Greater Mekong Subregion (GMS) leaders adopted a joint declaration oftheir fifth summit in Bangkok , Thailand on December 20, committingto the inclusive and sustainable development of the subregion,especially the effective management and use of Mekong River waterresources.
Following is the full text of the joint declaration.
Joint Summit Declaration
“ Committed to Inclusive and Sustainable Development in the GMS”
WE, the Heads of the Governments of the Kingdom of Cambodia, thePeople’s Republic of China (PRC), the Lao People’s Democratic Republic(Lao PDR), the Republic of the Union of Myanmar, the Kingdom ofThailand, and the Socialist Republic of Viet Nam, on the occasion of theFifth GMS Summit:
Abiding by the GMS tradition ofpragmatic and results-oriented cooperation, strong country ownership,close consultations among member countries, and pursuit of mutual andinclusive benefits;
Reaffirming the broad directions,thrusts, and approaches contained in the GMS Strategic Framework(2012–2022), which we endorsed at the Fourth GMS Summit in Nay Pyi Taw,Myanmar on 20 December 2011;
Appreciating thetremendous efforts of our Ministers, senior officials, and all concernedparties in translating the GMS Strategic Framework into a RegionalInvestment Framework, in compliance with our directive to generate aportfolio of second generation GMS projects for the new decade;
Recognizing that efforts are now focused on the resolute and promptimplementation of the Regional Investment Framework to achieve theultimate goal of inclusive and sustainable development in the GMS;
HEREBY JOIN FORCES toward the expeditious and successful execution ofpriority investment projects and other cooperative undertakings weagreed upon, and the realization of their benefits for the peoples ofthe GMS, guided by a clear and pragmatic implementation plan andmobilizing the support of all stakeholders.
I. Developments in the Regional and Global Context
1. The global economy is gradually recoveringfrom the recent worldwide financial and economic crisis, with the majorindustrial economies making progress, although the overall growth isstill slow and uneven. The Asian economies have shown the greatestresilience in the aftermath of the crisis and are now leading the globaleconomic recovery and making every effort to sustain their gainsthrough sound fiscal policies and financial reforms.
2.Within Asia, increasing regional and sub-regionalcooperation has greatly accelerated connectivity and integration. TheASEAN-member countries are making steady progress toward realization ofthe ASEAN Economic Community (AEC) with many measures of the AECBlueprint now under implementation. Moreover, maturing trade andinvestment frameworks between ASEAN and other key countries in theregion, including the Free Trade Area between ASEAN and the People’sRepublic of China, have led to substantial tariff reductions andincreased flows of goods, investment and services across borders.
3. However, there are still a number ofpotential threats to the steady recovery as well as sustained long termgrowth of Asian economies, including global and regional environmentalconcerns, as well as the increasing severity of natural disasters, manyof which can be attributed to climate change. T he uneven levels ofpreparedness among ASEAN member countries for more integrated marketsunder the AEC also pose challenges, both to the public and privatesectors.
4. Within the GMS, theopening up and integration of Myanmar into the regional economy hasaccelerated since the Fourth GMS Summit in Nay Pyi Taw three years ago,providing tremendous opportunities for closer cooperation within theGMS. This cooperation can translate into increased cross-borderconnectivity, greater trade and investment, and a brighter future forthe people of Myanmar , as well as the people of the GMS.
II. Recent Results of GMS Cooperation
5. Against this backdrop of global and regionaltrends, continued cooperation within the GMS has yielded substantialresults since our last Summit in 2011. First, we have carefully andclearly defined the strategic thrusts of the GMS Economic CooperationProgram for the medium- and long-term. Since our endorsement of the GMSStrategic Framework at the Fourth Summit, our GMS forums, workinggroups, task forces and senior officials finalized the RegionalInvestment Framework (RIF), a detailed and time-bound investment programto support the Strategic Framework. The GMS Ministers endorsed the RIFat the19th Ministerial Conference last year.
6.Further, to ensure that the highest priority projectsin the RIF pipeline attract the necessary financing and areimplemented, a realistic and achievable RIF Implementation Plan hasbeen prepared, together with a simple monitoring and evaluation(M&E) system. The RIF Implementation Plan, which identifies 92 highpriority subregional projects for 2014-2018 with an estimated total costof $30.1 billion, not only provides a strategic roadmap and actionplan, but it will also serve as an effective marketing tool in ourefforts to generate broad support for key initiatives throughout theGMS.
7. Over the past threeyears, sustained cooperation at the sector level has also yieldedsignificant results. In the traditional area of infrastructureconnectivity, some notable achievements include:
a.In transport, the infrastructure foundation of the GMS corridorswas further bolstered by the completion of the Fourth InternationalMekong Bridge between Hoayxay, Lao PDR and Chiang Khong, Thailand, thelast missing link along the North-South Economic Corridor (NSEC), whichwas opened in December last year. Also, along the eastern part of theNSEC, the 240-kilometer Noi Bai-Lao Cai Expressway in Viet Nam , oneof the largest GMS infrastructure projects, was opened in September thisyear. Preparations are underway to extend the East-West EconomicCorridor (EWEC) into Myanmar, with project financing to beconsidered for approval in 2015. The Southern Cambodia Railway Linefrom Phnom Penh to Sihanoukville was completed and opened for commercialtraffic in December 2012. The Memorandum of Understanding (MOU) forthe Establishment of the Greater Mekong Railway Association (GMRA) wassigned by all the GMS countries, and technical assistance from ADB isongoing. This is a positive step toward the promotion of railways as anefficient and clean mode of transport. We also welcome continued effortsto maximize the economic and social benefits of GMS roads and bridgesby facilitating cross-border transport through the GMS Cross BorderTransport Facilitation Agreement (CBTA). Furthermore, an initial reviewof the GMS Transport Sector Strategy (2006-2015) was undertaken toassess achievements in physical connectivity and to identify strategicpriorities for the transport sector in the coming years.
b. In energy, all the GMS countries signed the MOU for theEstablishment of the Regional Power Coordination Center (RPCC), intendedto be a permanent institution owned by all GMS countries to enhanceregional power trade and implement regional power interconnectionprojects. With this agreement coming into force, the process forselecting the RPCC host country is ongoing. The new studies on“Strategic Environment Assessment for the GMS Regional Power DevelopmentPlanning” and “GMS Renewable Energy and Energy Efficiency Development”would provide useful guidelines for power development planning andidentify opportunities to promote renewable energy and energy efficiencyin the GMS.
c. In information andcommunications technology (ICT), the optical fiber interconnection amongthe GMS countries is now in place and an MOU on the Joint Cooperationin Further Accelerating the Construction of the Information Superhighwayand its Application in the GMS has been signed by all countries,providing the roadmap and parameters for promoting universal access toICT applications, particularly in the areas of e-commerce, rural ICT,and green ICT technology.
8. In the“softer” but equally important areas of GMS cooperation, we havewitnessed substantial progress and important results:
a.In transport and trade facilitation (TTF), efforts continuedto implement bilateral and trilateral road transport agreements betweenGMS countries such as: (i) Cambodia and Viet Nam along the SouthernEconomic Corridor (SEC); (ii) the PRC and Viet Nam along the NSEC; (iii)Lao PDR, Thailand, and Viet Nam to extend the existing EWEC agreementto their respective capitals; and (iv) Lao PDR and Viet Nam to fullyimplement single stop, single window inspection at the Lao Bao-Dansavanhinternational border checkpoint by 2015. We encourage the PRC, Lao PDRand Thailand to fast-track the negotiations on their MOU to implementthe CBTA along the NSEC, and for PRC and Myanmar to negotiate a MOUto facilitate cross-border transport and trade. The Action Plan for GMSTransport Facilitation (2013-2015) was endorsed by the 4th JointCommittee Meeting for the CBTA in November 2013, and a midterm review ofthe current Plan of Action for TTF in the GMS was completed inmid-2014. TTF initiatives over the medium-term will focus on buildingcapacities of the CLMV countries and upgrading the CBTA to adoptregional and international best practices in order to facilitatecross-border transport and trade in the GMS.
b.In agriculture, implementation of the second phase of the CoreAgriculture Support Program is well underway, and this supports thestrengthening of policy frameworks and capacities for agri-food qualitymanagement, introducing electronic trade for environmentally friendlyfood products, adopting gender-responsive and climate-friendlyagriculture practices, and strengthening institutional mechanisms forregional cooperation on agriculture in the GMS.
c.In tourism, building on improved physical connectivity andsimplified visa requirements, tourist arrivals to the GMS continued torise, reaching 52 million in 2013. The GMS Tourism Infrastructure forInclusive Growth Project was approved in 2014, and a new initiative tohelp strengthen the Mekong Tourism Coordinating Office (MTCO) isunderway. Thailand, in cooperation with the Asian Development Bank(ADB), will proceed to establish MTCO’s legal status and itsregistration in Thailand. An updated GMS Tourism Sector Strategycovering 2016-2026 is under preparation and will provide the blueprintfor expanded subregional cooperation in this sector over the nextdecade.
d. In human resource development(HRD), implementation of the HRD Strategic Framework and Action Plan(2013-2017) has commenced. In line with the ASEAN QualificationsReference Framework to facilitate the free flow of skilled labor andstrengthen the competitiveness of the GMS labor force, a pilot frameworkfor the mutual recognition of skills and qualifications has beenimplemented and will be expanded to cover more skill areas. The secondphase of the Communicable Disease Control Project is further improvingthe GMS countries’ capacities to respond to outbreaks and contain thespread of diseases across borders. We laud the Phnom Penh Plan (PPP)for Development Management after a decade of successful implementation.The PPP has helped our GMS officials, and our research and traininginstitutions, to better manage the complex GMS development agenda, andlaid a solid foundation for developing skills, sharing knowledge,networking, and strengthening institutional capacities throughout theGMS.
e. In the environment, the GMS CoreEnvironment Program (CEP) Phase II (2012 – 2016) is continuing to focuson safeguarding and enhancing the natural resources upon which thesubregion’s food, water and energy security is largely dependent. Withthe added dimension of climate change considerations, priorityundertakings include: the development of management strategies fortransboundary biodiversity landscapes; the application of environmentalmanagement tools for infrastructure investments according to nationalcircumstances, rules and regulations, as well as the level ofdevelopment of each country; enhancement of the CEP website as aregional knowledge hub; and the strengthening of cooperation amonggovernments, businesses, academia, and civil society groups.
9. In other emerging areas of cooperation, a GMSUrban Development Strategic Framework is being finalized under theauspices of the Urban Development Task Force created in July 2013. Thefirst Corridor Towns Development Project is now under implementation tosupport the development of competitive and environmentally friendlycities along the GMS economic corridors, and further corridor townprojects are in the pipeline. The development of cross-border economiczones is being pursued, such as those between the PRC and Viet Namand between the PRC and Lao PDR.
10.The Economic Corridors Forum (ECF) has completed this year its firstfull cycle of hosting of the Forum by all GMS countries. The ECF hasserved well its role as the main advocate, overseer and coordinator ofall activities toward the development of the GMS economic corridors. Ithas facilitated networking and exchange of information, overseen thepreparation of and endorsed strategies and action plans (SAPs) forspecific economic corridors, identified the relevant corridor-relatedissues to be addressed, institutionalized the participation of localauthorities, and enhanced the involvement of the private sector ineconomic corridor development.
III. Remaining Challenges
11. While the accomplishments under the GMS Programhave been significant in recent years, we recognize that numerouschallenges remain in furthering the subregion’s connectivity,competitiveness and sense of community. Despite the advances in physicalconnectivity across the GMS, substantial infrastructure gaps remain,including the poor quality of secondary roads, missing railway links,inadequate maritime port and airport infrastructure, lack of logisticsfacilities, and insufficient power generation and transmissionfacilities to meet growing demand.
12.Moreover, despite enhanced subregional connectivity, the costs ofcross-border trade in the GMS remain high and vary widely acrosscountries, largely because of nontariff barriers, the remaininginfrastructure gaps, complicated trade procedures and processes, andunreliable logistics services. The GMS was a pioneer in promoting asubregional framework for TTF under the CBTA; however, many factors havecontributed to its delayed implementation, and now is the time toreinvigorate TTF efforts as a means to further strengthen thesubregion’s connectivity as well as competitiveness. We urge GMScountries to start full implementation of the CBTA by speeding up andconcluding the ratification of its Annexes and Protocols and byaccelerating the negotiation and implementation of bilateral andtrilateral MOUs.
13. Achieving anintegrated and prosperous GMS community is also at risk if thesignificant development gaps, both within and among countries, continueto widen. We need to ensure that past, ongoing and planned projectsare inclusive so that their development benefits reach the poor. We alsoneed to respond to the needs of the most vulnerable members of societyby providing adequate social safety needs, while also meeting theirbasic needs in terms of food security, shelter, health, and education.
14. Rapid economic and populationgrowth have increased the demand for energy, land, water and otherresources. The GMS, its countries and local communities face manyenvironmental challenges, some of which call for solutions throughregional cooperation.
15. The long-term success of the GMS Program verymuch depends on more extensive and effective engagement with the privatesector. Improving overall GMS competitiveness largely depends on thehealth and vitality of small and medium enterprises (SMEs), and onenabling them to tap into regional and global value chains. The privatesector remains the primary source for new jobs, higher incomes andbetter opportunities for the youth of the GMS.
16.With more than two decades of successful cooperation,the GMS Program has matured and faces the management challenge ofnumerous, complex undertakings and initiatives. Planning, financing andimplementing the new generation of projects under the RIF will requireeven greater coordination and capacity within individual GMS countries.The GMS national secretariats have a tremendous responsibility to carrythe GMS legacy forward. We welcome the continued support from ADB andother development partners in the areas of financing, knowledge sharing,and capacity building, but we also recognize the need for individualcountries to endeavor to secure the human and financial resources neededto sustain the GMS Program into the future.
IV. The Way Forward
17. To achieve the goal of opening up new prospectsfor future cooperation, achieving common prosperity in the subregion,and realizing the GMS vision of greater connectivity, competitivenessand community, it is imperative to further strengthen partnerships amongthe GMS countries, align the GMS vision with national developmentstrategies, and build an open economy in the subregion featuringintegrated, innovative and interconnected development, in order toattain mutual benefits, and to ensure that future development isinclusive and sustainable.
18. TheRIF Implementation Plan (2014-2018) provides us a strategic andresults-based action plan to help us address many of these challenges inthe coming years and also to seize new opportunities for sustaining GMScooperation and development. We will need to work together to implementthe plan and also to monitor its progress to ensure that developmentresults and benefits are achieved.
19.As we are committed to continue our joint efforts to transform the GMStransport corridors into economic corridors, we task the GMS Ministers,senior officials, GMS working groups, forums, and task forces toimplement the Strategy and Action Plans (SAPs) for the GMS EconomicCorridors. Implementation of the SAPs should focus on selecting prioritysections along the corridors which offer the greatest potential forattracting investment and yielding long-term development benefits. Forthese corridor sections, the identification of investment needs andopportunities should draw upon inputs from provincial and localgovernment officials, the private sector and community residents.
20. Strengthening connectivityis conducive to generating new growth and fostering new competitiveedge. Moreover, we commit to removing software constraints tocross-border connectivity. In this regard, we mandate the formulation ofa clear, comprehensive and integrated TTF Action Program, covering allaspects affecting the cross-border flow of vehicles, goods and people,to be implemented in a highly coordinated and effective manner.
21. Our focus on economic corridors also requiresthat we make necessary changes to the GMS Program’s institutionalframework and mechanisms to help us respond effectively to emergingareas of cooperation, such as integrated urban development, CBEZs andlogistics centers. We will also need to support theoperationalization of new GMS institutions such as the GMRA, and ensurethat the RPCC serves as a forum for addressing GMS power challenges andopportunities in the coming years.
22. Considering that ECF will play a more importantrole in promoting and developing GMS economic corridors and implementingthe ten-year GMS Strategic Framework, we are committed to take concreteactions to strengthen the ECF framework. We welcome the Action Agendaon Enhancing GMS Economic Corridor Forum (ECF) Framework andinstruct GMS Ministers/Senior Officials to further study the document.We agree to maintain the current hosting order and the ministerial levelof the ECF, recognizing that ECF participation could be by ministers ortheir designated senior officials. We agree that the GMS GovernorsForum will be revitalized and held back-to-back with the ECF annually,and welcome the PRC’s offer to organize the GMS Commodity Trade Fair andGMS Economic Corridor Week as supporting activities of the ECF in 2015.
23. The private sector should bethe primary driver of economic corridor development, with the publicsector establishing a conducive policy and regulatory environment,providing basic infrastructure, utilities and services, as well asfacilitating cooperation and collaboration at the local, national andsubregional levels. GMS governments should also ensure the success ofprivate sector initiatives specifically aimed at improving subregionalcompetitiveness, such as the GMS Freight Transport Association (FRETA)as well as the recently launched Mekong Business Initiative. We alsourge ADB to further promote the development of the private sector in theGMS and also assist in removing constraints to SME growth such asaccess to finance, knowledge, and business support services.
24. Recognizing that the benefits of GMS cooperationcan only be maximized and made sustainable by greater integration withthe broader region, we will ensure that all efforts are aligned, and tapsynergies with those of other regional groupings and initiatives,including ASEAN, ASEAN-China, and ASEAN + 3.
25.As we are well aware that the GMS and its people are highlyvulnerable to the impacts of climate change and the risks ofever-worsening natural disasters, we will also pursue concerted effortsto develop and implement measures that reduce the risks and mitigate theimpacts of climate change and other natural disasters, and to promotesustainable development including protection and efficient developmentof natural resources. Moreover, in light of the need to buildstronger cooperation on the environment among GMS countries, we welcomethe holding of t he GMS Environment Ministers’ Meeting in January 2015.
26. Recognizing that the successof all efforts, particularly the realization of the priority projects inthe RIF Implementation Plan, crucially depends on the support of thedevelopment partners, the private sector, and many other stakeholders,we will endeavor to find ways to strengthen our partnerships and ensurethat financial and other resources are sufficient to realize ourcollective commitment to inclusive and sustainable development in theGMS. Moreover, given the significant number of new generation projectsin the RIF Implementation Plan that are both multifaceted andchallenging, there is a crucial need to further strengthen the GMSNational Secretariats' capacity to implement the plan and to respond tonew challenges. In addition, we should utilize the Phnom Penh Planto conduct more training programs for member countries.
27. We acknowledge and greatly appreciate theversatile role that ADB has played in the GMS Program, including assecretariat, coordinator, and a key financier. We trust that ADB andother development partners will heed our request for their continuedsupport.
V. Conclusion
28.Over its more than 22 years of existence, the GMS Program hasaccomplished much for the subregion and its people, and it has alsoserved as a model for other regional groupings by showing what can beachieved with genuine goodwill and cooperation among countries.
29. Now more than ever, we need to build upon ourfoundation of cooperation to address many new and emerging challenges inthe GMS, and we are confident that we can leverage our cooperationunder the GMS Program to achieve even greater benefits for the subregionand its people.
30. We agree to meet again at the Sixth GMS Summit to be held in Viet Nam in 2017.-VNA
Following is the full text of the joint declaration.
Joint Summit Declaration
“ Committed to Inclusive and Sustainable Development in the GMS”
WE, the Heads of the Governments of the Kingdom of Cambodia, thePeople’s Republic of China (PRC), the Lao People’s Democratic Republic(Lao PDR), the Republic of the Union of Myanmar, the Kingdom ofThailand, and the Socialist Republic of Viet Nam, on the occasion of theFifth GMS Summit:
Abiding by the GMS tradition ofpragmatic and results-oriented cooperation, strong country ownership,close consultations among member countries, and pursuit of mutual andinclusive benefits;
Reaffirming the broad directions,thrusts, and approaches contained in the GMS Strategic Framework(2012–2022), which we endorsed at the Fourth GMS Summit in Nay Pyi Taw,Myanmar on 20 December 2011;
Appreciating thetremendous efforts of our Ministers, senior officials, and all concernedparties in translating the GMS Strategic Framework into a RegionalInvestment Framework, in compliance with our directive to generate aportfolio of second generation GMS projects for the new decade;
Recognizing that efforts are now focused on the resolute and promptimplementation of the Regional Investment Framework to achieve theultimate goal of inclusive and sustainable development in the GMS;
HEREBY JOIN FORCES toward the expeditious and successful execution ofpriority investment projects and other cooperative undertakings weagreed upon, and the realization of their benefits for the peoples ofthe GMS, guided by a clear and pragmatic implementation plan andmobilizing the support of all stakeholders.
I. Developments in the Regional and Global Context
1. The global economy is gradually recoveringfrom the recent worldwide financial and economic crisis, with the majorindustrial economies making progress, although the overall growth isstill slow and uneven. The Asian economies have shown the greatestresilience in the aftermath of the crisis and are now leading the globaleconomic recovery and making every effort to sustain their gainsthrough sound fiscal policies and financial reforms.
2.Within Asia, increasing regional and sub-regionalcooperation has greatly accelerated connectivity and integration. TheASEAN-member countries are making steady progress toward realization ofthe ASEAN Economic Community (AEC) with many measures of the AECBlueprint now under implementation. Moreover, maturing trade andinvestment frameworks between ASEAN and other key countries in theregion, including the Free Trade Area between ASEAN and the People’sRepublic of China, have led to substantial tariff reductions andincreased flows of goods, investment and services across borders.
3. However, there are still a number ofpotential threats to the steady recovery as well as sustained long termgrowth of Asian economies, including global and regional environmentalconcerns, as well as the increasing severity of natural disasters, manyof which can be attributed to climate change. T he uneven levels ofpreparedness among ASEAN member countries for more integrated marketsunder the AEC also pose challenges, both to the public and privatesectors.
4. Within the GMS, theopening up and integration of Myanmar into the regional economy hasaccelerated since the Fourth GMS Summit in Nay Pyi Taw three years ago,providing tremendous opportunities for closer cooperation within theGMS. This cooperation can translate into increased cross-borderconnectivity, greater trade and investment, and a brighter future forthe people of Myanmar , as well as the people of the GMS.
II. Recent Results of GMS Cooperation
5. Against this backdrop of global and regionaltrends, continued cooperation within the GMS has yielded substantialresults since our last Summit in 2011. First, we have carefully andclearly defined the strategic thrusts of the GMS Economic CooperationProgram for the medium- and long-term. Since our endorsement of the GMSStrategic Framework at the Fourth Summit, our GMS forums, workinggroups, task forces and senior officials finalized the RegionalInvestment Framework (RIF), a detailed and time-bound investment programto support the Strategic Framework. The GMS Ministers endorsed the RIFat the19th Ministerial Conference last year.
6.Further, to ensure that the highest priority projectsin the RIF pipeline attract the necessary financing and areimplemented, a realistic and achievable RIF Implementation Plan hasbeen prepared, together with a simple monitoring and evaluation(M&E) system. The RIF Implementation Plan, which identifies 92 highpriority subregional projects for 2014-2018 with an estimated total costof $30.1 billion, not only provides a strategic roadmap and actionplan, but it will also serve as an effective marketing tool in ourefforts to generate broad support for key initiatives throughout theGMS.
7. Over the past threeyears, sustained cooperation at the sector level has also yieldedsignificant results. In the traditional area of infrastructureconnectivity, some notable achievements include:
a.In transport, the infrastructure foundation of the GMS corridorswas further bolstered by the completion of the Fourth InternationalMekong Bridge between Hoayxay, Lao PDR and Chiang Khong, Thailand, thelast missing link along the North-South Economic Corridor (NSEC), whichwas opened in December last year. Also, along the eastern part of theNSEC, the 240-kilometer Noi Bai-Lao Cai Expressway in Viet Nam , oneof the largest GMS infrastructure projects, was opened in September thisyear. Preparations are underway to extend the East-West EconomicCorridor (EWEC) into Myanmar, with project financing to beconsidered for approval in 2015. The Southern Cambodia Railway Linefrom Phnom Penh to Sihanoukville was completed and opened for commercialtraffic in December 2012. The Memorandum of Understanding (MOU) forthe Establishment of the Greater Mekong Railway Association (GMRA) wassigned by all the GMS countries, and technical assistance from ADB isongoing. This is a positive step toward the promotion of railways as anefficient and clean mode of transport. We also welcome continued effortsto maximize the economic and social benefits of GMS roads and bridgesby facilitating cross-border transport through the GMS Cross BorderTransport Facilitation Agreement (CBTA). Furthermore, an initial reviewof the GMS Transport Sector Strategy (2006-2015) was undertaken toassess achievements in physical connectivity and to identify strategicpriorities for the transport sector in the coming years.
b. In energy, all the GMS countries signed the MOU for theEstablishment of the Regional Power Coordination Center (RPCC), intendedto be a permanent institution owned by all GMS countries to enhanceregional power trade and implement regional power interconnectionprojects. With this agreement coming into force, the process forselecting the RPCC host country is ongoing. The new studies on“Strategic Environment Assessment for the GMS Regional Power DevelopmentPlanning” and “GMS Renewable Energy and Energy Efficiency Development”would provide useful guidelines for power development planning andidentify opportunities to promote renewable energy and energy efficiencyin the GMS.
c. In information andcommunications technology (ICT), the optical fiber interconnection amongthe GMS countries is now in place and an MOU on the Joint Cooperationin Further Accelerating the Construction of the Information Superhighwayand its Application in the GMS has been signed by all countries,providing the roadmap and parameters for promoting universal access toICT applications, particularly in the areas of e-commerce, rural ICT,and green ICT technology.
8. In the“softer” but equally important areas of GMS cooperation, we havewitnessed substantial progress and important results:
a.In transport and trade facilitation (TTF), efforts continuedto implement bilateral and trilateral road transport agreements betweenGMS countries such as: (i) Cambodia and Viet Nam along the SouthernEconomic Corridor (SEC); (ii) the PRC and Viet Nam along the NSEC; (iii)Lao PDR, Thailand, and Viet Nam to extend the existing EWEC agreementto their respective capitals; and (iv) Lao PDR and Viet Nam to fullyimplement single stop, single window inspection at the Lao Bao-Dansavanhinternational border checkpoint by 2015. We encourage the PRC, Lao PDRand Thailand to fast-track the negotiations on their MOU to implementthe CBTA along the NSEC, and for PRC and Myanmar to negotiate a MOUto facilitate cross-border transport and trade. The Action Plan for GMSTransport Facilitation (2013-2015) was endorsed by the 4th JointCommittee Meeting for the CBTA in November 2013, and a midterm review ofthe current Plan of Action for TTF in the GMS was completed inmid-2014. TTF initiatives over the medium-term will focus on buildingcapacities of the CLMV countries and upgrading the CBTA to adoptregional and international best practices in order to facilitatecross-border transport and trade in the GMS.
b.In agriculture, implementation of the second phase of the CoreAgriculture Support Program is well underway, and this supports thestrengthening of policy frameworks and capacities for agri-food qualitymanagement, introducing electronic trade for environmentally friendlyfood products, adopting gender-responsive and climate-friendlyagriculture practices, and strengthening institutional mechanisms forregional cooperation on agriculture in the GMS.
c.In tourism, building on improved physical connectivity andsimplified visa requirements, tourist arrivals to the GMS continued torise, reaching 52 million in 2013. The GMS Tourism Infrastructure forInclusive Growth Project was approved in 2014, and a new initiative tohelp strengthen the Mekong Tourism Coordinating Office (MTCO) isunderway. Thailand, in cooperation with the Asian Development Bank(ADB), will proceed to establish MTCO’s legal status and itsregistration in Thailand. An updated GMS Tourism Sector Strategycovering 2016-2026 is under preparation and will provide the blueprintfor expanded subregional cooperation in this sector over the nextdecade.
d. In human resource development(HRD), implementation of the HRD Strategic Framework and Action Plan(2013-2017) has commenced. In line with the ASEAN QualificationsReference Framework to facilitate the free flow of skilled labor andstrengthen the competitiveness of the GMS labor force, a pilot frameworkfor the mutual recognition of skills and qualifications has beenimplemented and will be expanded to cover more skill areas. The secondphase of the Communicable Disease Control Project is further improvingthe GMS countries’ capacities to respond to outbreaks and contain thespread of diseases across borders. We laud the Phnom Penh Plan (PPP)for Development Management after a decade of successful implementation.The PPP has helped our GMS officials, and our research and traininginstitutions, to better manage the complex GMS development agenda, andlaid a solid foundation for developing skills, sharing knowledge,networking, and strengthening institutional capacities throughout theGMS.
e. In the environment, the GMS CoreEnvironment Program (CEP) Phase II (2012 – 2016) is continuing to focuson safeguarding and enhancing the natural resources upon which thesubregion’s food, water and energy security is largely dependent. Withthe added dimension of climate change considerations, priorityundertakings include: the development of management strategies fortransboundary biodiversity landscapes; the application of environmentalmanagement tools for infrastructure investments according to nationalcircumstances, rules and regulations, as well as the level ofdevelopment of each country; enhancement of the CEP website as aregional knowledge hub; and the strengthening of cooperation amonggovernments, businesses, academia, and civil society groups.
9. In other emerging areas of cooperation, a GMSUrban Development Strategic Framework is being finalized under theauspices of the Urban Development Task Force created in July 2013. Thefirst Corridor Towns Development Project is now under implementation tosupport the development of competitive and environmentally friendlycities along the GMS economic corridors, and further corridor townprojects are in the pipeline. The development of cross-border economiczones is being pursued, such as those between the PRC and Viet Namand between the PRC and Lao PDR.
10.The Economic Corridors Forum (ECF) has completed this year its firstfull cycle of hosting of the Forum by all GMS countries. The ECF hasserved well its role as the main advocate, overseer and coordinator ofall activities toward the development of the GMS economic corridors. Ithas facilitated networking and exchange of information, overseen thepreparation of and endorsed strategies and action plans (SAPs) forspecific economic corridors, identified the relevant corridor-relatedissues to be addressed, institutionalized the participation of localauthorities, and enhanced the involvement of the private sector ineconomic corridor development.
III. Remaining Challenges
11. While the accomplishments under the GMS Programhave been significant in recent years, we recognize that numerouschallenges remain in furthering the subregion’s connectivity,competitiveness and sense of community. Despite the advances in physicalconnectivity across the GMS, substantial infrastructure gaps remain,including the poor quality of secondary roads, missing railway links,inadequate maritime port and airport infrastructure, lack of logisticsfacilities, and insufficient power generation and transmissionfacilities to meet growing demand.
12.Moreover, despite enhanced subregional connectivity, the costs ofcross-border trade in the GMS remain high and vary widely acrosscountries, largely because of nontariff barriers, the remaininginfrastructure gaps, complicated trade procedures and processes, andunreliable logistics services. The GMS was a pioneer in promoting asubregional framework for TTF under the CBTA; however, many factors havecontributed to its delayed implementation, and now is the time toreinvigorate TTF efforts as a means to further strengthen thesubregion’s connectivity as well as competitiveness. We urge GMScountries to start full implementation of the CBTA by speeding up andconcluding the ratification of its Annexes and Protocols and byaccelerating the negotiation and implementation of bilateral andtrilateral MOUs.
13. Achieving anintegrated and prosperous GMS community is also at risk if thesignificant development gaps, both within and among countries, continueto widen. We need to ensure that past, ongoing and planned projectsare inclusive so that their development benefits reach the poor. We alsoneed to respond to the needs of the most vulnerable members of societyby providing adequate social safety needs, while also meeting theirbasic needs in terms of food security, shelter, health, and education.
14. Rapid economic and populationgrowth have increased the demand for energy, land, water and otherresources. The GMS, its countries and local communities face manyenvironmental challenges, some of which call for solutions throughregional cooperation.
15. The long-term success of the GMS Program verymuch depends on more extensive and effective engagement with the privatesector. Improving overall GMS competitiveness largely depends on thehealth and vitality of small and medium enterprises (SMEs), and onenabling them to tap into regional and global value chains. The privatesector remains the primary source for new jobs, higher incomes andbetter opportunities for the youth of the GMS.
16.With more than two decades of successful cooperation,the GMS Program has matured and faces the management challenge ofnumerous, complex undertakings and initiatives. Planning, financing andimplementing the new generation of projects under the RIF will requireeven greater coordination and capacity within individual GMS countries.The GMS national secretariats have a tremendous responsibility to carrythe GMS legacy forward. We welcome the continued support from ADB andother development partners in the areas of financing, knowledge sharing,and capacity building, but we also recognize the need for individualcountries to endeavor to secure the human and financial resources neededto sustain the GMS Program into the future.
IV. The Way Forward
17. To achieve the goal of opening up new prospectsfor future cooperation, achieving common prosperity in the subregion,and realizing the GMS vision of greater connectivity, competitivenessand community, it is imperative to further strengthen partnerships amongthe GMS countries, align the GMS vision with national developmentstrategies, and build an open economy in the subregion featuringintegrated, innovative and interconnected development, in order toattain mutual benefits, and to ensure that future development isinclusive and sustainable.
18. TheRIF Implementation Plan (2014-2018) provides us a strategic andresults-based action plan to help us address many of these challenges inthe coming years and also to seize new opportunities for sustaining GMScooperation and development. We will need to work together to implementthe plan and also to monitor its progress to ensure that developmentresults and benefits are achieved.
19.As we are committed to continue our joint efforts to transform the GMStransport corridors into economic corridors, we task the GMS Ministers,senior officials, GMS working groups, forums, and task forces toimplement the Strategy and Action Plans (SAPs) for the GMS EconomicCorridors. Implementation of the SAPs should focus on selecting prioritysections along the corridors which offer the greatest potential forattracting investment and yielding long-term development benefits. Forthese corridor sections, the identification of investment needs andopportunities should draw upon inputs from provincial and localgovernment officials, the private sector and community residents.
20. Strengthening connectivityis conducive to generating new growth and fostering new competitiveedge. Moreover, we commit to removing software constraints tocross-border connectivity. In this regard, we mandate the formulation ofa clear, comprehensive and integrated TTF Action Program, covering allaspects affecting the cross-border flow of vehicles, goods and people,to be implemented in a highly coordinated and effective manner.
21. Our focus on economic corridors also requiresthat we make necessary changes to the GMS Program’s institutionalframework and mechanisms to help us respond effectively to emergingareas of cooperation, such as integrated urban development, CBEZs andlogistics centers. We will also need to support theoperationalization of new GMS institutions such as the GMRA, and ensurethat the RPCC serves as a forum for addressing GMS power challenges andopportunities in the coming years.
22. Considering that ECF will play a more importantrole in promoting and developing GMS economic corridors and implementingthe ten-year GMS Strategic Framework, we are committed to take concreteactions to strengthen the ECF framework. We welcome the Action Agendaon Enhancing GMS Economic Corridor Forum (ECF) Framework andinstruct GMS Ministers/Senior Officials to further study the document.We agree to maintain the current hosting order and the ministerial levelof the ECF, recognizing that ECF participation could be by ministers ortheir designated senior officials. We agree that the GMS GovernorsForum will be revitalized and held back-to-back with the ECF annually,and welcome the PRC’s offer to organize the GMS Commodity Trade Fair andGMS Economic Corridor Week as supporting activities of the ECF in 2015.
23. The private sector should bethe primary driver of economic corridor development, with the publicsector establishing a conducive policy and regulatory environment,providing basic infrastructure, utilities and services, as well asfacilitating cooperation and collaboration at the local, national andsubregional levels. GMS governments should also ensure the success ofprivate sector initiatives specifically aimed at improving subregionalcompetitiveness, such as the GMS Freight Transport Association (FRETA)as well as the recently launched Mekong Business Initiative. We alsourge ADB to further promote the development of the private sector in theGMS and also assist in removing constraints to SME growth such asaccess to finance, knowledge, and business support services.
24. Recognizing that the benefits of GMS cooperationcan only be maximized and made sustainable by greater integration withthe broader region, we will ensure that all efforts are aligned, and tapsynergies with those of other regional groupings and initiatives,including ASEAN, ASEAN-China, and ASEAN + 3.
25.As we are well aware that the GMS and its people are highlyvulnerable to the impacts of climate change and the risks ofever-worsening natural disasters, we will also pursue concerted effortsto develop and implement measures that reduce the risks and mitigate theimpacts of climate change and other natural disasters, and to promotesustainable development including protection and efficient developmentof natural resources. Moreover, in light of the need to buildstronger cooperation on the environment among GMS countries, we welcomethe holding of t he GMS Environment Ministers’ Meeting in January 2015.
26. Recognizing that the successof all efforts, particularly the realization of the priority projects inthe RIF Implementation Plan, crucially depends on the support of thedevelopment partners, the private sector, and many other stakeholders,we will endeavor to find ways to strengthen our partnerships and ensurethat financial and other resources are sufficient to realize ourcollective commitment to inclusive and sustainable development in theGMS. Moreover, given the significant number of new generation projectsin the RIF Implementation Plan that are both multifaceted andchallenging, there is a crucial need to further strengthen the GMSNational Secretariats' capacity to implement the plan and to respond tonew challenges. In addition, we should utilize the Phnom Penh Planto conduct more training programs for member countries.
27. We acknowledge and greatly appreciate theversatile role that ADB has played in the GMS Program, including assecretariat, coordinator, and a key financier. We trust that ADB andother development partners will heed our request for their continuedsupport.
V. Conclusion
28.Over its more than 22 years of existence, the GMS Program hasaccomplished much for the subregion and its people, and it has alsoserved as a model for other regional groupings by showing what can beachieved with genuine goodwill and cooperation among countries.
29. Now more than ever, we need to build upon ourfoundation of cooperation to address many new and emerging challenges inthe GMS, and we are confident that we can leverage our cooperationunder the GMS Program to achieve even greater benefits for the subregionand its people.
30. We agree to meet again at the Sixth GMS Summit to be held in Viet Nam in 2017.-VNA
