South Asia Sub-regional Economic Cooperation (SASEC) Seminar Presentation.pdf · 2013-07-30 ·...
Transcript of South Asia Sub-regional Economic Cooperation (SASEC) Seminar Presentation.pdf · 2013-07-30 ·...
South Asia Sub-regional
Economic Cooperation (SASEC): Building Block Between South & East Asia
Sekhar Bonu Director, SARC/ SARD, ADB
7 September 2012
Disclaimer: In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or
geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
Contents
1. Introduction 2. Significance of SASEC 3. Progress Made Under SASEC 4. Challenges and Opportunities Ahead 5. Conclusions
1. Introduction
RCI in Practice in South Asia
Nepal
Sri Lanka
Afghanistan
Bangladesh
India
Bhutan
Pakistan
Maldives
Thailand
Myanmar
BIMSTEC (1997)
SASEC (2001)
SAARC
(1985)
• SAARC - South Asian Association for Regional Cooperation • SASEC - South Asia Subregional Economic Cooperation • BIMSTEC - Bay of Bengal Initiative for Multi-Sectoral
Technical and Economic Cooperation
Genesis of SASEC
• ADB supported the South Asia Growth Quadrilateral (SAGQ) that was endorsed by the Ninth Summit of the SAARC (Male Summit) in 1997
• Founding members SAGQ: Bangladesh, Bhutan, India and Nepal (BBIN)
• Four years later, in 2001, ADB launched South Asian Sub-regional Economic Cooperation Program (SASEC)
2. Significance of SASEC
For SASEC Countries
• Bangladesh: New markets, develop its ports, energy import
• Bhutan: Access to ports, export of energy
• India: Access to ports for NE, transit through Bangladesh to NE
• Nepal: Access to ports, export energy
North-East India • Eastern and North Eastern states
account for 21% of total area and
around 26% of total population of
India. Per capita GDP for NE India in
2008 was Rs25,800, while it was
Rs42,143 for rest of India.
• FDI inflow (April 2000 to August 2010)
in NE states is Rs 2,800 million
compared to Rs1,849,560 million in
Maharashtra and Rs1,099,810 in
NCR
• Contribution to Exports by NE States
is less than 8% compared to 24% by
Maharashtra and 22% by Gujarat
Deloitte and AMCHAM. 2011. Globalization for development of Eastern India. India
Disclaimer: In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or
geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
Inter-Regional
• SASEC consists of 4 countries of SAARC, and BIMSTEC
• SASEC along with Myanmar lie at the centre of Asia’s transformational trio—PRC, India and South East Asia
• With changes in Myanmar, the significance of SASEC as building block for inter-regional integration has boosted
Centrality of SASEC in
The Garland of an Integrated Asia
ASEAN Association of Southeast Asian Nations
BIMP-EAGA Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area
BIMSTEC Bay of Bengal Initiative for Multisectoral Technical and Economic Cooperation
CAREC Central Asia Regional Economic Cooperation
GMS Greater Mekong Subregion
IMT-GT Indonesia Malaysia Thailand Growth Triangle
PIF Pacific Islands Forum
SAARC South Asian Association for Regional Cooperation
Asia is increasingly integrated
economically stretching from the
shores of the Black Sea in the
West to the Western shores of the
Pacific in the East and stretching
from the Maldives and South
Pacific to PRC and Central Asia in
the North
Disclaimer: In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or
geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
SASEC
Strategic Importance of SASEC for Realizing “Asian Century”
Disclaimer: In preparing any country program or strategy, financing any project, or by making
any designation of, or reference to, a particular territory or geographic area in this document,
the Asian Development Bank does not intend to make any judgments as to the legal or other
status of any territory or area.
Himalayas
India
16% GDP
SE & E Asia
16% GDP
PRC
20% GDP
Key Role
of SASEC
and
Myanmar
SASEC and Myanmar are at the centre of the connectivity between India, PRC and South East Asia
If the potential of Asia 2050 is to materialize, greater integration between India, South East Asia and PRC will be central
GDP figures- Estimate of global GDP contribution by India,
PRC and South East Asia in 2050 if full potential realized 2009 2050
Share or Global GDP (%)
3. Progress Made Under SASEC
SASEC Areas of Cooperation
Since 2001, ADB has provided 14 regional technical assistance amounting to
approximately $7.6 million to support the priority sectors under the SASEC program
Environment
g Regional Air Quality Management
g Networking of Experts
g Freshwater Pollution
g Hazardous Waste
g Sustainable Development Corridor
Tourism
g SASEC Tourism Development Plan
g Eco tourism and Buddhism
g Joint Marketing Strategy
ICT
g Regional connectivity
g E - community Center
g Harmonization of regulations
g Human Resource Development
Transport
g Corridor Operational Efficiency
g Regional road connectivity
g Cross border inspections
g Electronic data interchange
Trade, Investment and Private
Sector Cooperation
g South Asia Business Forum
g Tariff and Non-Tariff Barriers
g Human Resource Development
g ICT
g Agro - processing
g Audio - visual Entertainment
g Tourism
Energy and Power
g Rural Electrification
g Electricity connections
g Hydropower
g Compressed Natural Gas
g Four Borders Project
A Decade of SASEC
• Flagship Projects
– SASEC Information Highway Project
– South Asia Tourism Infrastructure Development Project
– Bangladesh-India Electrical Interconnection Grid Project
• Sectoral Assistance
– Tourism : 10 –year tourism development plan
– Transport: Identification of six priority corridors (SRMTS]
– Trade, Investment, and Private Sector Cooperation: South Asia Business Forum; private sector cooperation in non-tariff barriers
– Energy and Power: Power generation (SRETS); Dagachu Hydropower (Bhutan)
– Environment: Regional air quality management
SAARC Regional Multimodal Transport Study (SRMTS) RETA 6187
• SRMTS recommendations
• 10 regional road corridors/gateways
• 5 regional rail corridors/gateways
• 10 maritime gateways
• 7 aviation gateways
• Policy measures to improve transport & trade facilitation
Disclaimer: In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or
geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
ADB’s Assistance to Improve Connectivity in India’s North Eastern Region
• State Road Development Program covers 6 States in the NER to upgrade 430 km of roads at $200 million
• ADB is also considering investments in the chicken-neck corridor of India by upgrading two key priority SASEC road corridors and in trade facilitation amounting to $105 million
Source: ADB Project Documents, 2012 Disclaimer: In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
4. Challenges and Opportunities Ahead
Current Inter-Regional Trade (US$Billion)
SA
PRC
EA
ASEAN
$1834
$95
$767
$556
$104
$630
$52
$52
$50
$57
$531
$375
$23
$181 $212
Source: Yue, CS. 2011. Asian
Trade Patters, Production
Networks, and SME Participation.
Powerpoint
? Informal
Trade
Sub-Regional Shares in Trade Gains from Logistics Improvement
Source: ADB TA: 7557 – Promoting Regional Infrastructure Development (TA estimates based on
COMTRADE data for 2009 and ADB Key Indicators for Asia and Pacific 2010.
Trade Facilitation (TF)
Bangladesh
Bhutan
China
India
Nepal
OECD members
Singapore
South Asia
Sri Lanka
Thailand
0
5
10
15
20
25
30
35
40
0 5 10 15 20 25 30 35 40 45
Tim
e t
o i
mp
ort
(d
ays)
Time to export (days)
Source: World Bank, 2010.
TF - Documentation
South Asia
Bangladesh
Bhutan
China
India
Nepal
OECD members
Singapore
Sri Lanka
Thailand
2
3
4
5
6
7
8
9
10
11
12
3 4 5 6 7 8 9 10
Do
cu
me
nt
req
uir
ed
to
im
po
rt (
nu
mb
er)
Documents required to export (number)
Source: World Bank, 2010.
Logistic performance index (overall)
0 5 10 15 20 25
Nepal
Sri Lanka
Bhutan
South Asia
Bangladesh
India
Thailand
China
OECD members
Singapore
13
14
14
15
16
19
20
21
22
25
Poor Cross Border Infrastructure
Regional Connectivity in North Eastern Region
• The LEP cannot be realized without providing the NER with world-class infrastructure and building a network of connectivity
• Development of NER’s infrastructure includes
(i) rail, road, inland water and air transportation; and (ii) communication networks to connect the NER with East Asia.
SASEC ++ Need for Strengthening BIMSTEC
• The Bay of Bengal Initiative for Multisectoral Technical and Economic Cooperation (BIMSTEC) aims to combine the “Look West” policy of Thailand and ASEAN with the “Look East” policy of India and South Asia
• BIMSTEC endorsed the Transport Infrastructure and Logistics Study (BTILS) [RETA 6335]
• BIMSTEC Transport Infrastructure and Logistics Study (BTILS) recommended policy framework and strategies to be implemented within the period 2008-2020; with priority projects/activities from 2008 to 2014
• road development • railway system harmonization and connectivity • development of gateway ports and airports • formulation of transport agreements and facilitation measures • implementation of the logistics action plan
Strengthen BIMSTEC: Myanmar, the Missing Link
• Myanmar is the missing link to connect South Asia and East Asia
• New developments in Myanmar signal that it is now time to strengthen India’s Look East Policy
• Myanmar has the potential to become an important land bridge and sea route to ASEAN, the PRC, and East Asia
• Strengthening BIMSTEC can be a strategic way to achieve linkages with Myanmar
Strengthen Greater Coordination Among SASEC, BIMSTEC and GMS
Proactively steps to facilitate greater coordination among regional and subregional cooperation initiatives, primarily through:
– Increasing engagement with ASEAN
– Facilitating greater BIMSTEC cooperation
– Providing more support for SASEC
– Strengthening the ‘Bangladesh, the PRC, India, and Myanmar (BCIM) Initiative’
– Increasing support for CLMV (Cambodia, Laos, Myanmar and Viet Nam) within the GMS framework
– Initiate and/or facilitate a common regional platform for subregional and regional programs to share information and strengthen coordination
6. Conclusions
Regional Cooperation : Immediate Neighbors
• Strengthen SASEC on transport connectivity, energy cooperation and trade facilitation
• Achieve seamless integration of movement of vehicles (road and rail) and goods in the SASEC
• Strengthen the BIMSTEC – establish effective rail and road links between India-Bangladesh-Myanmar
Regional Cooperation: South East Asia and PRC
• SASEC + BIMSTEC grouping should work closely with GMS and ASEAN
• Transform the largely bilateral trade flows between PRC and South East Asia into trilateral trade flows between India (South Asia), PRC and South East Asia
• Create win-win opportunities and unlock Asia’s full growth potential
Facilitating Role of ADB
• ADB plays key role in SASEC + BIMSTEC + GMS
• ADB committed to intra- and inter-regional cooperation
• ADB is committed to unlocking Asia’s full growth potential, where success of SASEC is critical
Thank You