A Regional Perspective: GMS, ASEAN, and the Asian Region

By Putu Kamayana
Country Director Cambodia Resident Mission Asian Development Bank 2011 Cambodia Outlook Conference
Phnom Penh, 16 March 2011

Rationale for Regional Cooperation and Integration

The ADB RCI Strategy

OVERACHING MISSION/ OBJECTIVE

POVERTY REDUCTION
Regional Cooperation and Integration

FOUR PILLARS OF REGIONAL COOPERATION AND INTEGRATION Regional and Subregional Economic Cooperation

Trade and Investment Cooperation and Integration

Individual Country Programs

Monetary and Financial Cooperation and Integration

Regional Public Goods CORE AREAS OF INTERVENTION Pro-Poor ProSustainable Economic Growth Inclusive Social Development Good Governance

RCI in Asia

IMT-GT

ASEAN Revitalization and the Role of Subregional RCI Initiatives

ASEAN Increasing focus on economic integration:
o Establishment of AFTA o FTAs with major economies in the region o Adoption of a formal ASEAN charter o Acceleration of the ASEAN Economic Community to 2015 o Preparation of the AEC Blueprint

Increased connectivity a prerequisite for achievement of AEC Adoption of a Master Plan for ASEAN Connectivity Subregional cooperation programs serve as building blocks of ASEAN connectivity and integration (e.g., GMS, IMT-GT, BIMP-EAGA).
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The GMS Program

ADB flagship RCI initiative since the early 1990s Participating Countries:
Cambodia, Peoples Republic of China, Lao PDR, Myanmar, Thailand, and Viet Nam o Vision a more integrated, prosperous, and harmonious subregion o 3 Cs Connectivity, Competitiveness, Community o economic corridor approach

Strategic Priorities:

GMS projects totaled $13.8 billion 5

as of end-2010

Cambodias Policy on RCI

The Rectangular Strategy Phase II : Cambodias integration into the region and the world National Strategic Development Plan, Update 2009-2013 laid out priority policies for regional cooperation and integration through ASEAN, GMS, ACMECS, CLMV, and CLV Backing ASEAN plus-plus initiatives Experienced and strong leadership from Samdech PM Hun Sen
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Cambodia in ASEAN
Joined ASEAN on 30 April 1999 To cope with globalization and regionalization Hosted 8th ASEAN Summit in Phnom Penh Hosted 6th CLV Summit, 5th CLMV Summit, 4th ACMECS Summit Supported and actively participated in ASEM Participation in ASEAN-US Leaders Meeting Ratifications of AFTA and other free trade agreements
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Cambodia in the GMS

Participant in the GMS since its inception in 1992 Key sections of GMS Southern Economic Corridor (SEC) Major projects in infrastructure connectivity
o Transport e.g., PP-HCMC Highway, Railway
rehabilitation and restructuring

o Power e.g., power interconnection lines,

regional power trade agreement

o Telecoms e.g., GMS telecoms backbone,

Information Superhighway Network, policy reform

Actively involved in software aspects of RCI

o Transport and trade facilitation (TTF) o HRD, environment, agriculture, tourism
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Key Issues and Challenges in RCI

Transforming connectivity or the transport corridors into genuine economic corridors: institutional/policy reform; private sector engagement Tapping into emerging opportunities in dynamic Asia, through the corridors -- e.g. linking with PRC and India/South Asia Addressing global warming and climate change: low carbon
development path; mitigation and adaptation

Addressing potential negative effects of increased connectivity:

communicable disease control; human trafficking and transnational crime; flood and drought management; biodiversity protection HRD, labor and migration; urban development

Responding to changing demographics and increased urbanization: Increased mobilization of private investments for regional projects, including innovative public-private partnership modalities
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Opportunities
Strong ownership of RCI by Cambodias leadership Pioneering projects in Cambodia that have a substantial RCI impact e.g., rehabilitation and restructuring the Cambodian
railway potential for developing Cambodia into a inter-modal transport hub

Turning Cambodias rice into white gold through AFTA and other free trade agreements Connecting the two major industrial manufacturing hubs of Bangkok and Ho Chi Minh City

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Key Policy Directions

While infrastructure remains a priority, equal emphasis to be given to software Need for a holistic and multisectoral approach Strong ownership and political will; alignment of subregional and national priorities Recognizing varying levels of development among countries Importance of strengthening institutions Need for closer linkages among various regional/subregional initiatives

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Thank You