankfor International Cooperation. The Savannakhetairport, which may be upgraded to handle interna-tional flights, is planned to be shared by the LaoPDR and Thailand. The airport will strengthenregional air and tourism links.
For the small but growing numberof Lao PDR entrepreneurs, changein the form of expanded markets isclearly welcome.
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A Savannakhet weavingcompany exports high-quality fabrics to Japan
A Savannakhet weavingcompany exports high-quality fabrics to Japan
An ethnic minoritywoman uses naturaldyes in her weaving
An ethnic minoritywoman uses naturaldyes in her weaving
CONNECTING NATIONS, LINKING PEOPLE 4746 CONNECTING NATIONS, LINKING PEOPLE
For its part, the Government of the Lao PDRviews it as a “win-win” project. The Governmentexpects to receive significant taxes and royalties fromthe mine’s operations.
Lane Xang Minerals Limited’s schedule is ontrack. After it started gold production in 2003, thecompany has been producing 140,000–166,000ounces (oz) annually. It expects to boost goldproduction to 220,000 oz in 2005. It started copperproduction in mid-March 2005. In the next 5 years,it expects to boost the annual production to400,000 oz of gold and 100,000 tons of copper.
Underpinning the showcase operations is thetransport infrastructure. “The EWEC has made iteasier for us to come to this area to invest. Withthe old road, it would have been difficult to dothis business,” said Mick Wilkes, General Man-ager of Lane Xang Minerals Limited’s Seponoperations.
Moreover, once Lane Xang Minerals Limitedstarts exporting copper to its major Asian markets—such as People’s Republic of China, India, andJapan—it will need ready access to ports. Majorbottlenecks to ports in Thailand and Viet Nam willhave been eased with a new bridge across theMekong between Mukdahan in Thailand andSavannakhet in the Lao PDR, and a tunnelthrough the Hai Van Pass near Da Nang, VietNam—projects that are also being undertaken aspart of the EWEC.
The bridge is scheduled to be completed in2006, while the tunnel was officially opened in June2005.
Savannakhet officials hope that better transportlinks will bring more investors to lay the basis formore diversified economic activity in the country.
Increasing Expectations of More BusinessFor the small but growing number of Lao PDRentrepreneurs, change in the form of expandedmarkets is clearly welcome.
Lahasin Indigo is a Savannakhet-basedweaving company that uses natural dyes andlocally grown cotton to make high-quality fabricsfor export to Japan in collaboration with Japanesedesigners.
The business involves 1,000 households in sixnearby villages that grow cotton and indigo. Thecotton is spun by people in ethnic minority villageswho are experienced in traditional handspinning.
Currently, 90% of the products are shipped toJapan after being transported by land fromSavannakhet to Mukdahan on the other side of theMekong River, and then to Bangkok.
“Shipping through the Da Nang Port is not yetviable,” says Songbandith Nhotmanhkhong, Directorof Lahasin Indigo. “But once the EWEC is fullycompleted, with the easing of border crossingformalities and export clearance procedures at theDa Nang Port, we would like to seriously considerusing Route 9 because it should provide a shortcutto Japan.”
Serving the Local CommunityBenefits are also spilling over to the local commu-nity. Lao PDR citizens comprise 85% of theworkforce of Lane Xang Minerals Limited. Many,working as drivers, electricians, or maintenancepersonnel, are developing the skills and confidenceto start their own small businesses.
A community program sponsored by the com-pany includes helping farmers diversify from unsus-tainable slash-and-burn agriculture toward cash cropsand mulberry trees to support a fledgling silk industry.
Another program has trained 72 women in10 villages in the art of weaving and dyeing.Currently, their products are sent via the EWEC tobe sold in the Lao PDR capital of Vientiane, andSavannakhet.
People in Savannakhet hope the GMS Programwill boost trade and local business. Savannakhet—the Lao PDR’s most populous province with 14% ofthe total population—is already achieving economicgrowth 1–2% faster than the national rate of 6%.
The pace of change will accelerate with thecompletion of the bridge over the Mekong River.The $75 million bridge—plus an upgraded airport inSavannakhet and improved highway—is expected tobring major changes to the town and the province.
The bridge, a joint undertaking of the Lao PDRand Thailand, is being financed by the Japan Bankfor International Cooperation. The Savannakhetairport, which may be upgraded to handle interna-tional flights, is planned to be shared by the LaoPDR and Thailand. The airport will strengthenregional air and tourism links.
For the small but growing numberof Lao PDR entrepreneurs, changein the form of expanded markets isclearly welcome.
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A Savannakhet weavingcompany exports high-quality fabrics to Japan
A Savannakhet weavingcompany exports high-quality fabrics to Japan
An ethnic minoritywoman uses naturaldyes in her weaving
An ethnic minoritywoman uses naturaldyes in her weaving
CONNECTING NATIONS, LINKING PEOPLE 4948 CONNECTING NATIONS, LINKING PEOPLE
What is the GMS Program?The GMS Economic Cooperation Program (GMSProgram) was initiated in 1992 with the support ofADB. It aims to promote economic cooperationamong Cambodia, People’s Republic of China (PRC),Lao People’s Democratic Republic (Lao PDR),Myanmar, Thailand, and Viet Nam.
The GMS Program covers nine priority sectors:transportation, telecommunications, energy,environment, human resource development, trade,investment, tourism, and agriculture.
What has been the outcome so far of theGMS Program?The GMS Program has catalyzed the process ofregional cooperation among the countries that sharethe Mekong River by enhancing connectivitythrough transport, telecommunications, and energylinkages; increasing competitiveness through tradeand investment facilitation; identifying subregionaldevelopment opportunities; building a greater senseof community by addressing transborder issues; andincreasing attention paid to the sustainable manage-ment of common resources.
Priority subregional projects in the nine sectorsof cooperation are being implemented with supportfrom GMS governments, ADB, and other develop-ment partners.
As of the end of April 2005, ADB providedfinancial assistance for 19 loan projects worth$5.2 billion—of which ADB funding comprised$1.4 billion—and 100 technical assistance projectsworth $105 million—of which ADB funding com-prised $60 million.
The GMS Program has generated a peacedividend, which is reflected in increased economic
opportunities and growth and closer subregionalcooperation among the GMS countries.
What are the benefits of closer economic tiesamong the GMS countries?Tangible benefits flow through the development ofcross-border infrastructure linkages that lowertransport and communication costs; through acooperative approach to the management of sharednatural resources; and through harmonizing institu-tional arrangements for the cross-border movementof people and goods.
Closer economic ties help realize economies ofscale, enhance complementarity among neighboringcountries, and ensure regional economic andfinancial stability. Regional cooperation helpsestablish important cross-border linkages to address
FREQUENTLYASKED
QUESTIONS
priority social issues in health, and people and drugtrafficking. It is helping the region move toward theGMS leaders’ vision of a peaceful, prosperous, andmore equitable subregion, and is providing animportant tool in the fight against poverty.
What are GMS flagship programs?The GMS flagship programs are the core initiativesthat provide focus to the program. They are large-scale initiatives identified by the GMS countries toimplement the 10-year GMS Strategic Framework.
Of the 11 flagship programs, the most visibleare the economic corridors linking the subregion.These economic corridors have been planned aroundmajor transport infrastructure that the GMS Programdesigned and implemented.
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The owner of aweaving companyin the Lao PDR hopesto expand exports ofindigo cotton fabrics
The owner of aweaving companyin the Lao PDR hopesto expand exports ofindigo cotton fabrics
A Mekong bridge betweenMukdahan, Thailand andSavannakhet, Lao PDR willbe completed in 2006
A Mekong bridge betweenMukdahan, Thailand andSavannakhet, Lao PDR willbe completed in 2006
CONNECTING NATIONS, LINKING PEOPLE 4948 CONNECTING NATIONS, LINKING PEOPLE
What is the GMS Program?The GMS Economic Cooperation Program (GMSProgram) was initiated in 1992 with the support ofADB. It aims to promote economic cooperationamong Cambodia, People’s Republic of China (PRC),Lao People’s Democratic Republic (Lao PDR),Myanmar, Thailand, and Viet Nam.
The GMS Program covers nine priority sectors:transportation, telecommunications, energy,environment, human resource development, trade,investment, tourism, and agriculture.
What has been the outcome so far of theGMS Program?The GMS Program has catalyzed the process ofregional cooperation among the countries that sharethe Mekong River by enhancing connectivitythrough transport, telecommunications, and energylinkages; increasing competitiveness through tradeand investment facilitation; identifying subregionaldevelopment opportunities; building a greater senseof community by addressing transborder issues; andincreasing attention paid to the sustainable manage-ment of common resources.
Priority subregional projects in the nine sectorsof cooperation are being implemented with supportfrom GMS governments, ADB, and other develop-ment partners.
As of the end of April 2005, ADB providedfinancial assistance for 19 loan projects worth$5.2 billion—of which ADB funding comprised$1.4 billion—and 100 technical assistance projectsworth $105 million—of which ADB funding com-prised $60 million.
The GMS Program has generated a peacedividend, which is reflected in increased economic
opportunities and growth and closer subregionalcooperation among the GMS countries.
What are the benefits of closer economic tiesamong the GMS countries?Tangible benefits flow through the development ofcross-border infrastructure linkages that lowertransport and communication costs; through acooperative approach to the management of sharednatural resources; and through harmonizing institu-tional arrangements for the cross-border movementof people and goods.
Closer economic ties help realize economies ofscale, enhance complementarity among neighboringcountries, and ensure regional economic andfinancial stability. Regional cooperation helpsestablish important cross-border linkages to address
FREQUENTLYASKED
QUESTIONS
priority social issues in health, and people and drugtrafficking. It is helping the region move toward theGMS leaders’ vision of a peaceful, prosperous, andmore equitable subregion, and is providing animportant tool in the fight against poverty.
What are GMS flagship programs?The GMS flagship programs are the core initiativesthat provide focus to the program. They are large-scale initiatives identified by the GMS countries toimplement the 10-year GMS Strategic Framework.
Of the 11 flagship programs, the most visibleare the economic corridors linking the subregion.These economic corridors have been planned aroundmajor transport infrastructure that the GMS Programdesigned and implemented.
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The owner of aweaving companyin the Lao PDR hopesto expand exports ofindigo cotton fabrics
The owner of aweaving companyin the Lao PDR hopesto expand exports ofindigo cotton fabrics
A Mekong bridge betweenMukdahan, Thailand andSavannakhet, Lao PDR willbe completed in 2006
A Mekong bridge betweenMukdahan, Thailand andSavannakhet, Lao PDR willbe completed in 2006
CONNECTING NATIONS, LINKING PEOPLE 5150 CONNECTING NATIONS, LINKING PEOPLE
What are the greatest challenges for GMS?There are four major challenges that need to beaddressed if the program were to foster greaterprosperity and equity in the region:
mobilizing financial resources to address thesubregion’s investment needs,developing the subregion’s human resourcepotential,managing and nurturing the subregion’s naturalenvironment, and
preparing for changes in the global and regionaleconomic environment.
What opportunities exist for private sectorparticipation in the GMS Program?The private sector has a crucial role to play in theGMS Program. GMS members recognize the privatesector as one of the main engines of growth for thesubregion. Financing of infrastructure projects underthe GMS Program provides an immediate opportu-nity for private sector participation, particularly intelecommunications and energy. Business opportuni-ties also arise from closer economic relations amongGMS countries and as the subregion improves itscompetitiveness. However, the private sector’spotential contribution extends beyond financing ofdevelopment projects. Its role in capacity building isequally important, through the introduction of newideas, technology, and management and otherexpertise needed in the pursuit of development.
How has the GMS Program contributed toprivate sector development in the GMS?Given the key role of the private sector in develop-ing the subregion, the thrust of the GMS Program isto improve the environment for doing business inthe Mekong.
The GMS Program aims to expand cross-borderbusiness activities by improving connectivity amongmember countries, and implementing measures topromote GMS countries’ competitiveness. This ismade possible through developing economiccorridors—East-West, North-South, and Southern—
and promoting improved trade facilitation measures.All the first-generation economic corridors areexpected to be substantially completed by 2008. Intrade facilitation, all six GMS countries are about toimplement a GMS Cross-Border Transport Agree-ment to facilitate the movement of people andgoods across their borders, thereby reducing thecost of cross-border transport and improvingefficiency. Moreover, a Strategic Framework forAction on Trade Facilitation and Investment that willcommit to time-bound, specific measures has beenformulated to reduce trade and business transactioncosts in the subregion.
To strengthen business links among the membercountries, strategic partnerships among localbusiness chambers and provincial governments arealso being promoted under the GMS BusinessForum, which was launched in 2000. The GMSBusiness Forum focuses on promoting businessopportunities through networking, capacity build-ing, and product promotion. It also serves as theofficial channel for interface between the privatesector and the GMS governments.
In a more globalized environment, what isthe role of regional cooperation?Regional cooperation is a vehicle to effectively strivefor lasting peace, greater prosperity, and sustainableand equitable development. Regional economiccooperation can boost exports, create jobs, and raiseincomes—especially in countries that are nottraditionally export-oriented. A more open economyleads to a more efficient redistribution of the
Floy
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By improving trade,women will find it easierto get their products tomarket
By improving trade,women will find it easierto get their products tomarket Better transport routes
mean more tradeBetter transport routesmean more trade
workforce. For example, workers will shift fromimport substitution to export industries. Such moveswill enhance an economy’s international competi-tiveness and expand growth.
A regional approach is also often a moreefficient and effective way to address transborderissues. Communicable diseases such as HIV/AIDS ormalaria are often transmitted across borders and aretherefore more effectively addressed by a combina-tion of regional and national level programs.
Regional forums may also be an effective wayof ensuring compliance to global commitments asthey involve relatively few members and are lessconstrained than larger forums.
CONNECTING NATIONS, LINKING PEOPLE 5150 CONNECTING NATIONS, LINKING PEOPLE
What are the greatest challenges for GMS?There are four major challenges that need to beaddressed if the program were to foster greaterprosperity and equity in the region:
mobilizing financial resources to address thesubregion’s investment needs,developing the subregion’s human resourcepotential,managing and nurturing the subregion’s naturalenvironment, and
preparing for changes in the global and regionaleconomic environment.
What opportunities exist for private sectorparticipation in the GMS Program?The private sector has a crucial role to play in theGMS Program. GMS members recognize the privatesector as one of the main engines of growth for thesubregion. Financing of infrastructure projects underthe GMS Program provides an immediate opportu-nity for private sector participation, particularly intelecommunications and energy. Business opportuni-ties also arise from closer economic relations amongGMS countries and as the subregion improves itscompetitiveness. However, the private sector’spotential contribution extends beyond financing ofdevelopment projects. Its role in capacity building isequally important, through the introduction of newideas, technology, and management and otherexpertise needed in the pursuit of development.
How has the GMS Program contributed toprivate sector development in the GMS?Given the key role of the private sector in develop-ing the subregion, the thrust of the GMS Program isto improve the environment for doing business inthe Mekong.
The GMS Program aims to expand cross-borderbusiness activities by improving connectivity amongmember countries, and implementing measures topromote GMS countries’ competitiveness. This ismade possible through developing economiccorridors—East-West, North-South, and Southern—
and promoting improved trade facilitation measures.All the first-generation economic corridors areexpected to be substantially completed by 2008. Intrade facilitation, all six GMS countries are about toimplement a GMS Cross-Border Transport Agree-ment to facilitate the movement of people andgoods across their borders, thereby reducing thecost of cross-border transport and improvingefficiency. Moreover, a Strategic Framework forAction on Trade Facilitation and Investment that willcommit to time-bound, specific measures has beenformulated to reduce trade and business transactioncosts in the subregion.
To strengthen business links among the membercountries, strategic partnerships among localbusiness chambers and provincial governments arealso being promoted under the GMS BusinessForum, which was launched in 2000. The GMSBusiness Forum focuses on promoting businessopportunities through networking, capacity build-ing, and product promotion. It also serves as theofficial channel for interface between the privatesector and the GMS governments.
In a more globalized environment, what isthe role of regional cooperation?Regional cooperation is a vehicle to effectively strivefor lasting peace, greater prosperity, and sustainableand equitable development. Regional economiccooperation can boost exports, create jobs, and raiseincomes—especially in countries that are nottraditionally export-oriented. A more open economyleads to a more efficient redistribution of the
Floy
d W
hale
y
Rich
ie A
brin
a
By improving trade,women will find it easierto get their products tomarket
By improving trade,women will find it easierto get their products tomarket Better transport routes
mean more tradeBetter transport routesmean more trade
workforce. For example, workers will shift fromimport substitution to export industries. Such moveswill enhance an economy’s international competi-tiveness and expand growth.
A regional approach is also often a moreefficient and effective way to address transborderissues. Communicable diseases such as HIV/AIDS ormalaria are often transmitted across borders and aretherefore more effectively addressed by a combina-tion of regional and national level programs.
Regional forums may also be an effective wayof ensuring compliance to global commitments asthey involve relatively few members and are lessconstrained than larger forums.
52 CONNECTING NATIONS, LINKING PEOPLE
About the Asian Development Bank
The Asian Development Bank (ADB)’s work isaimed at improving the welfare of the peopleof the Asia and Pacific region, particularlythe 1.9 billion who live on less than $2 a day.Despite the success stories, Asia and the Pacificremains home to two thirds of the world’spoor.
ADB is a multilateral development financeinstitution owned by 63 members, 45 fromthe region and 18 from other parts of theglobe. ADB’s vision is a region free of poverty.Its mission is to help its developing membercountries reduce poverty and improve theirquality of life.
ADB’s main instruments in providing helpto its developing member countries arepolicy dialogue, loans, technical assistance,grants, guarantees, and equity investments.ADB’s annual lending volume is typically about$6 billion, with technical assistance providedusually totaling about $180 million a year.
ADB’s headquarters is in Manila. It has26 offices around the world. The organizationhas more than 2,000 employees from over50 countries.
Printed in the Philippines
Asian Development Bank6 ADB Avenue, Mandaluyong City1550 Metro Manila, PhilippinesTel +63 2 632 4444Fax +63 2 636 2444www.adb.orgPublication Stock No. 051405
About the GMS
The Greater Mekong Subregion (GMS)comprises Cambodia, People’s Republic ofChina, Lao People’s Democratic Republic,Myanmar, Thailand, and Viet Nam.It is home to about 300 million people andcovers an area of 2.6 million square kilometers.The GMS Economic Cooperation Program(GMS Program) was initiated in 1992with ADB assistance to facilitate sustainableeconomic growth and reduce povertyin the subregion by strengthening theeconomic linkages among the six countries.
www.adb.org/gms
52 CONNECTING NATIONS, LINKING PEOPLE
About the Asian Development Bank
The Asian Development Bank (ADB)’s work isaimed at improving the welfare of the peopleof the Asia and Pacific region, particularlythe 1.9 billion who live on less than $2 a day.Despite the success stories, Asia and the Pacificremains home to two thirds of the world’spoor.
ADB is a multilateral development financeinstitution owned by 63 members, 45 fromthe region and 18 from other parts of theglobe. ADB’s vision is a region free of poverty.Its mission is to help its developing membercountries reduce poverty and improve theirquality of life.
ADB’s main instruments in providing helpto its developing member countries arepolicy dialogue, loans, technical assistance,grants, guarantees, and equity investments.ADB’s annual lending volume is typically about$6 billion, with technical assistance providedusually totaling about $180 million a year.
ADB’s headquarters is in Manila. It has26 offices around the world. The organizationhas more than 2,000 employees from over50 countries.
Printed in the Philippines
Asian Development Bank6 ADB Avenue, Mandaluyong City1550 Metro Manila, PhilippinesTel +63 2 632 4444Fax +63 2 636 2444www.adb.orgPublication Stock No. 051405
About the GMS
The Greater Mekong Subregion (GMS)comprises Cambodia, People’s Republic ofChina, Lao People’s Democratic Republic,Myanmar, Thailand, and Viet Nam.It is home to about 300 million people andcovers an area of 2.6 million square kilometers.The GMS Economic Cooperation Program(GMS Program) was initiated in 1992with ADB assistance to facilitate sustainableeconomic growth and reduce povertyin the subregion by strengthening theeconomic linkages among the six countries.
www.adb.org/gms
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