The 2nd ASEAN Reader

23. The Greater Mekong Subregion: An ASEAN Issue

The Greater Mekong Subregion: An ASEAN Issue 117 By: ROS Size: 7.5" x 10.25" J/No: 03-14474 Fonts: New Baskerville 23. THE GREATER MEKONG SUBREGION An ASEAN Issue KAO KIM HOURN and SISOWATH D. CHANTO Reprinted in abridged form from Kao Kim Hourn and Sisowath D. Chanto, “The Greater Mekong Subregion: An ASEAN Issue”, in Reinventing ASEAN, edited by Simon S. C. Tay, Jesus P. Estanislao, and Hadi Soesastro (Singapore: Institute of Southeast Asian Studies, 2001), pp. 163–82, by permission of the publisher. In general, ASEAN’s economic processes are in place. The challenging task is to develop a sustainable and reliable programme for delivering development, in addition to improving capital and credit transfers to the developing members. Apart from border issues, and sporadic security hot flashes along the borders, the stability of the region depends heavily on its capacity to enhance development for its people. This needs the improvement of both “hard” and “soft” capital. Physical infrastructure is needed, but the challenge of improving human resources is also very real. Creating a viable delivery mechanism is something that the ASEAN member states must commit to, especially for human resource development. To enhance the prospects of the GMS, human resource development is not a luxury but a necessity. The plans for regional social and economic integration cannot otherwise become reality. The arguments for closing income and development gaps between the developing and developed members in ASEAN are manifold. The relevant economic issues include the allocation of foreign direct investments (FDI), the availability of commercial and government credit to businesses, the transfer of skills, the transfer of technology, and the laws regarding investment and tariffs. Additionally, legal frameworks for transregional extradition treaties, the enforcement of civil and criminal law, and the protection of intellectual property and copyright must be on the agenda. Even more broadly, social issues like the spread of HIV/AIDS require technical skills to administer and manage. Yet when there is discussion of the needs of the GMS, the focus is often on the physical aspects, or “hardware” of development. Ravaged by wars, and severed by closed market systems and the Cold War, the GMS countries were largely marginalized in the world economy. The 1997 Asian economic crisis added another burden to the rebuilding process. 023 AR Ch 23 22/9/03, 12:42 PM 117 118 Kao Kim Hourn and Sisowath D. Chanto By: ROS Size: 7.5" x 10.25" J/No: 03-14474 Fonts: New Baskerville Many promises have been made and are waiting to be met. Many of the plans, moreover, should be run by private sector entities. How can governments and intergovernmental institutions help? The ADB is playing a very active role in administering technical assistance, in addition to soliciting potential investors to invest in the GMS. The two go handin -hand. As one commentator, Council Secretary of the Singapore Institute of International Affairs, Dr Eric Teo, has suggested , economic development should be inherently embedded in human resource development in order to enhance the capacity for development. The GMS member states must tune their mindsets accordingly. They must establish a public– private partnership (PPP) to involve the private sector.1 There are other co-operation initiatives in the Mekong Basin too. For example, the ASEAN Economic Ministers (AEM), and the Ministry of International Trade and Industry (MITI) of Japan met on 4–5 July 2000, and created a working group to implement the following work programme:2 • To eradicate poverty and to reduce the gap in development between the West and East Corridor (WEC); • To utilize the comparative advantages of the WEC areas in terms of labour and natural resource; • To enhance economic liberalization and facilitation of cultural interaction, and to strengthen economic integration among the ASEAN member countries, and between ASEAN and other countries outside the region. In trade facilitation, the GMS countries have taken the following measures: 1. Border trade facilitation, including customs co-operation; 2. In customs matters, mutual recognition arrangements, standardization of customs procedures and forms, and customs co-operation in ASEAN and APEC. In investment, the GMS countries are focusing on: 1. Promotion: How to promote the GMS as an investment region? Can a GMS trade fair or investment promotion exhibition be held back-to-back with some major ASEAN economic meetings? 2. Deregulation: How to promote an “even playing field” so that GMS countries do not undercut one another in offering excessive investment incentives? How can it build on what ASEAN is doing...